company background image
ARA

Ariadne Australia ASX:ARA Stock Report

Last Price

AU$0.71

Market Cap

AU$140.3m

7D

-4.7%

1Y

31.2%

Updated

07 Aug, 2022

Data

Company Financials
ARA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends0/6

ARA Stock Overview

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

Ariadne Australia Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ariadne Australia
Historical stock prices
Current Share PriceAU$0.71
52 Week HighAU$0.78
52 Week LowAU$0.53
Beta0.45
1 Month Change0.70%
3 Month Change5.93%
1 Year Change31.19%
3 Year Change15.32%
5 Year Change-9.49%
Change since IPO257.51%

Recent News & Updates

Mar 25
These 4 Measures Indicate That Ariadne Australia (ASX:ARA) Is Using Debt Reasonably Well

These 4 Measures Indicate That Ariadne Australia (ASX:ARA) Is Using Debt Reasonably Well

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

ARAAU Commercial ServicesAU Market
7D-4.7%0.4%1.0%
1Y31.2%-1.2%-7.9%

Return vs Industry: ARA exceeded the Australian Commercial Services industry which returned -1.2% over the past year.

Return vs Market: ARA exceeded the Australian Market which returned -7.9% over the past year.

Price Volatility

Is ARA's price volatile compared to industry and market?
ARA volatility
ARA Average Weekly Movement7.1%
Commercial Services Industry Average Movement9.1%
Market Average Movement10.6%
10% most volatile stocks in AU Market17.5%
10% least volatile stocks in AU Market4.7%

Stable Share Price: ARA is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ARA's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198311n/ahttps://www.ariadne.com.au

Ariadne Australia Limited operates as an investment company in Australia and New Zealand. It operates through Investments and Property segments. The company invests in securities, as well as provides financial services.

Ariadne Australia Fundamentals Summary

How do Ariadne Australia's earnings and revenue compare to its market cap?
ARA fundamental statistics
Market CapAU$140.31m
Earnings (TTM)AU$13.08m
Revenue (TTM)AU$17.65m

10.7x

P/E Ratio

8.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARA income statement (TTM)
RevenueAU$17.65m
Cost of RevenueAU$2.58m
Gross ProfitAU$15.07m
Other ExpensesAU$1.98m
EarningsAU$13.08m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.067
Gross Margin85.39%
Net Profit Margin74.15%
Debt/Equity Ratio14.0%

How did ARA perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

11%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ARA 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 ARA?

Other financial metrics that can be useful for relative valuation.

ARA 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/Revenue8.4x
Enterprise Value/EBITDA10.9x
PEG Ration/a

Price to Earnings Ratio vs Peers

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

ARA PE Ratio vs Peers
The above table shows the PE ratio for ARA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.2x
CWY Cleanaway Waste Management
46.8x19.7%AU$5.5b
AVD AVADA Group
22.9x27.0%AU$60.1m
QIP QANTM Intellectual Property
17.4xn/aAU$137.5m
SUG Sugar Terminals
13.6xn/aAU$370.8m
ARA Ariadne Australia
10.7xn/aAU$140.3m

Price-To-Earnings vs Peers: ARA is good value based on its Price-To-Earnings Ratio (10.7x) compared to the peer average (25.2x).


Price to Earnings Ratio vs Industry

How does ARA's PE Ratio compare vs other companies in the Global Commercial Services Industry?

Price-To-Earnings vs Industry: ARA is good value based on its Price-To-Earnings Ratio (10.7x) compared to the Global Commercial Services industry average (16.8x)


Price to Earnings Ratio vs Fair Ratio

What is ARA'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.

ARA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.7x
Fair PE Ration/a

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


Share Price vs Fair Value

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

Below Fair Value: ARA (A$0.72) is trading above our estimate of fair value (A$0.07)

Significantly Below Fair Value: ARA 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.


Discover undervalued companies

Future Growth

How is Ariadne Australia 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


11.7%

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.


Discover growth companies

  • Examine Ariadne Australia's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Ariadne Australia competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Ariadne Australia performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-15.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ARA has high quality earnings.

Growing Profit Margin: ARA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ARA's earnings have declined by 15.2% per year over the past 5 years.

Accelerating Growth: ARA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ARA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (3.7%).


Return on Equity

High ROE: ARA's Return on Equity (7%) is considered low.


Discover strong past performing companies

Financial Health

How is Ariadne Australia's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ARA's short term assets (A$38.3M) exceed its short term liabilities (A$15.0M).

Long Term Liabilities: ARA's short term assets (A$38.3M) exceed its long term liabilities (A$29.9M).


Debt to Equity History and Analysis

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

Reducing Debt: ARA's debt to equity ratio has increased from 3.4% to 14% over the past 5 years.

Debt Coverage: ARA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ARA's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.70%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ARA's dividend (0.7%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.62%).

High Dividend: ARA's dividend (0.7%) is low compared to the top 25% of dividend payers in the Australian market (6.24%).


Stability and Growth of Payments

Stable Dividend: ARA is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: ARA is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: ARA is not paying a notable dividend for the Australian market.


Cash Payout to Shareholders

Cash Flow Coverage: ARA is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

15.0yrs

Average board tenure


CEO

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


Board Members

Experienced Board: ARA's board of directors are seasoned and experienced ( 15 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ARA insiders have only sold shares 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

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


Key Information

  • Name: Ariadne Australia Limited
  • Ticker: ARA
  • Exchange: ASX
  • Founded: 1983
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Implied Market Cap: AU$140.313m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/08/03 00:00
Earnings2021/12/31
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.