The Computer Services industry is so dominated by giant corporations that a Payout Ratio of 88.98 from small capital stock is certain to catch a discerning investor’s eye. This industry has achieved a Payout Ratio of just 7.03 on a Trailing Twelve Months basis. The entire Technology Sector has done no better than 9.02 in this respect.
The company has a Gross Margin of over 75%, which is also much better than the average for the Computer Services industry. Annual sales growth for the Most Recent Quarter has also pulled ahead of the average industry performance. Therefore, management decisions regarding dividend payouts are entirely justified by solid business progress.
There are two important economic trends which explain the sterling business improvement achieved by this company: one relates to the rapid growth of the small enterprise segment, and the other to the growing influence of the Internet and ecommerce.
This company provides comprehensive support to entrepreneurs in any field of retailing. Small and medium business owners can manage inventories, prepare invoices, and maintain books of account in order. They can also use web sites to transact business with world-wide customers. The company therefore enables small business to compete with large corporations in any field.
The company appears on course to further build on its recent success. It has added about 1500 new customers during the last quarter, against a total of 13,500 merchant accounts. The management has invested in Sarbanes-Oxley compliance, and has upgraded the sales force. Business expansion is on the cards for this exciting stock.
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