ASX:GO2

Stock Analysis Report

Executive Summary

The GO2 People Limited provides recruitment and building services in Australia and New Zealand.


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.

Share Price & News

How has GO2 People's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GO2's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-27.3%

GO2

-2.4%

AU Professional Services

0.3%

AU Market


1 Year Return

n/a

GO2

-23.6%

AU Professional Services

-22.9%

AU Market

Return vs Industry: Insufficient data to determine how GO2 performed against the Australian Professional Services industry.

Return vs Market: Insufficient data to determine how GO2 performed against the Australian Market.


Shareholder returns

GO2IndustryMarket
7 Day-27.3%-2.4%0.3%
30 Day-42.9%-35.0%-27.8%
90 Dayn/a-39.0%-30.0%
1 Yearn/a-21.5%-23.6%-19.4%-22.9%
3 Yearn/a-6.5%-14.4%-8.3%-20.8%
5 Yearn/a1.4%-13.9%2.9%-20.3%

Price Volatility Vs. Market

How volatile is GO2 People's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GO2 People undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GO2 (A$0.01) is trading below our estimate of fair value (A$0.51)

Significantly Below Fair Value: GO2 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GO2 is unprofitable, so we can't compare its PE Ratio to the Professional Services industry average.

PE vs Market: GO2 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 GO2's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GO2 is overvalued based on its PB Ratio (17.3x) compared to the AU Professional Services industry average (1.2x).


Next Steps

Future Growth

How is GO2 People forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.5%

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 GO2 People 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 GO2 People performed over the past 5 years?

-33.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GO2 is currently unprofitable.

Growing Profit Margin: GO2 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GO2 is unprofitable, and losses have increased over the past 5 years at a rate of -33.3% per year.

Accelerating Growth: Unable to compare GO2's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GO2 is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (12.9%).


Return on Equity

High ROE: GO2 has a negative Return on Equity (-7088.96%), as it is currently unprofitable.


Next Steps

Financial Health

How is GO2 People's financial position?


Financial Position Analysis

Short Term Liabilities: GO2's short term assets (A$7.1M) do not cover its short term liabilities (A$8.5M).

Long Term Liabilities: GO2's short term assets (A$7.1M) exceed its long term liabilities (A$224.1K).


Debt to Equity History and Analysis

Debt Level: GO2's debt to equity ratio (6223.2%) is considered high.

Reducing Debt: Insufficient data to determine if GO2's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: GO2 has a low level of unsold assets or inventory.

Debt Coverage by Assets: GO2's debt is covered by short term assets (assets are 1.8x 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 GO2 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GO2 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -6.8% per year.


Next Steps

Dividend

What is GO2 People's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GO2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GO2'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 GO2's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GO2'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 GO2'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?

2.8yrs

Average management tenure


CEO

Billy Ferreira

no data

Tenure

AU$358,686

Compensation

Mr. Abilio L. Ferreira, also known as Billy, is Co-Founder of The GO2 People Limited and serves as its Managing Director. Mr. Ferreira has been a Director at The Go2 People since November 30, 2016. Mr. Fer ...


CEO Compensation Analysis

Compensation vs Market: Billy's total compensation ($USD220.00K) is about average for companies of similar size in the Australian market ($USD242.11K).

Compensation vs Earnings: Billy's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Abilio Ferreira
Co-Founderno dataAU$358.69kno data
Paul Goldfinch
Co-Founder0.42yrAU$227.11k19.37% A$220.9k
Matthew Thomson
CFO & Joint Company Secretary2.83yrsAU$214.92k0.19% A$2.2k
Peter Torre
Joint Company Secretary2.75yrsAU$39.00kno data
Fraser Kahler
Investor & Share Market Advisor and Member of Advisory Boardno datano datano data
George Gear
Corporate Governance & Industrial Relations Advisor and Member of Advisory Boardno datano datano data
Clint Thorp
Operations Advisor & Member of Advisory Boardno datano datano data
Dario Amara
Construction & Compliance Advisor & Member of Advisory Boardno datano datano data
Neal Shoobert
Financial Advisor & Member of Advisory Boardno datano datano data

2.8yrs

Average Tenure

Experienced Management: GO2's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Abilio Ferreira
Co-Founderno dataAU$358.69kno data
Paul Goldfinch
Co-Founder0.42yrAU$227.11k19.37% A$220.9k
Fraser Kahler
Investor & Share Market Advisor and Member of Advisory Boardno datano datano data
George Gear
Corporate Governance & Industrial Relations Advisor and Member of Advisory Boardno datano datano data
Clint Thorp
Operations Advisor & Member of Advisory Boardno datano datano data
Dario Amara
Construction & Compliance Advisor & Member of Advisory Boardno datano datano data
Neal Shoobert
Financial Advisor & Member of Advisory Boardno datano datano data
Douglas Grewar
Member of the Advisory Board2.08yrsAU$36.39kno data
Darren Cooper
Independent Non-Executive Chairmanno dataAU$93.95k0.35% A$4.0k

2.1yrs

Average Tenure

Experienced Board: GO2's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The GO2 People Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The GO2 People Limited
  • Ticker: GO2
  • Exchange: ASX
  • Founded: 2011
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: AU$1.140m
  • Shares outstanding: 142.52m
  • Website: https://www.thego2people.com.au

Location

  • The GO2 People Limited
  • 10 Belmont Avenue
  • Belmont
  • Western Australia
  • 6104
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GO2NASX (Australian Securities Exchange)NPV DFD 24/12/19(EX-RIGHTS)AUAUDNo data
GO2ASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2017
GO2CHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2017

Biography

The GO2 People Limited provides recruitment and building services in Australia and New Zealand. Its Recruitment division offers staffing solutions for various sectors, including infrastructure, construction, mining/resources, electrical/energy, waste management, and warehousing/logistics. The company’s Building division provides building, civil, construction, and project management services in the areas of non-process infrastructure, accommodation facilities, civil works, cyclical maintenance, remote/regional commercial, and remote/regional residential construction. It also offers training and education service which delivers boutique services to its clients which includes accredited and non-accredited workplace training and education courses. The company was founded in 2011 and is based in Belmont, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 10:50
End of Day Share Price2020/03/27 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.