You'd have to have been living under a rock to have not taken notice of the attention Nearmap Ltd (ASX: NEA) has been getting lately. If you're just getting started on your investment journey and would like to know more about Nearmap and its investment credentials, read on.
What is Nearmap?
Nearmap is a gloriously simple idea backed up by some ultra high-end technological fire power. The company takes high resolution aerial images and updates them regularly. To give you some idea, you may be familiar with Google Maps and have looked at satellite images of your house or suburb; however, if you check in regularly enough, you'll notice those images don't change very often.
Nearmap claims the resolution of its images is 80% better than what satellite imagery can provide and that 88% of Australia's population is imaged and stored regularly.
The applications of this technology are boundless. These images can provide strategic solutions in a range of industries including mining, construction, urban and regional planning, forestry and land management, renewable energy site development, as well as community benefits like disaster planning, management and renewal.
Is now the time to invest in Nearmap?
The past week hasn't been a great one for Nearmap, with the company's share price dipping almost 16%. My Foolish colleague Rhys Brock puts the slide down to the announcement of significant changes in Nearmap's accounting policies.
However, there is also a lot of reasons to be optimistic over the longer-term, including record growth of 36% to $90.2 million for FY19, highlighting Nearmap's global growth initiatives and consolidating its flagship position as market leader in Australia and New Zealand.
Nearmap opened this morning at $3.11 and is trending upwards to $3.14 over afternoon trade, although it's still a way from its record high of $4.23 four weeks ago on 23 June. There's been no advice on potential future dividends, but the rate of growth should give long-term investors pause for thought.
As I mentioned before, the possibilities for this technology are enormous. This is definitely one for the long-term portfolio, provided competitors are kept at bay and market share is maintained and developed.
