ASX:FLN

Stock Analysis Report

Executive Summary

Freelancer Limited operates a freelancing and crowdsourcing marketplace in Australia.

Snowflake

Fundamentals

Mediocre balance sheet with concerning outlook.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.3%

FLN

-0.5%

AU Professional Services

-0.2%

AU Market


1 Year Return

30.5%

FLN

10.8%

AU Professional Services

10.5%

AU Market

Return vs Industry: FLN exceeded the Australian Professional Services industry which returned 10.8% over the past year.

Return vs Market: FLN exceeded the Australian Market which returned 10.5% over the past year.


Shareholder returns

FLNIndustryMarket
7 Day-1.3%-0.5%-0.2%
30 Day-3.2%-1.7%-1.4%
90 Day-22.4%3.3%-1.0%
1 Year30.5%30.5%14.1%10.8%16.9%10.5%
3 Year-42.0%-42.0%35.2%24.8%36.9%18.6%
5 Year1.3%1.3%49.3%28.6%50.2%16.2%

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?

11.01x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: FLN (A$0.76) is trading above our estimate of fair value (A$0.45)

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 (11x) compared to the AU Professional Services industry average (2.1x).


Next Steps

Future Growth

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

115.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FLN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FLN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: FLN's revenue (14.5% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: FLN's revenue (14.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FLN's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has Freelancer performed over the past 5 years?

-8.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FLN is unprofitable, and losses have increased over the past 5 years at a rate of -8.4% 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 (26.7%).


Return on Equity

High ROE: FLN has a negative Return on Equity (-1.77%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: FLN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: FLN is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Freelancer's financial position?


Financial Position Analysis

Short Term Liabilities: FLN's short term assets (A$40.3M) do not cover its short term liabilities (A$42.0M)

Long Term Liabilities: FLN's short term assets (40.3M) exceeds its long term liabilities (2.4M)


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 low level of unsold assets or inventory.

Debt Coverage by Assets: FLN's debt is covered by short term assets (assets are 332.859500x 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: FLN has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if FLN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

9.5yrs

Average board tenure


CEO

Matt Barrie (46yo)

0yrs

Tenure

AU$604,257

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 ($USD413.68K) is about average for companies of similar size in the Australian market ($USD458.25K).

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


Board Age and Tenure

9.5yrs

Average Tenure

45yo

Average Age

Experienced Board: FLN's board of directors are considered experienced (9.5 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.


Ownership Breakdown


Management Team

  • Matt Barrie (46yo)

    Founder

    • Tenure: 0yrs
    • Compensation: AU$604.26k
  • Neil Katz

    CFO & Company Secretary

    • Tenure: 10.8yrs
    • Compensation: AU$462.14k
  • Greg Robinson

    Vice President of Compliance

    • Tenure: 0yrs
  • Craig Tindale

    Head of Global Solutions

    • Tenure: 0yrs
  • Sarah Tang

    Vice President of Enterprise

    • Tenure: 0yrs

Board Members

  • Matt Barrie (46yo)

    Founder

    • Tenure: 0yrs
    • Compensation: AU$604.26k
  • Darren Nicholas Williams (45yo)

    Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: AU$25.06k
  • Simon Alvin Clausen (43yo)

    Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: AU$25.00k

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$341.789m
  • Shares outstanding: 455.72m
  • 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 operates a freelancing and crowdsourcing marketplace in Australia. It operates through two segments, Online Marketplace and Online Payment Services. Through its marketplace employers can ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:35
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.