Crayon Group: Nordic Software Asset Management Leader With 353% Upside Potential (CRAYF)
Summary
There are a limited number of players in this field, including Crayon and its wholly owned subsidiary Anglepoint, SoftwareONE out of Switzerland, and Deloitte Consulting. This caused a temporary downtick in US business but now the new sales team is engaged, and the pipeline is showing a likely return to former heady growth rates there. Last year Crayon made a significant acquisition ($285m deal size) of a company called rhipe which focuses on the APAC region with a big presence in Australia. I think there is an opportunity here as Crayons slight disappointment in its last earnings release has hammered its stock since, but the mid- and long-term thesis remain intact. The company has critical mass in the Nordic region and operates here at a 30% EBITDA to gross profit ratio with mid-teens organic revenue growth.