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HIT

HiTech Group AustraliaASX:HIT Stock Report

Market Cap

AU$83.9m

7D

0%

1Y

42.4%

Updated

21 Oct, 2021

Data

Company Financials
HIT fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends2/6

HIT Overview

HiTech Group Australia Limited provides recruitment services for permanent and contract staff to the information and communications technology (ICT) industry in public and private sectors in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for HiTech Group Australia
Historical stock prices
Current Share PriceAU$2.15
52 Week HighAU$1.50
52 Week LowAU$2.45
Beta0.75
1 Month Change4.88%
3 Month Change-4.23%
1 Year Change42.38%
3 Year Change138.89%
5 Year Change347.92%
Change since IPO235.94%

Recent News & Updates

Jul 28
Here's Why I Think HiTech Group Australia (ASX:HIT) Might Deserve Your Attention Today

Here's Why I Think HiTech Group Australia (ASX:HIT) Might Deserve Your Attention Today

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Apr 17
Does HiTech Group Australia (ASX:HIT) Deserve A Spot On Your Watchlist?

Does HiTech Group Australia (ASX:HIT) Deserve A Spot On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

HITAU Professional ServicesAU Market
7D0%0.2%0.7%
1Y42.4%34.8%21.4%

Return vs Industry: HIT exceeded the Australian Professional Services industry which returned 37% over the past year.

Return vs Market: HIT exceeded the Australian Market which returned 21.1% over the past year.

Price Volatility

Is HIT's price volatile compared to industry and market?
HIT volatility
HIT Beta0.75
Industry Beta0.92
Market Beta1

Stable Share Price: HIT is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HIT's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199315Elias Hazourihttps://www.hitechaust.com

HiTech Group Australia Limited provides recruitment services for permanent and contract staff to the information and communications technology (ICT) industry in public and private sectors in Australia. Its permanent recruitment services comprise the search and selection of candidates for full time employment; and ICT contracting services include the provision of ICT professionals for temporary and other non-permanent staffing needs of clients for specific projects in digital transformation, system development, infrastructure architecture and cloud integration, operation, and supports and project management. The company also offers personnel services to other sectors, such as administration and office support, sales and marketing, and finance.

HiTech Group Australia Fundamentals Summary

How do HiTech Group Australia's earnings and revenue compare to its market cap?
HIT fundamental statistics
Market CapAU$83.85m
Earnings (TTM)AU$3.64m
Revenue (TTM)AU$42.05m

23.1x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HIT income statement (TTM)
RevenueAU$42.05m
Cost of RevenueAU$34.99m
Gross ProfitAU$7.06m
ExpensesAU$3.42m
EarningsAU$3.64m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.093
Gross Margin16.79%
Net Profit Margin8.65%
Debt/Equity Ratio0%

How did HIT perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

97%

Payout Ratio

Valuation

Is HiTech Group Australia undervalued compared to its fair value and its price relative to the market?

23.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HIT (A$2.15) is trading above our estimate of fair value (A$1.59)

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


Price To Earnings Ratio

PE vs Industry: HIT is poor value based on its PE Ratio (23.1x) compared to the Australian Professional Services industry average (22.1x).

PE vs Market: HIT is poor value based on its PE Ratio (23.1x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HIT is overvalued based on its PB Ratio (13.3x) compared to the AU Professional Services industry average (3.6x).


Future Growth

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

12.4%

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 HiTech Group Australia 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.


Past Performance

How has HiTech Group Australia performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIT has high quality earnings.

Growing Profit Margin: HIT's current net profit margins (8.6%) are lower than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: HIT's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: HIT's earnings growth over the past year (9%) is below its 5-year average (10.8% per year).

Earnings vs Industry: HIT earnings growth over the past year (9%) underperformed the Professional Services industry 9.3%.


Return on Equity

High ROE: HIT's Return on Equity (57.5%) is considered outstanding.


Financial Health

How is HiTech Group Australia's financial position?


Financial Position Analysis

Short Term Liabilities: HIT's short term assets (A$10.1M) exceed its short term liabilities (A$4.7M).

Long Term Liabilities: HIT's short term assets (A$10.1M) exceed its long term liabilities (A$131.3K).


Debt to Equity History and Analysis

Debt Level: HIT is debt free.

Reducing Debt: HIT has not had any debt for past 5 years.

Debt Coverage: HIT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HIT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is HiTech Group Australia current dividend yield, its reliability and sustainability?

5.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HIT's dividend (5.35%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: HIT's dividend (5.35%) is in the top 25% of dividend payers in the Australian market (5.31%)


Stability and Growth of Payments

Stable Dividend: HIT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HIT's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (96.5%), HIT's dividend payments are not 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?

AU$631k

CEO Compensation


CEO

Elias Hazouri (53 yo)

5.17yrs

Tenure

AU$630,865

Compensation

Mr. Elias Hazouri, B.Sc., MBA has been the Chief Executive Officer of HiTech Group Australia Ltd. since August 2016. Mr. Hazouri serves as the Chief Information Officer and General Manager of HiTech Group...


CEO Compensation Analysis

Compensation vs Market: Elias's total compensation ($USD472.45K) is above average for companies of similar size in the Australian market ($USD303.55K).

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


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 been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

HiTech Group Australia Limited's employee growth, exchange listings and data sources


Key Information

  • Name: HiTech Group Australia Limited
  • Ticker: HIT
  • Exchange: ASX
  • Founded: 1993
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: AU$83.850m
  • Shares outstanding: 39.00m
  • Website: https://www.hitechaust.com

Number of Employees


Location

  • HiTech Group Australia Limited
  • 189 Kent Street
  • Level 9
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 18:07
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.