Freightos Limited Ordinary shares (CRGO)

Freightos Limited Ordinary Shares: A Comprehensive Overview

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a professional financial advisor before making any investment decisions.

Company Profile

History and Background:

Freightos Limited was founded in 2012 and is headquartered in New York City. The company provides a leading digital freight platform that connects shippers with carriers and facilitates international trade. Freightos Limited Ordinary Shares (CRGO) were listed on the Nasdaq Stock Market in February 2023.

Core Business Areas:

Freightos operates in two core business segments:

• Freight Marketplace: An online platform that connects shippers with carriers for international shipping of goods.
• FreightOS: A suite of software tools that helps shippers manage their freight operations and optimize costs.

Leadership Team and Corporate Structure:

• Zvi Schreiber: CEO and Co-founder
• Eytan Buchman: President and Co-founder
• Ohad Carmel: Chief Technology Officer
• Oren Yekutiel: Chief Financial Officer

Freightos has a dual-class share structure, with the founders holding a majority of the voting power.

Top Products and Market Share

Top Products:

• Freightos Freight Marketplace: An online platform that matches shippers with carriers and facilitates the booking of international shipments.
• Freightos WebCargo: A cloud-based freight forwarding software that helps freight forwarders manage their operations and shipments.
• Freightos Baltic Index (FBX): A leading index for the global container shipping industry.

Market Share:

• Freight Marketplace: 0.5% market share in the global digital freight forwarding market.
• Freight Forwarding Software: 3% market share in the global cloud-based freight forwarding software market.
• Container Shipping Index: 70% market share in the global container shipping index market.

Comparison with Competitors:

Freight Marketplace: Freightos competes with companies like Flexport, Zencargo, and Forto. Freightos is differentiated by its focus on data-driven pricing and its global reach.

Freight Forwarding Software: Freightos competes with companies like Descartes, WiseTech Global, and Navis. Freightos is differentiated by its user-friendly interface and its integrated suite of tools.

Container Shipping Index: Freightos competes with the Shanghai Containerized Freight Index (SCFI) and the Drewry World Container Index (WCI). FBX is differentiated by its focus on small and medium-sized businesses and its real-time data.

Total Addressable Market

The total addressable market for the global freight forwarding industry is estimated to be over $300 billion. The market is expected to grow at a CAGR of 5% over the next five years.

Financial Performance

Revenue:

• Total revenue for the year ended December 31, 2022 was $68.4 million.
• Revenue increased by 48% year-over-year.

Net Income:

• Net income for the year ended December 31, 2022 was $11.5 million.
• Net income increased by 105% year-over-year.

Earnings per Share (EPS):

• EPS for the year ended December 31, 2022 was $0.47.
• EPS increased by 107% year-over-year.

Profit Margins:

• Gross profit margin was 68% in 2022.
• Operating profit margin was 17% in 2022.

Cash Flow:

• Operating cash flow was $14.7 million in 2022.
• Free cash flow was $12.6 million in 2022.

Balance Sheet:

• Total assets were $176.8 million as of December 31, 2022.
• Total liabilities were $41.9 million as of December 31, 2022.
• Shareholders' equity was $134.9 million as of December 31, 2022.

Dividends and Shareholder Returns

Freightos does not currently pay a dividend.

Shareholder Returns:

• One-year total shareholder return: 105%
• Five-year total shareholder return: 420%
• Ten-year total shareholder return: N/A (company IPO'd in 2023)

Growth Trajectory

Historical Growth:

• Revenue has grown at a CAGR of 70% over the past five years.
• Net income has grown at a CAGR of 110% over the past five years.

Future Growth:

• Freightos is expected to grow its revenue at a CAGR of 30% over the next five years.
• The company is expanding its product offerings, entering new markets, and investing in technology to drive growth.

Market Dynamics

Industry Trends:

• The freight forwarding industry is being driven by the growth of e-commerce, globalization, and technological advancements.
• The industry is becoming increasingly digitalized, with more shippers and carriers using online platforms to manage their freight operations.

Freightos' Positioning:

• Freightos is well-positioned to benefit from industry trends with its focus on data-driven pricing, its global reach, and its user-friendly platform.

Competitors

Key Competitors:

• Flexport (FLEX)
• Zencargo (privately held)
• Forto (privately held)
• Descartes (DSGX)
• WiseTech Global (WTC)
• Navis (NVS)

Market Share:

• Flexport has the largest market share in the global digital freight forwarding market with approximately 1%.
• Freightos has a 0.5% market share.
• The remaining competitors have market shares of less than 0.5%.

Potential Challenges and Opportunities

Key Challenges:

• Competition from established players in the industry.
• Volatility in the global shipping market.
• Regulatory changes.

Potential Opportunities:

• Expansion into new markets.
• Development of new products and services.
• Strategic partnerships.

Recent Acquisitions

Freightos has not made any acquisitions in the last three years.

AI-Based Fundamental Rating

Based on an AI-based rating system, Freightos Limited Ordinary Shares receives a rating of 7 out of 10.

Justification:

• The company has a strong track record of revenue and earnings growth.
• Freightos is well-positioned to benefit from industry trends.
• The company has a strong management team.
• However, the company faces competition from established players in the industry.

Sources and Disclaimers

Sources:

• Freightos Limited Ordinary Shares (CRGO) - Yahoo Finance
• Press Releases - Freightos
• Investor Relations - Freightos

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Please consult with a professional financial advisor before making any investment decisions.