ASX:RBL

Stock Analysis Report

Executive Summary

Redbubble Limited operates as an online marketplace that facilitates the sale and purchase of art and designs on a range of products between independent creatives and consumers.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

13.9%

RBL

15.2%

AU Online Retail

5.3%

AU Market


1 Year Return

-47.0%

RBL

-48.9%

AU Online Retail

-17.6%

AU Market

Return vs Industry: RBL exceeded the Australian Online Retail industry which returned -48.9% over the past year.

Return vs Market: RBL underperformed the Australian Market which returned -17.6% over the past year.


Shareholder returns

RBLIndustryMarket
7 Day13.9%15.2%5.3%
30 Day-38.5%-36.4%-18.2%
90 Day-47.7%-51.7%-22.6%
1 Year-47.0%-47.0%-47.4%-48.9%-13.9%-17.6%
3 Year-16.6%-17.3%-20.7%-26.6%-0.4%-14.1%
5 Yearn/a141.6%126.9%10.7%-14.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Redbubble 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: RBL (A$0.58) is trading below our estimate of fair value (A$1.41)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RBL is overvalued based on its PB Ratio (2.2x) compared to the AU Online Retail industry average (2.2x).


Next Steps

Future Growth

How is Redbubble forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

67.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: RBL's revenue (16.1% per year) is forecast to grow faster than the Australian market (4% per year).

High Growth Revenue: RBL's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RBL is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Redbubble performed over the past 5 years?

-16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RBL is currently unprofitable.

Growing Profit Margin: RBL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RBL is unprofitable, and losses have increased over the past 5 years at a rate of -16.7% per year.

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

Earnings vs Industry: RBL is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (5.9%).


Return on Equity

High ROE: RBL has a negative Return on Equity (-41.6%), as it is currently unprofitable.


Next Steps

Financial Health

How is Redbubble's financial position?


Financial Position Analysis

Short Term Liabilities: RBL's short term assets (A$73.7M) do not cover its short term liabilities (A$82.8M).

Long Term Liabilities: RBL's short term assets (A$73.7M) exceed its long term liabilities (A$7.2M).


Debt to Equity History and Analysis

Debt Level: RBL is debt free.

Reducing Debt: RBL has no debt compared to 5 years ago when its debt to equity ratio was 415.7%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if RBL'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: Whilst unprofitable RBL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RBL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 20.8% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

2.5yrs

Average management tenure


CEO

Martin Hosking

0.17

Tenure

AU$1,225,985

Compensation

Mr. Martin Hosking is a Co-Founder of Redbubble Limited and serves as its Interim Chief Executive Officer since February 2020. He serves as Chief Executive Officer and Managing Director at Redbubble Limite ...


CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD749.10K) is above average for companies of similar size in the Australian market ($USD242.08K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Martin Hosking
Co-Founder0.17yrAU$1.23m19.4% A$28.7m
Emma Clark
Chief Financial Officer0.83yrAU$465.76kno data
Daniel Vydra
Chief Technology Officerno datano datano data
Louise Lambeth
Head of Investor Relationsno datano datano data
Corina Davis
Executive VP of Business Developmentno datano datano data
Jorie Waterman
Chief Marketing Officer2.58yrsno datano data
Vanessa Freeman
Chief People & Culture Officer4.67yrsno datano data
Nicholas Kenn
Chief Product Officerno datano datano data
Arnaud Deshais
Chief Supply Chain Officerno datano datano data
Eric Morse
Senior VP of Content Partnerships & GM of Global Licensing2.5yrsno datano data

2.5yrs

Average Tenure

Experienced Management: RBL's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Hosking
Co-Founder0.17yrAU$1.23m19.4% A$28.7m
Gregory Lockwood
Independent Non-Executive Director4.83yrsno datano data
Jennifer Mitchell MacDonald
Independent Non-Executive Director2.17yrsAU$99.57k0.034% A$50.5k
Anne Ward
Independent Chairman0.083yrAU$114.09k0.077% A$114.0k

2.2yrs

Average Tenure

Experienced Board: RBL's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Redbubble Limited
  • Ticker: RBL
  • Exchange: ASX
  • Founded: 2006
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: AU$148.102m
  • Shares outstanding: 259.83m
  • Website: https://www.redbubble.com

Number of Employees


Location

  • Redbubble Limited
  • 271 Collins Street
  • Level 3
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RBLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2016
RBLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2016
RDBB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2016

Biography

Redbubble Limited operates as an online marketplace that facilitates the sale and purchase of art and designs on a range of products between independent creatives and consumers. The company provides sale, marketing, and distribution services to facilitate the sale of goods from artists to those who want to purchase goods bearing the artists’ designs. It enables 700,000 independent artists to sell their designs, including apparel, stationery, housewares, bags, wall art, and others. The company offers its services through its Website at Redbubble.com, TeePublic.com, and three foreign language sites in Australia, the United States, the United Kingdom, and internationally. Redbubble Limited was founded in 2006 and is based in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 10:57
End of Day Share Price2020/04/02 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.