Last Update19 Aug 25Fair value Increased 36%
hhhh has increased revenue growth from 15.0% to 17.0% and decreased shares outstanding growth rate from 0.0% to 0.0%.
The Company
- Freightos is a International SaaS-like company that operates a B2B platform for booking logistics services.
- Freightos consists of two divisions: Freightos for shipping & Webcargo for air logistics, where revenue is generated through transaction fees as well as the use of the platform directly through page subscriptions.
- Freightos offers various services through subscriptions: price queries, container rates, API access, indexes and automated freight tracking.
Catalysts
- Strong growth in the market for digital logistics applications such as the B2B platform from Freightos.
- Strong economies of scale through high gross margins and low capex.
- A diversified provider portfolio provides a certain degree of security against concentration risk, which can be essential in economic crises.
Assumptions
- We expect a margin increase to over 18% over the next 10 years, mainly due to economies of scale.
- We expect a sales CAGR of approximately 15% over the next 10 years due to strong industry growth and optimistic market position.
Valuation
- With a base case DCF we arrive at an intrinsic enterprise value of around 200 million including cash & other equivalents.
- For a half SaaS like Freightos, you can expect a P/E of around 30, potentially even lower. For a company like Freightos, it depends on the market situation.
Risks
- The global freight market is vulnerable to a collapse in global trade, such as in 2008, or trade declines/delays, such as those caused by the Houthi rebels at the Souez Canal. Transaction revenues could temporarily decline sharply.
- As a smaller company, Freightos faces competitive risks, such as buyouts or more aggressive capital investment by other companies to gain market share, which can make growth very difficult.
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Disclaimer
The user hhhh has a position in NasdaqCM:CRGO. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.