ASX:CUP

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

10.1%

CUP

4.8%

AU Professional Services

5.1%

AU Market


1 Year Return

116.7%

CUP

-3.4%

AU Professional Services

-9.4%

AU Market

Return vs Industry: CUP exceeded the Australian Professional Services industry which returned -5.4% over the past year.

Return vs Market: CUP exceeded the Australian Market which returned -10.6% over the past year.


Shareholder returns

CUPIndustryMarket
7 Day10.1%4.8%5.1%
30 Day19.5%11.0%11.1%
90 Day2.0%-12.2%-9.3%
1 Year122.2%116.7%0.007%-3.4%-5.7%-9.4%
3 Year78.0%67.7%13.0%2.0%14.4%-0.8%
5 Year17.7%-7.1%25.8%1.9%30.9%2.7%

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?

8.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CUP (A$1.04) is trading above our estimate of fair value (A$0.43)

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


Price To Earnings Ratio

PE vs Industry: CUP is good value based on its PE Ratio (9x) compared to the Professional Services industry average (14.3x).

PE vs Market: CUP is good value based on its PE Ratio (9x) compared to the Australian market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CUP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CUP is good value based on its PB Ratio (1.7x) compared to the AU Professional Services industry average (1.9x).


Next Steps

Future Growth

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

22.6%

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 Countplus 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 Countplus performed over the past 5 years?

-22.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CUP has a high level of non-cash earnings.

Growing Profit Margin: CUP's current net profit margins (17.9%) are higher than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: CUP's earnings have declined by -22.7% per year over the past 5 years.

Accelerating Growth: CUP's earnings growth over the past year (131.1%) exceeds its 5-year average (-22.7% per year).

Earnings vs Industry: CUP earnings growth over the past year (131.1%) exceeded the Professional Services industry 12%.


Return on Equity

High ROE: CUP's Return on Equity (18.3%) is considered low.


Next Steps

Financial Health

How is Countplus's financial position?


Financial Position Analysis

Short Term Liabilities: CUP's short term assets (A$192.7M) exceed its short term liabilities (A$175.8M).

Long Term Liabilities: CUP's short term assets (A$192.7M) exceed its long term liabilities (A$34.4M).


Debt to Equity History and Analysis

Debt Level: CUP's debt to equity ratio (7.2%) is considered satisfactory.

Reducing Debt: CUP's debt to equity ratio has reduced from 45.1% to 7.2% over the past 5 years.

Debt Coverage: CUP's debt is well covered by operating cash flow (73.1%).

Interest Coverage: CUP's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CUP's dividend (2.4%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.68%).

High Dividend: CUP's dividend (2.4%) is low compared to the top 25% of dividend payers in the Australian market (6.6%).


Stability and Growth of Payments

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 low payout ratio (19.4%), CUP's dividend payments are well covered by earnings.


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

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

2.3yrs

Average management tenure


CEO

Matthew Rowe

3.25yrs

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 ($USD0.00) is below average for companies of similar size in the Australian market ($USD252.41K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Rowe
CEO, MD & Director3.25yrsAU$724.90k1.34% A$1.5m
Laurent Toussaint
CFO & Alternate Company Secretary2.33yrsAU$338.86k0.018% A$20.5k
Graham McGeagh
Chief Operating Officerno datano data0.0075% A$8.5k
Narelle Wooden
Joint Company Secretary & General Counselno datano datano data
William Hundy
Joint Company Secretary0.083yrno datano data

2.3yrs

Average Tenure

Experienced Management: CUP's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthew Rowe
CEO, MD & Director3.25yrsAU$724.90k1.34% A$1.5m
Andrew McGill
Independent Non-Executive Director2.42yrsAU$41.06k0.0090% A$10.3k
Raymond Kellerman
Non-Executive Chairman3.08yrsAU$100.00k0.82% A$929.7k
Alison Ledger
Independent Non-Executive Director3.58yrsAU$71.18k0.0090% A$10.3k
Catherine Hill
Independent Non-Executive Director2.92yrsAU$71.18k0.18% A$205.0k

3.1yrs

Average Tenure

Experienced Board: CUP's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CUP insiders have bought more shares than they have sold 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

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$113.660m
  • Shares outstanding: 110.89m
  • Website: https://www.countplus.com.au

Number of Employees


Location

  • Countplus Limited
  • 1 Chifley Square
  • Level 8
  • 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 Other segments. It offers tax, assurance, audit, and corporate advisory services; financial advice related to personal insurance, investment, and superannuation; loans commission, and leasing commission services; and information technology, legal, conference, and insurance services. The company was founded in 2006 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 Analysis2020/05/28 10:39
End of Day Share Price2020/05/28 00:00
Earnings2019/12/31
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.