ASX:SNL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.3%

SNL

-2.6%

AU Retail Distributors

-2.4%

AU Market


1 Year Return

40.1%

SNL

14.0%

AU Retail Distributors

-8.3%

AU Market

Return vs Industry: SNL exceeded the Australian Retail Distributors industry which returned 12.3% over the past year.

Return vs Market: SNL exceeded the Australian Market which returned -8.9% over the past year.


Shareholder returns

SNLIndustryMarket
7 Day-3.3%-2.6%-2.4%
30 Day19.1%16.7%1.8%
90 Day31.8%30.0%1.7%
1 Year45.3%40.1%16.9%14.0%-5.0%-8.3%
3 Year83.2%64.3%59.5%47.7%14.6%-0.08%
5 Year228.2%171.0%146.2%117.8%41.6%12.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

36.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SNL (A$5.8) is trading below our estimate of fair value (A$9.06)

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 (24.8x) compared to the XX Retail Distributors industry average (17.2x).

PE vs Market: SNL is poor value based on its PE Ratio (24.8x) compared to the Australian market (20.8x).


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 (5.6x) compared to the AU Retail Distributors industry average (2.7x).


Next Steps

Future Growth

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

26.6%

Forecasted Retail industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SNL's forecast earnings growth is above the savings rate (2.3%).

Earnings vs Market: Insufficient data to determine if SNL's earnings are forecast to grow faster than the Australian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if SNL's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if SNL's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SNL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Supply Network performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SNL has high quality earnings.

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


Past Earnings Growth Analysis

Earnings Trend: SNL's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: SNL's earnings growth over the past year (9.9%) is below its 5-year average (13.6% per year).

Earnings vs Industry: SNL earnings growth over the past year (9.9%) exceeded the Retail Distributors industry -3.2%.


Return on Equity

High ROE: SNL's Return on Equity (22.6%) is considered high.


Next Steps

Financial Health

How is Supply Network's financial position?


Financial Position Analysis

Short Term Liabilities: SNL's short term assets (A$63.9M) exceed its short term liabilities (A$26.3M).

Long Term Liabilities: SNL's short term assets (A$63.9M) exceed its long term liabilities (A$38.0M).


Debt to Equity History and Analysis

Debt Level: SNL's debt to equity ratio (22.7%) is considered satisfactory.

Reducing Debt: SNL's debt to equity ratio has increased from 14.6% to 22.7% over the past 5 years.

Debt Coverage: SNL's debt is well covered by operating cash flow (117.1%).

Interest Coverage: SNL's interest payments on its debt are well covered by EBIT (9.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SNL's dividend (2.67%) is higher than the bottom 25% of dividend payers in the Australian market (2.18%).

High Dividend: SNL's dividend (2.67%) is low compared to the top 25% of dividend payers in the Australian market (5.49%).


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 (66.2%), 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?

14.3yrs

Average board tenure


CEO

Geoffrey David Stewart

20.92yrs

Tenure

AU$725,444

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 ($USD518.29K) is about average for companies of similar size in the Australian market ($USD520.65K).

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


Board Members

NamePositionTenureCompensationOwnership
Geoffrey David Stewart
MD & Executive Director20.92yrsAU$725.44k2.45%
A$ 5.8m
Peter Gill
Company Secretary & Non-Executive Director14.25yrsAU$85.23k0.98%
A$ 2.3m
Peter McKenzie
Non-Executive Director14.25yrsAU$73.23k10.97%
A$ 26.0m
Gregory Forsyth
Non-Executive Chairman10.58yrsAU$114.43k1.64%
A$ 3.9m

14.3yrs

Average Tenure

Experienced Board: SNL's board of directors are seasoned and experienced ( 14.3 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

Ownership Breakdown

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


Top Shareholders

Company Information

Supply Network Limited's company bio, 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$236.835m
  • Shares outstanding: 40.83m
  • 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

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 10:36
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.