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SNL

Supply Network ASX:SNL Stock Report

Last Price

AU$9.98

Market Cap

AU$408.0m

7D

-2.5%

1Y

24.8%

Updated

03 Oct, 2022

Data

Company Financials +
SNL fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance6/6
Financial Health5/6
Dividends3/6

SNL Stock Overview

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

Supply Network Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Supply Network
Historical stock prices
Current Share PriceAU$9.98
52 Week HighAU$11.49
52 Week LowAU$7.77
Beta0.16
1 Month Change-6.64%
3 Month Change7.08%
1 Year Change24.75%
3 Year Change142.23%
5 Year Change177.22%
Change since IPO14,157.14%

Recent News & Updates

Aug 27
Supply Network's (ASX:SNL) Dividend Will Be Increased To A$0.20

Supply Network's (ASX:SNL) Dividend Will Be Increased To A$0.20

The board of Supply Network Limited ( ASX:SNL ) has announced that it will be paying its dividend of A$0.20 on the 3rd...

Shareholder Returns

SNLAU Retail DistributorsAU Market
7D-2.5%-2.5%-1.7%
1Y24.8%-17.5%-10.8%

Return vs Industry: SNL exceeded the Australian Retail Distributors industry which returned -17.5% over the past year.

Return vs Market: SNL exceeded the Australian Market which returned -10.8% over the past year.

Price Volatility

Is SNL's price volatile compared to industry and market?
SNL volatility
SNL Average Weekly Movement4.8%
Retail Distributors Industry Average Movement7.0%
Market Average Movement9.4%
10% most volatile stocks in AU Market16.5%
10% least volatile stocks in AU Market4.2%

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, supply management, and problem solving. 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$407.97m
Earnings (TTM)AU$20.02m
Revenue (TTM)AU$198.50m

20.4x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNL income statement (TTM)
RevenueAU$198.50m
Cost of RevenueAU$113.67m
Gross ProfitAU$84.83m
Other ExpensesAU$64.81m
EarningsAU$20.02m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.49
Gross Margin42.74%
Net Profit Margin10.08%
Debt/Equity Ratio15.8%

How did SNL perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

65%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SNL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SNL?

Other financial metrics that can be useful for relative valuation.

SNL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.3x
Enterprise Value/EBITDA14.2x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

How does SNL's PE Ratio compare to its peers?

SNL PE Ratio vs Peers
The above table shows the PE ratio for SNL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.4x
BAP Bapcor
16.4x8.7%AU$2.1b
NTD National Tyre & Wheel
10.2x27.0%AU$95.7m
BLX Beacon Lighting Group
10.8x-1.0%AU$441.1m
PWR Peter Warren Automotive Holdings
8.1x-4.7%AU$458.4m
SNL Supply Network
20.4x9.3%AU$408.0m

Price-To-Earnings vs Peers: SNL is expensive based on its Price-To-Earnings Ratio (20.4x) compared to the peer average (11.4x).


Price to Earnings Ratio vs Industry

How does SNL's PE Ratio compare vs other companies in the Global Retail Distributors Industry?

Price-To-Earnings vs Industry: SNL is expensive based on its Price-To-Earnings Ratio (20.4x) compared to the Global Retail Distributors industry average (14.1x)


Price to Earnings Ratio vs Fair Ratio

What is SNL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SNL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.4x
Fair PE Ratio12.7x

Price-To-Earnings vs Fair Ratio: SNL is expensive based on its Price-To-Earnings Ratio (20.4x) compared to the estimated Fair Price-To-Earnings Ratio (12.7x).


Share Price vs Fair Value

What is the Fair Price of SNL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SNL (A$9.98) is trading above our estimate of fair value (A$9.9)

Significantly Below Fair Value: SNL is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNL's forecast earnings growth (9.3% per year) is above the savings rate (1.8%).

Earnings vs Market: SNL's earnings (9.3% per year) are forecast to grow faster than the Australian market (6.4% per year).

High Growth Earnings: SNL's earnings are forecast to grow, but not significantly.

Revenue vs Market: SNL's revenue (9.5% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: SNL's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SNL's Return on Equity is forecast to be high in 3 years time (31.7%)


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Past Performance

How has Supply Network performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


21.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SNL has high quality earnings.

Growing Profit Margin: SNL's current net profit margins (10.1%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: SNL's earnings have grown significantly by 21.1% per year over the past 5 years.

Accelerating Growth: SNL's earnings growth over the past year (44.6%) exceeds its 5-year average (21.1% per year).

Earnings vs Industry: SNL earnings growth over the past year (44.6%) exceeded the Retail Distributors industry 14.7%.


Return on Equity

High ROE: SNL's Return on Equity (33.7%) is considered high.


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Financial Health

How is Supply Network's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SNL's short term assets (A$91.9M) exceed its short term liabilities (A$37.8M).

Long Term Liabilities: SNL's short term assets (A$91.9M) exceed its long term liabilities (A$41.4M).


Debt to Equity History and Analysis

Debt Level: SNL's net debt to equity ratio (4.1%) is considered satisfactory.

Reducing Debt: SNL's debt to equity ratio has increased from 11% to 15.8% over the past 5 years.

