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Ambition Group

ASX:AMB
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AMB
ASX
A$5M
Market Cap
  1. Home
  2. AU
  3. Commercial Services
Company description

Ambition Group Limited provides permanent and contracting recruitment services in Australia, Asia, and the United Kingdom. The last earnings update was 81 days ago. More info.


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AMB Share Price and Events
7 Day Returns
6.7%
ASX:AMB
1.4%
AU Professional Services
1%
AU Market
1 Year Returns
-
ASX:AMB
11.6%
AU Professional Services
2.4%
AU Market
AMB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ambition Group (AMB) 6.7% 5.3% - - -59% -46.7%
AU Professional Services 1.4% 7% 13.4% 11.6% 29.8% 25.1%
AU Market 1% 1.5% 4.3% 2.4% 17.6% 7.4%
1 Year Return vs Industry and Market
  • No trading data on AMB.
  • No trading data on AMB.
Price Volatility
AMB
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Ambition Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ambition Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ambition Group.

ASX:AMB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:AMB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.876 (1 + (1- 30%) (4.43%))
0.935
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.935 * 5.96%)
7.88%

Discounted Cash Flow Calculation for ASX:AMB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ambition Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:AMB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.88%)
2019 1.42 Est @ 88.87% 1.32
2020 2.32 Est @ 62.91% 1.99
2021 3.36 Est @ 44.73% 2.67
2022 4.43 Est @ 32% 3.27
2023 5.45 Est @ 23.1% 3.73
2024 6.37 Est @ 16.86% 4.04
2025 7.17 Est @ 12.5% 4.21
2026 7.84 Est @ 9.44% 4.27
2027 8.42 Est @ 7.3% 4.25
2028 8.91 Est @ 5.81% 4.17
Present value of next 10 years cash flows A$33.94
ASX:AMB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$8.91 × (1 + 2.31%) ÷ (7.88% – 2.31%)
A$163.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$163.52 ÷ (1 + 7.88%)10
A$76.55
ASX:AMB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$33.94 + A$76.55
A$110.49
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$110.49 / 63.77
A$1.73
ASX:AMB Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$1.73
Current discount Discount to share price of A$0.08
= -1 x (A$0.08 - A$1.73) / A$1.73
95.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ambition Group is available for.
Intrinsic value
>50%
Share price is A$0.08 vs Future cash flow value of A$1.73
Current Discount Checks
For Ambition Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ambition Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Ambition Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ambition Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ambition Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:AMB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$-0.01
ASX:AMB Share Price ** ASX (2019-05-16) in AUD A$0.08
Australia Professional Services Industry PE Ratio Median Figure of 10 Publicly-Listed Professional Services Companies 17.31x
Australia Market PE Ratio Median Figure of 542 Publicly-Listed Companies 16.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ambition Group.

ASX:AMB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:AMB Share Price ÷ EPS (both in AUD)

= 0.08 ÷ -0.01

-9.96x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ambition Group is loss making, we can't compare its value to the AU Professional Services industry average.
  • Ambition Group is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Ambition Group's expected growth come at a high price?
Raw Data
ASX:AMB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -9.96x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
39%per year
Australia Professional Services Industry PEG Ratio Median Figure of 8 Publicly-Listed Professional Services Companies 1.16x
Australia Market PEG Ratio Median Figure of 360 Publicly-Listed Companies 1.42x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Ambition Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Ambition Group's assets?
Raw Data
ASX:AMB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.19
ASX:AMB Share Price * ASX (2019-05-16) in AUD A$0.08
Australia Professional Services Industry PB Ratio Median Figure of 23 Publicly-Listed Professional Services Companies 1.99x
Australia Market PB Ratio Median Figure of 1,677 Publicly-Listed Companies 1.66x
ASX:AMB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:AMB Share Price ÷ Book Value per Share (both in AUD)

