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.


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%

NVT

4.7%

AU Consumer Services

2.5%

AU Market


1 Year Return

30.8%

NVT

28.7%

AU Consumer Services

11.1%

AU Market


Shareholder returns

NVTIndustryMarket
7 Day0%4.7%2.5%
30 Day0.3%6.6%0.7%
90 Day1.2%-9.5%1.4%
1 Year33.1%30.8%32.4%28.7%17.5%11.1%
3 Year13.8%3.4%-18.5%-26.9%37.8%19.4%
5 Year34.3%12.1%-16.8%-32.4%51.7%17.6%

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 compared to its fair value and its price relative to the market?

13.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued:

Significantly Undervalued: NVT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

PE vs Market: NVT is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NVT is overvalued based on its PB Ratio (129.8x) compared to the AU Consumer Services industry average (1.8x).


Next Steps

Future Growth

How is Navitas forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NVT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NVT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NVT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NVT's revenue (2.4% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: NVT's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


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

Earnings Trend: NVT is unprofitable, and losses have increased over the past 5 years at a rate of -26.9% per year.

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

Earnings vs Industry: NVT is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (0.6%).


Return on Equity

High ROE: NVT has a negative Return on Equity (-359.12%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NVT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NVT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Navitas's financial position?


Financial Position Analysis

Short Term Liabilities: NVT's short term assets (A$222.7M) do not cover its short term liabilities (A$435.8M)

Long Term Liabilities: NVT's short term assets (222.7M) do not cover its long term liabilities (363.6M)


Debt to Equity History and Analysis

Debt Level: NVT's debt to equity ratio (1798.8%) is considered high

Reducing Debt: NVT's debt to equity ratio has increased from 79.6% to 1798.8% over the past 5 years.

Debt Coverage: NVT's debt is well covered by operating cash flow (30%).

Interest Coverage: NVT is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

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

3.68%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.6%industryaverage2.4%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NVT's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


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

Information is not available.

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


Management Age and Tenure

3.1yrs

Average Tenure

Experienced Management: NVT's management team is considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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

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: 5yrs
    • Compensation: AU$572.34k
  • Iain Rothwell

    Chief Commercial Officer

    • Tenure: 3yrs
    • Compensation: AU$422.99k
  • Matthew Rumpus

    Company Secretary & Group General Counsel

    • Tenure: 0.2yrs
  • James Fuller

    Head of Investor Relations

    • Tenure: 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: 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.