Risk factor
Very high price volatility
Profitability factor
Very poor margins and returns
About
Senetas Corporation Limited, together with its subsidiaries, engages in the development, manufacture, and sale of information technology products which provide network data security solutions to businesses and governments worldwide. It develops and manufactures encryption hardware; virtualized network encryption software; and advanced encrypted file sharing application. The company’s products include CypherNET CN series network encryptors and CV series virtualized network encryption solution, SureDrop secure file sharing and collaboration solution; and CM7 network encryption management platform, as well as offers support and maintenance services. It serves commercial cyber security, government and defense, infrastructure, finance, gaming, and healthcare industries. The company was incorporated in 1982 and is based in Melbourne, Australia.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBITD.