Operating Income Up 588%, Cash Dividend Just Raised 100% - Set to Skyrocket!
Research Concurrent (CCUR) immediately! Its cash dividend was raised last week by 100% to $0.48 for a HUGE dividend yield here of over 6%! CCUR gained $0.67 or 9.5% to $7.75 on Friday on volume of 227,571 and another $0.20 or 2.6% to $7.95 yesterday on volume of 406,470! CCUR looks ready to explode into double digits! The company grew operating income over the past four quarters from $187,000 to $413,000 to $876,000 and to $1,233,000 for amazing growth of 559%!
CCUR recently reported that they earned non-GAAP EPS of $0.16 last quarter, which is EPS of $0.64 annualized. EPS of $0.64 gives CCUR a P/E ratio here of only 12! CCUR reported large gross margins last quarter of 59% and operating margins of 7.3%, yet its current enterprise value (EV) at $7.95 is only $47.22 million or 0.75X sales of $63.23 million and 8X free cash flow of $5.6 million! CCUR is sitting on $22.37 million in cash with no debt!
CCUR's closest comparison Seachange (SEAC) reported much smaller gross margins last quarter of 53.7% and negative operating margins of (5.7%). SEAC at its current price of $11.09 per share has an EV of $248.92 million or 1.59X sales of $156.11 million and 18.49X free cash flow of $13.46 million!
CCUR is about to make HUGE short-term gains to at least match SEAC's valuation ratios! SEAC's EV/revenue ratio of 1.59 would give CCUR an EV of $100.54 million, market cap of $122.91 million, and share price of $14.04! SEAC's EV/free cash flow ratio of 18.49 would give CCUR an EV of $103.54 million, market cap of $125.91 million, and share price of $14.39! CCUR could potentially rally to $14+ within the next couple of weeks! CCUR shareholders at the close tomorrow (Wednesday) will receive CCUR's huge quarterly dividend payment!