ASX:TTB

Stock Analysis Report

Executive Summary

Total Brain Limited develops and sells brain health products in the United States.

Rewards

Trading at 68.6% below its fair value

Earnings are forecast to grow 78.89% per year

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Highly volatile share price over past 3 months

Does not have meaningful revenue (A$3M)

+ 1 more risk


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

928.6%

TTB

2.2%

AU Healthcare

2.0%

AU Market


1 Year Return

188.0%

TTB

28.1%

AU Healthcare

19.8%

AU Market

Return vs Industry: TTB exceeded the Australian Healthcare industry which returned 27.8% over the past year.

Return vs Market: TTB exceeded the Australian Market which returned 19.4% over the past year.


Shareholder returns

TTBIndustryMarket
7 Day928.6%2.2%2.0%
30 Day7.5%3.5%3.3%
90 Day35.8%6.9%5.8%
1 Year189.1%188.0%32.1%28.1%25.2%19.8%
3 Year-23.9%-24.2%23.1%11.8%39.6%20.9%
5 Year-66.4%-66.5%42.1%22.0%61.8%25.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TTB (A$0.72) is trading below our estimate of fair value (A$2.3)

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


Price To Earnings Ratio

PE vs Industry: TTB is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.

PE vs Market: TTB is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TTB is overvalued based on its PB Ratio (2.8x) compared to the AU Healthcare industry average (1.7x).


Next Steps

Future Growth

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

78.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

Earnings vs Market: TTB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TTB's is expected to become profitable in the next 3 years.

Revenue vs Market: TTB's revenue (59.5% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: TTB's revenue (59.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Total Brain performed over the past 5 years?

-38.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TTB is currently unprofitable.

Growing Profit Margin: TTB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TTB is unprofitable, and losses have increased over the past 5 years at a rate of -38.6% per year.

Accelerating Growth: Unable to compare TTB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TTB is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (1.8%).


Return on Equity

High ROE: TTB has a negative Return on Equity (-42.39%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Total Brain's financial position?


Financial Position Analysis

Short Term Liabilities: TTB's short term assets (A$6.2M) exceed its short term liabilities (A$1.1M).

Long Term Liabilities: TTB's short term assets (A$6.2M) exceed its long term liabilities (A$98.9K).


Debt to Equity History and Analysis

Debt Level: TTB is debt free.

Reducing Debt: TTB has no debt compared to 5 years ago when its debt to equity ratio was 57.1%.


Balance Sheet

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

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


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TTB has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: TTB has less than a year of cash runway if free cash flow continues to reduce at historical rates of -37.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

2.4yrs

Average management tenure


CEO

Louis Gagnon 0

2.7yrs

Tenure

AU$708,253

Compensation

Mr. Louis Gagnon has been Chief Executive Officer of Brain Resource Limited since May 22, 2017 and has been its Managing Director since December 22, 2017. Mr. Gagnon served as Chief Product and Marketing O ...


CEO Compensation Analysis

Compensation vs Market: Louis's total compensation ($USD489.29K) is above average for companies of similar size in the Australian market ($USD261.82K).

Compensation vs Earnings: Louis's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.4yrs

Average Tenure

Experienced Management: TTB's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

Experienced Board: TTB's board of directors are not considered experienced ( 2.1 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$347,80518 Nov 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares743,546.9
Max PriceAU$0.47
BuyAU$110,26515 Oct 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares220,210.2
Max PriceAU$0.50
BuyAU$73,48002 Oct 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares152,710.3
Max PriceAU$0.48
SellAU$226,49502 Oct 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares386,456.9
Max PriceAU$0.59
BuyAU$118,46902 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares372,501.4
Max PriceAU$0.35
SellAU$350,82227 May 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares1,189,787.3
Max PriceAU$0.30
BuyAU$8,30022 May 19
Matthew Morgan
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares29,642.9
Max PriceAU$0.28
SellAU$97509 May 19
Ozado Partners LLC
EntityCompany
Shares3,609
Max PriceAU$0.27
BuyAU$157,49918 Apr 19
Sun Hung Kai & Co. Limited, Asset Management Arm
EntityCompany
Shares562,500
Max PriceAU$0.28
BuyAU$8,55813 Feb 19
Matthew Morgan
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares31,511.1
Max PriceAU$0.27

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 62.9%.


Management Team

  • Dan Segal

    Consultant

    • Tenure: 3.3yrs
    • Compensation: AU$238.40k
  • Evian Gordon

    Founder & Executive Chairman

    • Compensation: AU$349.47k
  • Marcel Legrand

    Head of Revenue & Corporate Development

    • Tenure: 2.4yrs
  • Phillip Hains (59yo)

    Joint Company Secretary

    • Tenure: 1.5yrs
  • Louis Gagnon

    MD, CEO & Director

    • Tenure: 2.7yrs
    • Compensation: AU$708.25k
  • Matt Mund

    Chief Operating Officer

    • Tenure: 2.4yrs
    • Compensation: AU$482.76k
  • Emil Vasilev

    Director of Finance & Operations

    • Tenure: 2.7yrs
    • Compensation: AU$284.02k
  • Matt Resteghini

    Chief Marketing Officer

    • Tenure: 1.9yrs
  • Nathan Jong

    Joint Company Secretary

    • Tenure: 0.2yrs

Board Members

  • Evian Gordon

    Founder & Executive Chairman

    • Compensation: AU$349.47k
  • Matt Morgan (45yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: AU$106.07k
  • David Daglio

    Non-Executive Director

    • Louis Gagnon

      MD, CEO & Director

      • Tenure: 2.7yrs
      • Compensation: AU$708.25k
    • David Torrible

      Non-Executive Director

      • Tenure: 0.6yrs
      • Compensation: AU$5.02k

    Company Information

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


    Key Information

    • Name: Total Brain Limited
    • Ticker: TTB
    • Exchange: ASX
    • Founded: 2000
    • Industry: Health Care Services
    • Sector: Healthcare
    • Market Cap: AU$77.979m
    • Shares outstanding: 108.30m
    • Website: https://www.totalbrain.com

    Number of Employees


    Location

    • Total Brain Limited
    • 268 Bush Street
    • Suite 2633
    • San Francisco
    • California
    • 94104
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    TTBASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2001
    TTBCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2001
    BRRZ.YOTCPK (Pink Sheets LLC)SPONSORED ADSUSUSDApr 2011
    TTBDAASX (Australian Securities Exchange)NPV DFD 23/01/20(EX-SPLT)AUAUDJan 2020

    Biography

    Total Brain Limited develops and sells brain health products in the United States. It offers Total Brain, a neuroscience-based mental health and fitness platform. The company was formerly known as Brain Resource Limited. Total Brain Limited was founded in 2000 and is based in San Francisco, California. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/17 10:33
    End of Day Share Price2020/01/14 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.