Buy Or Sell Opportunity • May 12
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 11% to AU$31.47. The fair value is estimated to be AU$39.73, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 18%. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings are also forecast to grow by 15% per annum over the same time period. Upcoming Dividend • Mar 11
Upcoming dividend of AU$0.36 per share Eligible shareholders must have bought the stock before 18 March 2026. Payment date: 02 April 2026. Payout ratio is a comfortable 75% but the company is paying out more than the cash it is generating. Trailing yield: 2.1%. Lower than top quartile of Australian dividend payers (6.3%). Lower than average of industry peers (3.0%). Reported Earnings • Feb 24
First half 2026 earnings: EPS and revenues exceed analyst expectations First half 2026 results: EPS: AU$0.52 (up from AU$0.46 in 1H 2025). Revenue: AU$200.1m (up 17% from 1H 2025). Net income: AU$22.9m (up 16% from 1H 2025). Profit margin: 11% (in line with 1H 2025). Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) also surpassed analyst estimates by 1.7%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 8.6% growth forecast for the Global Retail Distributors industry. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 41% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Jan 25
Final dividend increased to AU$0.36 Dividend of AU$0.36 is 13% higher than last year. Ex-date: 18th March 2026 Payment date: 2nd April 2026 Dividend yield will be 2.1%, which is lower than the industry average of 2.4%. Sustainability & Growth Dividend is covered by earnings (75% earnings payout ratio) but not covered by cash flows (109% cash payout ratio). The dividend has increased by an average of 23% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 49% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jan 23
Supply Network Limited Declares Fully Franked Interim Dividend for the Six Months Ended December 31, 2025, Payable on April 2, 2026 Supply Network Limited Directors Have Declared A Fully Franked Interim Dividend for the Six Months Ended December 31, 2025 of 36.0 Cents Per Share, with A Record Date of 19 March 2026, to Be Paid on April 2, 2026 and Ex- Date of 18 March 2026. Announcement • Sep 23
Supply Network Limited, Annual General Meeting, Oct 24, 2025 Supply Network Limited, Annual General Meeting, Oct 24, 2025. Location: at edwin flack room, sofitel sydney wentworth, 61 - 101 phillip street, sydney nsw 2000 Australia Upcoming Dividend • Sep 10
Upcoming dividend of AU$0.38 per share Eligible shareholders must have bought the stock before 17 September 2025. Payment date: 02 October 2025. Payout ratio is on the higher end at 75%, and the cash payout ratio is above 100%. Trailing yield: 2.0%. Lower than top quartile of Australian dividend payers (5.5%). Lower than average of industry peers (2.6%). Price Target Changed • Aug 26
Price target increased by 7.0% to AU$36.67 Up from AU$34.26, the current price target is an average from 5 analysts. New target price is 5.6% below last closing price of AU$38.85. Stock is up 35% over the past year. The company is forecast to post earnings per share of AU$1.07 for next year compared to AU$0.93 last year. Reported Earnings • Aug 26
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: AU$0.93 (up from AU$0.79 in FY 2024). Revenue: AU$349.5m (up 15% from FY 2024). Net income: AU$40.0m (up 21% from FY 2024). Profit margin: 12% (in line with FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 9.1% growth forecast for the Global Retail Distributors industry. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has increased by 55% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Jul 27
First half dividend increased to AU$0.38 Dividend of AU$0.38 is 15% higher than last year. Ex-date: 17th September 2025 Payment date: 2nd October 2025 Dividend yield will be 1.8%, which is lower than the industry average of 2.4%. Sustainability & Growth Dividend is covered by earnings (73% earnings payout ratio) but not covered by cash flows (114% cash payout ratio). The dividend has increased by an average of 22% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 52% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Recent Insider Transactions • May 23
Non-Executive Director recently sold AU$1.3m worth of stock On the 19th of May, Peter McKenzie sold around 32k shares on-market at roughly AU$41.26 per share. This transaction amounted to 1.0% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth AU$19m. Insiders have been net sellers, collectively disposing of AU$127m more than they bought in the last 12 months. Buy Or Sell Opportunity • May 14
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 14% to AU$41.40. The fair value is estimated to be AU$34.08, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 23%. Revenue is forecast to grow by 30% in 2 years. Earnings are forecast to grow by 37% in the next 2 years. Recent Insider Transactions • May 13
Non-Executive Director recently sold AU$4.1m worth of stock On the 12th of May, Peter McKenzie sold around 102k shares on-market at roughly AU$40.24 per share. This transaction amounted to 3.2% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth AU$19m. Insiders have been net sellers, collectively disposing of AU$126m more than they bought in the last 12 months. Recent Insider Transactions • May 06
