ASX:AMB

Stock Analysis Report

Executive Summary

Ambition Group Limited provides permanent and contracting recruitment services in Australia, Asia, and the United Kingdom.

Risk Analysis

Earnings have declined by -11.01% per year over past 5 years

Does not have a meaningful market cap (A$6M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AMB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

AMB

2.0%

AU Professional Services

1.9%

AU Market


1 Year Return

28.6%

AMB

31.7%

AU Professional Services

21.4%

AU Market

Return vs Industry: AMB underperformed the Australian Professional Services industry which returned 29.8% over the past year.

Return vs Market: AMB exceeded the Australian Market which returned 20.1% over the past year.


Shareholder returns

AMBIndustryMarket
7 Day0%2.0%1.9%
30 Day2.3%4.2%5.2%
90 Dayn/a10.0%6.2%
1 Year28.6%28.6%35.9%31.7%26.9%21.4%
3 Year-43.8%-47.1%63.8%49.7%40.1%21.3%
5 Year-32.9%-40.0%72.4%46.5%61.8%25.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.51x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AMB (A$0.09) is trading above our estimate of fair value (A$0)

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


Price To Earnings Ratio

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

PE vs Market: AMB 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 AMB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AMB is good value based on its PB Ratio (0.5x) compared to the AU Professional Services industry average (2.1x).


Next Steps

Future Growth

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

11.4%

Forecasted Commercial Services 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 Ambition 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.


Next Steps

Past Performance

How has Ambition Group performed over the past 5 years?

-11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMB is currently unprofitable.

Growing Profit Margin: AMB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AMB is unprofitable, and losses have increased over the past 5 years at a rate of -11% per year.

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

Earnings vs Industry: AMB is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (22.2%).


Return on Equity

High ROE: AMB has a negative Return on Equity (-13.06%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ambition Group's financial position?


Financial Position Analysis

Short Term Liabilities: AMB's short term assets (A$23.0M) exceed its short term liabilities (A$14.5M).

Long Term Liabilities: AMB's short term assets (A$23.0M) exceed its long term liabilities (A$4.8M).


Debt to Equity History and Analysis

Debt Level: AMB's debt to equity ratio (4.2%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: AMB's debt is covered by short term assets (assets are 50.5x 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 AMB has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AMB is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 60.6% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%5.5%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: AMB is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMB'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 Ambition Group's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Nick Waterworth (60yo)

4.7yrs

Tenure

AU$344,628

Compensation

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 201 ...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD237.84K) is about average for companies of similar size in the Australian market ($USD262.68K).

Compensation vs Earnings: Nick's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.0yrs

Average Tenure

Experienced Management: AMB's management team is considered experienced (4 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

Experienced Board: AMB's board of directors are considered experienced (5.4 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$69322 Sep 19
Nicholas Waterworth
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares6,300
Max PriceAU$0.11
BuyAU$10,08010 Sep 19
Paul Young
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares112,000
Max PriceAU$0.09
BuyAU$8,91723 Aug 19
Nicholas Waterworth
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares101,326
Max PriceAU$0.088
BuyAU$15006 May 19
Nicholas Waterworth
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares200,000
Max PriceAU$0.00075

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.5%.


Management Team

  • Nick Waterworth (60yo)

    Co-Founder

    • Tenure: 4.7yrs
    • Compensation: AU$344.63k
  • Chris Aukland

    Managing Director of Hong Kong

    • Paul Endacott

      MD of South East Asia & Regional MD of Asia

      • Tenure: 7.4yrs
    • Nicky Ocana

      Managing Director of UK

      • Tenure: 3.3yrs
    • Adam Field

      CFO & Company Secretary

      • Tenure: 1.5yrs
      • Compensation: AU$651.08k

    Board Members

    • Paul Young (63yo)

      Non-Executive Director

      • Compensation: AU$60.00k
    • Nick Waterworth (60yo)

      Co-Founder

      • Tenure: 4.7yrs
      • Compensation: AU$344.63k
    • Richard Petty

      Independent Non-Executive Director

      • Tenure: 5.4yrs
      • Compensation: AU$65.21k
    • Deborah Hadwen

      Non-Executive Director

      • Tenure: 2.6yrs
      • Compensation: AU$54.80k

    Company Information

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


    Key Information

    • Name: Ambition Group Limited
    • Ticker: AMB
    • Exchange: ASX
    • Founded: 1999
    • Industry: Human Resource and Employment Services
    • Sector: Commercial Services
    • Market Cap: AU$6.061m
    • Shares outstanding: 67.35m
    • Website: https://www.ambition.com.au

    Number of Employees


    Location

    • Ambition Group Limited
    • 55 Clarence Street
    • Level 5
    • Sydney
    • New South Wales
    • 2000
    • Australia

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    AMBASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 1999
    AMBCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 1999

    Biography

    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. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 10:32
    End of Day Share Price2020/01/15 00:00
    Earnings2019/06/30
    Annual Earnings2018/12/31


    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.