Nearmap boasts expansion into Canada is "well underway"

The Nearmap Ltd (ASX: NEA) share price hit a new record high today.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

The Nearmap Ltd (ASX: NEA) share price printed a record high of $3.19 today and according to the aerial mapping company's official Twitter feed its next potential growth leg is "well underway".

At its half-year results in August Nearmap's management team flagged that Canada was its next global market with the capture program or physical flyovers set to start in April. This is likely because the winter snows that cover much of Canada's urban and suburban centres for around half the year should be gone by April, although I'm no meteorologist.

Canada is also a logical market for Nearmap as its largely English speaking (on its West coast anyway) and Nearmap's exisiting operations are largely based on the U.S.'s west coast or mid-west near Denver, Colorado.

For investors the Canadian expansion is likely to bring about not much more than more significant upfront costs to start off with and the market size is nowhere near like that of the U.S.

In fact progress in Australia and the U.S. remain the main game for Nearmap with these two markets alone capable of more than justifying its current valuation assuming the U.S. retains a steady growth rate.

The group has a strong balance sheet to fund its Canadian and U.S. expansion plans with a net cash position of $81.3 million as at December 31 2018.

As if that wasn't enough its Australian operations are already pumping a lot of free cash flow thanks to its attractive economics.

Nearmap may well deliver a March quarter trading update of sorts this April, which again could move the share price a fair way in one direction or the other.

Another software-as-a-service business on the up today worth a look is sports analytics business  Catapult Group Ltd (ASX: CAT), after it announced it has signed an updated deal with Australia's NRL body.

Tom Richardson owns shares of Nearmap Ltd. You can find Tom on Twitter @tommyr345 The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Catapult Group International Ltd. The Motley Fool Australia owns shares of Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to a disappointing week for investors this Friday.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Betr, Centuria Capital, GR Engineering, and Mach7 shares are pushing higher

These shares are having a good finish to the week. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX gave up an afternoon lead to close lower today.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Clarity Pharmaceuticals, Kelsian, Life360, and Syrah shares are rising today

These shares are pushing higher on Thursday. But why?

Read more »

Man smiling on top of rocks with mountains in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors were in a nervous mood today.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Share Gainers

Why Beach Energy, Boss Energy, Cochlear, and Light & Wonder shares are pushing higher

These shares are having a good time on hump day. But why?

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing Tuesday session for ASX investors today.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Thinking of selling your CBA shares? This expert says you should hold on

CBA shares are up by about 80% since November 2023.

Read more »