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So the big question everyone has been asking: Is Kogan.Com (KGN) still worth buying after its recent results?

Wow, what a cracker of a result. Revenues up 37% to $290M (beat prospectus by 20%), EBITDA up 230% to $13.2M (up on prospectus by 91%), and NPAT up 800% to $7.2M (up on prospectus by 188%). Growth in active customers to 955k up 36% from 2016.

One really can’t fault this result (margins up as well although bottom line margins are low there is room for more improvement), and cash position is very strong (net cash $32M). Add an unexpected yield of 3.3% (fully franked).

FY18 guidance hasn’t been provided but will be updated on a quarterly basis although July 2017 is 35% ahead of the previous corresponding month and augurs well for more growth in FY18. KGN has a number of initiatives for FY18 and include expanding private label brand, growing new verticals in Kogan Mobile, Kogan Broadband and Kogan Insurance while growing the Kogan community.

Who needs Amazon when we already have one in Kogan. Truly the standout result this season and to boot in retail. Hasn’t put a foot wrong (touch wood) and in an upgrade cycle on the back of a growing ecosystem. It’s not just an Amazon so to speak but a deliverer of incredible value with in-demand products and services, usually the cheapest in its class.

Multi-award winner in 2017 which is an important recognition and advertisement for KGN. Building the brand is the key and FY18 shapes up as another excellent year with expansion plans into new categories and building on existing ones the focus. Private label is also the long term key to growing margins and currently it accounts for >50% of gross profits. Might see an acquisition in FY18 too.

Trading on~18x EBITDA but it’s all about growth at this stage. On such amazing growth and upward trajectory, we believe this is still a BUY!



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