Non-Executive Director recently sold AU$221k worth of stock On the 1st of May, Peter Gill sold around 6k shares on-market at roughly AU$38.48 per share. This transaction amounted to 1.7% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth AU$19m. Insiders have been net sellers, collectively disposing of AU$121m more than they bought in the last 12 months. Recent Insider Transactions • Mar 26
Insider recently sold AU$17m worth of stock On the 21st of March, Harry Forsyth sold around 516k shares on-market at roughly AU$33.38 per share. This transaction amounted to 4.7% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth AU$19m. Insiders have been net sellers, collectively disposing of AU$111m more than they bought in the last 12 months. Buy Or Sell Opportunity • Mar 25
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 16% to AU$37.70. The fair value is estimated to be AU$31.41, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 23%. Revenue is forecast to grow by 30% in 2 years. Earnings are forecast to grow by 37% in the next 2 years. Upcoming Dividend • Mar 13
Upcoming dividend of AU$0.32 per share Eligible shareholders must have bought the stock before 20 March 2025. Payment date: 04 April 2025. Payout ratio is a comfortable 73% but the company is paying out more than the cash it is generating. Trailing yield: 1.8%. Lower than top quartile of Australian dividend payers (6.5%). Lower than average of industry peers (2.7%). Reported Earnings • Mar 02
First half 2025 earnings released: EPS: AU$0.46 (vs AU$0.36 in 1H 2024) First half 2025 results: EPS: AU$0.46 (up from AU$0.36 in 1H 2024). Revenue: AU$171.2m (up 18% from 1H 2024). Net income: AU$19.8m (up 32% from 1H 2024). Profit margin: 12% (up from 10% in 1H 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Global Retail Distributors industry. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has increased by 54% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Jan 26
Final dividend increased to AU$0.32 Dividend of AU$0.32 is 39% higher than last year. Ex-date: 20th March 2025 Payment date: 4th April 2025 Dividend yield will be 1.8%, which is lower than the industry average of 2.4%. Sustainability & Growth Dividend is covered by earnings (71% earnings payout ratio) but not covered by cash flows (199% cash payout ratio). The dividend has increased by an average of 20% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 53% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Price Target Changed • Dec 02
Price target increased by 9.0% to AU$34.24 Up from AU$31.42, the current price target is an average from 4 analysts. New target price is 7.6% above last closing price of AU$31.81. Stock is up 103% over the past year. The company is forecast to post earnings per share of AU$0.97 for next year compared to AU$0.79 last year. Recent Insider Transactions • Oct 09
Non-Executive Director recently sold AU$6.9m worth of stock On the 4th of October, Peter McKenzie sold around 231k shares on-market at roughly AU$30.00 per share. This transaction amounted to 6.3% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger sale worth AU$29m. Insiders have been net sellers, collectively disposing of AU$132m more than they bought in the last 12 months. Announcement • Oct 08
Supply Network Limited, Annual General Meeting, Nov 27, 2024 Supply Network Limited, Annual General Meeting, Nov 27, 2024. Location: at the offices of hlb mann judd, level 5, 10 shelley st, sydney nsw 2000. Australia New Risk • Oct 05
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.8% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (22% accrual ratio). Minor Risks Shareholders have been diluted in the past year (2.8% increase in shares outstanding). Significant insider selling over the past 3 months (AU$53m sold). Upcoming Dividend • Sep 11
Upcoming dividend of AU$0.33 per share Eligible shareholders must have bought the stock before 18 September 2024. Payment date: 03 October 2024. Payout ratio is a comfortable 71% but the company is paying out more than the cash it is generating. Trailing yield: 1.9%. Lower than top quartile of Australian dividend payers (6.1%). Lower than average of industry peers (2.7%). Recent Insider Transactions • Sep 06
Non-Executive Director recently sold AU$29m worth of stock On the 3rd of September, Peter McKenzie sold around 1m shares on-market at roughly AU$29.25 per share. This transaction amounted to 22% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of AU$126m more than they bought in the last 12 months. Price Target Changed • Aug 28
Price target increased by 10% to AU$29.47 Up from AU$26.67, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of AU$28.21. Stock is up 92% over the past year. The company is forecast to post earnings per share of AU$0.91 for next year compared to AU$0.79 last year. Reported Earnings • Aug 27
Full year 2024 earnings: Revenues and EPS in line with analyst expectations Full year 2024 results: EPS: AU$0.79 (up from AU$0.67 in FY 2023). Revenue: AU$302.9m (up 20% from FY 2023). Net income: AU$33.0m (up 21% from FY 2023). Profit margin: 11% (in line with FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Global Retail Distributors industry. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has increased by 52% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 26
