Windward (LSE: WNWD) is a growing company with a market cap of £85m and a share price of 96p, making it a penny stock. Despite this, it has seen rapid revenue growth and is on the verge of profitability.
The company specializes in using artificial intelligence (AI) technology to track ships and analyze data. Its platform utilizes machine learning models to process vast amounts of data points, helping companies optimize routes and manage risks associated with sea transportation.
Although the stock has risen by 75% over the past year, it is still down 52% since its listing in late 2021. Windward’s marine tracking technology is in high demand, especially with increasing sanctions on regimes and vessels and the resurgence of piracy in the Red Sea.
The company serves a range of customers, including shipping companies, cargo owners, insurers, and government agencies, all of whom rely on Windward’s data for various purposes.
Windward boasts a blue-chip customer base that includes BP, Shell, and HSBC. It has contracts with prestigious organizations like the US Department of Homeland Security and INTERPOL, adding credibility to its platform.
With a software-as-a-service (SaaS) model and a focus on recurring revenue, Windward’s financials show promising growth. The company is on track to reach EBITDA break-even this year, with profits expected to follow due to its high gross margins and low capital requirements.
Analysts forecast strong revenue growth for Windward, with a consensus one-year price target of 143p, representing a 49% increase from the current price. The stock is trading at a reasonable valuation of 3.8 times sales, making it an attractive option for potential investors.