Galaxy Next Generation (GAXY) Stock: An Undervalued Play In A High Value Market

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Galaxy Next Generation GAXY Stock News

Technology has led to the evolution of just about every process within our lives. From how we eat to how we commute, communicate, and even manage our finances, innovative technology has provided solutions to some of our largest challenges.

This technological evolution is no more apparent than in the education sector. Today, a parent can purchase a toy that teaches a child a new language, their ABCs, colors, and more. Technology has also led to incredible solutions that allow teachers to better communicate with their audiences in the classroom. That’s where Galaxy Next Generation (OTCMKTS: GAXY) comes in.

What Is Galaxy Next Generation?

Galaxy Next Generation is a distributor of interactive educational technology hardware and software. Headquartered in the United States, the company’s products allow teachers to engage their students within a fully collaborative instructional environment.

It’s also worth mentioning that we’re not talking about a reseller here. In fact, Galaxy Next Generation has a robust line of private label interactive touch screen panels as well as numerous other national and international branded peripheral and communication devices.

Addressing A Key Problem In Education

The global environment is changing rapidly. In the past, children would play with toys, run outside with friends, and more. However, today, many children are glued to television and video game screens. With so much of their lives spent in front of screens, finding a way to engage students in a traditional classroom can be difficult.

Galaxy Next Generation’s interactive touch screen panels help to provide a solution to this issue. First and foremost, children tend to interact better when working with a screen rather than pen and paper. In fact, recent studies show that students performed as well, if not better when given online homework as they did when given traditional paper homework. Galaxy’s interactive panels provide the screen that tends to lead to a better learning experience for children of today.

Aside from simply being a better grab of attention in the K-12 environment, these panels are designed to increase engagement between teacher and student and between student and assignment. This increased level of engagement helps students to retain the lessons that they learn, making education a more efficient process.  

A Focus On What It Does Best Helps To Drive Strong Sales

Galaxy Next Generation decided to commercialize its products through a distribution channel, which has proved to be a successful model. Today, the company’s distribution channel consists of more than 20 resellers across the United States.

While GAXY has no control over where resellers focus their efforts, the K-12 education market seems to be the core of the company’s sales. In fact, the K-12 education market currently accounts for almost 90% of the company’s overall sales revenue.

Nonetheless, the company’s interactive panels and collaborative environment are used in many applications. In fact, just over 10% of the company’s sales are the result of activities in the commercial market where the company’s products are used in employee training, as a resource to provide further benefits to customers, and more.

Aggressive United States Expansion

While Galaxy Next Generation sells its products on an international scale, the company has been relatively aggressive when it comes to domestic expansion, and the aggressive approach is working well. In fact, the company has signed on a number of new resellers in recent months.

As you can see from the image below, before the aggressive US expansion efforts, the company had 16 resellers in the region. Today, the company has 29 resellers in the United States, adding an additional 13 resellers.

Of course, bringing new resellers on board comes with the obvious benefit. More boots on the ground in the sales effort will equate to stronger sales, increasing revenue and providing value to investors.

The Market Potential Here Is Incredible

When digging into an investment opportunity, one of the first areas that I tend to look is market potential. After all, if there’s not much of a market for the product that a company is selling, there’s no reason to expect a large return. GAXY does not have this problem.

The smart education market is a massive one. In the year 2017, the market was valued at around $240 billion. However, with a high compound annual growth rate (CAGR) that is expected to come in around 22.7% from 2018 through 2024, the smart education market could grow to be worth $994 billion per year by 2024.

While it would be unwise to predict that a single company would take the lion’s share of this market, Galaxy Next Generation doesn’t need the lion’s share. In fact, with a market cap of under $20 million, tapping into just one or two percent of this market would lead to significant growth in value for the company and its investors.

Coming Entrances Into Various Global Markets

Galaxy Next Generation is doing well when it comes to tapping into the US market. In fact, the company’s success has led to its ability to generate a gross profit and it is only about 4 months out from generating a net profit based on its revenue and expense projections.

Nonetheless, the company isn’t stopping with the United States. In fact, in its most recent investor presentation, Galaxy outlined its plans for aggressive global expansion. The company is currently working on a merger and acquisition strategy that it expects will lead to:

Territory Growth

Through its merger and acquisition strategy, Galaxy Next Generation has plans to expand into Canada, Latin America and Europe, unlocking hundreds of millions in annual market potential.

Products

Galaxy Next Generation plans on bringing the following products to the global stage through its merger and acquisition strategy.

  • Wireless collaboration services.
  • Software solutions.
  • Panel management.
  • Interactive content.
  • App development and integration solutions.
  • In-House development.
  • Video conferencing solutions.

As the company continues to add to its product line and audience through mergers and acquisitions, the value offered to investors will only grow.

The Bottom Line

Galaxy Next Generation is quickly emerging as a leader in the United States education technology market as reseller expansion continues to grow at a rapid rate. This combined with the company’s aggressive global expansion efforts and product innovation will likely lead to strong growth in both top line and bottom line metrics. With a market cap of just under $20 million and activities allowing the company to tap a market that is expected to grow to be worth nearly a trillion annually within the next few years, GAXY is a stock that is well worth looking into!

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Disclosure – CNA Finance was paid by a third party for research, writing and publishing services surrounding Galaxy Next Generation. 

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