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OEC

OrbitalASX:OEC Stock Report

Market Cap

AU$50.6m

7D

4.0%

1Y

-46.7%

Updated

16 Oct, 2021

Data

Company Financials +
OEC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth6/6
Past Performance0/6
Financial Health1/6
Dividends0/6

OEC Overview

Orbital Corporation Limited engages in the design, manufacture, and sale of unmanned aerial vehicle (UAV) propulsion systems and flight critical components in Australia and the United States.

Orbital Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Orbital
Historical stock prices
Current Share PriceAU$0.65
52 Week HighAU$0.58
52 Week LowAU$1.35
Beta0.69
1 Month Change-4.41%
3 Month Change-24.86%
1 Year Change-46.72%
3 Year Change8.33%
5 Year Change-27.78%
Change since IPO-98.45%

Recent News & Updates

Jul 30
Estimating The Fair Value Of Orbital Corporation Limited (ASX:OEC)

Estimating The Fair Value Of Orbital Corporation Limited (ASX:OEC)

Does the July share price for Orbital Corporation Limited ( ASX:OEC ) reflect what it's really worth? Today, we will...

Shareholder Returns

OECAU Aerospace & DefenseAU Market
7D4.0%1.7%0.9%
1Y-46.7%-37.2%20.2%

Return vs Industry: OEC underperformed the Australian Aerospace & Defense industry which returned -37.2% over the past year.

Return vs Market: OEC underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is OEC's price volatile compared to industry and market?
OEC volatility
OEC Beta0.69
Industry Beta0.85
Market Beta1

Stable Share Price: OEC is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: OEC's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1988n/aTodd Alderhttps://orbitaluav.com

Orbital Corporation Limited engages in the design, manufacture, and sale of unmanned aerial vehicle (UAV) propulsion systems and flight critical components in Australia and the United States. It also focuses on the manufacture, assembly, and delivery of engines and propulsion systems for UAVs. The company was formerly known as Orbital Engine Corporation Limited and changed its name to Orbital Corporation Limited in October 2004.

Orbital Fundamentals Summary

How do Orbital's earnings and revenue compare to its market cap?
OEC fundamental statistics
Market CapAU$50.63m
Earnings (TTM)-AU$11.44m
Revenue (TTM)AU$31.20m

1.6x

P/S Ratio

-4.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OEC income statement (TTM)
RevenueAU$31.20m
Cost of RevenueAU$15.98m
Gross ProfitAU$15.22m
ExpensesAU$26.67m
Earnings-AU$11.44m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.15
Gross Margin48.79%
Net Profit Margin-36.69%
Debt/Equity Ratio136.0%

How did OEC perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OEC (A$0.65) is trading below our estimate of fair value (A$7.33)

Significantly Below Fair Value: OEC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OEC is unprofitable, so we can't compare its PE Ratio to the Global Aerospace & Defense industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OEC is overvalued based on its PB Ratio (6.9x) compared to the AU Aerospace & Defense industry average (1.7x).


Future Growth

How is Orbital forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

87.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OEC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: OEC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OEC's is expected to become profitable in the next 3 years.

Revenue vs Market: OEC's revenue (27.4% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: OEC's revenue (27.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OEC's Return on Equity is forecast to be high in 3 years time (29.2%)


Past Performance

How has Orbital performed over the past 5 years?

-23.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OEC is currently unprofitable.

Growing Profit Margin: OEC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OEC is unprofitable, and losses have increased over the past 5 years at a rate of 23.8% per year.

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

Earnings vs Industry: OEC is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (22.9%).


Return on Equity

High ROE: OEC has a negative Return on Equity (-155.88%), as it is currently unprofitable.


Financial Health

How is Orbital's financial position?


Financial Position Analysis

Short Term Liabilities: OEC's short term assets (A$21.1M) do not cover its short term liabilities (A$21.5M).

Long Term Liabilities: OEC's short term assets (A$21.1M) exceed its long term liabilities (A$919.0K).


Debt to Equity History and Analysis

Debt Level: OEC's debt to equity ratio (136%) is considered high.

Reducing Debt: OEC's debt to equity ratio has increased from 26.3% to 136% over the past 5 years.


Balance Sheet


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: OEC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if OEC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Orbital current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Todd Alder

4.17yrs

Tenure

AU$485,390

Compensation

Mr. Todd Mathew Alder, BEc (Acc), CPA ACIS has been the Chief Executive Officer and Managing Director at Orbital Corporation Limited since August 11, 2017. Mr. Alder served as the Chief Financial Officer a...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD360.27K) is about average for companies of similar size in the Australian market ($USD302.45K).

Compensation vs Earnings: Todd's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: OEC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: OEC's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Orbital Corporation Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Orbital Corporation Limited
  • Ticker: OEC
  • Exchange: ASX
  • Founded: 1988
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: AU$50.634m
  • Shares outstanding: 77.90m
  • Website: https://orbitaluav.com

Number of Employees


Location

  • Orbital Corporation Limited
  • 4 Whipple Street
  • Balcatta
  • Western Australia
  • 6021
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 07:04
End of Day Share Price2021/10/14 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.