= 0.08 ÷ 0.19

0.42x

* Primary Listing of Ambition Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ambition Group is good value based on assets compared to the AU Professional Services industry average.
X
Value checks
We assess Ambition Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. Ambition Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover Ambition Group, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
39%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ambition Group expected to grow at an attractive rate?
  • Ambition Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Ambition Group's earnings growth is expected to exceed the Australia market average.
  • Unable to compare Ambition Group's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:AMB Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:AMB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 39%
Australia Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 29.9%
Australia Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 10.8%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.1%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:AMB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:AMB Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 114 1 -1
2018-09-30 109 0 0
2018-06-30 105 0 0
2018-03-31 103 0 0
2017-12-31 102 0 0
2017-09-30 105 1 1
2017-06-30 108 3 1
2017-03-31 112 1 1
2016-12-31 115 -1 1
2016-09-30 117 -1 1
2016-06-30 119 -1 1
2016-03-31 113 1 1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ambition Group's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Ambition Group is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:AMB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Ambition Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:AMB Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 -0.01
2018-09-30 0.00
2018-06-30 0.00
2018-03-31 0.00
2017-12-31 0.01
2017-09-30 0.01
2017-06-30 0.02
2017-03-31 0.02
2016-12-31 0.01
2016-09-30 0.01
2016-06-30 0.01
2016-03-31 0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Ambition Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Ambition Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ambition Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ambition Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ambition Group's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ambition Group does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Ambition Group's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Ambition Group's 1-year growth to the AU Professional Services industry average as it is not currently profitable.
Earnings and Revenue History
Ambition Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ambition Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:AMB Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 114.07 -0.57 37.89
2018-09-30 109.41 -0.30 36.60
2018-06-30 104.75 -0.03 35.30
2018-03-31 103.31 0.16 34.52
2017-12-31 101.87 0.34 33.73
2017-09-30 104.83 0.80 33.71
2017-06-30 107.79 1.27 33.69
2017-03-31 111.53 0.99 35.19
2016-12-31 115.27 0.71 36.70
2016-09-30 117.34 0.62 38.27
2016-06-30 119.41 0.54 39.85
2016-03-31 113.32 0.83 39.08
2015-12-31 107.24 1.12 38.30
2015-09-30 101.04 1.17 36.74
2015-06-30 94.84 1.21 35.17
2015-03-31 92.16 0.52 34.24
2014-12-31 89.49 -0.18 33.31
2014-09-30 87.42 -0.98 32.73
2014-06-30 85.34 -1.78 32.16
2014-03-31 84.14 -1.60 32.47
2013-12-31 82.93 -1.41 32.78
2013-09-30 83.17 -1.14 33.20
2013-06-30 83.41 -0.86 33.62
2013-03-31 85.42 -0.40 33.59
2012-12-31 87.43 0.07 33.57
2012-09-30 89.80 0.55 27.28
2012-06-30 92.18 1.02 21.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Ambition Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Ambition Group has efficiently used its assets last year compared to the AU Professional Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Ambition Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Ambition Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ambition Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ambition Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ambition Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ambition Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ambition Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ambition Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 100.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ambition Group Company Filings, last reported 4 months ago.

ASX:AMB Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 11.57 0.23 5.13
2018-09-30 11.57 0.23 5.13
2018-06-30 12.03 2.03 3.74
2018-03-31 12.03 2.03 3.74
2017-12-31 11.84 1.04 4.12
2017-09-30 11.84 1.04 4.12
2017-06-30 12.30 0.00 2.93
2017-03-31 12.30 0.00 2.93
2016-12-31 13.01 0.00 4.47
2016-09-30 13.01 0.00 4.47
2016-06-30 12.59 0.00 1.65
2016-03-31 12.59 0.00 1.65
2015-12-31 13.20 0.00 6.53
2015-09-30 13.20 0.00 6.53
2015-06-30 12.60 0.00 4.17
2015-03-31 12.60 0.00 4.17
2014-12-31 11.73 0.00 5.22
2014-09-30 11.73 0.00 5.22
2014-06-30 10.49 0.00 2.84
2014-03-31 10.49 0.00 2.84
2013-12-31 11.50 0.00 5.23
2013-09-30 11.50 0.00 5.23
2013-06-30 12.17 0.00 6.04
2013-03-31 12.17 0.00 6.04
2012-12-31 12.13 0.00 6.46
2012-09-30 12.13 0.00 6.46
2012-06-30 12.80 0.00 6.53
  • Ambition Group's level of debt (2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 2% today).
  • Debt is well covered by operating cash flow (496.5%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on Ambition Group's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Ambition Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ambition Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Ambition Group dividends.
If you bought A$2,000 of Ambition Group shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Ambition Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Ambition Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:AMB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Australia Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 2.9%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:AMB Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2018-08-24 0.000 0.000
2018-04-10 0.000 0.000
2017-03-06 0.010 6.153
2016-03-07 0.010 5.611
2016-02-18 0.010 4.747
2010-04-01 0.000 0.000
2010-02-19 0.000 0.000
2009-08-24 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Ambition Group has not reported any payouts.
  • Unable to verify if Ambition Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Ambition Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Ambition Group has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Ambition Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ambition Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ambition Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nick Waterworth
COMPENSATION A$344,628
AGE 59
TENURE AS CEO 4 years
CEO Bio

