ASX:HIT

Stock Analysis Report

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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. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.

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

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.


Market Performance


7 Day Return

3.7%

HIT

-2.6%

AU Professional Services

1.1%

AU Market


1 Year Return

46.1%

HIT

-5.2%

AU Professional Services

-1.8%

AU Market

Return vs Industry: HIT exceeded the Australian Professional Services industry which returned -5.2% over the past year.

Return vs Market: HIT exceeded the Australian Market which returned -1.8% over the past year.


Shareholder returns

HITIndustryMarket
7 Day3.7%-2.6%1.1%
30 Day12.0%5.6%8.7%
90 Day12.0%10.4%9.0%
1 Year55.3%46.1%-2.4%-5.2%1.5%-1.8%
3 Year144.9%97.6%21.7%9.1%22.0%7.1%
5 Year701.9%469.5%51.5%25.4%54.6%23.9%

Long-Term 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 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: HIT (A$1.68) is trading below our estimate of fair value (A$4.76)

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


Price To Earnings Ratio

PE vs Industry: HIT is poor value based on its PE Ratio (19.2x) compared to the AU Professional Services industry average (17.9x).

PE vs Market: HIT is good value based on its PE Ratio (19.2x) compared to the Australian market (23x).


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 (9.1x) compared to the AU Professional Services industry average (3.5x).


Next Steps

Future Growth

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

18.0%

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.


Next Steps

Past Performance

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

16.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIT has high quality earnings.

Growing Profit Margin: HIT's current net profit margins (10%) are higher than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: HIT's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: HIT's earnings growth over the past year (15.1%) is below its 5-year average (16.8% per year).

Earnings vs Industry: HIT earnings growth over the past year (15.1%) exceeded the Professional Services industry -5.6%.


Return on Equity

High ROE: HIT's Return on Equity (47.7%) is considered outstanding.


Next Steps

Financial Health

How is HiTech Group Australia's financial position?


Financial Position Analysis

Short Term Liabilities: HIT's short term assets (A$10.4M) exceed its short term liabilities (A$3.8M).

Long Term Liabilities: HIT's short term assets (A$10.4M) exceed its long term liabilities (A$290.1K).


Debt to Equity History and Analysis

Debt Level: HIT is debt free.

Reducing Debt: HIT had no debt 5 years ago.

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


Next Steps

Dividend

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

4.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HIT's dividend (4.76%) is higher than the bottom 25% of dividend payers in the Australian market (2.05%).

High Dividend: HIT's dividend (4.76%) is low compared to the top 25% of dividend payers in the Australian market (5.05%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (91.2%), 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$505k

CEO Compensation


CEO

Elias Hazouri (52 yo)

4.25yrs

Tenure

AU$504,865

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 ($USD373.23K) is above average for companies of similar size in the Australian market ($USD281.17K).

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 not been meaningfully diluted in the past year.


Top Shareholders

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$63.924m
  • Shares outstanding: 38.05m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HITASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2000
HITCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2000

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 Analysis2020/11/28 07:01
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.