ASX:ONT

Stock Analysis Report

Executive Summary

1300SMILES Limited provides dental and management services in Australia.


Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has 1300SMILES's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.3%

ONT

-0.1%

AU Healthcare

0.7%

AU Market


1 Year Return

4.7%

ONT

24.9%

AU Healthcare

15.8%

AU Market

Return vs Industry: ONT underperformed the Australian Healthcare industry which returned 24.9% over the past year.

Return vs Market: ONT underperformed the Australian Market which returned 15.8% over the past year.


Shareholder returns

ONTIndustryMarket
7 Day4.3%-0.1%0.7%
30 Day6.6%1.8%0.4%
90 Day4.0%6.4%6.5%
1 Year9.0%4.7%28.8%24.9%21.0%15.8%
3 Year1.1%-9.7%23.7%12.4%37.4%19.1%
5 Year16.2%-2.4%31.7%13.0%50.7%17.1%

Price Volatility Vs. Market

How volatile is 1300SMILES's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 1300SMILES undervalued compared to its fair value and its price relative to the market?

41.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ONT (A$6.5) is trading below our estimate of fair value (A$11.16)

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


Price To Earnings Ratio

PE vs Industry: ONT is good value based on its PE Ratio (19.1x) compared to the Healthcare industry average (19.7x).

PE vs Market: ONT is poor value based on its PE Ratio (19.1x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: ONT is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: ONT is overvalued based on its PB Ratio (3.7x) compared to the AU Healthcare industry average (1.9x).


Next Steps

Future Growth

How is 1300SMILES forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ONT's forecast earnings growth (11.8% per year) is above the savings rate (1.1%).

Earnings vs Market: ONT's earnings (11.8% per year) are forecast to grow faster than the Australian market (9.2% per year).

High Growth Earnings: ONT's earnings are forecast to grow, but not significantly.

Revenue vs Market: ONT's revenue (8.1% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: ONT's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ONT's Return on Equity is forecast to be high in 3 years time (22.5%)


Next Steps

Past Performance

How has 1300SMILES performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ONT has a large one-off gain of A$1.9M impacting its December 31 2019 financial results.

Growing Profit Margin: ONT's current net profit margins (18.9%) are lower than last year (19.4%).


Past Earnings Growth Analysis

Earnings Trend: ONT's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: ONT's earnings growth over the past year (3.2%) is below its 5-year average (4.4% per year).

Earnings vs Industry: ONT earnings growth over the past year (3.2%) underperformed the Healthcare industry 3.2%.


Return on Equity

High ROE: ONT's Return on Equity (19.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is 1300SMILES's financial position?


Financial Position Analysis

Short Term Liabilities: ONT's short term assets (A$7.0M) do not cover its short term liabilities (A$8.4M).

Long Term Liabilities: ONT's short term assets (A$7.0M) do not cover its long term liabilities (A$20.3M).


Debt to Equity History and Analysis

Debt Level: ONT's debt to equity ratio (27%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ONT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ONT's debt is well covered by operating cash flow (85%).

Interest Coverage: ONT's interest payments on its debt are well covered by EBIT (16.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: ONT's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is 1300SMILES's current dividend yield, its reliability and sustainability?

4.08%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 20 2020Ex Dividend DateMar 19 2020Dividend Pay DateMar 27 20208 days from Ex DividendBuy in the next 27 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: ONT's dividend (4.08%) is higher than the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: ONT's dividend (4.08%) is low compared to the top 25% of dividend payers in the Australian market (5.42%).


Stability and Growth of Payments

Stable Dividend: ONT's dividend payments have been volatile in the past 10 years.

Growing Dividend: ONT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.7%), ONT's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ONT's dividends in 3 years are forecast to be covered by earnings (74.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average board tenure


CEO

Daryl Holmes 0

AU$90,400

Compensation

Dr. Daryl Shane Holmes, BDSc (Hons), MAICD is the Founder of 1300SMILES Limited and serves as its Managing Director and Executive Director. Dr. Holmes has extensive experience in operating dental practices ...


CEO Compensation Analysis

Compensation vs Market: Daryl's total compensation ($USD60.35K) is below average for companies of similar size in the Australian market ($USD253.17K).

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


Board Members

NamePositionTenureCompensationOwnership
Daryl Holmes
Founder0yrsAU$90.40k62.13% A$95.6m
Robert Jones
Non-Executive Chairman12.4yrsAU$40.00k0.16% A$243.9k
Evonne Collier
Non-Executive Director2.3yrsAU$30.00kno data
Jason Smith
Independent Non-Executive Director2.3yrsAU$30.00k0.00030% A$461.7

2.3yrs

Average Tenure

Experienced Board: ONT's board of directors are not considered experienced ( 2.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

1300SMILES Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 1300SMILES Limited
  • Ticker: ONT
  • Exchange: ASX
  • Founded: 2000
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: AU$153.909m
  • Shares outstanding: 23.68m
  • Website: https://www.1300smiles.com.au

Number of Employees


Location

  • 1300SMILES Limited
  • 105 Denham Street
  • Ground Floor
  • Townsville
  • Queensland
  • 4810
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ONTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2005
ONTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2005

Biography

1300SMILES Limited provides dental and management services in Australia. It enables the delivery of services to patients by offering the use of dental surgeries, practice management, and other services to self-employed dentists who carry on their own dental practices. The company also provides services in the areas of marketing, administration, billing and collections, and facilities certification and licensing to participating dentists; and support staff, equipment, and facilities, as well as sources various consumable goods. In addition, it offers general, restorative, cosmetic, preventive, and children’s dentistry services, as well as orthodontics services. The company serves dentists ranging from new graduates to experienced dental professionals. It owns and operates approximately 30 full-service dental facilities in Queensland, Sydney, and Adelaide. The company was founded in 2000 and is headquartered in Townsville, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 10:34
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
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.