ASX:SHO

Stock Analysis Report

Executive Summary

SportsHero Limited develops sports gamification platform.

Rewards

Revenue grew by 9160.9% over the past year

Risk Analysis

Has less than 1 year of cash runway

Makes less than USD$1m in revenue ($462K)

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

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

+ 2 more risks


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.9%

SHO

-3.2%

AU Entertainment

-1.1%

AU Market


1 Year Return

-68.6%

SHO

4.8%

AU Entertainment

18.4%

AU Market

Return vs Industry: SHO underperformed the Australian Entertainment industry which returned 11.1% over the past year.

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


Shareholder returns

SHOIndustryMarket
7 Day-2.9%-3.2%-1.1%
30 Day10.0%-1.8%2.5%
90 Day-38.9%2.7%4.2%
1 Year-68.6%-68.6%8.2%4.8%23.8%18.4%
3 Yearn/a0.3%-8.8%38.7%20.1%
5 Yearn/a8.6%-8.4%54.7%19.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether SportsHero is trading at an attractive price based on the cash flow it is expected to produce in the future. But as SportsHero has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of SHO’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through SportsHero regulatory filings.
  • Explore potentially undervalued companies in the Media industry.

Future Growth

How is SportsHero forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.8%

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 SportsHero 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 SportsHero performed over the past 5 years?

37.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: SHO is currently unprofitable.

Growing Profit Margin: SHO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if SHO's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: SHO is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (10%).


Return on Equity

High ROE: SHO's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SportsHero's financial position?


Financial Position Analysis

Short Term Liabilities: SHO has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SHO has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SHO is debt free.

Reducing Debt: SHO's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

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

Forecast Cash Runway: SHO has less than a year of cash runway if free cash flow continues to reduce at historical rates of -28.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

2.8yrs

Average board tenure


CEO

Tom Lapping 0

2.3yrs

Tenure

US$135,964

Compensation

Mr. Tom Lapping has been Chief Executive Officer of SportsHero Limited since September 04, 2017. Mr. Lapping is highly experienced across the securities and media sectors. Mr. Lapping has been a Non-Execut ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD135.96K) is below average for companies of similar size in the Australian market ($USD262.68K).

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


Board Age and Tenure

2.8yrs

Average Tenure

Experienced Board: SHO's board of directors are not considered experienced ( 2.8 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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.5%.


Management Team

  • Mike Higginson (60yo)

    Company Secretary & Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: US$75.38k
  • Tom Lapping

    CEO & Director

    • Tenure: 2.3yrs
    • Compensation: US$135.96k
  • Chris Flintoft

    Chief Digital Officer

    • Tenure: 1.5yrs

Board Members

  • Mike Higginson (60yo)

    Company Secretary & Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: US$75.38k
  • Tom Lapping

    CEO & Director

    • Tenure: 2.3yrs
    • Compensation: US$135.96k
  • John Dougall

    Non-Executive Chairman

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: SportsHero Limited
  • Ticker: SHO
  • Exchange: ASX
  • Founded:
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: AU$10.831m
  • Shares outstanding: 328.21m
  • Website: https://sportshero.live

Number of Employees


Location

  • SportsHero Limited
  • 29 Brookside Place
  • Lota
  • Queensland
  • 4179
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHOASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2017
NIRO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2017
SHOCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2017

Biography

SportsHero Limited develops sports gamification platform. The company develops SportsHero app, a sports and social prediction platform mobile application. It also provides marketing services. The company is headquartered in Lota, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/29 10:47
End of Day Share Price2020/01/23 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.