ASX:TPP

Stock Analysis Report

Executive Summary

Tempo Australia Limited provides construction, maintenance, and asset management services to the telecommunications, infrastructure, resources, power, industrial, and commercial sectors in Australia.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.1%

TPP

-1.2%

AU Commercial Services

0.3%

AU Market


1 Year Return

-65.6%

TPP

-24.4%

AU Commercial Services

-22.9%

AU Market

Return vs Industry: TPP underperformed the Australian Commercial Services industry which returned -24.8% over the past year.

Return vs Market: TPP underperformed the Australian Market which returned -22.8% over the past year.


Shareholder returns

TPPIndustryMarket
7 Day-3.1%-1.2%0.3%
30 Day-47.5%-24.9%-27.8%
90 Day-38.0%-27.2%-30.0%
1 Year-64.4%-65.6%-20.4%-24.4%-19.4%-22.9%
3 Year-83.6%-84.1%1.9%-9.2%-8.3%-20.8%
5 Year-50.0%-51.6%10.0%-10.2%2.9%-20.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tempo 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: TPP (A$0.03) is trading below our estimate of fair value (A$0.13)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TPP is overvalued based on its PB Ratio (1.6x) compared to the AU Commercial Services industry average (1.5x).


Next Steps

Future Growth

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

10.4%

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 Tempo 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 Tempo Australia performed over the past 5 years?

-69.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPP is currently unprofitable.

Growing Profit Margin: TPP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TPP is unprofitable, and losses have increased over the past 5 years at a rate of -69.3% per year.

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

Earnings vs Industry: TPP is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (0.9%).


Return on Equity

High ROE: TPP has a negative Return on Equity (-234.87%), as it is currently unprofitable.


Next Steps

Financial Health

How is Tempo Australia's financial position?


Financial Position Analysis

Short Term Liabilities: TPP's short term assets (A$19.8M) exceed its short term liabilities (A$12.5M).

Long Term Liabilities: TPP's short term assets (A$19.8M) exceed its long term liabilities (A$2.1M).


Debt to Equity History and Analysis

Debt Level: TPP's debt to equity ratio (1.8%) is considered satisfactory.

Reducing Debt: TPP's debt to equity ratio has reduced from 8.5% to 1.8% over the past 5 years.


Balance Sheet

Inventory Level: TPP has a low level of unsold assets or inventory.

Debt Coverage by Assets: TPP's debt is covered by short term assets (assets are 129.2x 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.

Stable Cash Runway: Whilst unprofitable TPP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TPP is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -12.4% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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

1.3yrs

Average board tenure


CEO

Paul Dalgleish (57yo)

0.67

Tenure

Dr. Paul Joseph Dalgleish, DBA, MA, BEng (Hons), FIEAust, MAICD has been Chief Executive Officer at Tempo Australia Limited since July 15, 2019. Dr. Dalgleish served as Acting Advisor of Tempo Australia Li ...


Board Members

NamePositionTenureCompensationOwnership
William Howard
CFO, Company Secretary & Director0.58yrno data0.11% A$11.4k
Guido Belgiorno-Nettis
Non-Executive Chairman1.25yrsAU$14.16k27.67% A$2.9m
David Iverach
Non-Executive Director1.25yrsAU$863.002.27% A$241.4k
Charles Rottier
Independent Non-Executive Directorno datano datano data

1.3yrs

Average Tenure

Experienced Board: TPP's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 42.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Tempo Australia Limited
  • Ticker: TPP
  • Exchange: ASX
  • Founded:
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: AU$10.619m
  • Shares outstanding: 342.54m
  • Website: https://www.tempoaust.com

Number of Employees


Location

  • Tempo Australia Limited
  • 1060 Hay Street
  • Level 3
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TPPNASX (Australian Securities Exchange)NPV DFD 04/12/19(EX-RIGHTS)AUAUDNo data
TPPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2006
TPPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2006

Biography

Tempo Australia Limited provides construction, maintenance, and asset management services to the telecommunications, infrastructure, resources, power, industrial, and commercial sectors in Australia. The company offers shutdown services; preventative maintenance services, such as switchboard inspections, thermographic scanning, generator servicing, lightning protection, power factor correction, and UPS maintenance; and compliance services, including RCR testing, emergency exit lighting, appliance test and tagging, failure point analysis, auditing, and certification. It also provides planned and reactive maintenance services comprising emergency breakdown, lighting repairs, automation, minor works/small projects, CTV/MATV, and data and communication; and project services to manage electrical, instrumentation, and communication projects. The company was formerly known as Fermiscan Holdings Limited and changed its name to Tempo Australia Limited in June 2012. Tempo Australia Limited is based in West Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 10:35
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.