ASX:CMP

Stock Analysis Report

Executive Summary

Compumedics Limited researches, develops, manufactures, sells, and distributes medical equipment in Australia, New Zealand, the United States, Europe, the Middle East, Africa, and Asia.

Snowflake

Fundamentals

Flawless balance sheet with high growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

16.7%

CMP

4.7%

AU Medical Equipment

2.5%

AU Market


1 Year Return

77.2%

CMP

24.8%

AU Medical Equipment

11.1%

AU Market

Return vs Industry: CMP exceeded the Australian Medical Equipment industry which returned 24.8% over the past year.

Return vs Market: CMP exceeded the Australian Market which returned 11.1% over the past year.


Shareholder returns

CMPIndustryMarket
7 Day16.7%4.7%2.5%
30 Day16.7%5.0%0.7%
90 Day2.2%3.2%1.4%
1 Year77.2%77.2%26.9%24.8%17.5%11.1%
3 Year0.7%0.7%47.6%41.1%37.8%19.4%
5 Year508.7%508.7%146.0%126.3%51.7%17.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Compumedics undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CMP (A$0.7) is trading below our estimate of fair value (A$1.99)

Significantly Undervalued: CMP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CMP is poor value based on its PE Ratio (30.9x) compared to the Medical Equipment industry average (29.1x).

PE vs Market: CMP is poor value based on its PE Ratio (30.9x) compared to the Australian market (18x).


Price to Earnings Growth Ratio

Low PEG Ratio: CMP is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: CMP is overvalued based on its PB Ratio (4.5x) compared to the AU Medical Equipment industry average (4.3x).


Next Steps

Future Growth

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

34.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMP's forecast earnings growth (34.7% per year) is above the savings rate (2.3%).

Earnings vs Market: CMP's earnings (34.7% per year) are forecast to grow faster than the Australian market (10.3% per year).

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

Revenue vs Market: CMP's revenue (17.6% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: CMP's revenue (17.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CMP's Return on Equity is forecast to be high in 3 years time (29.3%)


Next Steps

Past Performance

How has Compumedics performed over the past 5 years?

14.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CMP's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: CMP's earnings growth over the past year (44.3%) exceeds its 5-year average (14.3% per year).

Earnings vs Industry: CMP earnings growth over the past year (44.3%) exceeded the Medical Equipment industry 29.5%.


Return on Equity

High ROE: CMP's Return on Equity (14.7%) is considered low.


Return on Assets

ROA vs Industry: CMP has a higher Return on Assets than the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: CMP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Compumedics's financial position?


Financial Position Analysis

Short Term Liabilities: CMP's short term assets (A$30.2M) exceeds its short term liabilities (A$10.2M)

Long Term Liabilities: CMP's short term assets (30.2M) exceeds its long term liabilities (1.2M)


Debt to Equity History and Analysis

Debt Level: CMP's debt to equity ratio (5.7%) is considered satisfactory

Reducing Debt: CMP's debt to equity ratio has reduced from 21.3% to 5.7% over the past 5 years.

Debt Coverage: CMP's debt is well covered by operating cash flow (329.7%).

Interest Coverage: CMP's interest payments on its debt are well covered by EBIT (20.5x coverage).


Balance Sheet

Inventory Level: CMP has a high level of physical assets or inventory.

Debt Coverage by Assets: CMP's debt is covered by short term assets (assets are 19.392810x debt).


Next Steps

Dividend

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

2.07%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.6%industryaverage1.5%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Growing Dividend: Insufficient data to determine if CMP'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 CMP'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 Compumedics's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average board tenure


CEO

David Burton (60yo)

0yrs

Tenure

AU$249,967

Compensation

Dr. David Burton, Ph.D. founded Compumedics Ltd. in 1987 and serves as its Executive Chairman and Chief Executive Officer. Dr. Burton serves as Executive Chairman and Chief Executive Officer of Compumedics ...


CEO Compensation Analysis

Compensation vs. Market: David's total compensation ($USD168.76K) is about average for companies of similar size in the Australian market ($USD257.34K).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Board Age and Tenure

2.8yrs

Average Tenure

60yo

Average Age

Experienced Board: CMP's board of directors are not considered experienced ( 2.8 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.


Ownership Breakdown


Management Team

  • David Burton (60yo)

    Founder

    • Tenure: 0yrs
    • Compensation: AU$249.97k
  • Warwick Freeman

    Chief Technology Officer

    • Tenure: 0yrs
    • Compensation: AU$281.24k
  • David Lawson (54yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 6yrs
    • Compensation: AU$281.18k
  • Christoph Witte

    General Managing of Director DWL Compumedics Germany GmbH

    • Tenure: 0yrs
    • Compensation: AU$351.59k
  • Curtis Ponton

    Chief Scientist of Neuroscan & VP

    • Tenure: 0yrs
    • Compensation: AU$189.13k
  • Paul Spooner

    Business Director of EMEA

    • Tenure: 0yrs
    • Compensation: AU$232.92k
  • Kerry Hubick

    Legal Counsel and Trademark

    • Tenure: 0yrs
    • Compensation: AU$81.25k

Board Members

  • David Burton (60yo)

    Founder

    • Tenure: 0yrs
    • Compensation: AU$249.97k
  • Alan Anderson (63yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: AU$22.80k
  • David Lawson (54yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 6yrs
    • Compensation: AU$281.18k
  • Ian Colrain

    Member of Medical Advisory Board

    • Tenure: 2.8yrs
  • Patrice Bourgin

    Member of Medical Advisory Board

    • Tenure: 2.8yrs
  • John Ebersole

    Member of Medical Advisory Board

    • Tenure: 2.8yrs
  • Tucson Dunn

    Non-Executive Director

    • Tenure: 1.4yrs

Company Information

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


Key Information

  • Name: Compumedics Limited
  • Ticker: CMP
  • Exchange: ASX
  • Founded: 1987
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: AU$115.156m
  • Shares outstanding: 177.16m
  • Website: https://www.compumedics.com.au

Location

  • Compumedics Limited
  • 30-40 Flockhart Street
  • Abbotsford
  • Victoria
  • 3067
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2000
CMPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2000

Biography

Compumedics Limited researches, develops, manufactures, sells, and distributes medical equipment in Australia, New Zealand, the United States, Europe, the Middle East, Africa, and Asia. It provides sleep d ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 10:32
End of Day Share Price2019/10/17 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.