ASX:ONT

Stock Analysis Report

Executive Summary

1300SMILES Limited provides dental and management services in Australia.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

2.7%

ONT

1.6%

AU Healthcare

0.4%

AU Market


1 Year Return

-2.1%

ONT

17.9%

AU Healthcare

9.8%

AU Market

Return vs Industry: ONT underperformed the Australian Healthcare industry which returned 17.9% over the past year.

Return vs Market: ONT underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

ONTIndustryMarket
7 Day2.7%1.6%0.4%
30 Day3.7%4.6%-0.7%
90 Day1.3%-0.1%-0.6%
1 Year1.9%-2.1%21.6%17.9%16.1%9.8%
3 Year-6.6%-16.6%7.1%-2.7%36.1%17.9%
5 Year27.3%6.9%43.2%23.0%49.4%15.8%

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?

36.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ONT (A$6.38) is trading below our estimate of fair value (A$10.02)

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


Price To Earnings Ratio

PE vs Industry: ONT is poor value based on its PE Ratio (19.4x) compared to the Healthcare industry average (19.3x).

PE vs Market: ONT is poor value based on its PE Ratio (19.4x) compared to the Australian market (18.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: ONT is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ONT is overvalued based on its PB Ratio (3.8x) compared to the AU Healthcare industry average (1.5x).


Next Steps

Future Growth

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

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ONT's forecast earnings growth (11% per year) is above the savings rate (2.3%).

Earnings vs Market: ONT's earnings (11% per year) are forecast to grow faster than the Australian market (10.3% per year).

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

Revenue vs Market: ONT's revenue (10.1% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: ONT's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ONT's Return on Equity is forecast to be high in 3 years time (22.7%)


Next Steps

Past Performance

How has 1300SMILES performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ONT's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: ONT's earnings growth over the past year (1.8%) is below its 5-year average (6.4% per year).

Earnings vs Industry: ONT earnings growth over the past year (1.8%) exceeded the Healthcare industry -1.7%.


Return on Equity

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


Return on Assets

ROA vs Industry: ONT has a higher Return on Assets than the Healthcare industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is 1300SMILES's financial position?


Financial Position Analysis

Short Term Liabilities: ONT's short term assets (A$4.9M) do not cover its short term liabilities (A$5.1M)

Long Term Liabilities: ONT's short term assets (4.9M) do not cover its long term liabilities (12.2M)


Debt to Equity History and Analysis

Debt Level: ONT's debt to equity ratio (23%) 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 (75.1%).

Interest Coverage: ONT's interest payments on its debt are well covered by EBIT (42.9x 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 0.5x debt).


Next Steps

Dividend

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

3.92%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%2.4%markettop25%5.6%industryaverage2.9%forecastin3Years4.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ONT's dividend (3.92%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: ONT's dividend (3.92%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

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 (76.2%), 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 (74.3% payout ratio).


Next Steps

Management

What is the CEO of 1300SMILES's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average board tenure


CEO

Daryl Holmes 0

0yrs

Tenure

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 ($USD61.69K) is about average for companies of similar size in the Australian market ($USD259.09K).

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


Board Age and Tenure

1.9yrs

Average Tenure

Experienced Board: ONT's board of directors are not considered experienced ( 1.9 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

  • Daryl Holmes

    Founder

    • Tenure: 0yrs
    • Compensation: AU$90.40k
  • Patrick Wyatt

    Financial Controller & Company Secretary

    • Tenure: 1.3yrs
  • Natalie Duve

    Operations Manager

    • Tenure: 2yrs
    • Compensation: AU$149.26k

Board Members

  • Daryl Holmes

    Founder

    • Tenure: 0yrs
    • Compensation: AU$90.40k
  • Bob Jones

    Non-Executive Chairman

    • Tenure: 12.1yrs
    • Compensation: AU$40.00k
  • Evonne Collier

    Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: AU$30.00k
  • Jason Smith

    Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: AU$30.00k

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$151.068m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 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.