ASX:HIT

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Risks

  • HiTech Group Australia is not covered by any analysts.

Share Price & News

How has HiTech Group Australia's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.1%

ASX:HIT

3.0%

AU Professional Services

1.7%

AU Market


1 Year Return

-4.3%

ASX:HIT

7.0%

AU Professional Services

5.4%

AU Market

HIT underperformed the Professional Services industry which returned 7% over the past year.

HIT underperformed the Market in Australia which returned 5.4% over the past year.


Share holder returns

HITIndustryMarket
7 Day2.1%3.0%1.7%
30 Day4.2%-1.4%2.8%
90 Day-1.0%8.1%5.5%
1 Year3.4%-4.3%10.2%7.0%11.6%5.4%
3 Year322.1%230.0%36.6%25.6%43.8%25.0%
5 Year1976.1%1523.0%35.4%16.5%44.6%12.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is HiTech Group Australia undervalued based on future cash flows and its price relative to the stock market?

43%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

HiTech Group Australia's share price is below the future cash flow value, and at a moderate discount (> 20%).

HiTech Group Australia's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

HiTech Group Australia is good value based on earnings compared to the AU Professional Services industry average.

HiTech Group Australia is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

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


Price Based on Value of Assets

HiTech Group Australia is overvalued based on assets compared to the AU Professional Services industry average.


Next Steps

Future Growth

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

-14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if HiTech Group Australia is high growth as no revenue estimate data is available.

HiTech Group Australia's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare HiTech Group Australia's revenue growth to the Australia market average as no estimate data is available.

HiTech Group Australia's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.

HiTech Group Australia's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if HiTech Group Australia will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

42.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

HiTech Group Australia has delivered over 20% year on year earnings growth in the past 5 years.

HiTech Group Australia's 1-year earnings growth is less than its 5-year average (11.3% vs 42.9%)

HiTech Group Australia's earnings growth has not exceeded the AU Professional Services industry average in the past year (11.3% vs 11.3%).


Return on Equity

HiTech Group Australia has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

HiTech Group Australia used its assets more efficiently than the AU Professional Services industry average last year based on Return on Assets.


Return on Capital Employed

HiTech Group Australia has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is HiTech Group Australia's financial position?


Financial Position Analysis

HiTech Group Australia is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

HiTech Group Australia's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

HiTech Group Australia has no debt.

HiTech Group Australia has no debt compared to 5 years ago when it was 0.3%.

HiTech Group Australia has no debt, it does not need to be covered by operating cash flow.

HiTech Group Australia has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

HiTech Group Australia has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

8.08%

Current Dividend Yield


Dividend Yield and Payments Analysis

HiTech Group Australia's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.65%).

HiTech Group Australia's dividend is above the markets top 25% of dividend payers in Australia (5.72%).

HiTech Group Australia has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but HiTech Group Australia only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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


CEO

Elias Hazouri (50yo)

2.8yrs

Tenure

AU$374,020

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

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

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


Insider Trading

No 3 month insider trading information.


Ownership Breakdown


Management Team

  • Ray Hazouri (56yo)

    Founder

    • Tenure: 26.4yrs
    • Compensation: A$358.46k
  • Elias Hazouri (50yo)

    CEO, Chief Information Officer

    • Tenure: 2.8yrs
    • Compensation: A$374.02k

Board Members

  • George Shad (66yo)

    Non-Executive Director

    • Tenure: 15.9yrs
    • Compensation: A$10.00k
  • Ray Hazouri (56yo)

    Founder

    • Compensation: A$358.46k
  • Elias Hazouri (50yo)

    CEO, Chief Information Officer

    • Tenure: 5.9yrs
    • Compensation: A$374.02k

Company Information

HiTech Group Australia Limited's company bio, 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$37.670m
  • Shares outstanding: 38.05m
  • Website: Click here

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HITASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1970
HITCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1970

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/17 10:34
End of Day Share Price2019/06/14 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.