ASX:CLQ

Stock Analysis Report

Executive Summary

Clean TeQ Holdings Limited, together with its subsidiaries, provides metals recovery and industrial water treatment services primarily in Australia.

Rewards

Earnings are forecast to grow 23.43% per year

Risk Analysis

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have meaningful revenue (A$5M)



Snowflake Analysis

Excellent balance sheet with high growth potential.

Share Price & News

How has Clean TeQ Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CLQ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.9%

CLQ

-2.2%

AU Commercial Services

-2.0%

AU Market


1 Year Return

-48.8%

CLQ

17.8%

AU Commercial Services

16.7%

AU Market

Return vs Industry: CLQ underperformed the Australian Commercial Services industry which returned 17.8% over the past year.

Return vs Market: CLQ underperformed the Australian Market which returned 16.7% over the past year.


Shareholder returns

CLQIndustryMarket
7 Day-10.9%-2.2%-2.0%
30 Day-18.0%2.3%0.1%
90 Day-37.9%3.4%0.4%
1 Year-48.8%-48.8%24.0%17.8%22.5%16.7%
3 Year-61.3%-61.3%25.6%12.2%35.4%16.8%
5 Year232.2%230.6%73.0%40.9%60.6%24.4%

Price Volatility Vs. Market

How volatile is Clean TeQ Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Clean TeQ Holdings undervalued compared to its fair value and its price relative to the market?

0.64x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CLQ's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CLQ's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CLQ is good value based on its PB Ratio (0.6x) compared to the AU Commercial Services industry average (2.4x).


Next Steps

Future Growth

How is Clean TeQ Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLQ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

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

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

Revenue vs Market: CLQ's revenue (97.5% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: CLQ's revenue (97.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CLQ is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Clean TeQ Holdings performed over the past 5 years?

-20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLQ is currently unprofitable.

Growing Profit Margin: CLQ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CLQ is unprofitable, and losses have increased over the past 5 years at a rate of -20.8% per year.

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

Earnings vs Industry: CLQ is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (18.9%).


Return on Equity

High ROE: CLQ has a negative Return on Equity (-7.59%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Clean TeQ Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CLQ's short term assets (A$97.5M) exceed its short term liabilities (A$12.1M).

Long Term Liabilities: CLQ's short term assets (A$97.5M) exceed its long term liabilities (A$885.0K).


Debt to Equity History and Analysis

Debt Level: CLQ's debt to equity ratio (0.06%) is considered satisfactory.

Reducing Debt: CLQ's debt to equity ratio has reduced from 36.7% to 0.06% over the past 5 years.


Balance Sheet

Inventory Level: CLQ has a high level of physical assets or inventory.

Debt Coverage by Assets: CLQ's debt is covered by short term assets (assets are 711.7x 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: CLQ has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: CLQ has less than a year of cash runway if free cash flow continues to reduce at historical rates of -63.6% each year


Next Steps

Dividend

What is Clean TeQ Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage2.6%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate CLQ'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 CLQ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CLQ'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 CLQ'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 Clean TeQ Holdings's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Sam Riggall (47yo)

5.1yrs

Tenure

AU$662,240

Compensation

Mr. Sam Riggall, LLB (Hons), B.Comm., MBA, has been Managing Director and Chief Executive Officer of Clean TeQ Holdings Limited since April 24, 2017. He has been Executive Director of Clean TeQ Holdings Li ...


CEO Compensation Analysis

Compensation vs Market: Sam's total compensation ($USD453.84K) is above average for companies of similar size in the Australian market ($USD255.57K).

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


Management Age and Tenure

5.0yrs

Average Tenure

47yo

Average Age

Experienced Management: CLQ's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

58yo

Average Age

Experienced Board: CLQ's board of directors are considered experienced (3.1 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

SellAU$2,533,43225 Sep 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares3,947,570
Max PriceAU$0.64
BuyAU$12,685,68925 Sep 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares19,516,456
Max PriceAU$0.65

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.7%.


Management Team

  • Melanie Jaye Leydin (46yo)

    Company Secretary

    • Tenure: 8.4yrs
    • Compensation: AU$96.00k
  • Nickolai Zontov

    Principal Scientist

    • Tenure: 19.9yrs
  • Peter Voigt (67yo)

    Founder & Chief Technical Officer

    • Tenure: 29.9yrs
  • Sam Riggall (47yo)

    MD, CEO & Executive Director

    • Tenure: 5.1yrs
    • Compensation: AU$662.24k
  • Ben Stockdale

    CFO & Investor Relations

    • Tenure: 4.9yrs
    • Compensation: AU$470.06k
  • John Carr

    Executive General Manager of Sales & Marketing

    • Tenure: 0yrs
  • Ross Dive

    MD & Executive Director of UV Guard Australia Pty Ltd

    • Tenure: 0yrs
    • Compensation: AU$153.60k
  • Stephen Grocott

    Chief Technical Development Officer

    • Tenure: 1.9yrs
  • Tim Kindred

    Project & Start-Up Director

    • Tenure: 1.8yrs
    • Compensation: AU$635.18k
  • Rae Wyatt

    General Manager of People & Culture

    • Tenure: 1.9yrs

Board Members

  • Robert Martin Friedland (68yo)

    Non-Executive Co-Chairman

    • Tenure: 3.3yrs
    • Compensation: AU$127.50k
  • Eric Finlayson (58yo)

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$90.00k
  • Judith Downes (65yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$67.08k
  • Sam Riggall (47yo)

    MD, CEO & Executive Director

    • Tenure: 5.1yrs
    • Compensation: AU$662.24k
  • Mike Spreadborough

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: AU$152.74k
  • Ross Dive

    MD & Executive Director of UV Guard Australia Pty Ltd

    • Tenure: 0yrs
    • Compensation: AU$153.60k
  • Stef Loader

    Lead Independent Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: AU$107.50k
  • Ian Knight

    Independent Non-Executive Director

    • Tenure: 6.4yrs
    • Compensation: AU$101.95k
  • Zhaobai Jiang (56yo)

    Non-Executive Co-Chairman

    • Tenure: 2.7yrs
    • Compensation: AU$127.50k

Company Information

Clean TeQ Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Clean TeQ Holdings Limited
  • Ticker: CLQ
  • Exchange: ASX
  • Founded: 1990
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: AU$149.292m
  • Shares outstanding: 746.46m
  • Website: https://www.cleanteq.com

Location

  • Clean TeQ Holdings Limited
  • 21 Howleys Road
  • Unit 12
  • Notting Hill
  • Victoria
  • 3168
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLQASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2007
CLQCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2007
CTEQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2007
4CQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2007
CLQTSX (The Toronto Stock Exchange)YesOrdinary SharesCACADNov 2007

Biography

Clean TeQ Holdings Limited, together with its subsidiaries, provides metals recovery and industrial water treatment services primarily in Australia. It operates in two segments, Water and Metals. The Water ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 10:33
End of Day Share Price2019/12/06 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.