ASX:SOM

Stock Analysis Report

Executive Summary

SomnoMed Limited, together with its subsidiaries, produces and sells devices for the oral treatment of sleep related disorders in Australia and internationally.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SOM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

SOM

12.0%

AU Medical Equipment

5.1%

AU Market


1 Year Return

-37.1%

SOM

12.0%

AU Medical Equipment

-19.0%

AU Market

Return vs Industry: SOM underperformed the Australian Medical Equipment industry which returned 14.1% over the past year.

Return vs Market: SOM underperformed the Australian Market which returned -18.9% over the past year.


Shareholder returns

SOMIndustryMarket
7 Day-4.3%12.0%5.1%
30 Day-61.3%-12.8%-20.9%
90 Day-61.4%-16.3%-25.6%
1 Year-26.8%-37.1%14.1%12.0%-15.4%-19.0%
3 Year-62.4%-67.7%30.2%24.0%-3.3%-16.6%
5 Year-50.2%-57.7%71.6%56.9%6.9%-17.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

40.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOM (A$1.1) is trading below our estimate of fair value (A$1.85)

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


Price To Earnings Ratio

PE vs Industry: SOM is poor value based on its PE Ratio (78.3x) compared to the Medical Equipment industry average (19.4x).

PE vs Market: SOM is poor value based on its PE Ratio (78.3x) compared to the Australian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: SOM is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: SOM is overvalued based on its PB Ratio (3.4x) compared to the AU Medical Equipment industry average (3.3x).


Next Steps

Future Growth

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

115.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOM's forecast earnings growth (115.2% per year) is above the savings rate (1.1%).

Earnings vs Market: SOM's earnings (115.2% per year) are forecast to grow faster than the Australian market (10.1% per year).

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

Revenue vs Market: SOM's revenue (12.2% per year) is forecast to grow faster than the Australian market (4% per year).

High Growth Revenue: SOM's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOM's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has SomnoMed performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOM has a high level of non-cash earnings.

Growing Profit Margin: SOM's current net profit margins (1.3%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: SOM's earnings have grown by 10.5% per year over the past 5 years.

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

Earnings vs Industry: SOM had negative earnings growth (-75.1%) over the past year, making it difficult to compare to the Medical Equipment industry average (14.7%).


Return on Equity

High ROE: SOM's Return on Equity (4.1%) is considered low.


Next Steps

Financial Health

How is SomnoMed's financial position?


Financial Position Analysis

Short Term Liabilities: SOM's short term assets (A$22.7M) exceed its short term liabilities (A$17.0M).

Long Term Liabilities: SOM's short term assets (A$22.7M) exceed its long term liabilities (A$5.6M).


Debt to Equity History and Analysis

Debt Level: SOM's debt to equity ratio (16.7%) is considered satisfactory.

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

Debt Coverage: SOM's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SOM's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: SOM's debt is covered by short term assets (assets are 6.8x debt).


Next Steps

Dividend

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

0.57%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SOM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SOM'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 SOM'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?

4.4yrs

Average management tenure


CEO

Neil Verdal-Austin

1.42s

Tenure

AU$471,884

Compensation

Mr. Neil Verdal-Austin has been the Chief Executive of SomnoMed Limited since November 19, 2018. Mr. Verdal-Austin served as Chief Financial Officer of SomnoMed Limited since October 15, 2008 until Novembe ...


CEO Compensation Analysis

Compensation vs Market: Neil's total compensation ($USD285.63K) is about average for companies of similar size in the Australian market ($USD239.28K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Neil Verdal-Austin
Chief Executive Officer1.42yrsAU$471.88k1.58% A$1.3m
Hervé Fiévet
Chief Financial Officer1yrAU$267.23k0.027% A$22.0k
Martin Weiland
Executive Vice President of Sales and Marketing - Europeno dataAU$513.08k0.63% A$522.5k
Kien Nguyen
Executive President of North America7.42yrsAU$658.71k1.36% A$1.1m
Jagdeep Bijwadia
Chief Medical Officerno datano datano data
Terence Flitcroft
Company Secretary25.25yrsAU$10.56kno data
Peter Spencer
General Manager of Operationsno dataAU$8.96kno data
Christopher Bedford
Vice President of Global Production and Product Developmentno dataAU$128.07kno data

4.4yrs

Average Tenure

Experienced Management: SOM's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Iven Klineberg
Member of the Medical Advisory Boardno datano datano data
J. Gerschman
Member of the Medical Advisory Boardno datano datano data
Peter Cistulli
Chairman of the Medical Advisory Boardno datano datano data
Peter Neustadt
Non-Executive Chairman7.83yrsAU$238.81k1.1% A$909.6k
Lee Ausburn
Non-Executive Director8.58yrsAU$65.56k0.18% A$150.8k
Hamish Corlett
Non-Executive Director1.92yrsAU$65.56kno data
Robert Scherini
Non-Executive Director8.58yrsAU$65.56k0.12% A$100.6k

8.2yrs

Average Tenure

Experienced Board: SOM's board of directors are considered experienced (8.2 years average tenure).


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

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


Key Information

  • Name: SomnoMed Limited
  • Ticker: SOM
  • Exchange: ASX
  • Founded: 2004
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: AU$82.381m
  • Shares outstanding: 74.89m
  • Website: https://somnomed.com/au/

Number of Employees


Location

  • SomnoMed Limited
  • 20 Clarke Street
  • Level 3
  • Crows Nest
  • New South Wales
  • 2065
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOMAOASX (Australian Securities Exchange)NPV DFD 22/04/20(EX-RIGHTS)AUAUDNo data
SOMASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2004
SOMN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2004
SOMCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2004
RJVDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2004

Biography

SomnoMed Limited, together with its subsidiaries, produces and sells devices for the oral treatment of sleep related disorders in Australia and internationally. Its products include SomnoDent, an oral appliance for obstructive sleep apnea; and SomnoBrux, a mouthguard for the treatment of teeth grinding damage, as well as SomTabs for cleaning its devices. The company was founded in 2004 and is based in Crows Nest, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 10:33
End of Day Share Price2020/04/03 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.