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OVT

OvatoASX:OVT Stock Report

Market Cap

AU$36.6m

7D

50.0%

1Y

-72.7%

Updated

25 Oct, 2021

Data

Company Financials
OVT fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health2/6
Dividends0/6

OVT Overview

Ovato Limited provides marketing, digital premedia, commercial printing, letterbox delivery, and magazine distribution services in Australia and New Zealand.

Ovato Competitors

Nine Entertainment Holdings

ASX:NEC

AU$4.7b

Domain Holdings Australia

ASX:DHG

AU$3.4b

Orora

ASX:ORA

AU$2.8b

Seven West Media

ASX:SWM

AU$655.2m

Price History & Performance

Summary of all time highs, changes and price drops for Ovato
Historical stock prices
Current Share PriceAU$0.003
52 Week HighAU$0.002
52 Week LowAU$0.019
Beta2.02
1 Month Change20.00%
3 Month Change20.00%
1 Year Change-72.73%
3 Year Change-98.50%
5 Year Change-99.65%
Change since IPO-99.91%

Recent News & Updates

Sep 08
Is Ovato (ASX:OVT) Weighed On By Its Debt Load?

Is Ovato (ASX:OVT) Weighed On By Its Debt Load?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

May 06
Ovato (ASX:OVT) Hasn't Managed To Accelerate Its Returns

Ovato (ASX:OVT) Hasn't Managed To Accelerate Its Returns

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Shareholder Returns

OVTAU Commercial ServicesAU Market
7D50.0%2.1%0.6%
1Y-72.7%12.1%21.3%

Return vs Industry: OVT underperformed the Australian Commercial Services industry which returned 12.1% over the past year.

Return vs Market: OVT underperformed the Australian Market which returned 21.3% over the past year.

Price Volatility

Is OVT's price volatile compared to industry and market?
OVT volatility
OVT Beta2.02
Industry Beta0.91
Market Beta1

Stable Share Price: OVT is more volatile than 90% of Australian stocks over the past 3 months, typically moving +/- 41% a week.

Volatility Over Time: OVT's weekly volatility has increased from 30% to 41% over the past year.

About the Company

FoundedEmployeesCEOWebsite
19901,608James Hannanhttps://www.ovato.com.au

Ovato Limited provides marketing, digital premedia, commercial printing, letterbox delivery, and magazine distribution services in Australia and New Zealand. The company prints and distributes catalogues, magazines, books, brochures and flyers, stationery, newspapers, directories, packaging, and point of sale products. It serves customers in the retail, publishing, ecommerce, FMCG, and other sectors.

Ovato Fundamentals Summary

How do Ovato's earnings and revenue compare to its market cap?
OVT fundamental statistics
Market CapAU$36.64m
Earnings (TTM)-AU$67.09m
Revenue (TTM)AU$442.72m

0.08x

P/S Ratio

-0.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OVT income statement (TTM)
RevenueAU$442.72m
Cost of RevenueAU$242.12m
Gross ProfitAU$200.60m
ExpensesAU$267.69m
Earnings-AU$67.09m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0055
Gross Margin45.31%
Net Profit Margin-15.15%
Debt/Equity Ratio729.0%

How did OVT perform over the long term?

See historical performance and comparison

Valuation

Is Ovato undervalued compared to its fair value and its price relative to the market?

4.92x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate OVT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate OVT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: OVT is unprofitable, so we can't compare its PE Ratio to the Australian Commercial Services industry average.

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


Price to Book Ratio

PB vs Industry: OVT is overvalued based on its PB Ratio (4.9x) compared to the AU Commercial Services industry average (2.6x).


Future Growth

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

12.4%

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 Ovato 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.


Past Performance

How has Ovato performed over the past 5 years?

-11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OVT is currently unprofitable.

Growing Profit Margin: OVT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OVT is unprofitable, and losses have increased over the past 5 years at a rate of 11.3% per year.

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

Earnings vs Industry: OVT is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (7.9%).


Return on Equity

High ROE: OVT has a negative Return on Equity (-897.95%), as it is currently unprofitable.


Financial Health

How is Ovato's financial position?


Financial Position Analysis

Short Term Liabilities: OVT's short term assets (A$121.7M) do not cover its short term liabilities (A$126.3M).

Long Term Liabilities: OVT's short term assets (A$121.7M) exceed its long term liabilities (A$112.0M).


Debt to Equity History and Analysis

Debt Level: OVT's debt to equity ratio (729%) is considered high.

Reducing Debt: OVT's debt to equity ratio has increased from 21% to 729% 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: OVT has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: OVT has less than a year of cash runway if free cash flow continues to reduce at historical rates of 29.6% each year


Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

1.7yrs

Average management tenure


CEO

James Hannan

0.33

Tenure

AU$545,532

Compensation

Mr. James Hannan had been Chief Operating Officer at Ovato Limited (formerly known as PMP Limited) since December 07, 2017 until 2021 and served as its Chief Executive Officer of Marketing Services until 2...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD408.94K) is above average for companies of similar size in the Australian market ($USD302.38K).

Compensation vs Earnings: Insufficient data to compare James's compensation with company performance.


Leadership Team

Experienced Management: OVT's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: OVT's board of directors are considered experienced (3 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 been substantially diluted in the past year, with total shares outstanding growing by 1568.4%.


Top Shareholders

Company Information

Ovato Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Ovato Limited
  • Ticker: OVT
  • Exchange: ASX
  • Founded: 1990
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Market Cap: AU$36.638m
  • Shares outstanding: 12.21b
  • Website: https://www.ovato.com.au

Number of Employees


Location

  • Ovato Limited
  • 60 Union Street
  • Level 4
  • Pyrmont
  • New South Wales
  • 2009
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:39
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.