ASX:NVT

Stock Analysis Report

Executive Summary

Navitas Limited provides educational services for students and professionals in Australia, the United Kingdom, Europe, Asia, Canada, the United States, and internationally.

Snowflake

Fundamentals

Moderate growth potential with worrying balance sheet.

Risks

  • Navitas is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

ASX:NVT

0.8%

AU Consumer Services

-0.4%

AU Market


1 Year Return

30.8%

ASX:NVT

39.4%

AU Consumer Services

2.1%

AU Market

NVT underperformed the Consumer Services industry which returned 34.3% over the past year.

NVT outperformed the Market in Australia which returned 4.6% over the past year.


Share holder returns

NVTIndustryMarket
7 Day0%0.8%-0.4%
30 Day0.3%0.4%-2.5%
90 Day1.2%6.0%0.5%
1 Year33.1%30.8%42.7%39.4%8.0%2.1%
3 Year13.8%3.4%1.6%-3.8%32.4%14.9%
5 Year34.3%12.1%-15.7%-30.8%39.6%8.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Navitas's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Navitas's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Navitas 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 Navitas, we can't assess if its growth is good value.


Price Based on Value of Assets

Navitas is overvalued based on assets compared to the AU Consumer Services industry average.


Next Steps

Future Growth

How is Navitas expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

119.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Navitas's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).

Navitas's earnings are expected to grow significantly at over 20% yearly.

Navitas's revenue growth is positive but not above the Australia market average.

Navitas's earnings growth is expected to exceed the Australia market average.

Navitas's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Navitas will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Navitas performed over the past 5 years?

-26.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Navitas does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

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

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


Return on Equity

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


Return on Capital Employed

It is difficult to establish if Navitas 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 Navitas's financial position?


Financial Position Analysis

Navitas's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Navitas's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Navitas's level of debt (1798.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (79.6% vs 1798.8% today).

Debt is well covered by operating cash flow (30%, greater than 20% of total debt).

Navitas is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

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

3.68%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

David Buckingham 0

1.3yrs

Tenure

AU$761,339

Compensation

Mr. David Buckingham, BTech (Hons), CA UK, UK ACT, GAICD, is Managing Director at Navitas Ltd since July 1, 2018 and is its Group Chief Executive Officer since March 1, 2018. Mr. Buckingham was the Chief F ...


CEO Compensation Analysis

David's remuneration is lower than average for companies of similar size in Australia.

David's compensation has increased whilst company is loss making.


Management Age and Tenure

3.1yrs

Average Tenure

The tenure for the Navitas management team is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

SellAU$13,573,57025 Jun 19
Orbis Investment Management Limited
EntityCompany
Shares2,342,420
Max PriceAU$5.82
SellAU$35,93422 Mar 19
AustralianSuper Pty Ltd
EntityCompany
Shares6,851
Max PriceAU$5.66
BuyAU$4,791,39209 Oct 18
AustralianSuper Pty Ltd
EntityCompany
Shares894,647
Max PriceAU$5.36
SellAU$1,663,17609 Oct 18
AustralianSuper Pty Ltd
EntityCompany
Shares305,472
Max PriceAU$5.44
BuyAU$14,140,39929 Aug 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares3,364,302
Max PriceAU$4.32
BuyAU$5,724,83529 Aug 18
Realindex Investments Pty Limited
EntityCompany
Shares1,283,919
Max PriceAU$4.46
SellAU$27,120,51329 Aug 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares5,919,478
Max PriceAU$4.62

Ownership Breakdown


Management Team

  • Rob Lourey (60yo)

    Head of Human Resources

    • Tenure: 5.8yrs
    • Compensation: AU$451.63k
  • David Buckingham

    Group CEO

    • Tenure: 1.3yrs
    • Compensation: AU$761.34k
  • Phil Mirams

    Chief Financial Officer

    • Tenure: 1.1yrs
    • Compensation: AU$759.50k
  • Scott Jones

    Chief Executive Officer of Careers & Industry

    • Tenure: 5.0yrs
    • Compensation: AU$572.34k
  • Iain Rothwell

    Chief Commercial Officer

    • Tenure: 3.0yrs
    • Compensation: AU$422.99k
  • Matthew Rumpus

    Company Secretary & Group General Counsel

    • Tenure: 0.2yrs
  • James Fuller

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Mick Campbell

    Chief Information Officer

    • Tenure: 3.2yrs
    • Compensation: AU$391.03k
  • Bev Hudson

    Chief Executive Officer of & President of University Partnerships North America

    • Tenure: 0.0yrs
    • Compensation: AU$590.33k
  • Paul Lovegrove

    Chief Executive Officer of University Partnerships - Europe

    • Tenure: 3.4yrs
    • Compensation: AU$389.33k

Board Members

  • David Buckingham

    Group CEO

    • Tenure: 1.3yrs
    • Compensation: AU$761.34k

Company Information

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


Key Information

  • Name: Navitas Limited
  • Ticker: NVT
  • Exchange: ASX
  • Founded: 1994
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: AU$2.085b
  • Shares outstanding: 358.25m
  • Website: https://www.navitas.com

Number of Employees


Location

  • Navitas Limited
  • Brookfield Place
  • Level 8
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2004
NVTZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2004
IE8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2004
NVTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2004

Biography

Navitas Limited provides educational services for students and professionals in Australia, the United Kingdom, Europe, Asia, Canada, the United States, and internationally. It operates through University P ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/09 10:34
End of Day Share Price2019/06/24 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.