Daily Stock Analysis: MiX Telematics

TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

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MiX Telematics Ltd with the ticker MIXT, is a Nano-cap application software company operating, as I said, in the technology business sector. This is the fourth of five technology candidates competing for the forty-fifth slot in the Viital folio. It is my first ever report on MIXT for my Viital portfolio or for any of my previous 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.

MiX Telematics Limited was founded in 1996 and is headquartered in Boca Raton, Florida.

Three key data points gauge any dividend equity or fund such as 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 $8.22 as of yesterday's market close.  One year ago its price was $14.33. Thus, MIXT share price fell $19.40 or about 42.6% in the past year. 

If MiX’s stock trades in the range of $6.00 to $15.00 this next year, its recent $8.22 share price might rise by $3.78 to reach $12.00 by next year. My $3.78 upside estimate is $5.02 below the median of one-year price targets from 3 analysts tracking MIXT for brokers.

MIXT Dividends

MiX’s most recently declared a quarterly dividend of $0.0604 is payable September 1st, to shareholders on record as of August 18th.  There is still time to collect this one.

Since October 1, 2015, MIXT has paid quarterly variable dividends.  The current forward-looking annual dividend of $0.24 throws an annual yield of 2.94% as of yesterday's $8.22 share price.

MIXT Returns

Adding the $0.24 MIXT annual dividend to my estimated one-year price upside estimate of $3.78 shows a $4.02 potential gross gain, per share, to be reduced by any costs to trade MIXT shares.  

At yesterday's $8.22. closing price, a little over $1000 would buy 122 shares.

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

Subtract that maybe $0.08 brokerage cost from my estimated $4.02 gross gain estimate per share results in a net gain of $3.94 X 122 shares = $479.25, for a 47.9% net gain including a 2.94% forward-looking annual dividend yield. 

Over the next year, our $1K investment in MIXT shares should generate $29.40 in cash dividends. Of course, a single share of MIXT stock bought at yesterday's $8.22 price is over 3 times LESS than the dividend income from our $1000.00 investment. 

So, by my dogcatcher ideal, this is prime time to pick up MiX Telematics Ltd shares based on their forward-looking dividends for the year 2022. The forecast annual dividend from $1K invested is 3.57 times MORE than yesterday’s single share price. Consider yourself alerted. It's a sign. 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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Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts.

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