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SNL

Supply NetworkASX:SNL Stock Report

Market Cap

AU$332.0m

7D

1.0%

1Y

66.9%

Updated

23 Sep, 2021

Data

Company Financials
SNL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends3/6

SNL Overview

Supply Network Limited provides aftermarket parts to the commercial vehicle industry in Australia and New Zealand.

Price History & Performance

Summary of all time highs, changes and price drops for Supply Network
Historical stock prices
Current Share PriceAU$8.13
52 Week HighAU$4.75
52 Week LowAU$8.30
Beta0.19
1 Month Change12.92%
3 Month Change11.37%
1 Year Change66.94%
3 Year Change95.43%
5 Year Change306.50%
Change since IPO11,514.29%

Recent News & Updates

Shareholder Returns

SNLAU Retail DistributorsAU Market
7D1.0%2.7%-0.5%
1Y66.9%21.4%24.9%

Return vs Industry: SNL exceeded the Australian Retail Distributors industry which returned 16.6% over the past year.

Return vs Market: SNL exceeded the Australian Market which returned 25.4% over the past year.

Price Volatility

Is SNL's price volatile compared to industry and market?
SNL volatility
SNL Beta0.19
Industry Beta0.73
Market Beta1

Stable Share Price: SNL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SNL's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1986n/aGeoffrey David Stewarthttps://www.supplynetwork.com.au

Supply Network Limited provides aftermarket parts to the commercial vehicle industry in Australia and New Zealand. The company sells truck and bus parts under the Multispares brand name, as well as offers a range of services comprising parts interpreting, procurement, and supply management. Supply Network Limited was incorporated in 1986 and is headquartered in Pemulwuy, Australia.

Supply Network Fundamentals Summary

How do Supply Network's earnings and revenue compare to its market cap?
SNL fundamental statistics
Market CapAU$331.98m
Earnings (TTM)AU$13.85m
Revenue (TTM)AU$162.61m

24.0x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNL income statement (TTM)
RevenueAU$162.61m
Cost of RevenueAU$94.51m
Gross ProfitAU$68.10m
ExpensesAU$54.26m
EarningsAU$13.85m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.34
Gross Margin41.88%
Net Profit Margin8.51%
Debt/Equity Ratio18.4%

How did SNL perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

59%

Payout Ratio

Valuation

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

42.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SNL (A$8.13) is trading below our estimate of fair value (A$14.11)

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


Price To Earnings Ratio

PE vs Industry: SNL is poor value based on its PE Ratio (24x) compared to the Australian Retail Distributors industry average (11x).

PE vs Market: SNL is poor value based on its PE Ratio (24x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SNL is overvalued based on its PB Ratio (6.7x) compared to the AU Retail Distributors industry average (2.3x).


Future Growth

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

10.3%

Forecasted Retail 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 Supply Network 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.


Past Performance

How has Supply Network performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SNL has high quality earnings.

Growing Profit Margin: SNL's current net profit margins (8.5%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: SNL's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: SNL's earnings growth over the past year (45%) exceeds its 5-year average (16.5% per year).

Earnings vs Industry: SNL earnings growth over the past year (45%) exceeded the Retail Distributors industry 29.5%.


Return on Equity

High ROE: SNL's Return on Equity (28.1%) is considered high.


Financial Health

How is Supply Network's financial position?


Financial Position Analysis

Short Term Liabilities: SNL's short term assets (A$77.6M) exceed its short term liabilities (A$32.2M).

Long Term Liabilities: SNL's short term assets (A$77.6M) exceed its long term liabilities (A$35.6M).


Debt to Equity History and Analysis

Debt Level: SNL's debt to equity ratio (18.4%) is considered satisfactory.

Reducing Debt: SNL's debt to equity ratio has increased from 12.6% to 18.4% over the past 5 years.

Debt Coverage: SNL's debt is well covered by operating cash flow (182.9%).

Interest Coverage: SNL's interest payments on its debt are well covered by EBIT (15.3x coverage).


Balance Sheet


Dividend

What is Supply Network current dividend yield, its reliability and sustainability?

2.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SNL's dividend (2.46%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: SNL's dividend (2.46%) is low compared to the top 25% of dividend payers in the Australian market (5.42%).


Stability and Growth of Payments

Stable Dividend: SNL's dividend payments have been volatile in the past 10 years.

Growing Dividend: SNL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59%), SNL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

15.2yrs

Average board tenure


CEO

Geoffrey David Stewart

21.83yrs

Tenure

AU$796,946

Compensation

Mr. Geoffrey David Huston Stewart has been the Managing Director of Supply Network Ltd. since November 2000 and also serves as its Executive Director. Mr. Stewart served as the Chief Executive Officer of S...


CEO Compensation Analysis

Compensation vs Market: Geoffrey David's total compensation ($USD578.71K) is about average for companies of similar size in the Australian market ($USD539.09K).

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


Board Members

Experienced Board: SNL's board of directors are seasoned and experienced ( 15.2 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

Supply Network Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Supply Network Limited
  • Ticker: SNL
  • Exchange: ASX
  • Founded: 1986
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: AU$331.978m
  • Shares outstanding: 40.83m
  • Website: https://www.supplynetwork.com.au

Location

  • Supply Network Limited
  • 1 Turnbull Close
  • Pemulwuy
  • New South Wales
  • 2145
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 15:53
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.