Mr. Nicholas Jane Waterworth, also known as Nick, serves as Group Chief Executive Officer at Ambition Europe Limited. Mr. Waterworth has been the Executive Chairman of Ambition Group Ltd. since January 2014 and has been Group Chief Executive Officer since May 13, 2015. He is leading a team of 6 experienced Divisional Managing Directors around the world at Ambition Group Ltd. He has been in executive recruitment for 30 years and has experience in Australia, New Zealand and the UK. He also has been instrumental in opening its Melbourne office and providing leadership to other business units. He was instrumental in listing Ambition Group on the Australian Stock Exchange and developing the strategy for future growth. Mr. Waterworth co-founded Ambition Group Ltd. in 1999 and served as its Executive Chairman from June 26, 2003 to March 2013. Mr. Waterworth was responsible for many of the external aspects of Ambition Group Ltd., including client development, strategy formulation, acquisition searches and review, shareholder and analyst communication. He led Ambition's Accountability business and works for McGinty Recruitment, on the growth of Queensland subsidiary and with the management of Watermark on expanding this business. From 2007 to 2013, he worked as Managing Partner for Watermark Search International. He served as Deputy Chairman of Ambition Group Ltd. from March 2013 January 2014. He has been a Director at Ambition Group Ltd., since August 1999. Mr. Waterworth holds a Honours degree in Economics from York University UK.

CEO Compensation
  • Nick's compensation has increased whilst company is loss making.
  • Nick's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Ambition Group management team in years:

3.3
Average Tenure
  • The tenure for the Ambition Group management team is about average.
Management Team

Nick Waterworth

TITLE
Co-Founder
COMPENSATION
A$345K
AGE
59
TENURE
4 yrs

Adam Field

TITLE
CFO & Company Secretary
COMPENSATION
A$651K
TENURE
0.8 yrs

Paul Endacott

TITLE
MD of South East Asia & Regional MD of Asia
TENURE
6.8 yrs

Nicky Ocana

TITLE
Managing Director of UK
TENURE
2.7 yrs

Chris Aukland

TITLE
Managing Director of Hong Kong
Board of Directors Tenure

Average tenure of the Ambition Group board of directors in years:

4.8
Average Tenure
  • The tenure for the Ambition Group board of directors is about average.
Board of Directors

Nick Waterworth

TITLE
Co-Founder
COMPENSATION
A$345K
AGE
59
TENURE
5.3 yrs

Paul Young

TITLE
Non-Executive Director
COMPENSATION
A$60K
AGE
62

Deborah Hadwen

TITLE
Non-Executive Director
COMPENSATION
A$55K
TENURE
1.9 yrs

Richard Petty

TITLE
Independent Non-Executive Director
COMPENSATION
A$65K
TENURE
4.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Ambition Group insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
06. May 19 Buy Nicholas Waterworth Individual 02. May 19 02. May 19 200,000 A$0.00 A$150
22. Jan 19 Buy Paul Young Individual 21. Jan 19 21. Jan 19 200,000 A$0.08 A$15,000
21. Jan 19 Buy Nicholas Waterworth Individual 17. Jan 19 17. Jan 19 67,000 A$0.08 A$5,025
X
Management checks
We assess Ambition Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ambition Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Did You Manage To Avoid Ambition Group's (ASX:AMB) Painful 65% Share Price Drop?

Because Ambition Group is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. … As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth. … With revenue in decline, and profit but a dream, we can understand why the share price has been declining at 29% per year.

Simply Wall St -

How Financially Strong Is Ambition Group Limited (ASX:AMB)?

While small-cap stocks, such as Ambition Group Limited (ASX:AMB) with its market cap of AU$7.3m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … the current state of its operations and pathway to profitability.

Simply Wall St -

Should You Sell Ambition Group Limited (ASX:AMB) At This PE Ratio?

and want to better understand how you can grow your money by investing in Ambition Group Limited (ASX:AMB). … Ambition Group Limited (ASX:AMB) is trading with a trailing P/E of 26.7x, which is higher than the industry average of 21.9x. … While this makes AMB appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio.