Debt Coverage: SNL's debt is well covered by operating cash flow (193.1%).

Interest Coverage: SNL's interest payments on its debt are well covered by EBIT (21.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.01%

Current Dividend Yield

Dividend Yield vs Market

Supply Network Dividend Yield vs Market
How does Supply Network dividend yield compare to the market?
SegmentDividend Yield
Company (Supply Network)4.0%
Market Bottom 25% (AU)2.8%
Market Top 25% (AU)7.1%
Industry Average (Retail Distributors)2.4%
Analyst forecast in 3 Years (Supply Network)3.6%

Notable Dividend: SNL's dividend (4.01%) is higher than the bottom 25% of dividend payers in the Australian market (2.8%).

High Dividend: SNL's dividend (4.01%) is low compared to the top 25% of dividend payers in the Australian market (7.15%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (65.3%), SNL's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (108.5%), SNL's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

16.3yrs

Average board tenure


CEO

Geoffrey David Stewart

no data

Tenure

AU$743,955

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

Geoffrey David Stewart's Compensation vs Supply Network Earnings
How has Geoffrey David Stewart's remuneration changed compared to Supply Network's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022AU$744kAU$440k

AU$20m

Mar 31 2022n/an/a

AU$19m

Dec 31 2021n/an/a

AU$17m

Sep 30 2021n/an/a

AU$16m

Jun 30 2021AU$797kAU$452k

AU$14m

Mar 31 2021n/an/a

AU$13m

Dec 31 2020n/an/a

AU$11m

Sep 30 2020n/an/a

AU$10m

Jun 30 2020AU$725kAU$454k

AU$10m

Mar 31 2020n/an/a

AU$9m

Dec 31 2019n/an/a

AU$9m

Sep 30 2019n/an/a

AU$9m

Jun 30 2019AU$638kAU$435k

AU$9m

Mar 31 2019n/an/a

AU$9m

Dec 31 2018n/an/a

AU$8m

Sep 30 2018n/an/a

AU$8m

Jun 30 2018AU$716kAU$474k

AU$8m

Mar 31 2018n/an/a

AU$8m

Dec 31 2017n/an/a

AU$8m

Sep 30 2017n/an/a

AU$7m

Jun 30 2017AU$524kAU$356k

AU$7m

Mar 31 2017n/an/a

AU$6m

Dec 31 2016n/an/a

AU$5m

Sep 30 2016n/an/a

AU$5m

Jun 30 2016AU$506kAU$359k

AU$5m

Compensation vs Market: Geoffrey David's total compensation ($USD479.29K) is about average for companies of similar size in the Australian market ($USD615.36K).

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 ( 16.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SNL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

ASX:SNL Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
13 Jul 22SellAU$8,910,353Harry ForsythIndividual1,000,000AU$8.91
08 Mar 22BuyAU$4,145Peter McKenzieIndividual471AU$8.80
20 Dec 21BuyAU$79,577Spheria Asset Management Pty LtdCompany7,328AU$10.86

Ownership Breakdown

What is the ownership structure of SNL?
Owner TypeNumber of SharesOwnership Percentage
Private Companies3,305,3538.1%
Institutions5,140,28912.6%
General Public7,064,43517.3%
Individual Insiders25,368,62062.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 22 shareholders own 82.72% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
28.28%
Harry Forsyth
11,561,895A$115.4m-7.96%no data
10.96%
Peter McKenzie
4,478,516A$44.7m0%no data
9.3%
J. E. Davies
3,800,000A$37.9m0%no data
6.38%
Dixson Trust Pty Limited, Asset Management Arm
2,609,328A$26.0m0%9.14%
5.01%
Spheria Asset Management Pty Ltd
2,048,335A$20.4m0%2.88%
4.89%
David Woodcock
2,000,000A$20.0m0%no data
2.54%
Kailva Pty Ltd.
1,040,000A$10.4m0%no data
2.49%
Geoffrey David Stewart
1,019,323A$10.2m2.1%no data
2.29%
Keiser Investments Pty Ltd
937,722A$9.4m0%no data
1.63%
Gregory Forsyth
667,835A$6.7m0%no data
1.42%
Gotterdamerung Pty Limited
578,631A$5.8m0%no data
1.18%
M Nakayama
482,875A$4.8m0%no data
1.13%
Anacacia Capital Pty Limited
460,750A$4.6m0%2.83%
1.1%
Sherkane Pty Ltd
450,000A$4.5m0%no data
0.97%
Peter Gill
398,485A$4.0m0%no data
0.93%
Garry Lingard
380,618A$3.8m0%no data
0.7%
R. McKenzie
286,674A$2.9m0%no data
0.7%
D. McKenzie
286,674A$2.9m0%no data
0.68%
Irrawang Holdings Pty Ltd
280,000A$2.8m0%no data
0.054%
Joh. Berenberg, Gossler & Co. KG, Asset Management Arm
21,876A$218.3k0%no data
0.046%
Lja Holdings Pty Ltd
19,000A$189.6k0%no data
0.014%
Robert Coleman
5,725A$57.1k0%no data

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
  • Implied Market Cap: AU$407.969m
  • Shares outstanding: 40.88m
  • Website: https://www.supplynetwork.com.au

Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
SNLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.