ASX:TNK

Stock Analysis Report

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Executive Summary

Think Childcare Group engages in the provision of child care services in Australia. More Details


Snowflake Analysis

High growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Think Childcare Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-3.0%

TNK

-5.1%

AU Consumer Services

-0.06%

AU Market


1 Year Return

15.4%

TNK

7.4%

AU Consumer Services

1.0%

AU Market

Return vs Industry: TNK exceeded the Australian Consumer Services industry which returned 7.4% over the past year.

Return vs Market: TNK exceeded the Australian Market which returned 1% over the past year.


Shareholder returns

TNKIndustryMarket
7 Day-3.0%-5.1%-0.06%
30 Day40.6%16.2%9.3%
90 Day125.2%19.5%12.0%
1 Year22.2%15.4%10.9%7.4%4.4%1.0%
3 Year-5.1%-17.4%27.1%13.1%23.9%8.5%
5 Year119.6%69.5%88.5%52.1%60.2%27.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Think Childcare Group 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: TNK (A$1.61) is trading below our estimate of fair value (A$9.08)

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


Price To Earnings Ratio

PE vs Industry: TNK is poor value based on its PE Ratio (47.8x) compared to the AU Consumer Services industry average (27.9x).

PE vs Market: TNK is poor value based on its PE Ratio (47.8x) compared to the Australian market (22.7x).


Price to Earnings Growth Ratio

PEG Ratio: TNK is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: TNK is overvalued based on its PB Ratio (2x) compared to the AU Consumer Services industry average (1.8x).


Next Steps

Future Growth

How is Think Childcare Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

39.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TNK's forecast earnings growth (39% per year) is above the savings rate (2.3%).

Earnings vs Market: TNK's earnings (39% per year) are forecast to grow faster than the Australian market (18.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TNK's revenue (25% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: TNK's revenue (25% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TNK's Return on Equity is forecast to be low in 3 years time (15.5%).


Next Steps

Past Performance

How has Think Childcare Group performed over the past 5 years?

-17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TNK has high quality earnings.

Growing Profit Margin: TNK's current net profit margins (1.8%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: TNK has become profitable over the past 5 years, growing earnings by -17.3% per year.

Accelerating Growth: TNK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TNK had negative earnings growth (-46.2%) over the past year, making it difficult to compare to the Consumer Services industry average (-18.5%).


Return on Equity

High ROE: TNK's Return on Equity (3.9%) is considered low.


Next Steps

Financial Health

How is Think Childcare Group's financial position?


Financial Position Analysis

Short Term Liabilities: TNK's short term assets (A$21.4M) do not cover its short term liabilities (A$35.8M).

Long Term Liabilities: TNK's short term assets (A$21.4M) do not cover its long term liabilities (A$211.9M).


Debt to Equity History and Analysis

Debt Level: TNK's debt to equity ratio (93.2%) is considered high.

Reducing Debt: TNK's debt to equity ratio has increased from 34.7% to 93.2% over the past 5 years.

Debt Coverage: TNK's debt is well covered by operating cash flow (47.2%).

Interest Coverage: TNK's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Think Childcare Group current dividend yield, its reliability and sustainability?

5.30%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.6yrs

Average management tenure


CEO

Mathew Edwards

6.25yrs

Tenure

AU$521,691

Compensation

Mr. Mathew Edwards serves as the Chief Executive Officer of Think Childcare Group (formerly known as Think Childcare Limited). since September 17, 2014 and serves as its Managing Director. Mr. Edwards has ...


CEO Compensation Analysis

Compensation vs Market: Mathew's total compensation ($USD388.25K) is above average for companies of similar size in the Australian market ($USD281.85K).

Compensation vs Earnings: Mathew's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mathew Edwards
MD, CEO & Executive Director6.25yrsAU$521.69k22.33%
A$ 22.2m
Jennifer Saliba
Chief Financial Officer2.67yrsAU$614.82k0.066%
A$ 66.1k
Georgina Gaussen
Chief Operating Officer1.17yrsAU$340.44kno data
Trinh Bui
Head of Legal Counsel & Joint Company Secretary2.58yrsno datano data
Mourice Garbutt
Joint Company Secretaryno datano datano data

2.6yrs

Average Tenure

Experienced Management: TNK's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mathew Edwards
MD, CEO & Executive Director6.25yrsAU$521.69k22.33%
A$ 22.2m
Nicholas Anagnostou
Non-Executive Director0.17yrno datano data
Mark Kerr
Independent Non-Executive Chairmanno dataAU$131.90k2.99%
A$ 3.0m
Joe Dicks
Independent Non-Executive Director2.58yrsAU$75.00kno data
James Roland-Travers Spenceley
Non-Executive Director0.58yrno datano data
Evonne Collier
Independent Non-Executive Director2.67yrsAU$75.00kno data

2.6yrs

Average Tenure

51yo

Average Age

Experienced Board: TNK's board of directors are not considered experienced ( 2.6 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Think Childcare Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Think Childcare Group
  • Ticker: TNK
  • Exchange: ASX
  • Founded: 2019
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: AU$99.526m
  • Shares outstanding: 61.06m
  • Website: https://www.thinkchildcare.com.au

Number of Employees


Location

  • Think Childcare Group
  • 1 Park Avenue
  • Suite 3
  • Drummoyne
  • New South Wales
  • 2047
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TNKASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDOct 2014

Biography

Think Childcare Group engages in the provision of child care services in Australia. The company operates through Child Care Operations and Child Care Development segments. It offers full or part-time care ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 07:06
End of Day Share Price2020/12/04 00:00
Earnings2020/06/30
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.