United States

Analyst Research Report Snapshot


Email Delivery Leader Poised for Rapid Growth Dividend Yield of 9.1%




RedChip Companies, Inc.


11 Nov 2013





Companies referenced:


Available for Immediate Download

SMTP is a leading provider of services to facilitate email delivery, with a focus on marketing email delivery, but also supporting bulk and transactional sending, reputation management, compliance auditing, abuse processing and issue resolution. Their services provide customers with the ability to increase the deliverability of email with less time, cost and complexity than handling it themselves. Looking forward, we expect SMTP to rapidly expand both revenue and net income growth, driven by its new executive management team, focused sales and marketing spending, and enhancements to its core email-delivery platform. SMTP is trading well below both our peer group median and peer group average in P/E, P/S and EV/EBITDA, despite the Company's stronger future revenue growth prospects, robust net margins and strong dividend yield. We believe that the market is significantly undervaluing SMTP, given our expectations of accelerated revenue growth (54% in FY14, 75% in FY15) and the fact that this is accomplished while maintaining robust dividends ($0.08 per share in FY14E, $0.18 per share in FY15E).

Why buy analyst research?

  • Institutional quality research
  • Available for Immediate Download
  • Detailed company or industry insight
  • Print or save
  • 24 hour customer support
Return to previous page without adding this item to your cart.
Email Customer Support.

About Analyst Research

Analyst research reports are available for immediate download after purchase. You will have unlimited access to the report for 24 hours after purchase, to download, print or save it as many times as you wish. Analyst Research provided by Reuters does not constitute investment advice, and is not endorsed by Reuters Research. This information is protected by copyright and intellectual property laws. More information on Analyst Research.