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Freightos Ltd. (NASDAQ:CRGO) is a digital freight solutions company aiming to bring efficiency to the $1.6 trillion global freight industry. Its platform connects importers, exporters, freight forwarders, airlines, and ocean liners, enabling users to manage pricing, booking, and shipping processes more seamlessly. Despite its innovative approach, the company operates in a competitive market where offline booking and management practices remain prevalent.
Freightos provides a suite of services, including:
The company recently acquired SHIPSTA, a freight routing and procurement service, which is expected to reach profitability in 2025. Freightos itself projects positive net income by 2026, positioning it for potential growth in the logistics sector.
Freightos has a current market capitalization of $145 million, with assets valued at $90 million. Its offerings include the FBX freight index, which provides data on transportation costs to carriers, along with revenue streams from advertising and subscriptions. The company reports a base of approximately 13,000 active users, including exporters and importers.
While the company’s stock debuted at $10 per share and briefly rose to $30, it has since declined to $3, raising questions about whether the market has undervalued its potential. Insiders collectively own approximately 46% of the company, with institutional ownership around 8%.
Freightos presents an intriguing case for investors seeking exposure to logistics technology. Its innovative approach to streamlining freight operations addresses inefficiencies in global trade, a sector poised for technological disruption. However, there are risks to consider, including competition from established players and the challenge of scaling its user base.
The current valuation suggests the company’s business, excluding assets, may be significantly undervalued. Investors should assess whether Freightos can capitalize on its technological strengths and achieve its profitability targets by 2026.
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