The Motley Fool Canada »Investing» In-depth equity analysis: Lightspeed (TSX: LSPD)
Jed Lloren | November 5, 2020 | Learn more: LSPD LSPD
Two of my favorite trends to invest in are the adoption of e-commerce and the digitization of different sectors Lightspeed (TSX: LSPD) (NYSE: LSPD) has a foothold in both of these trends, which makes it very interesting. company is a catalyst for the e-commerce market in Canada which is expected to reach US $ 654 trillion globally by 2022 What makes this business so interesting?
The company provides point-of-sale and e-commerce software to small and medium-sized businesses Originally specializing in catering and retail stores, the company has since grown into golf courses Currently , Lightspeed has customers in the pet, electronics and sporting goods markets among many others These activities are also not focused on one particular part of the world, as more than 100 countries have Lightspeed customers.
Lightspeed offers a plethora of services for businesses In 2013, the company first launched its cloud-based point of sale and Lightspeed Retail to more than 15,000 customers In 2017, Lightspeed Analytics was launched, enabling businesses to more effectively organize their sales and marketing efforts Lightspeed Loyalty and Payments launched in 2018 and 2019 respectively These offerings simply highlight a few of the products currently available to businesses
As stated before, Lightspeed is not based on a single product Rather, it has a large number of offerings, which allows it to meet the many needs of businesses This means that businesses can start with one or two of the Lightspeed products, and potentially add to their subscriptions after seeing early success. This will be great for Lightspeed’s revenue year over year
Lightspeed is also very diverse in its customer base The company sees diversity in terms of the industries it serves as well as geographically This means that if one area were to be impacted financially, Lightspeed can draw on other countries or industries to take over
Secondly, the management of the company is first rate Dax Dasilva is the CEO of the company and has been since he founded the company in 2005 Dasilva has received numerous awards for his work with Lightspeed He s » These include the Ernst & award for young entrepreneur of the year in 2012 and the award for entrepreneur of the year from Startup Canada in 2016, for Quebec and Canada
Finally, Lightspeed has a fairly high share of insider ownership This is a detail I look for in companies with 10 times the earning potential In companies I invest in, I look for a stake in at least 5% of its founder-CEO Regarding Lightspeed, Dax Dasilva owns 1379% of the company at the time of writing In fact, the entire insider list of the company owns 145% of the speed light
This is very important because it shows that the interests of the management of the company are aligned with those of the shareholders All of these reasons listed are a subset of examples of what makes Lightspeed such a worthwhile investment
Lightspeed certainly has the potential to grow up to 10x profit It’s a leader in two very strong trends for the next decade Lightspeed has a diverse customer base, a strong business model and top-notch management team Growing investors should definitely consider adding this company to their portfolios
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Silly contributor Jed Lloren has no position in any of the mentioned stocks The Motley Fool owns lightspeed POS Inc
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Lightspeed, ShopKeep, Cision PR Newswire, Stock
News from around the world – CA – Stock Deep Dive: Lightspeed (TSX: LSPD)
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