Supply Network Limited Provides Earnings Guidance for 2025 Supply Network Limited provided earnings guidance for 2025. For the year, the company expects rate of revenue growth to be around long-term average of 14% p.a. Declared Dividend • Jul 29
First half dividend increased to AU$0.33 Dividend of AU$0.33 is 18% higher than last year. Ex-date: 18th September 2024 Payment date: 3rd October 2024 Dividend yield will be 2.3%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (71% earnings payout ratio) but not covered by cash flows (216% cash payout ratio). The dividend has increased by an average of 20% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 46% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Apr 06
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.3% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (25% accrual ratio). Minor Risks Dividend is not well covered by cash flows (237% cash payout ratio). Shareholders have been diluted in the past year (2.3% increase in shares outstanding). Significant insider selling over the past 3 months (AU$74m sold). Recent Insider Transactions • Mar 19
Non-Executive Director recently sold AU$72k worth of stock On the 18th of March, Peter Gill sold around 4k shares on-market at roughly AU$18.09 per share. This transaction amounted to 1.1% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth AU$74m. Insiders have been net sellers, collectively disposing of AU$87m more than they bought in the last 12 months. Upcoming Dividend • Mar 13
Upcoming dividend of AU$0.23 per share Eligible shareholders must have bought the stock before 20 March 2024. Payment date: 04 April 2024. Payout ratio is a comfortable 71% but the company is paying out more than the cash it is generating. Trailing yield: 3.2%. Lower than top quartile of Australian dividend payers (6.3%). Higher than average of industry peers (2.4%). Recent Insider Transactions • Mar 05
Non-Executive Director recently sold AU$93k worth of stock On the 1st of March, Peter Gill sold around 5k shares on-market at roughly AU$17.83 per share. This transaction amounted to 1.3% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth AU$74m. Insiders have been net sellers, collectively disposing of AU$87m more than they bought in the last 12 months. Reported Earnings • Mar 01
First half 2024 earnings released: EPS: AU$0.36 (vs AU$0.31 in 1H 2023) First half 2024 results: EPS: AU$0.36 (up from AU$0.31 in 1H 2023). Revenue: AU$145.4m (up 22% from 1H 2023). Net income: AU$15.0m (up 18% from 1H 2023). Profit margin: 10% (in line with 1H 2023). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the Global Retail Distributors industry. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has increased by 41% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Feb 29
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 25% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (25% accrual ratio). Minor Risks Dividend is not well covered by cash flows (234% cash payout ratio). Significant insider selling over the past 3 months (AU$74m sold). Declared Dividend • Feb 02
Final dividend of AU$0.23 announced Shareholders will receive a dividend of AU$0.23. Ex-date: 20th March 2024 Payment date: 4th April 2024 Dividend yield will be 3.1%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is covered by earnings (72% earnings payout ratio) but not covered by cash flows (160% cash payout ratio). The dividend has increased by an average of 22% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 38% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jan 31
Supply Network Limited Declares Fully Franked Interim Dividend, to Be Paid on 4 April 2024 Directors of Supply Network Limited have declared a fully franked interim dividend of 23.0 cents per share, with a record date of 21 March 2024, to be paid on 4 April 2024. Recent Insider Transactions • Jan 11
Non-Executive Director recently sold AU$74m worth of stock On the 9th of January, Peter McKenzie sold around 5m shares on-market at roughly AU$16.25 per share. This transaction amounted to 50% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of AU$87m more than they bought in the last 12 months. Recent Insider Transactions • Dec 25
Non-Executive Director recently sold AU$154k worth of stock On the 19th of December, Peter Gill sold around 10k shares on-market at roughly AU$15.38 per share. This transaction amounted to 2.5% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of AU$13m more than they bought in the last 12 months. Price Target Changed • Nov 30
Price target increased by 7.6% to AU$17.00 Up from AU$15.80, the current price target is provided by 1 analyst. New target price is 11% above last closing price of AU$15.32. Stock is up 19% over the past year. The company is forecast to post earnings per share of AU$0.76 for next year compared to AU$0.67 last year. Announcement • Nov 29
Supply Network Limited Provides Earnings Guidance for the First Half of Fiscal Year 2024 Supply Network Limited provided earnings guidance for the first half of fiscal year 2024. For the period, the company expectation for the first half of fiscal year 2024 is for revenue of ~$145 million and PAT of ~ $15 million. The slightly lower profit margin reflects a higher cost base following investments in network expansion. Recent Insider Transactions • Oct 13
