ASX:FLN

Stock Analysis Report

Executive Summary

Freelancer Limited operates a freelancing and crowdsourcing marketplace in Australia.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.

Risks

  • Freelancer has significant price volatility in the past 3 months.
  • Freelancer is covered by less than 3 analysts.

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

-8.6%

ASX:FLN

-0.5%

AU Professional Services

-2.5%

AU Market


1 Year Return

28.7%

ASX:FLN

-9.0%

AU Professional Services

-0.6%

AU Market

FLN outperformed the Professional Services industry which returned -9% over the past year.

FLN outperformed the Market in Australia which returned -0.6% over the past year.


Share holder returns

FLNIndustryMarket
7 Day-8.6%-0.5%-2.5%
30 Day-25.3%-6.0%-4.4%
90 Day-9.8%-3.4%-1.1%
1 Year28.7%28.7%-6.3%-9.0%5.1%-0.6%
3 Year-53.8%-53.8%18.5%9.0%30.2%13.1%
5 Year-12.9%-12.9%15.9%-0.2%36.5%5.9%

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 based on future cash flows and its price relative to the stock market?

10.72x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Freelancer's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Freelancer's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Freelancer is loss making, we can't compare its value to the AU Professional Services industry average.

Freelancer is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Freelancer, we can't assess if its growth is good value.


Price Based on Value of Assets

Freelancer is overvalued based on assets compared to the AU Professional Services industry average.


Next Steps

Future Growth

How is Freelancer expected 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 Estimates


Future Annual Growth Analysis

Freelancer's revenue is expected to grow by 14.5% yearly, however this is not considered high growth (20% yearly).

Freelancer's earnings are expected to grow significantly at over 20% yearly.

Freelancer's revenue growth is expected to exceed the Australia market average.

Freelancer's earnings growth is expected to exceed the Australia market average.

Freelancer's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Freelancer is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Freelancer does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Freelancer's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Freelancer's 1-year growth to the AU Professional Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Freelancer has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Freelancer has efficiently used its assets last year compared to the AU Professional Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Freelancer improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Freelancer's financial position?


Financial Position Analysis

Freelancer's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Freelancer's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Freelancer's level of debt (0.4%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Freelancer's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 332.9x 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.

Freelancer has sufficient cash runway for more than 3 years based on current free cash flow.

Freelancer has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 92% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Freelancer's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Freelancer's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Freelancer has not reported any payouts.

Unable to verify if Freelancer's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Freelancer has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Freelancer's dividends in 3 years as they are not expected to pay a notable one for Australia.


Next Steps

Management

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

9.3yrs

Average board tenure


CEO

Matt Barrie (46yo)

0.0yrs

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

Matt's remuneration is about average for companies of similar size in Australia.

Matt's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

9.3yrs

Average Tenure

45yo

Average Age

The tenure for the Freelancer board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyAU$44,87822 Oct 18
Robert Barrie
EntityIndividual
Role
Chief Executive Officer
Founder
Shares78,900
Max PriceAU$0.57

Ownership Breakdown


Management Team

  • Matt Barrie (46yo)

    Founder

    • Tenure: 0.0yrs
    • Compensation: AU$604.26k
  • Neil Katz

    CFO & Company Secretary

    • Tenure: 10.6yrs
    • Compensation: AU$462.14k
  • Greg Robinson

    Vice President of Compliance

    • Tenure: 0.0yrs
  • Craig Tindale

    Head of Global Solutions

    • Tenure: 0.0yrs
  • Sarah Tang

    Vice President of Enterprise

    • Tenure: 0.0yrs

Board Members

  • Matt Barrie (46yo)

    Founder

    • Tenure: 0.0yrs
    • Compensation: AU$604.26k
  • Darren Nicholas Williams (45yo)

    Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$25.06k
  • Simon Clausen (43yo)

    Non-Executive Director

    • Tenure: 9.3yrs
    • 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$334.953m
  • 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
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 Analysis2019/08/19 10:37
End of Day Share Price2019/08/19 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.