ASX:SEC

Stock Analysis Report

Executive Summary

Spheria Emerging Companies Limited operates as an investment company in Australia.

Risk Analysis

Revenue has declined by -61.8% over the past year

Dividend of 4.49% is not well covered by earnings

Less than 3 years of financial data is available

Shareholders have been diluted in the past year

+ 2 more risks


Snowflake Analysis

Overvalued with poor track record.

Share Price & News

How has Spheria Emerging Companies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SEC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

SEC

-2.1%

AU Capital Markets

-1.8%

AU Market


1 Year Return

-1.1%

SEC

23.5%

AU Capital Markets

20.0%

AU Market

Return vs Industry: SEC underperformed the Australian Capital Markets industry which returned 23.5% over the past year.

Return vs Market: SEC underperformed the Australian Market which returned 20% over the past year.


Shareholder returns

SECIndustryMarket
7 Day-0.6%-2.1%-1.8%
30 Day2.0%-1.8%-0.3%
90 Day5.6%2.9%1.1%
1 Year2.4%-1.1%29.1%23.5%25.9%20.0%
3 Yearn/a81.5%58.0%36.0%17.4%
5 Yearn/a194.6%132.0%62.5%25.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Spheria Emerging Companies undervalued compared to its fair value and its price relative to the market?

36.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SEC (A$1.78) is trading above our estimate of fair value (A$0.57)

Significantly Below Fair Value: SEC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SEC is poor value based on its PE Ratio (36.6x) compared to the Capital Markets industry average (22.3x).

PE vs Market: SEC is poor value based on its PE Ratio (36.6x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SEC is good value based on its PB Ratio (0.8x) compared to the AU Capital Markets industry average (1.9x).


Next Steps

Future Growth

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

6.5%

Forecasted Diversified Financials 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 Spheria Emerging Companies 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 Spheria Emerging Companies performed over the past 5 years?

-62.1%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: SEC has high quality earnings.

Growing Profit Margin: SEC's current net profit margins (62.4%) are lower than last year (62.9%).


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if SEC's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare SEC's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: SEC had negative earnings growth (-62.1%) over the past year, making it difficult to compare to the Capital Markets industry average (3.3%).


Return on Equity

High ROE: SEC's Return on Equity (2.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Spheria Emerging Companies's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if SEC's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: SEC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SEC has a sufficient allowance for bad loans.

Low Risk Liabilities: SEC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SEC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SEC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SEC has an appropriate level of bad loans.


Next Steps

Dividend

What is Spheria Emerging Companies's current dividend yield, its reliability and sustainability?

4.49%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%2.4%markettop25%5.6%industryaverage3.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SEC's dividend (4.49%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: SEC's dividend (4.49%) is low compared to the top 25% of dividend payers in the Australian market (5.57%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether SEC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SEC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (123.3%), SEC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.3yrs

Average board tenure


CEO

Spheria Emerging Companies has no CEO, or we have no data on them.


Board Age and Tenure

2.3yrs

Average Tenure

Experienced Board: SEC's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

BuyAU$24,82626 Mar 19
Jonathan Alfred Trollip
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares14,350
Max PriceAU$1.73
BuyAU$22,40428 Feb 19
Jonathan Alfred Trollip
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares12,950
Max PriceAU$1.73

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 46.9%.


Management Team

  • Calvin Kwok

    Company Secretary

    • Tenure: 2.3yrs

Board Members

  • Adrian Whittingham

    Non-Independent Director

    • Tenure: 2.3yrs
  • Alex Ihlenfeldt

    Non-Independent Alternate Director

    • Tenure: 2.3yrs
  • Lorraine Berends

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$30.00k
  • Jonathan Alfred Trollip (61yo)

    Independent Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$40.00k

Company Information

Spheria Emerging Companies Limited's company bio, employee growth, exchange listings and data sources


Key Information


Location

  • Spheria Emerging Companies Limited
  • 60 Margaret Street
  • Level 35
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SECASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2017
SECCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2017

Biography

Spheria Emerging Companies Limited operates as an investment company in Australia. It provides investors with access to a portfolio of Australian and New Zealand small and micro companies. The company was  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 10:40
End of Day Share Price2019/12/08 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.