ASX:RNT

Stock Analysis Report

Executive Summary

Rent.com.au Limited operates real estate Websites focusing on rental property market in Australia.

Rewards

Earnings have grown 4% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Does not have a meaningful market cap (A$13M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

How has Rent.com.au's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

RNT

-1.7%

AU Interactive Media and Services

0.1%

AU Market


1 Year Return

2.2%

RNT

47.9%

AU Interactive Media and Services

19.5%

AU Market

Return vs Industry: RNT underperformed the Australian Interactive Media and Services industry which returned 54% over the past year.

Return vs Market: RNT underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

RNTIndustryMarket
7 Day0%-1.7%0.1%
30 Day-13.2%3.8%4.0%
90 Day53.3%5.2%4.8%
1 Year2.2%2.2%50.5%47.9%24.9%19.5%
3 Year-45.9%-45.9%101.5%90.8%39.7%20.9%
5 Yearn/a127.9%107.5%59.0%23.1%

Price Volatility Vs. Market

How volatile is Rent.com.au's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rent.com.au undervalued compared to its fair value and its price relative to the market?

8.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RNT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RNT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: RNT is unprofitable, so we can't compare its PE Ratio to the Interactive Media and Services industry average.

PE vs Market: RNT 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 RNT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RNT is overvalued based on its PB Ratio (7.4x) compared to the AU Interactive Media and Services industry average (7.3x).


Next Steps

Future Growth

How is Rent.com.au forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

28.1%

Forecasted Media industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Rent.com.au has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Rent.com.au performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNT is currently unprofitable.

Growing Profit Margin: RNT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RNT is unprofitable, but has reduced losses over the past 5 years at a rate of 4% per year.

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

Earnings vs Industry: RNT is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (0.8%).


Return on Equity

High ROE: RNT has a negative Return on Equity (-176.4%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rent.com.au's financial position?


Financial Position Analysis

Short Term Liabilities: RNT's short term assets (A$465.4K) do not cover its short term liabilities (A$779.3K).

Long Term Liabilities: RNT's short term assets (A$465.4K) exceed its long term liabilities (A$14.3K).


Debt to Equity History and Analysis

Debt Level: RNT is debt free.

Reducing Debt: RNT had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if RNT'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: RNT has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: RNT has less than a year of cash runway if free cash flow continues to grow at historical rates of 42.1% each year.


Next Steps

Dividend

What is Rent.com.au's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if RNT'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 RNT'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 Rent.com.au's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Greg Bader (54yo)

3.4yrs

Tenure

AU$243,732

Compensation

Mr. Greg Bader, M.Sc TM, MBA, has been the Chief Executive Officer of Rent.com.au Limited since August 23, 2016 and served as its Interim Chief Executive Officer since July 25, 2016 until August 23, 2016.  ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD168.21K) is below average for companies of similar size in the Australian market ($USD262.68K).

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


Management Age and Tenure

5.3yrs

Average Tenure

Experienced Management: RNT's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

50.5yo

Average Age

Experienced Board: RNT's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: RNT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$131,57230 Dec 19
SG Hiscock & Company Ltd.
EntityCompany
Shares2,465,075
Max PriceAU$0.053
BuyAU$197,64216 Dec 19
CQI Capital Management L.P.
EntityCompany
Shares5,604,432
Max PriceAU$0.035
SellAU$312,92216 Dec 19
CQI Capital Management L.P.
EntityCompany
Shares8,659,959
Max PriceAU$0.036
BuyAU$4,92826 Nov 19
John Wood
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares150,000
Max PriceAU$0.033
BuyAU$12,93225 Sep 19
John Wood
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares360,000
Max PriceAU$0.036
BuyAU$12,40010 Sep 19
John Wood
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares400,000
Max PriceAU$0.031
BuyAU$33,00023 Jul 19
CQI Capital Management L.P.
EntityCompany
Shares868,421
Max PriceAU$0.038
SellAU$52,96123 Jul 19
CQI Capital Management L.P.
EntityCompany
Shares1,527,894
Max PriceAU$0.036
BuyAU$552,07023 Jul 19
CQI Capital Management L.P.
EntityCompany
Shares15,391,735
Max PriceAU$0.039
BuyAU$46,95823 Jul 19
Jason Carroll
EntityIndividual
Shares1,508,468
Max PriceAU$0.035
BuyAU$9,26022 Jul 19
Philip Warren
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares257,218
Max PriceAU$0.036
BuyAU$46,97022 Jul 19
John Wood
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,304,722
Max PriceAU$0.036
BuyAU$46,29922 Jul 19
Garry Garside
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares1,286,087
Max PriceAU$0.036
BuyAU$9,06103 Jul 19
John Wood
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares271,887
Max PriceAU$0.033
BuyAU$205,98103 May 19
Jason Carroll
EntityIndividual
Shares4,961,523
Max PriceAU$0.05

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.3%.


Management Team

  • Greg Bader (54yo)

    Chief Executive Officer

    • Tenure: 3.4yrs
    • Compensation: AU$243.73k
  • Jan Ferreira

    CFO & Joint Company Secretary

    • Tenure: 5.8yrs
    • Compensation: AU$236.86k
  • Steven Wood

    Joint Company Secretary

    • Tenure: 5.3yrs

Board Members

  • Garry Garside (62yo)

    Non-Executive Chairman

    • Tenure: 4.6yrs
    • Compensation: AU$27.57k
  • Phil Warren (45yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$20.00k
  • John Wood (53yo)

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: AU$20.04k
  • Sam McDonagh (48yo)

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: AU$20.12k

Company Information

Rent.com.au Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rent.com.au Limited
  • Ticker: RNT
  • Exchange: ASX
  • Founded: 2007
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: AU$14.263m
  • Shares outstanding: 291.08m
  • Website: https://www.rent.com.au

Location

  • Rent.com.au Limited
  • 3 Craig Street
  • Burswood
  • Western Australia
  • 6100
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNTASX (Australian Securities Exchange)YesNew Ordinary SharesAUAUDJun 2015
RNTCHIA (Chi-X Australia)YesNew Ordinary SharesAUAUDJun 2015

Biography

Rent.com.au Limited operates real estate Websites focusing on rental property market in Australia. It accepts rental property listings from agents, landlords, renters, and advertisers. The company was founded in 2007 and is based in Burswood, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/28 10:38
End of Day Share Price2020/01/28 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.