ASX:CUP

Stock Analysis Report

Executive Summary

Countplus Limited, together with its subsidiaries, provides accounting, business advisory, and financial planning services in Australia.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.0%

CUP

3.2%

AU Professional Services

1.7%

AU Market


1 Year Return

62.5%

CUP

11.6%

AU Professional Services

10.3%

AU Market

Return vs Industry: CUP exceeded the Australian Professional Services industry which returned 11.6% over the past year.

Return vs Market: CUP exceeded the Australian Market which returned 10.3% over the past year.


Shareholder returns

CUPIndustryMarket
7 Day-1.0%3.2%1.7%
30 Day11.8%0.9%-0.4%
90 Day15.6%5.8%-0.1%
1 Year67.3%62.5%15.0%11.6%16.7%10.3%
3 Year41.1%26.8%36.2%25.2%36.7%18.4%
5 Year13.1%-14.1%55.6%33.8%50.9%16.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

70.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: CUP (A$1.04) is trading above our estimate of fair value (A$0.81)

Significantly Undervalued: CUP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CUP is poor value based on its PE Ratio (70.2x) compared to the Professional Services industry average (21.1x).

PE vs Market: CUP is poor value based on its PE Ratio (70.2x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: CUP is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: CUP is overvalued based on its PB Ratio (2.1x) compared to the AU Professional Services industry average (2x).


Next Steps

Future Growth

How is Countplus forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

36.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CUP's forecast earnings growth (36.1% per year) is above the savings rate (2.3%).

Earnings vs Market: CUP's earnings (36.1% per year) are forecast to grow faster than the Australian market (10.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CUP's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: CUP's revenue is forecast to decline over the next 3 years (-1.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CUP's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Countplus performed over the past 5 years?

-37.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CUP's earnings have declined by -37.1% per year over the past 5 years.

Accelerating Growth: CUP's earnings growth over the past year (26.8%) exceeds its 5-year average (-37.1% per year).

Earnings vs Industry: CUP earnings growth over the past year (26.8%) exceeded the Professional Services industry 26.7%.


Return on Equity

High ROE: CUP's Return on Equity (4.8%) is considered low.


Return on Assets

ROA vs Industry: CUP's Return on Assets is below or equal to the Professional Services industry average last year.


Return on Capital Employed

ROCE Improving: CUP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Countplus's financial position?


Financial Position Analysis

Short Term Liabilities: CUP's short term assets (A$25.7M) exceeds its short term liabilities (A$13.0M)

Long Term Liabilities: CUP's short term assets (25.7M) exceeds its long term liabilities (3.1M)


Debt to Equity History and Analysis

Debt Level: CUP's debt to equity ratio (2.8%) is considered satisfactory

Reducing Debt: CUP's debt to equity ratio has reduced from 40.7% to 2.8% over the past 5 years.

Debt Coverage: CUP's debt is well covered by operating cash flow (341.3%).

Interest Coverage: CUP's interest payments on its debt are well covered by EBIT (13.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: CUP's debt is covered by short term assets (assets are 14.749280x debt).


Next Steps

Dividend

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

1.92%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%2.5%markettop25%5.6%industryaverage2.7%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CUP's dividend (1.92%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.45%).

High Dividend: CUP's dividend (1.92%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

Stable Dividend: CUP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CUP has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (135.1%), CUP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CUP's dividends in 3 years are forecast to be covered by earnings (62.6% payout ratio).


Next Steps

Management

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

2.5yrs

Average board tenure


CEO

Matthew Rowe 0

2.7yrs

Tenure

AU$724,902

Compensation

Mr. Matthew Rowe has been the Chief Executive Officer and Managing Director of Countplus Limited since February 24, 2017. Mr. Rowe served as the Managing Director at Hood Sweeney Pty Ltd. and Hood Sweeney  ...


CEO Compensation Analysis

Compensation vs. Market: Matthew's total compensation ($USD494.71K) is about average for companies of similar size in the Australian market ($USD257.55K).

Compensation vs Earnings: Matthew's compensation has increased by more than 20% in the past year.


Board Age and Tenure

2.5yrs

Average Tenure

Experienced Board: CUP's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: CUP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$28,11109 Sep 19
Raymond Kellerman
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares30,000
Max PriceAU$0.94
BuyAU$23,00006 Sep 19
Raymond Kellerman
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares25,000
Max PriceAU$0.92
BuyAU$93,86904 Sep 19
Catherine Hill
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceAU$0.94
BuyAU$45,23430 Aug 19
Matthew Rowe
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares51,402
Max PriceAU$0.88
BuyAU$8,07529 Aug 19
Raymond Kellerman
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares9,282
Max PriceAU$0.87
BuyAU$74,34429 Aug 19
Raymond Kellerman
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares85,718
Max PriceAU$0.88
BuyAU$3,89429 Aug 19
Matthew Rowe
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares4,476
Max PriceAU$0.87
BuyAU$228,82727 Aug 19
Matthew Rowe
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares260,000
Max PriceAU$0.88
BuyAU$30,04627 Nov 18
Matthew Rowe
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares52,250
Max PriceAU$0.58
BuyAU$70,01623 Nov 18
Matthew Rowe
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares124,095
Max PriceAU$0.58

Ownership Breakdown


Management Team

  • Matthew Rowe

    CEO, MD & Director

    • Tenure: 2.7yrs
    • Compensation: AU$724.90k
  • Laurent Toussaint

    CFO & Alternate Company Secretary

    • Tenure: 1.8yrs
    • Compensation: AU$338.86k
  • Narelle Wooden

    General Counsel & Company Secretary

    • Tenure: 0yrs
  • Graham McGeagh

    Chief Operating Officer

    • Tenure: 0yrs

Board Members

  • Andrew McGill

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$41.06k
  • Ray Kellerman (54yo)

    Non-Executive Chairman

    • Tenure: 2.5yrs
    • Compensation: AU$100.00k
  • Alison Ledger

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: AU$71.18k
  • Matthew Rowe

    CEO, MD & Director

    • Tenure: 2.7yrs
    • Compensation: AU$724.90k
  • Kate Hill (59yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$71.18k

Company Information

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


Key Information

  • Name: Countplus Limited
  • Ticker: CUP
  • Exchange: ASX
  • Founded: 2006
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: AU$115.929m
  • Shares outstanding: 110.41m
  • Website: https://www.countplus.com.au

Number of Employees


Location

  • Countplus Limited
  • 1 Margaret Street
  • Level 17
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CUPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2010
CUPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2010

Biography

Countplus Limited, together with its subsidiaries, provides accounting, business advisory, and financial planning services in Australia. The company operates through Accounting, Financial Services, and Oth ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 10:34
End of Day Share Price2019/10/18 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.