Kogan – Delivering well ahead of forecast (KGN)

Kogan released their FY17 numbers on Friday, and the market was delighted with the result – share price shot up nearly 9% to close at $2.61.  I wasn’t actually that surprised at the numbers, seeing as the revenue beat was in line with the HY17 result – information that was freely available to everyone back when the share price was hovering around $1.60.


The shareholder call foreshadowed more good times ahead, however:

  • Current staff of 129 is adequate to cater for growth due to automation
  • Unaudited July results show a revenue increase YoY of 34.9%
  • The mobile growth trajectory is expected to continue for years to come
  • NBN and Insurance revenue will commence this FY, at almost 100% of GP


If you remove cash from the balance sheet KGN is trading around 30x earnings, but I will be comfortable continuing to buy at these levels.


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