CCUR is about to rise big from its current price of $8.35 and could reach double digits in the upcoming days. CCUR just released HUGE news today that they won a key patent for their CDN multi-screen video delivery platform. CCUR's fiscal 2013 4Q/year-end results to be released later this month will show an unbelievable financial turnaround for the company, with CCUR swinging from a GAAP EPS loss of ($0.33) in fiscal 2012 to an estimated GAAP EPS profit of $0.31 and non-GAAP EPS profit of $0.50 in fiscal 2013 ended June 30th. CCUR at $8.35 has a market cap of only $73.1mm with $22.37mm in cash, no debt, and an enterprise value of only $50.73mm or just 0.80X trailing revenues of $63.23mm and 9.06X trailing free cash flow of $5.6mm.
When CCUR reports its 4Q results in a few weeks, CCUR will likely finish fiscal 2013 with approximately $28.71 million in cash and $7 million in trailing free cash flow. Based on these estimates, just for CCUR to maintain its current artificially low enterprise value/free cash flow ratio of 9.06, CCUR will need to rise to $10.52 per share. However, CCUR's two main rivals SEAC and HLIT are currently trading with an average enterprise value/revenue ratio of 1.52 and average enterprise value/free cash flow ratio 16.75.
Based on CCUR's current trailing fundamentals, an enterprise value/revenue ratio of 1.52 would value CCUR at $13.53 per share and an enterprise value/free cash flow ratio of 16.75 would value CCUR at $13.27 per share. Based on CCUR's estimated fiscal 2013 year-end fundamentals to be released later this month, an enterprise value/revenue ratio of 1.52 would value CCUR at $14.57 per share and an enterprise value/free cash flow ratio of 16.75 would value CCUR at $16.67 per share.
CCUR has practically no downside risk at $8.35. CCUR recently raised its dividend by 100%, which bodes well for CCUR's 4Q results! CCUR now pays a $0.48 per share annual cash dividend for a HUGE dividend yield at $8.35 per share of 5.7%!