Should I Buy XREF Shares

Prophet Invest first covered XREF shares in mid-2020 amidst the COVID epidemic. Back then we made a very bold call:

“We can see a large blue sky opportunity for XRef. If Hiring continues across the board we expect XF1 Shares to potentially be able to get to around 50c in the medium term.”

Xref in late 2020, early 2021 peaked at around 40 cents. Shy of our bullish 50c estimates buy close enough to make our portfolio excellent returns.

Over the past year Xref shares have grown 47.22%. So at it’s current share price, are XREF shares still a good buy? Should I buy Xref shares?

About Xref Shares

Xref Limited (XF1.ASX) is a developing human resources technology that automates the candidate reference process for employers. XF1 does Reference Checking, Background & ID Checks, Reference Templates, Talent Sourcing, Analytics & Insights and Security and Compliance.

XREF removes the distraction of manual processes, deliver insights that inform decision-making and put essential tools at the fingertips of every business looking to build the best team, globally. So should I buy XREF shares? (XR1.ASX)

How Much are XFEF Shares Worth: Current Price

At the beginning of the year Xref shares recovered from the post COVID crash. Today the XREF share price is $0.26, which is in the middle of its 52-week range of $0.125-0.4.

Xref Shares, Should I buy XREF Shares, XF1 Shares, XREF share price, XF1 Share price
Should I Buy XREF Shares: XREF Share Price

XREF’s current share price is up 47.22% over a year. However the shares are down significantly over a 5-10 year period.

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Should I Buy XREF Shares: Investor Sentiment

After surveying 70 Investors about their current XREF sentiment: BUY-HOLD-SELL as well as their target price over the next 12-months here are the results;

Xref Shares, Should I buy XREF Shares, XF1 Shares, XREF share price, XF1 Share price, XREF Investor Sentiment
Should I Buy XREF Shares: Investor Sentiment

The results from this survey show there is currently a bearish sentiment on the Xref share price.

How Much are XREF Shares Worth: Financials

Let’s take a look at the 2020 annual report which was released to the market on 31st August 2020.

Loss Before
Income Tax
Cash at Bank2.79million7.960million
Should I Buy XREF Shares: 2020 Annual Report

So as you can see above there has been very little movement in the company financial results from FY2019-FY2020.

Last month Xref released its quarterly statement this was titled “Xref revenue up 36% while costs remain flat“. Here’s the highlights:

  • Revenue: $3 Million- up 36%
  • Sales: $4 Million- up 62%
  • Cash Recepits from Sales: $3.5 Million- up 46%
  • Cash Expenses: $2.5 Million- down 17%
  • Cash Balance: $6.24 Million

From this we can see that the trajectory may be starting to change for XRef. With Record Revenues.

New Clients: Growing Revenues Out of COVID?

XRef also announced that they had achieved some new clients in Australia including Woolworths, The Department of Education (NSW) and Think Childcare. There also seems to be some inroads in the United States and Canada. Their Latest Acquisition RapidID also reported very strong revenue growth for the quarter growing 58% QoQ.

Xref Shares, Should I buy XREF Shares, XF1 Shares, XREF share price, XF1 Share price, XREF Revenue
Should I Buy XREF Shares: XREF Revenue. Source

You can see from the above, due to COVID-19 and the likely reduction in hiring rates across the Asia Pacific materially affected XRef Revenue. As hiring rates around the world are likely to start increasing again and as a second order employers needing to perform reference checks should also see XRef Increasing revenues.

RapidID, which is a direct competitor of ASX listed CVCheck (CV1) which has a market Cap of 48.2million, is also staring to see some traction, but should I buy shares in XRef?

Should I Buy XREF Shares: Technical Analysis

The general consensus within the Technical Analysis community is currently Bearish on XREF shares. The moving averages and Technical Indicators seems to indicate a Strong Sell.

Here’s a breakdown of the detailed Technical Factors;

Williams %R-100.000Oversold
ATR0.0032Less Volatility
Ultimate Oscillator32.179Sell
Bull/Bear Power-0.0060Sell

Should I Buy XREF Shares: Future Prospects

Xref acquired a bunch of new clients in this quarter contributed to 13% of total sales. New clients in Australia included:

  • Australian Prudential Regulation Authority
  • Cash Converters and the
  • Children’s Cancer Institute

In the United States and Canada new clients included:

  • Granite Solutions Groupe
  • Baylis Medical
  • CrossMed Healthcare
  • Connect Health
  • Gray Healthcare

Xref further also built on its success in healthcare globally and entered a new geographic market: South Africa.

Should I Buy XREF Shares: Prophet’s Take

If the combination of RapidID and increased hiring coming out of the COVID Pandemic continue to increase, we see further opportunities of XREF. For now we’re In-Range. Recently we brought into Appen, check out our article here.

Please Remember all Articles Published on Prophet Invest are Opinion only

How to Buy Xref Shares:

For helping in how to buy Xref shares, check out our beginners guide Here.

Learn How We Analyze A Company:

The Ultimate Stock DD Checklist For Beginners

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