Non-Executive Director recently bought AU$2.4m worth of stock On the 11th of October, Peter McKenzie bought around 160k shares on-market at roughly AU$14.90 per share. This transaction amounted to 3.6% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold AU$13m more in shares than they bought in the last 12 months. Announcement • Oct 09
Supply Network Limited, Annual General Meeting, Nov 29, 2023 Supply Network Limited, Annual General Meeting, Nov 29, 2023, at 14:00 AUS Eastern Standard Time. Location: 2 Turnbull Close Pemulway New South Wales Australia Agenda: To receive and consider the Financial Statements and the Reports of Directors and Auditors for the year ended 30 June 2023;to consider to adopt the Remuneration Report for the year ended 30 June 2023;to consider to election of Director;to consider to reapproval of Employee Incentive Plan; and to consider approval for Issue of Shares to Geoffrey David Huston Stewart under the EIP. Recent Insider Transactions • Sep 12
Insider recently sold AU$15m worth of stock On the 8th of September, Harry Forsyth sold around 1m shares on-market at roughly AU$15.00 per share. This transaction amounted to 8.6% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of AU$15m more than they bought in the last 12 months. Upcoming Dividend • Sep 11
Upcoming dividend of AU$0.28 per share at 3.7% yield Eligible shareholders must have bought the stock before 18 September 2023. Payment date: 03 October 2023. Payout ratio is a comfortable 72% but the company is paying out more than the cash it is generating. Trailing yield: 3.7%. Lower than top quartile of Australian dividend payers (7.0%). Higher than average of industry peers (2.3%). Reported Earnings • Aug 29
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: AU$0.67 (up from AU$0.49 in FY 2022). Revenue: AU$252.4m (up 27% from FY 2022). Net income: AU$27.4m (up 37% from FY 2022). Profit margin: 11% (in line with FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.4%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 7.2% growth forecast for the Global Retail Distributors industry. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has increased by 48% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Aug 25
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2022. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported December 2022 fiscal period end). Dividend is not well covered by cash flows (112% cash payout ratio). Significant insider selling over the past 3 months (AU$5.7m sold). Announcement • Jul 30
Supply Network Limited Announces Dividend for the Year Ended June 30, 2023, Payable on October 3, 2023 Supply Network Limited announced a dividend of AUD 0.28000000 for the year ended June 30, 2023. The ex-date is on September 18, 2023. The record date is on September 19, 2023. The payment date is on October 3, 2023. New Risk • Jun 25
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: AU$5.7m This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Significant insider selling over the past 3 months (AU$5.7m sold). Major Estimate Revision • May 30
Consensus EPS estimates increase by 11% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from AU$0.581 to AU$0.642. Revenue forecast unchanged at AU$250.0m. Net income forecast to grow 19% next year vs 7.9% growth forecast for Retail Distributors industry in Australia. Consensus price target of AU$15.40 unchanged from last update. Share price rose 10% to AU$13.97 over the past week. Announcement • May 28
Supply Network Limited Provides Consolidated Earnings Guidance for the Year 2023 Supply Network Limited provided consolidated earnings guidance for the year 2023. Consolidated sales revenue for the year 2023 is expected to be around $250 million and profit after tax around $26.5 million. Buying Opportunity • Mar 23
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 1.4%. The fair value is estimated to be AU$15.60, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 34%. Revenue is forecast to grow by 24% in 2 years. Earnings is forecast to grow by 21% in the next 2 years. Upcoming Dividend • Mar 15
Upcoming dividend of AU$0.20 per share at 3.3% yield Eligible shareholders must have bought the stock before 22 March 2023. Payment date: 06 April 2023. Payout ratio is a comfortable 70% and this is well supported by cash flows. Trailing yield: 3.3%. Lower than top quartile of Australian dividend payers (7.2%). Higher than average of industry peers (2.3%). Buying Opportunity • Feb 27
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 6.7%. The fair value is estimated to be AU$15.42, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 34%. Revenue is forecast to grow by 24% in 2 years. Earnings is forecast to grow by 21% in the next 2 years. Reported Earnings • Feb 23
First half 2023 earnings released: EPS: AU$0.31 (vs AU$0.23 in 1H 2022) First half 2023 results: EPS: AU$0.31 (up from AU$0.23 in 1H 2022). Revenue: AU$119.2m (up 24% from 1H 2022). Net income: AU$12.7m (up 34% from 1H 2022). Profit margin: 11% (in line with 1H 2022). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Global Retail Distributors industry. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has increased by 44% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 16
