In a robust trading session, LSAK stock soared to a 52-week high, reaching a price level of $5.35 USD. This milestone reflects a significant uptrend for the company, which has seen its stock value appreciate by 22.79% over the past year. Investors have shown increased confidence in LSAK's market position and growth prospects, contributing to the stock's impressive performance and its peak in the yearly price range. The 52-week high serves as a testament to the company's resilience and potential in a competitive landscape, marking a noteworthy moment for both LSAK and its shareholders.
In other recent news, Lesaka Technologies reported a 55% increase in adjusted EBITDA to ZAR691 million, marking a significant turnaround from a ZAR275 million loss in the previous fiscal year to a ZAR67 million profit. The company's net debt to adjusted EBITDA ratio improved notably, decreasing from 4.5 times to 2.5 times. These developments follow the successful acquisition of Touchsides and the upcoming purchase of Adumo, which are anticipated to reinforce Lesaka Technologies' standing as a leading independent fintech in Southern Africa.
The company also reported substantial growth in its merchant division revenue, core value-added services, and card acceptance businesses. Additionally, Lesaka Technologies launched new products and services, such as Fuel Connect and a vault offering for micro merchants. The consumer division witnessed a 75% increase in gross activations for permanent grant recipients and a 32% growth in the lending book.
Looking ahead, Lesaka Technologies expects to see continued growth in FY 2025, with a particular focus on enhancing lending performance and customer engagement. The company's revenue is projected to be between ZAR10 billion and ZAR11 billion, with group adjusted EBITDA forecasted to be between ZAR900 million and ZAR1 billion. Lesaka Technologies aims to keep a net debt to EBITDA ratio of around 2 times and will provide updated medium-term financial objectives in February 2025. These are recent developments in the company's financial performance and future outlook.
InvestingPro Insights
As LSAK stock reaches its 52-week high, InvestingPro data provides additional context to this milestone. The company's market capitalization stands at $414.44 million USD, with the stock trading at 96.36% of its 52-week high. This recent surge is part of a broader trend, as LSAK has delivered a impressive 57.41% year-to-date price return.
Despite the stock's strong performance, InvestingPro Tips highlight some challenges. LSAK is not profitable over the last twelve months, with a negative P/E ratio of -28.02. Additionally, the company suffers from weak gross profit margins, which stand at 21.59% for the last twelve months as of Q4 2024.
These insights underscore the complexity of LSAK's financial picture beyond its stock price performance. Investors seeking a more comprehensive analysis can find 2 additional InvestingPro Tips for LSAK, offering a deeper understanding of the company's financial health and market position.
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