Daily Stock Analysis: MiX Telematics, October Snapshot

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MiX Telematics Ltd, ticker MIXT, a nano-cap application software company in the technology business sector, is the fourth of five technology candidates vying for the first slot in my Viking folio. This is not my first report on MIXT. I have discussed MiX Telematics previously but I have not selected it for any of my existing portfolios.

MiX Telematics Ltd offers fleet and mobile asset management solutions delivered as Software-as-a-Service to customers across the globe.

The company solutions include MiX Fleet Manager Premium; MiX Fleet Manager Essential; MiX Asset Manager and Value Added Services. It serves Fast Moving Consumer Goods, Utilities, Security, Construction, Transport and Distribution, Emergency Services, Government, Rental and Leasing, Mining, Oil and Gas and Public Transport industries.

Geographically, it derives a majority of revenue from Africa and also has a presence in the Americas, Middle East and Australasia, Europe, Brazil and Central Services Organization (CSO).

The company derives maximum revenues from subscriptions to its fleet and mobile asset management solutions.

Three key data points gauge MiX Telematics Ltd:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

MIXT Price

MiX’s price per share was $7.70 at today’s market close.  MiX’s share price fell by $5.41 or about 41.5% in the past year.

If MiX’s stock trades in the range of $5.00 to $15.00 this next year, its recent $7.70 share price might reach $12.00 by next year. That upside increase of $4.30 is $5.02 below the valuation projected by 3 analysts tracking MIXT for brokerages.

MIXT Dividends

MiX’s most recently declared quarterly dividend of $0.0585 per share makes an annual dividend of $0.23 and casts a yield of 3.04%.

MIXT Returns

Adding the $0.23 MIXT dividend to my one-year price upside estimate of $4.30 shows a $4.53 potential gross gain per share.

At today’s $7.70 closing price, a little under $1000 would buy 130 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us $0.08 per share.

Subtract that maybe $0.08 brokerage cost from my estimated $4.53 gross gain per share results in a net gain of $4.45 X 130 shares = $578.50 for a 57.85% net gain including a 3.04% annual yield.

In a year our $1K investment in shares of MiX Telematics Ltd could generate $30.40 in cash dividends. Of course, a single share of MIXT stock at today's $7.70 price is almost one quarter of the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is good time to buy MIXT shares based on their dividends for the year 2022. The dividend from $1K invested is 3.95 times more than yesterday’s single share price. Consider yourself alerted. Now is the time.

All of the estimates above are speculation based on the past history of MiX Telematics Ltd. Only time and money invested in this stock will determine its market value.

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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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