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TGA

Thorn GroupASX:TGA Stock Report

Market Cap

AU$68.0m

7D

5.4%

1Y

25.8%

Updated

18 Oct, 2021

Data

Company Financials
TGA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health3/6
Dividends2/6

TGA Overview

Thorn Group Limited, a diversified financial services company, provides alternate consumer and commercial leasing products, and consumer and commercial financing solutions.

Thorn Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Thorn Group
Historical stock prices
Current Share PriceAU$0.20
52 Week HighAU$0.14
52 Week LowAU$0.24
Beta2.54
1 Month Change2.63%
3 Month Change-9.30%
1 Year Change25.81%
3 Year Change-66.38%
5 Year Change-88.79%
Change since IPO-73.65%

Recent News & Updates

Shareholder Returns

TGAAU Specialty RetailAU Market
7D5.4%0.9%0.9%
1Y25.8%21.6%20.2%

Return vs Industry: TGA exceeded the Australian Specialty Retail industry which returned 21.6% over the past year.

Return vs Market: TGA exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is TGA's price volatile compared to industry and market?
TGA volatility
TGA Beta2.54
Industry Beta1.2
Market Beta1

Stable Share Price: TGA is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TGA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1937n/aPeter Lirantzishttps://www.thorn.com.au

Thorn Group Limited, a diversified financial services company, provides alternate consumer and commercial leasing products, and consumer and commercial financing solutions. It is involved in the leasing of household products to consumers; and provision of commercial finance to small and medium size enterprises. Thorn Group Limited was founded in 1937 and is based in North Sydney, Australia.

Thorn Group Fundamentals Summary

How do Thorn Group's earnings and revenue compare to its market cap?
TGA fundamental statistics
Market CapAU$67.98m
Earnings (TTM)AU$8.40m
Revenue (TTM)AU$104.13m

7.9x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TGA income statement (TTM)
RevenueAU$104.13m
Cost of RevenueAU$38.49m
Gross ProfitAU$65.65m
ExpensesAU$57.25m
EarningsAU$8.40m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 26, 2021

Earnings per share (EPS)0.025
Gross Margin63.04%
Net Profit Margin8.06%
Debt/Equity Ratio178.7%

How did TGA perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

39%

Payout Ratio

Valuation

Is Thorn Group 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: TGA (A$0.2) is trading below our estimate of fair value (A$67.32)

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


Price To Earnings Ratio

PE vs Industry: TGA is good value based on its PE Ratio (7.9x) compared to the Australian Specialty Retail industry average (11.3x).

PE vs Market: TGA is good value based on its PE Ratio (7.9x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TGA is good value based on its PB Ratio (0.7x) compared to the AU Specialty Retail industry average (3.9x).


Future Growth

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

0.6%

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 Thorn Group 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 Thorn Group performed over the past 5 years?

-56.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TGA has a large one-off loss of A$2.2M impacting its March 31 2021 financial results.

Growing Profit Margin: TGA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TGA has become profitable over the past 5 years, growing earnings by -56.3% per year.

Accelerating Growth: TGA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TGA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (91.8%).


Return on Equity

High ROE: TGA's Return on Equity (8.8%) is considered low.


Financial Health

How is Thorn Group's financial position?


Financial Position Analysis

Short Term Liabilities: TGA's short term assets (A$158.2M) exceed its short term liabilities (A$100.3M).

Long Term Liabilities: TGA's short term assets (A$158.2M) exceed its long term liabilities (A$93.3M).


Debt to Equity History and Analysis

Debt Level: TGA's debt to equity ratio (178.7%) is considered high.

Reducing Debt: TGA's debt to equity ratio has increased from 100.3% to 178.7% over the past 5 years.

Debt Coverage: TGA's debt is well covered by operating cash flow (123.5%).

Interest Coverage: TGA's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Dividend

What is Thorn Group current dividend yield, its reliability and sustainability?

5.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TGA's dividend (5.13%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: TGA's dividend (5.13%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

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

Growing Dividend: TGA's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.2%), TGA's dividend payments are well 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?

1.4yrs

Average management tenure


CEO

Peter Lirantzis

1.67yrs

Tenure

AU$792,209

Compensation

Mr. Peter Lirantzis is Chief Executive Officer of Thorn Group Limited since February 12, 2020. He was Group Chief Operations Officer of FlexiGroup Limited since July 2014 until June 2018. Mr. Lirantzis has...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD588.00K) is above average for companies of similar size in the Australian market ($USD302.72K).

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


Leadership Team

Experienced Management: TGA's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: TGA's board of directors are not considered experienced ( 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: TGA insiders have only sold shares 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 5.4%.


Top Shareholders

Company Information

Thorn Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Thorn Group Limited
  • Ticker: TGA
  • Exchange: ASX
  • Founded: 1937
  • Industry: Computer and Electronics Retail
  • Sector: Retail
  • Market Cap: AU$67.978m
  • Shares outstanding: 339.89m
  • Website: https://www.thorn.com.au

Number of Employees


Location

  • Thorn Group Limited
  • 2 Elizabeth Street
  • Suite 402
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 07:05
End of Day Share Price2021/10/18 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.