ASX:IGN

Stock Analysis Report

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Executive Summary

Ignite Limited, together with its subsidiaries, provides specialist recruitment, on-demand information technology, and people services in Australia and New Zealand. More Details


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.8%

IGN

3.4%

AU Professional Services

0.6%

AU Market


1 Year Return

-37.1%

IGN

-7.9%

AU Professional Services

-12.3%

AU Market

Return vs Industry: IGN underperformed the Australian Professional Services industry which returned -8.5% over the past year.

Return vs Market: IGN underperformed the Australian Market which returned -12% over the past year.


Shareholder returns

IGNIndustryMarket
7 Day4.8%3.4%0.6%
30 Day-29.0%-3.5%-3.6%
90 Day37.5%13.7%1.0%
1 Year-37.1%-37.1%-5.3%-7.9%-9.0%-12.3%
3 Year-70.3%-70.3%17.4%5.8%17.1%2.0%
5 Year-90.4%-90.4%43.5%17.0%44.8%14.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ignite 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: IGN (A$0.02) is trading below our estimate of fair value (A$1.3)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: IGN is good value based on its PB Ratio (0.7x) compared to the AU Professional Services industry average (2.7x).


Next Steps

Future Growth

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

25.8%

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 Ignite 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 Ignite performed over the past 5 years?

8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IGN is currently unprofitable.

Growing Profit Margin: IGN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IGN is unprofitable, but has reduced losses over the past 5 years at a rate of 8.6% per year.

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

Earnings vs Industry: IGN is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (3.1%).


Return on Equity

High ROE: IGN has a negative Return on Equity (-129.53%), as it is currently unprofitable.


Next Steps

Financial Health

How is Ignite's financial position?


Financial Position Analysis

Short Term Liabilities: IGN's short term assets (A$13.0M) exceed its short term liabilities (A$10.4M).

Long Term Liabilities: IGN's short term assets (A$13.0M) exceed its long term liabilities (A$567.0K).


Debt to Equity History and Analysis

Debt Level: IGN's debt to equity ratio (40.7%) is considered high.

Reducing Debt: IGN's debt to equity ratio has increased from 2.2% to 40.7% over the past 5 years.


Balance Sheet


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 IGN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: IGN is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 0.6% per year.


Next Steps

Dividend

What is Ignite current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate IGN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IGN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IGN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: IGN is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IGN'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?

3.8yrs

Average management tenure


CEO

Ignite has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Garry Sladden
Executive Chairman5.58yrsAU$418.00k0.27%
A$ 5.3k
Mahendra Tharmarajah
Chief Financial Officer3.75yrsAU$349.13k0.22%
A$ 4.4k
Ian Gilmour
Company Secretary3.83yrsno datano data

3.8yrs

Average Tenure

Experienced Management: IGN's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Garry Sladden
Executive Chairman5.58yrsAU$418.00k0.27%
A$ 5.3k
Jennifer Elliott
Independent Non-Executive Director6.33yrsAU$58.50k0.28%
A$ 5.5k
Craig Saphin
Independent Non-Executive Director3.5yrsAU$58.50k0.26%
A$ 5.1k
Fred van der Tang
Independent Non-Executive Director1.67yrsAU$58.50k0.28%
A$ 5.5k

4.5yrs

Average Tenure

59yo

Average Age

Experienced Board: IGN's board of directors are considered experienced (4.5 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Ignite Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ignite Limited
  • Ticker: IGN
  • Exchange: ASX
  • Founded: 1984
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: AU$1.971m
  • Shares outstanding: 89.58m
  • Website: https://www.igniteco.com

Number of Employees


Location

  • Ignite Limited
  • Mezzanine Level
  • 3 Spring Street
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IGNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1997
IGNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1997

Biography

Ignite Limited, together with its subsidiaries, provides specialist recruitment, on-demand information technology, and people services in Australia and New Zealand. The company offers permanent and conting ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 19:07
End of Day Share Price2020/09/14 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.