Black Box Ltd. - Riding the data center wave

Black Box Ltd, formerly known as AGC Networks, is a global IT services company providing digital solutions and services. It specializes in networking, data centers, cybersecurity, unified communications, and enterprise applications. With a strong presence in multiple countries, Black Box Ltd serves a diverse range of industries, including finance, healthcare, government, and education. The company focuses on delivering innovative technology solutions to help organizations optimize their IT infrastructure and improve operational efficiency.

Narration Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Trailing Best Case Worst Case
Sales 890.89 881.38 779.63 733.45 1,852.74 4,993.92 4,674.02 5,370.17 6,287.56 6,281.58 6,281.58 6,281.58 6,281.58
Expenses 866.72 875.63 747.30 700.15 1,806.21 4,665.51 4,309.54 5,112.40 6,014.39 5,855.38 5,856.70 6,281.58 6,281.58
Operating Profit 24.17 5.75 32.33 33.30 46.53 328.41 364.48 257.77 273.17 426.20 424.88 - -
Other Income 37.87 7.08 13.07 18.90 -66.69 -177.98 -75.02 0.41 -24.96 -14.22 -12.90 - -
Depreciation 18.44 8.50 6.56 8.17 14.65 91.69 95.56 98.60 107.48 114.34 114.34 114.34 114.34
Interest 25.92 26.68 26.19 24.96 44.54 131.72 97.91 73.60 111.28 141.25 141.25 141.25 141.25
Profit before tax 17.68 -22.35 12.65 19.07 -79.35 -72.98 95.99 85.98 29.45 156.39 156.39 -255.59 -255.59
Tax 2.91 12.24 2.32 4.14 -0.58 6.98 17.90 13.26 5.75 18.72 18.72 12% 12%
Net profit 14.77 -34.59 10.33 14.93 -78.77 -79.96 78.09 72.72 23.70 137.67 137.67 -225.00 -225.00
EPS 1.04 -2.43 0.73 1.05 -5.30 -5.38 4.80 4.43 1.41 8.19 8.19 -13.39 -13.39
Price to earning 17.61 -5.37 25.43 19.12 -4.26 -8.43 53.76 34.03 66.13 27.47 62.26 - -
Price 18.28 13.06 18.46 20.06 22.58 45.35 258.18 150.80 93.35 225.10 510.00 - -
RATIOS:
Dividend Payout 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
OPM 2.71% 0.65% 4.15% 4.54% 2.51% 6.58% 7.80% 4.80% 4.34% 6.78% 6.76%
Source - Screener

Black Box Ltd can benefit significantly from the growing data center theme in several ways:

  1. Increased Demand for Networking Solutions: As data centers expand, there is a growing need for robust networking solutions to ensure efficient data transfer and connectivity, a core offering of Black Box Ltd.
  2. Cybersecurity Services: With more data centers, the need for advanced cybersecurity measures increases. Black Box Ltd can provide essential cybersecurity services to protect these data centers from threats.
  3. Data Center Infrastructure Management: The company can offer infrastructure management services, including installation, maintenance, and optimization of data center equipment, ensuring smooth operations for clients.
  4. Unified Communications: Data centers require reliable communication systems. Black Box Ltd can provide unified communication solutions to enhance collaboration and operational efficiency within data centers.
  5. Enterprise Applications: With the rise of data centers, there is a higher demand for enterprise applications that manage and analyze data effectively. Black Box Ltd can leverage its expertise in this area to offer tailored solutions to data center operators.

Investing in Black Box Ltd comes with certain risks:

  1. Market Competition: The IT services sector is highly competitive, with many players offering similar solutions, which can pressure pricing and margins.
  2. Technology Obsolescence: Rapid technological advancements require continuous innovation and adaptation, posing a risk if the company fails to keep up.
  3. Economic Sensitivity: The company’s performance can be affected by global economic conditions, impacting client spending on IT services.
  4. Cybersecurity Threats: As a provider of cybersecurity solutions, any breach or security incident can damage the company’s reputation and client trust.
  5. Dependence on Key Clients: A significant portion of revenue from a few large clients can lead to financial instability if any major client terminates their contract.

Solutions, Services and Products offered by the company -



Disc. - Invested

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