ASX:CDD

Stock Analysis Report

Executive Summary

Cardno Limited, a professional infrastructure and environmental services company, engages in the development and improvement of physical and social infrastructure for communities worldwide.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has Cardno's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-6.5%

CDD

4.0%

AU Construction

1.0%

AU Market


1 Year Return

-16.5%

CDD

-23.5%

AU Construction

11.7%

AU Market

Return vs Industry: CDD exceeded the Australian Construction industry which returned -23.5% over the past year.

Return vs Market: CDD underperformed the Australian Market which returned 11.7% over the past year.


Shareholder returns

CDDIndustryMarket
7 Day-6.5%4.0%1.0%
30 Day-13.0%0.7%-0.2%
90 Day1.6%-21.5%0.3%
1 Year-16.5%-16.5%-20.4%-23.5%18.1%11.7%
3 Year-9.7%-9.7%32.6%20.4%37.4%19.0%
5 Year-73.1%-83.6%56.7%22.7%51.7%17.6%

Price Volatility Vs. Market

How volatile is Cardno's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cardno undervalued compared to its fair value and its price relative to the market?

0.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: CDD (A$0.94) is trading above our estimate of fair value (A$0.41)

Significantly Undervalued: CDD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CDD is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: CDD is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate CDD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CDD is good value based on its PB Ratio (0.9x) compared to the AU Construction industry average (1.1x).


Next Steps

Future Growth

How is Cardno forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.4%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cardno has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Cardno performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CDD is unprofitable, but has reduced losses over the past 5 years at a rate of 7.8% per year.

Accelerating Growth: Unable to compare CDD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CDD is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (5.7%).


Return on Equity

High ROE: CDD has a negative Return on Equity (-9.29%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CDD is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CDD is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Cardno's financial position?


Financial Position Analysis

Short Term Liabilities: CDD's short term assets (A$388.5M) exceeds its short term liabilities (A$250.8M)

Long Term Liabilities: CDD's short term assets (388.5M) exceeds its long term liabilities (168.8M)


Debt to Equity History and Analysis

Debt Level: CDD's debt to equity ratio (28.8%) is considered satisfactory

Reducing Debt: CDD's debt to equity ratio has reduced from 39.4% to 28.8% over the past 5 years.


Balance Sheet

Inventory Level: CDD has a low level of unsold assets or inventory.

Debt Coverage by Assets: CDD's debt is covered by short term assets (assets are 2.822130x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CDD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CDD is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -13.9% per year.


Next Steps

Dividend

What is Cardno's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.6%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate CDD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CDD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if CDD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CDD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CDD is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CDD's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Cardno's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Ian Ball 0

1.2yrs

Tenure

AU$1,892,678

Compensation

Mr. Ian Ball serves as Chief Executive Officer, Managing Director and Director at Cardno Limited since August 09, 2018 . He has more than 30 years international experience in consulting and professional se ...


CEO Compensation Analysis

Compensation vs. Market: Ian has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

Compensation vs Earnings: Insufficient data to compare Ian's compensation with company performance.


Management Age and Tenure

0.9yrs

Average Tenure

Experienced Management: CDD's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

3.4yrs

Average Tenure

61.5yo

Average Age

Experienced Board: CDD's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$5,571,39711 Sep 19
Crescent Capital Partners Management Pty Ltd.
EntityCompany
Shares2,767,513
Max PriceAU$2.01

Ownership Breakdown


Management Team

  • Peter Barker

    CFO & Joint Company Secretary

    • Tenure: 3.6yrs
    • Compensation: AU$841.43k
  • Troy Donovan

    Chief Financial Officer of Asia Pacific

    • Tenure: 0yrs
  • Courtney Marsden

    Legal Counsel & Joint Company Secretary (Leave of Absence)

    • Tenure: 0yrs
  • Ian Ball

    CEO, MD & Director

    • Tenure: 1.2yrs
    • Compensation: AU$1.89m
  • Vikash Naidu

    General Counsel & Interim Joint Company Secretary

    • Tenure: 0.9yrs
  • Nicola Dorling

    Chief Digital Officer

    • Tenure: 0.7yrs
  • Elena Schamp

    Chief Technology Officer

    • Tenure: 0.7yrs
  • Matt Courtney

    Chief Executive Officer of Construction Sciences Division

    • Tenure: 3.8yrs
  • Shael Munz

    Chief Financial Officer of Construction Sciences Division

    • Tenure: 0.7yrs
  • Jackie McPhee

    Corporate Marketing Manager

    • Tenure: 0yrs

Board Members

  • Michael Alscher (51yo)

    Non-Executive Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: AU$348.60k
  • Jeff Forbes (66yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: AU$127.27k
  • Neville Buch (61yo)

    Non-Executive Deputy Chairman

    • Tenure: 1.4yrs
    • Compensation: AU$100.00k
  • Nathanial Thomson

    Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: AU$100.00k
  • Rebecca Ranich (62yo)

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: AU$139.83k
  • Steve Sherman

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: AU$113.50k
  • Ian Ball

    CEO, MD & Director

    • Tenure: 1.2yrs
    • Compensation: AU$1.89m

Company Information

Cardno Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cardno Limited
  • Ticker: CDD
  • Exchange: ASX
  • Founded: 1945
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: AU$430.594m
  • Shares outstanding: 443.91m
  • Website: https://www.cardno.com

Number of Employees


Location

  • Cardno Limited
  • North Tower
  • Level 11
  • Fortitude Valley
  • Queensland
  • 4006
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CDDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2004
COLD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2004
CDDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2004
DZ5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2004

Biography

Cardno Limited, a professional infrastructure and environmental services company, engages in the development and improvement of physical and social infrastructure for communities worldwide. The company’s A ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 10:31
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.