ASX:FLN

Stock Analysis Report

Executive Summary

Freelancer Limited provides an online outsourcing marketplace and escrow payment services in Australia.


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.6%

FLN

-2.1%

AU Professional Services

0.02%

AU Market


1 Year Return

-36.1%

FLN

27.4%

AU Professional Services

14.6%

AU Market

Return vs Industry: FLN underperformed the Australian Professional Services industry which returned 27.4% over the past year.

Return vs Market: FLN underperformed the Australian Market which returned 14.6% over the past year.


Shareholder returns

FLNIndustryMarket
7 Day-7.6%-2.1%0.02%
30 Day-17.5%-1.6%0.2%
90 Day-37.5%4.6%5.4%
1 Year-36.1%-36.1%31.3%27.4%19.7%14.6%
3 Year-51.1%-51.1%58.5%45.0%38.7%20.2%
5 Year-55.7%-55.7%61.2%36.7%50.6%17.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.43x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: FLN (A$0.43) is trading above our estimate of fair value (A$0.36)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: FLN is overvalued based on its PB Ratio (6.4x) compared to the AU Professional Services industry average (1.9x).


Next Steps

Future Growth

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

12.6%

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 Freelancer 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 Freelancer performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLN is currently unprofitable.

Growing Profit Margin: FLN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FLN is unprofitable, but has reduced losses over the past 5 years at a rate of 3.2% per year.

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

Earnings vs Industry: FLN is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (13.4%).


Return on Equity

High ROE: FLN has a negative Return on Equity (-5.31%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Freelancer's financial position?


Financial Position Analysis

Short Term Liabilities: FLN's short term assets (A$37.3M) do not cover its short term liabilities (A$43.0M).

Long Term Liabilities: FLN's short term assets (A$37.3M) exceed its long term liabilities (A$25.1M).


Debt to Equity History and Analysis

Debt Level: FLN's debt to equity ratio (0.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if FLN's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: FLN's debt is covered by short term assets (assets are 308.5x 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: Whilst unprofitable FLN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FLN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 13.2% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if FLN'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 FLN's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

9.8yrs

Average board tenure


CEO

Matt Barrie (46yo)

AU$602,289

Compensation

Mr. Robert Matthew Barrie, also known as Matt, BE (Hons I) BSc (Hons I) GDipAppFin MAppFin MSEE (Stanford) GAICD SEP FIEAust, is Founder of Freelancer Limited and has been its Executive Chairman since Apri ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD399.63K) is above average for companies of similar size in the Australian market ($USD251.50K).

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


Board Members

NamePositionTenureCompensationOwnership
Robert Barrie
Founder0yrsAU$602.29k43.34% A$83.4m
Darren Nicholas Williams
Non-Executive Director9.8yrsAU$25.06k2.35% A$4.5m
Simon Alvin Clausen
Non-Executive Director9.8yrsAU$25.00k36.03% A$69.3m

9.8yrs

Average Tenure

45yo

Average Age

Experienced Board: FLN's board of directors are considered experienced (9.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FLN 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

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


Key Information

  • Name: Freelancer Limited
  • Ticker: FLN
  • Exchange: ASX
  • Founded: 2009
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: AU$192.422m
  • Shares outstanding: 452.76m
  • Website: https://www.freelancer.com

Number of Employees


Location

  • Freelancer Limited
  • World Square
  • Level 20
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2013
FLNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2013
FLNC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2013

Biography

Freelancer Limited provides an online outsourcing marketplace and escrow payment services in Australia. It operates through two segments, Online Marketplace and Online Payment Services. The company, through its marketplace, enables employers to hire freelancers to do work in areas, such as software development, writing, data entry and design, engineering, sciences, sales and marketing, and accounting and legal services. It connects employers and freelancers from approximately 247 countries, regions, and territories. Freelancer Limited was founded in 2009 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 Analysis2020/02/23 10:41
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.