Supply Network Limited Announces Executive Changes The Board of Directors of Supply Network Limited announced the appointment of Mr. Robert Coleman as Company Secretary following the resignation of Mr. Peter Gill from this position. Mr. Gill was first appointed as Company Secretary in 1995. He has served in that position without interruption for 27 years and it thank him for his dedication to these secretarial responsibilities. Mr. Gill remains on the Board as a Non-Executive Director. Valuation Update With 7 Day Price Move • Nov 29
Investor sentiment improved over the past week After last week's 16% share price gain to AU$12.97, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 13x in the Retail Distributors industry globally. Total returns to shareholders of 219% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at AU$8.11 per share. Announcement • Nov 25
Supply Network Limited Provides Earnings Guidance for the First Half of Fiscal Year 2023 Supply Network Limited provided earnings guidance for the first half of fiscal year 2023. For the period, the company expects revenue to be in the range of $116 million to $118 million. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 3 highly experienced directors. No independent directors (4 non-independent directors). Company Secretary & Non-Executive Director Peter Gill was the last director to join the board, commencing their role in 2006. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Announcement • Sep 30
Supply Network Limited, Annual General Meeting, Nov 25, 2022 Supply Network Limited, Annual General Meeting, Nov 25, 2022, at 14:00 AUS Eastern Standard Time. Location: 2 Turnbull Close, Pemulwuy New South Wales Australia Agenda: To receive and consider the Financial Statements and the Reports of Directors and Auditors for the year ended 30 June 2022; to adopt the Remuneration Report for the year ended 30 June 2022; and to re-elect Mr P W McKenzie as a Director who retires by rotation in accordance with the Company's Constitution and, being eligible for re-election, has offered himself for re-election. Upcoming Dividend • Sep 09
Upcoming dividend of AU$0.20 per share Eligible shareholders must have bought the stock before 16 September 2022. Payment date: 03 October 2022. Payout ratio is a comfortable 57% and this is well supported by cash flows. Trailing yield: 3.7%. Lower than top quartile of Australian dividend payers (6.5%). Higher than average of industry peers (2.2%). Reported Earnings • Aug 27
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: AU$0.49 (up from AU$0.34 in FY 2021). Revenue: AU$198.5m (up 22% from FY 2021). Net income: AU$20.0m (up 45% from FY 2021). Profit margin: 10% (up from 8.5% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.7%. Over the next year, revenue is forecast to grow 12%, compared to a 7.5% growth forecast for the Retail Distributors industry in Australia. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has increased by 38% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • Jul 17
Insider recently sold AU$8.9m worth of stock On the 13th of July, Harry Forsyth sold around 1m shares on-market at roughly AU$8.91 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of AU$8.9m more than they bought in the last 12 months. Announcement • May 28
Supply Network Limited Provides Consolidated Sales Revenue Guidance for the Full Year 2022 Supply Network Limited provided consolidated sales revenue guidance for the full year 2022. For the period, the company expects sales revenue to be $197 million. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 3 highly experienced directors. No independent directors (4 non-independent directors). Company Secretary & Non-Executive Director Peter Gill was the last director to join the board, commencing their role in 2006. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Upcoming Dividend • Mar 16
Upcoming dividend of AU$0.12 per share Eligible shareholders must have bought the stock before 23 March 2022. Payment date: 07 April 2022. Payout ratio is a comfortable 57% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Australian dividend payers (5.9%). Higher than average of industry peers (2.2%). Reported Earnings • Feb 28
First half 2022 earnings: EPS in line with analyst expectations despite revenue beat First half 2022 results: EPS: AU$0.23 (up from AU$0.15 in 1H 2021). Revenue: AU$96.4m (up 23% from 1H 2021). Net income: AU$9.48m (up 56% from 1H 2021). Profit margin: 9.8% (up from 7.8% in 1H 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.7%. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has increased by 37% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Nov 19
Investor sentiment improved over the past week After last week's 21% share price gain to AU$9.55, the stock trades at a trailing P/E ratio of 28.2x. Average trailing P/E is 10x in the Retail Distributors industry in Australia. Total returns to shareholders of 153% over the past three years. Upcoming Dividend • Sep 09
Upcoming dividend of AU$0.12 per share Eligible shareholders must have bought the stock before 16 September 2021. Payment date: 01 October 2021. Trailing yield: 2.4%. Lower than top quartile of Australian dividend payers (5.1%). Higher than average of industry peers (1.9%). Reported Earnings • Aug 29
Full year 2021 earnings released: EPS AU$0.34 (vs AU$0.23 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: AU$162.6m (up 19% from FY 2020). Net income: AU$13.8m (up 45% from FY 2020). Profit margin: 8.5% (up from 7.0% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth.