GenusPlus Group (ASX:GNP) - Share price, News & Analysis

Q: What is the Fair Price of GNP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

GNP (A$1.14) is trading above our estimate of [[fair value]] (A$0.35)

GNP fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	5/6
Financial Health	5/6
Dividends	2/6

GNP Stock Overview

GenusPlus Group Limited provides power and communications infrastructure in Australia.

Rewards

Price-To-Earnings ratio (11.9x) is below the Australian market (15.4x)

Earnings grew by 83.9% over the past year

Risk Analysis

High level of non-cash earnings

Shareholders have been diluted in the past year

GenusPlus Group Competitors

Southern Cross Electrical Engineering

ASX:SXE

AU$187.2m

Lycopodium

ASX:LYL

AU$237.2m

Resource Development Group

ASX:RDG

AU$173.1m

SHAPE Australia

ASX:SHA

AU$139.8m

Price History & Performance

Summary of all time highs, changes and price drops for GenusPlus Group
Historical stock prices
Current Share Price	AU$1.14
52 Week High	AU$1.45
52 Week Low	AU$0.94
Beta	0
1 Month Change	1.34%
3 Month Change	-4.22%
1 Year Change	18.23%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	14.65%

Shareholder Returns

	GNP	AU Construction	AU Market
7D	-2.2%	3.1%	1.8%
1Y	18.2%	10.5%	-5.7%

Return vs Industry: GNP exceeded the Australian Construction industry which returned 10.5% over the past year.

Return vs Market: GNP exceeded the Australian Market which returned -6.5% over the past year.

Price Volatility

Is GNP's price volatile compared to industry and market?
GNP volatility
GNP Average Weekly Movement	6.4%
Construction Industry Average Movement	5.9%
Market Average Movement	10.6%
10% most volatile stocks in AU Market	17.7%
10% least volatile stocks in AU Market	4.6%

Stable Share Price: GNP is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GNP's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2017	n/a	David Riches	https://www.genusplusgroup.com.au

GenusPlus Group Limited provides power and communications infrastructure in Australia. The company operates through four segments: Overhead Power Infrastructure, Underground Power and Telecommunications, Electrical Services and Mechanical Fabrication, and High Voltage Testing and Commissioning. It designs, constructs, and maintains underground network infrastructure for mining, telecommunications, and power utilities; designs, procures, and constructs high and low voltage infrastructures, including overhead and underground distribution and transmission lines, substations, switchyards, and related assets; and generates renewable energy.

GenusPlus Group Fundamentals Summary

How do GenusPlus Group's earnings and revenue compare to its market cap?
GNP fundamental statistics
Market Cap	AU$200.61m
Earnings (TTM)	AU$16.84m
Revenue (TTM)	AU$396.72m

11.9x

P/E Ratio

0.5x

P/S Ratio

Is GNP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GNP income statement (TTM)
Revenue	AU$396.72m
Cost of Revenue	AU$116.36m
Gross Profit	AU$280.37m
Other Expenses	AU$263.53m
Earnings	AU$16.84m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.095
Gross Margin	70.67%
Net Profit Margin	4.24%
Debt/Equity Ratio	9.2%

How did GNP perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

17%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is GNP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GNP?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for GNP. This is calculated by dividing GNP's market cap by their current preferred multiple.
What is GNP's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AU$200.61m

GNP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	7.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does GNP's PE Ratio compare to its peers?

GNP PE Ratio vs Peers

The above table shows the PE ratio for GNP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	41x
SXE Southern Cross Electrical Engineering	11.7x	n/a	AU$187.2m
LYL Lycopodium	10.3x	n/a	AU$237.2m
RDG Resource Development Group	130.4x	n/a	AU$173.1m
SHA SHAPE Australia	11.6x	3.2%	AU$139.8m
GNP GenusPlus Group	11.9x	n/a	AU$200.6m

Price-To-Earnings vs Peers: GNP is good value based on its Price-To-Earnings Ratio (11.9x) compared to the peer average (41x).

Price to Earnings Ratio vs Industry

How does GNP's PE Ratio compare vs other companies in the Global Construction Industry?

Price-To-Earnings vs Industry: GNP is good value based on its Price-To-Earnings Ratio (11.9x) compared to the Global Construction industry average (13.4x)

Price to Earnings Ratio vs Fair Ratio

What is GNP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GNP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate GNP's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of GNP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GNP (A$1.14) is trading above our estimate of fair value (A$0.35)

Significantly Below Fair Value: GNP is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

22.0%

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 GenusPlus Group 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.

Discover growth companies

Check out GenusPlus Group's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
GenusPlus Group competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has GenusPlus Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

40.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GNP has a high level of non-cash earnings.

Growing Profit Margin: GNP's current net profit margins (4.2%) are higher than last year (4.1%).

Past Earnings Growth Analysis

Earnings Trend: GNP's earnings have grown significantly by 40.9% per year over the past 5 years.

Accelerating Growth: GNP's earnings growth over the past year (83.9%) exceeds its 5-year average (40.9% per year).

Earnings vs Industry: GNP earnings growth over the past year (83.9%) exceeded the Construction industry 16.6%.

Return on Equity

High ROE: GNP's Return on Equity (26.2%) is considered high.

Discover strong past performing companies

Financial Health

How is GenusPlus Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GNP's short term assets (A$117.3M) exceed its short term liabilities (A$77.9M).

Long Term Liabilities: GNP's short term assets (A$117.3M) exceed its long term liabilities (A$23.2M).

Debt to Equity History and Analysis

Debt Level: GNP has more cash than its total debt.

Reducing Debt: Insufficient data to determine if GNP's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GNP's debt is well covered by operating cash flow (297.1%).

Interest Coverage: GNP's interest payments on its debt are well covered by EBIT (33.9x coverage).

Balance Sheet

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Dividend

What is GenusPlus Group current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.59%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GNP's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.59%).

High Dividend: GNP's dividend (1.59%) is low compared to the top 25% of dividend payers in the Australian market (6.35%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether GNP's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if GNP's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (16.6%), GNP's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (53%), GNP's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average board tenure

CEO

David Riches

no data

Tenure

AU$477,039

Compensation

Mr. David William Riches is the Founder, Chief Executive Officer and Managing Director of GenusPlus Group Limited. Mr. Riches is a third generation recognised expert in the electrical contracting industry....

CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD335.71K) is about average for companies of similar size in the Australian market ($USD285.38K).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.

Board Members

Experienced Board: GNP's board of directors are considered experienced (4.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: GNP insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.6%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/16 00:00
End of Day Share Price	2022/08/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30