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NAM

Namoi Cotton ASX:NAM Stock Report

Last Price

AU$0.41

Market Cap

AU$69.7m

7D

-8.0%

1Y

12.5%

Updated

04 Jul, 2022

Data

Company Financials +
NAM fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health4/6
Dividends0/6

NAM Stock Overview

Namoi Cotton Limited, together with its subsidiaries, engages in the ginning and supply chain and marketing of cotton in Australia and Asia.

Namoi Cotton Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Namoi Cotton
Historical stock prices
Current Share PriceAU$0.41
52 Week HighAU$0.53
52 Week LowAU$0.36
Beta0.39
1 Month Change-21.36%
3 Month Change-15.63%
1 Year Change12.50%
3 Year Change17.39%
5 Year Change1.25%
Change since IPO-50.61%

Recent News & Updates

Jun 21
Is Namoi Cotton (ASX:NAM) Weighed On By Its Debt Load?

Is Namoi Cotton (ASX:NAM) Weighed On By Its Debt Load?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Shareholder Returns

NAMAU Commercial ServicesAU Market
7D-8.0%0.8%-2.4%
1Y12.5%-6.9%-12.0%

Return vs Industry: NAM exceeded the Australian Commercial Services industry which returned -6.9% over the past year.

Return vs Market: NAM exceeded the Australian Market which returned -12% over the past year.

Price Volatility

Is NAM's price volatile compared to industry and market?
NAM volatility
NAM Average Weekly Movement8.8%
Commercial Services Industry Average Movement8.5%
Market Average Movement9.9%
10% most volatile stocks in AU Market16.5%
10% least volatile stocks in AU Market4.4%

Stable Share Price: NAM is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: NAM's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1962n/aJohn Stevensonhttps://www.namoicotton.com.au

Namoi Cotton Limited, together with its subsidiaries, engages in the ginning and supply chain and marketing of cotton in Australia and Asia. The company operates network of 9 cotton gins in New South Wales and Queensland. It is also involved in the purchase of lint cotton from growers through various forward contracts; and trading and marketing of cottonseeds.

Namoi Cotton Fundamentals Summary

How do Namoi Cotton's earnings and revenue compare to its market cap?
NAM fundamental statistics
Market CapAU$69.70m
Earnings (TTM)-AU$4.40m
Revenue (TTM)AU$46.69m

1.5x

P/S Ratio

-15.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NAM income statement (TTM)
RevenueAU$46.69m
Cost of RevenueAU$18.82m
Gross ProfitAU$27.86m
Other ExpensesAU$32.26m
Earnings-AU$4.40m

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.026
Gross Margin59.68%
Net Profit Margin-9.42%
Debt/Equity Ratio39.9%

How did NAM perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is NAM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NAM?

Other financial metrics that can be useful for relative valuation.

NAM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA597.7x
PEG Ration/a

Price to Sales Ratio vs Peers

How does NAM's PS Ratio compare to its peers?

NAM PS Ratio vs Peers
The above table shows the PS ratio for NAM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.7x
AVD AVADA Group
0.5x11.0%AU$54.6m
AIM Ai-Media Technologies
1x14.5%AU$51.1m
BSA BSA
0.09xn/aAU$36.0m
STG Straker Translations
1.4x11.2%AU$70.8m
NAM Namoi Cotton
1.5x2.6%AU$69.7m

Price-To-Sales vs Peers: NAM is expensive based on its Price-To-Sales Ratio (1.5x) compared to the peer average (0.7x).


Price to Earnings Ratio vs Industry

How does NAM's PE Ratio compare vs other companies in the AU Commercial Services Industry?

Price-To-Sales vs Industry: NAM is good value based on its Price-To-Sales Ratio (1.5x) compared to the Australian Commercial Services industry average (1.5x)


Price to Sales Ratio vs Fair Ratio

What is NAM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NAM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.5x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: NAM is expensive based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).


Share Price vs Fair Value

What is the Fair Price of NAM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NAM (A$0.41) is trading above our estimate of fair value (A$0.23)

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


Price to Earnings Growth Ratio

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


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Future Growth

How is Namoi Cotton forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


42.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.8%).

Earnings vs Market: NAM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NAM is expected to become profitable in the next 3 years.

Revenue vs Market: NAM's revenue (2.6% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: NAM's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NAM's Return on Equity is forecast to be low in 3 years time (5.4%).


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Past Performance

How has Namoi Cotton performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-46.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NAM is currently unprofitable.

Growing Profit Margin: NAM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NAM is unprofitable, and losses have increased over the past 5 years at a rate of 46% per year.

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

Earnings vs Industry: NAM is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (3.7%).


Return on Equity

High ROE: NAM has a negative Return on Equity (-3.81%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Namoi Cotton's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: NAM's short term assets (A$78.3M) exceed its short term liabilities (A$72.6M).

Long Term Liabilities: NAM's short term assets (A$78.3M) exceed its long term liabilities (A$45.6M).


Debt to Equity History and Analysis

Debt Level: NAM's net debt to equity ratio (39.5%) is considered satisfactory.

Reducing Debt: NAM's debt to equity ratio has reduced from 46.5% to 39.9% 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: NAM has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if NAM has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is Namoi Cotton current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.96%

Forecast Dividend Yield

Dividend Yield vs Market

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

High Dividend: Unable to evaluate NAM'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 NAM's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

Earnings Coverage: NAM is not paying a notable dividend for the Australian market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NAM has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

John Stevenson

1.92yrs

Tenure

AU$542,535

Compensation

Mr. John Stevenson, FCA, GAICD, FGIA, BBus, serves as Chief Executive Officer of Namoi Cotton Limited since June 7, 2021 and is its Joint Company Secretary since August 2020. He had been Acting Chief Finan...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD368.27K) is above average for companies of similar size in the Australian market ($USD281.90K).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: NAM's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: NAM's board of directors are considered experienced (4.1 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

Namoi Cotton Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Namoi Cotton Limited
  • Ticker: NAM
  • Exchange: ASX
  • Founded: 1962
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Implied Market Cap: AU$69.702m
  • Shares outstanding: 172.10m
  • Website: https://www.namoicotton.com.au

Location

  • Namoi Cotton Limited
  • 1b Kitchener Street
  • Toowoomba
  • Queensland
  • 4350
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/04 00:00
Earnings2022/02/28
Annual Earnings2022/02/28


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.