ASX:IGN

Stock Analysis Report

Executive Summary

Ignite Limited, together with its subsidiaries, provides specialist recruitment, on-demand talent, and people services in Australia, New Zealand, and China.

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Risks

  • Ignite has significant price volatility in the past 3 months.
  • Ignite is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

ASX:IGN

-1.7%

AU Professional Services

0.02%

AU Market


1 Year Return

-18.2%

ASX:IGN

1.5%

AU Professional Services

4.8%

AU Market

IGN underperformed the Professional Services industry which returned 1.5% over the past year.

IGN underperformed the Market in Australia which returned 4.8% over the past year.


Share holder returns

IGNIndustryMarket
7 Day0%-1.7%0.02%
30 Day-18.2%1.7%0.9%
90 Day-39.2%10.1%6.8%
1 Year-18.2%-18.2%4.5%1.5%10.8%4.8%
3 Year-73.5%-73.5%28.1%17.6%38.0%20.1%
5 Year-82.7%-82.7%30.8%12.5%44.6%12.2%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Ignite is loss making, we can't compare its value to the AU Professional Services industry average.

Ignite is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

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


Price Based on Value of Assets

Ignite is good value based on assets compared to the AU Professional Services industry average.


Next Steps

Future Growth

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

19.9%

Forecasted Professional 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?

46.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ignite does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Ignite's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Ignite's 1-year growth to the AU Professional Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Ignite has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Ignite has efficiently used its assets last year compared to the AU Professional Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Ignite improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Ignite's financial position?


Financial Position Analysis

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

Ignite's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Ignite's level of debt (11.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (1.2% vs 11.4% today).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 18.1x 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.

Whilst loss making Ignite has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Ignite has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -110% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Ignite's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Ignite's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Ignite has not reported any payouts.

Unable to verify if Ignite's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Ignite has not reported any payouts.


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 Ignite's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

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


Management Age and Tenure

2.6yrs

Average Tenure

The tenure for the Ignite management team is about average.


Board Age and Tenure

3.4yrs

Average Tenure

58yo

Average Age

The tenure for the Ignite board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

SellAU$11,00002 May 19
Oc20181 Pty Ltd
EntityCompany
Shares200,000
Max PriceAU$0.055
SellAU$525,27003 Mar 19
Oc121 Pty Ltd
EntityCompany
Shares9,910,842
Max PriceAU$0.053
BuyAU$481,71018 Nov 18
Oc121 Pty Ltd
EntityCompany
Shares9,830,826
Max PriceAU$0.049
SellAU$414,58116 Nov 18
Collins St Asset Management Pty Ltd
EntityCompany
Shares8,460,842
Max PriceAU$0.049
SellAU$118,82823 Oct 18
Collins St Asset Management Pty Ltd
EntityCompany
Shares2,269,800
Max PriceAU$0.058
BuyAU$3,57520 Sep 18
Garry Sladden
EntityIndividual
Role
Executive Chairman
Chairman of the Board
Shares65,000
Max PriceAU$0.055
BuyAU$9,20004 Sep 18
Jennifer Elliott
EntityIndividual
Role
Member of the Board of Directors
Shares200,000
Max PriceAU$0.046
BuyAU$3,76003 Sep 18
Craig Saphin
EntityIndividual
Role
Member of the Board of Directors
Shares80,000
Max PriceAU$0.047

Ownership Breakdown


Management Team

  • Mahendra Tharmarajah

    Chief Financial Officer

    • Tenure: 2.6yrs
    • Compensation: A$345.82k
  • Garry Sladden (58yo)

    Executive Chairman

    • Tenure: 0.3yrs
    • Compensation: A$108.41k
  • Ian Gilmour (72yo)

    Company Secretary

    • Tenure: 2.7yrs

Board Members

  • Garry Sladden (58yo)

    Executive Chairman

    • Tenure: 4.4yrs
    • Compensation: A$108.41k
  • Jennifer Elliott (53yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: A$58.50k
  • Craig Saphin (62yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: A$58.50k
  • Fred van der Tang

    Independent Non-Executive Director

    • Tenure: 0.5yrs

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$4.149m
  • Shares outstanding: 92.19m
  • Website: Click here

Number of Employees


Location

  • Ignite Limited
  • 1 York Street
  • Level 9
  • 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 talent, and people services in Australia, New Zealand, and China. It offers permanent and contingent recruitment,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/20 10:32
End of Day Share Price2019/06/28 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.