Zacks Small Cap Research – CLPMF: Initiating Coverage of Clip Money: A Fast-Growing Startup Disrupting the Way Businesses Handle Cash – Technologist

By Lisa Thompson

OTC:CLPMF

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Clip Money (OTC:CLPMF) has invented a new way for businesses to handle their cash. It uses shared resources and infrastructure to lower the cost of depositing and withdrawing cash, including a national network of deposit endpoints made up of smart safes and ATMs and the USPS. By sharing expenses among many businesses, Clip Money can beat the prices of current methods of managing cash, namely bank branches or armored carrier contracts. As a side benefit, using Clip Money is typically easier, more convenient, and often safer than legacy methods.

The company is a true start-up that was founded by management who are well-experienced in the industry. It has been funded and is backed by NCR’s Cardtronics business, which owns over 27% of the company (40% with the convertible note). The chief operating officer of NCR Atleos is also on Clip Money’s board. This deep-pocketed backer should give investors some assurance that it has support to achieve success.

We believe Clip Money is undervalued because it is mostly unknown to investors, has had a short public lifespan, has an obscure listing on the Canadian Venture Exchange, has low revenues, and has had no research coverage until now.

With a low float due to NCR and insider holdings, the stock may be hard to buy, but the stock and the company deserve a second look, even if only for the fact that it is trading below the valuation price NCR paid in September.

Clip Money’s revenues grew 800% year over year for the first six months of 2024. It is currently at a $1.6 million revenue run rate and has been ramping revenues and decreasing losses as it adds customers and expands its network. The company trades at a $17 million market cap and $21 million enterprise value. We expect revenues in 2025 to reach or exceed $5.1 million based on current growth. At a growth rate of 150%, we believe the company is worth 6.0 times 2025 revenues or $0.25 per share.

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