ASX:ARA

Stock Analysis Report

Executive Summary

Ariadne Australia Limited operates as an investment company in Australia and New Zealand.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.8%

ARA

-0.4%

AU Commercial Services

1.9%

AU Market


1 Year Return

-4.7%

ARA

13.3%

AU Commercial Services

21.4%

AU Market

Return vs Industry: ARA underperformed the Australian Commercial Services industry which returned 15% over the past year.

Return vs Market: ARA underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

ARAIndustryMarket
7 Day-0.8%-0.4%1.9%
30 Day-0.8%4.5%5.2%
90 Day-6.2%0.8%6.2%
1 Year-2.1%-4.7%19.1%13.3%26.9%21.4%
3 Year7.2%-3.2%33.8%19.4%40.1%21.3%
5 Year87.4%58.4%64.1%34.1%61.8%25.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ariadne Australia 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: ARA (A$0.61) is trading below our estimate of fair value (A$7.39)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ARA is good value based on its PB Ratio (0.8x) compared to the AU Commercial Services industry average (2.4x).


Next Steps

Future Growth

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

10.6%

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 Ariadne Australia 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 Ariadne Australia performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARA is currently unprofitable.

Growing Profit Margin: ARA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ARA is unprofitable, but has reduced losses over the past 5 years at a rate of 17.3% per year.

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

Earnings vs Industry: ARA is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (20.4%).


Return on Equity

High ROE: ARA has a negative Return on Equity (-1.37%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ariadne Australia's financial position?


Financial Position Analysis

Short Term Liabilities: ARA's short term assets (A$50.5M) exceed its short term liabilities (A$5.6M).

Long Term Liabilities: ARA's short term assets (A$50.5M) exceed its long term liabilities (A$267.0K).


Debt to Equity History and Analysis

Debt Level: ARA's debt to equity ratio (3.2%) is considered satisfactory.

Reducing Debt: ARA's debt to equity ratio has reduced from 3.2% to 3.2% over the past 5 years.

Debt Coverage: ARA's debt is well covered by operating cash flow (440.5%).

Interest Coverage: ARA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: ARA's debt is covered by short term assets (assets are 10.4x debt).


Next Steps

Dividend

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

2.79%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.3%markettop25%5.5%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: ARA's dividend (2.79%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: ARA's dividend (2.79%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


Stability and Growth of Payments

Stable Dividend: ARA's dividend payments have been volatile in the past 10 years.

Growing Dividend: ARA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: ARA is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

12.0yrs

Average board tenure


CEO

Ariadne Australia has no CEO, or we have no data on them.


Board Age and Tenure

12.0yrs

Average Tenure

72yo

Average Age

Experienced Board: ARA's board of directors are seasoned and experienced ( 12 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$1,104,74520 Nov 19
Phoenix Portfolios Pty Ltd.
EntityCompany
Shares1,650,807
Max PriceAU$0.67
SellAU$2,577,93620 Nov 19
Phoenix Portfolios Pty Ltd.
EntityCompany
Shares4,098,130
Max PriceAU$0.63
BuyAU$126,94917 Jul 19
David Baffsky
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares182,713
Max PriceAU$0.69

Ownership Breakdown

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


Management Team

  • Gary Weiss (66yo)

    Executive Director

    • Tenure: 30.2yrs
    • Compensation: AU$740.25k
  • Dan Weiss (39yo)

    Investment Officer

    • Compensation: AU$412.73k
  • Natt McMahon

    CFO & Company Secretary

    • Tenure: 7.7yrs
    • Compensation: AU$336.22k

Board Members

  • Gary Weiss (66yo)

    Executive Director

    • Tenure: 30.2yrs
    • Compensation: AU$740.25k
  • Kevin Seymour (79yo)

    Non-Executive Deputy Chairman

    • Compensation: AU$76.65k
  • David Baffsky (78yo)

    Independent Non-Executive Chairman

    • Tenure: 11yrs
    • Compensation: AU$157.60k
  • John Murphy (66yo)

    Independent Non-Executive Director

    • Tenure: 13.1yrs
    • Compensation: AU$87.60k
  • Chris Barter

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: AU$79.01k

Company Information

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


Key Information

  • Name: Ariadne Australia Limited
  • Ticker: ARA
  • Exchange: ASX
  • Founded:
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: AU$119.708m
  • Shares outstanding: 196.24m
  • Website: https://www.ariadne.com.au

Number of Employees


Location

  • Ariadne Australia Limited
  • Chifley Tower
  • Level 27
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 1994
ARACHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 1994

Biography

Ariadne Australia Limited operates as an investment company in Australia and New Zealand. It operates through Investments, Car Parking, and Property segments. The company invests in securities, as well as provides financial services. It also engages in the car park infrastructure operation and management activities; and owns and operates Orams Marine village located in Auckland, New Zealand. The company 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 Analysis2020/01/22 10:33
End of Day Share Price2020/01/22 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.