Latest news with #Serko
NZ Herald
23-07-2025
- Business
- NZ Herald
Agribusiness and Trade: Serko taps Bengaluru talent after acquisition
'We were looking for a new development hub and wanted to expand our global footprint. When we had the opportunity for the GetThere acquisition, India became our top choice. 'There's a good saturation of the knowledge we need for our business. In particular, we found people with corporate travel knowledge. That comes from Sabre's strong presence there. There are lots of folk working in the same domain as us there so getting people with travel knowledge is easier than in New Zealand. 'We didn't just get engineers, we got people who already understood corporate travel,' Young says. His colleague, Serko chief marketing officer Nick Whitehead says many of the company's leadership team had prior experience working with Indian teams, including himself at Expedia. Young says there is a cultural connection, in part due to the Indian expats working in tech roles in New Zealand. And then there is cricket. 'If you mention cricket, you've got instant rapport,' says Young. 'There's a natural affinity between India and New Zealand.' The company has supported this by encouraging two-way travel — sending New Zealand staff to India and bringing Indian leaders to New Zealand. Whitehead says Bengaluru is a competitive and vibrant tech hub. 'There's fierce competition for talent. We've hired senior leaders from Uber and others, who then attract great talent.' Serko chief marketing officer Nick Whitehead To win in a tight market, Serko had to invest in local branding and recruit top-down. Young says the team is 'phenomenally talented', and the perception of India as a source of only junior, low-cost labour is outdated. That may have been the case 20 years or so ago, not today. Running the Bengaluru hub has allowed Serko to tap into India's expertise in running global operations. Whitehead says: 'They think in terms of global command centres,' noting that India's fast-developing infrastructure and deep technical base provide a strong foundation for scaling. And that is factored into Serko's plans. 'We've got big ambitions to grow substantially, and the experience we've had to date in Bengaluru shows that we can get really good quality talent there. We need good leaders,' says Whitehead. Attracting talent in India means building the company's brand. 'We found everyone there reads the Hindustan Times in the morning, so we advertised in that newspaper. That's not something you'd think of doing here if you want to reach technology candidates. We've also been doing PR in general to become a more visible brand.' For now, India is not a core customer market for Serko, though that is likely to change over time. Whitehead says: 'It's the eighth-largest business travel market in the world, but its structure differs from Western markets — especially in areas like payments and procurement, which remain manual in many cases.' Serko faced some regulatory hurdles. Establishing a local presence required navigating paperwork, bank set-up, and director appointments. Young says this all took a long time, but there was nothing insurmountable. Serko had set up a company in India years ago and was paying a local director because that was easier than shutting down and starting again. It's less than a year since Serko acquired GetThere and the experience has been positive. Young says: 'It's been a great way to expand our global footprint. We've learned a lot, the quality of people has been outstanding, and it's laid a strong foundation for the future.'
Yahoo
08-07-2025
- Business
- Yahoo
3 Asian Stocks Estimated To Be Trading 20.8% To 43.1% Below Intrinsic Value
As global markets grapple with mixed economic signals, Asian stocks have been under the spotlight, particularly amid ongoing trade negotiations and economic data releases. In this context, identifying undervalued stocks can be crucial for investors seeking opportunities in a market characterized by cautious optimism and fluctuating indices. Name Current Price Fair Value (Est) Discount (Est) Taiwan Union Technology (TPEX:6274) NT$229.00 NT$455.26 49.7% Serko (NZSE:SKO) NZ$3.14 NZ$6.27 49.9% Nanya New Material TechnologyLtd (SHSE:688519) CN¥42.98 CN¥85.50 49.7% Livero (TSE:9245) ¥1715.00 ¥3414.75 49.8% Lai Yih Footwear (TWSE:6890) NT$287.50 NT$571.27 49.7% HL Holdings (KOSE:A060980) ₩40850.00 ₩81170.42 49.7% Hibino (TSE:2469) ¥2364.00 ¥4705.08 49.8% Dive (TSE:151A) ¥933.00 ¥1858.19 49.8% Darbond Technology (SHSE:688035) CN¥39.42 CN¥78.37 49.7% cottaLTD (TSE:3359) ¥429.00 ¥854.05 49.8% Click here to see the full list of 267 stocks from our Undervalued Asian Stocks Based On Cash Flows screener. Here we highlight a subset of our preferred stocks from the screener. Overview: Plover Bay Technologies Limited is an investment holding company that designs, develops, and markets software-defined wide area network routers with a market cap of HK$6.68 billion. Operations: The company's revenue is derived from sales of SD-WAN routers with fixed first connectivity ($17.15 million), mobile first connectivity ($66.18 million), and software licenses along with warranty and support services ($33.47 million). Estimated Discount To Fair Value: 25.5% Plover Bay Technologies is trading at HK$6.06, below its estimated fair value of HK$8.13, indicating it may be undervalued based on cash flows. Despite a dividend yield of 4.93% not being well covered by earnings, the company's earnings are forecast to grow at 17% annually, outpacing the Hong Kong market's growth rate of 10.3%. Additionally, revenue growth is projected at 16.5% per year and return on equity is expected to reach a very high level in three years' time. Our comprehensive growth report raises the possibility that Plover Bay Technologies is poised for substantial financial growth. Get an in-depth perspective on Plover Bay Technologies' balance sheet by reading our health report here. Overview: Everest Medicines Limited is a biopharmaceutical company focused on discovering, licensing, developing, and commercializing therapies and vaccines for critical unmet medical needs in Greater China and other Asia Pacific markets, with a market cap of HK$21.79 billion. Operations: The company's revenue is primarily derived from its pharmaceuticals segment, which generated CN¥706.68 million. Estimated Discount To Fair Value: 43.1% Everest Medicines, currently priced at HK$67.1, is trading significantly below its estimated fair value of HK$117.83, pointing to potential undervaluation based on cash flows. The company anticipates robust revenue