Simply Wall St -

Is Ambition Group Limited's (ASX:AMB) PE Ratio A Signal To Sell For Investors?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for AMB Price per share = A$0.16 Earnings per share = A$0.005 ∴ Price-Earnings Ratio = A$0.16 ÷ A$0.005 = 30.6x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … We preferably want to compare the stock’s P/E ratio to the average of companies that have similar features to AMB, such as capital structure and profitability.

Simply Wall St -

Best ASX Undervalued Companies

With the stock's market cap sitting at AUD A$90.55M, it falls under the small-cap group KCN's stock is now hovering at around -80% beneath its value of $1.98, at a price tag of $0.41, based on its expected future cash flows. … NAM's shares are currently trading at -46% beneath its intrinsic level of $0.97, at a price tag of $0.52, based on its expected future cash flows. … Moreover, NAM’s PE ratio is currently around 6.7x against its its commercial services peer level of 17.5x, indicating that relative to its comparable company group, NAM’s stock can be bought at a cheaper price.

Simply Wall St -

Is Ambition Group Limited (ASX:AMB) As Financially Strong As Its Balance Sheet Indicates?

The direct benefit for Ambition Group Limited (ASX:AMB), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … See our latest analysis for Ambition Group Is AMB growing fast enough to value financial flexibility over lower cost of capital? … Since Ambition Group doesn’t have any debt on its balance sheet, it doesn’t have any solvency issues, which is a term used to describe the company’s ability to meet its long-term obligations.

Simply Wall St -

Cheap Stocks To Watch Out For In January

Stocks recently deemed undervalued include Ambition Group and Globe International, as they trade at a market price below their true valuations. … AMB is also robust in terms of financial health, as current assets can cover liabilities in the near term and over the long run. … GLB has zero debt on its books as well, meaning it has no long term debt obligations to worry about.

Simply Wall St -

Ambition Group Limited (ASX:AMB): Can It Deliver A Superior ROE To The Industry?

Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity ASX:AMB Last Perf Dec 1st 17 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses. … Although, its appropriate level of leverage means investors can be more confident in the sustainability of AMB’s return with a possible increase should the company decide to increase its debt levels.

Simply Wall St -

Best-In-Class ASX Undervalued Stocks

Companies, such as Ambition Group, are deemed to be undervalued because their shares are currently trading below their true values. … SHM's stock is currently trading at -48% less than its intrinsic value of $2.61, at the market price of $1.37, based on its expected future cash flows. … With the stock's market cap sitting at AUD A$98.38M, it falls under the small-cap stocks category KCN's shares are now trading at -78% lower than its actual worth of $2.02, at a price of $0.44, based on my discounted cash flow model.

Simply Wall St -

Ambition Group Limited (ASX:AMB) And The Service Sector Outlook 2017

Not surprisingly, this rate is more than double the growth rate of the Australian stock market as a whole. … ASX:AMB PE PEG Gauge Oct 27th 17 Professional services companies are typically trading at a PE of 20x, relatively similar to the rest of the Australian stock market PE of 16x. … In terms of returns, AMB generated 7.03% in the past year, which is 9% below the professional services sector.

Simply Wall St -

Company Info

Description

Ambition Group Limited provides permanent and contracting recruitment services in Australia, Asia, and the United Kingdom. It offers its services in the areas of accounting, banking and finance, information technology, and sales and marketing, as well as provides executive search services. The company provides permanent, contracting, and interim recruitment, as well as contractor workforce management and payroll services under the Ambition, AccountAbility, and Watermark Search brands. Ambition Group Limited was founded in 1999 and is based in Sydney, Australia.

Details
Name: Ambition Group Limited
AMB
Exchange: ASX
Founded: 1999
A$5,101,489
63,768,624
Website: http://www.ambition.com.au
Address: Ambition Group Limited
55 Clarence Street,
Level 5,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX AMB Ordinary Shares Australian Securities Exchange AU AUD 23. Nov 1999
Number of employees
Current staff
Staff numbers
231
Ambition Group employees.
Industry
Human Resource and Employment Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/18 10:31
End of day share price update: 2019/05/16 00:00
Last earnings filing: 2019/02/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.