growth at 30.3% annually, surpassing the Hong Kong market's 8.1%. Despite this strong outlook, return on equity is expected to remain modest at 10.2% in three years and the firm aims for profitability within three years amidst ongoing clinical advancements such as NEFECON and EVER001 developments in Asia. Our expertly prepared growth report on Everest Medicines implies its future financial outlook may be stronger than recent results. Click to explore a detailed breakdown of our findings in Everest Medicines' balance sheet health report. Overview: Gold Circuit Electronics Ltd. is a Taiwan-based company that designs, manufactures, processes, and distributes printed circuit boards with a market cap of NT$145.03 billion. Operations: The company's revenue primarily comes from the manufacturing and sales of printed circuit boards, amounting to NT$41.95 billion. Estimated Discount To Fair Value: 20.8% Gold Circuit Electronics, trading at NT$298, is valued below its estimated fair value of NT$376.19, indicating potential undervaluation based on cash flows. The company's earnings grew by 42.5% last year and are forecast to grow significantly at 22.21% annually, outpacing the Taiwan market's growth rate. Recent Q1 results show sales increased to TWD 12 billion from TWD 9 billion a year ago, with net income rising to TWD 1.75 billion from TWD 1.22 billion. Our earnings growth report unveils the potential for significant increases in Gold Circuit Electronics' future results. Dive into the specifics of Gold Circuit Electronics here with our thorough financial health report. Embark on your investment journey to our 267 Undervalued Asian Stocks Based On Cash Flows selection here. Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks. Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SEHK:1523 SEHK:1952 and TWSE:2368. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-06-2025
- Business
- Yahoo
Serko Limited's (NZSE:SKO) Intrinsic Value Is Potentially 84% Above Its Share Price
Serko's estimated fair value is NZ$5.34 based on 2 Stage Free Cash Flow to Equity Serko's NZ$2.91 share price signals that it might be 46% undervalued Analyst price target for SKO is NZ$3.80 which is 29% below our fair value estimate Today we will run through one way of estimating the intrinsic value of Serko Limited (NZSE:SKO) by taking the forecast future cash flows of the company and discounting them back to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (NZ$, Millions) -NZ$15.6m -NZ$8.50m NZ$900.0k NZ$10.4m NZ$17.3m NZ$25.6m NZ$34.4m NZ$43.0m NZ$51.0m NZ$58.2m Growth Rate Estimate Source Analyst x1 Analyst x2 Analyst x2 Analyst x1 Est @ 66.68% Est @ 47.69% Est @ 34.39% Est @ 25.08% Est @ 18.56% Est @ 14.00% Present Value (NZ$, Millions) Discounted @ 8.3% -NZ$14.4 -NZ$7.2 NZ$0.7 NZ$7.6 NZ$11.6 NZ$15.9 NZ$19.7 NZ$22.8 NZ$24.9 NZ$26.2 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = NZ$108m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.4%. We discount the terminal cash flows to today's value at a cost of equity of 8.3%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = NZ$58m× (1 + 3.4%) ÷ (8.3%– 3.4%) = NZ$1.2b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= NZ$1.2b÷ ( 1 + 8.3%)10= NZ$551m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is NZ$659m. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of NZ$2.9, the company appears quite good value at a 46% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Serko as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.3%, which is based on a levered beta of 1.137. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Serko Although the valuation of a company is important, it ideally won't be the sole piece of analysis you scrutinize for a company. DCF models are not the be-all and end-all of investment valuation. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price sitting below the intrinsic value? For Serko, there are three further aspects you should look at: Financial Health: Does SKO have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does SKO's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NZSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
National Business Review
11-06-2025
- Business
- National Business Review
Serko upgraded to ‘outperform' by Forsyth Barr
Forsyth Barr has upgraded its rating of ASX and NZX-listed travel software business Serko based on a belief the company can restore confidence in its revenue growth trajectory by meeting the midpoint of its FY26 income guidance. Analysts James Lindsay and Will Twiss wrote in a research note issued
Yahoo
22-05-2025
- Business
- Yahoo
Serko Limited (NZSE:SKO) Analysts Are Cutting Their Estimates: Here's What You Need To Know
Shareholders might have noticed that Serko Limited (NZSE:SKO) filed its annual result this time last week. The early response was not positive, with shares down 6.6% to NZ$3.10 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at NZ$90m, statutory losses exploded to NZ$0.18 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. We've discovered 1 warning sign about Serko. View them for free. After the latest results, the seven analysts covering Serko are now predicting revenues of NZ$123.9m in 2026. If met, this would reflect a sizeable 37% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 46% to NZ$0.097. Before this earnings announcement, the analysts had been modelling revenues of NZ$130.5m and losses of NZ$0.049 per share in 2026. While this year's revenue estimates dropped there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock. Check out our latest analysis for Serko The consensus price target fell 11% to NZ$3.88, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Serko at NZ$4.55 per share, while the most bearish prices it at NZ$3.17. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Serko'shistorical trends, as the 37% annualised revenue growth to the end of 2026 is roughly in line with the 39% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. So it's pretty clear that Serko is forecast to grow substantially faster than its industry. The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Serko. They also downgraded Serko's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Serko's future valuation. With that in mind, we wouldn't be too quick to come to a conclusion on Serko. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Serko analysts - going out to 2028, and you can see them free on our platform here. Plus, you should also learn about the 1 warning sign we've spotted with Serko . Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
