ASX:TGA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Thorn Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TGA is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TGA's weekly volatility has decreased from 16% to 6% over the past year.


Market Performance


7 Day Return

-2.8%

TGA

0.7%

AU Specialty Retail

-1.7%

AU Market


1 Year Return

76.8%

TGA

44.1%

AU Specialty Retail

10.5%

AU Market

Return vs Industry: TGA exceeded the Australian Specialty Retail industry which returned 44.1% over the past year.

Return vs Market: TGA exceeded the Australian Market which returned 10.5% over the past year.


Shareholder returns

TGAIndustryMarket
7 Day-2.8%0.7%-1.7%
30 Day-5.4%-1.4%-0.3%
90 Day9.4%9.0%2.7%
1 Year143.1%76.8%49.9%44.1%14.1%10.5%
3 Year-68.7%-78.5%83.4%60.6%29.7%14.0%
5 Year-83.5%-89.7%98.7%57.8%62.5%31.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

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$0.18) is trading below our estimate of fair value (A$25.59)

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


Price To Earnings Ratio

PE vs Industry: TGA is unprofitable, so we can't compare its PE Ratio to the AU Specialty Retail industry average.

PE vs Market: TGA is unprofitable, so we can't compare its PE Ratio to the Australian market.


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 (0.5x) compared to the AU Specialty Retail industry average (3.1x).


Next Steps

Future Growth

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

3.5%

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.


Next Steps

Past Performance

How has Thorn Group performed over the past 5 years?

-71.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TGA is currently unprofitable.

Growing Profit Margin: TGA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TGA is unprofitable, and losses have increased over the past 5 years at a rate of 71.6% per year.

Accelerating Growth: Unable to compare TGA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TGA is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (35.5%).


Return on Equity

High ROE: TGA has a negative Return on Equity (-53.47%), as it is currently unprofitable.


Next Steps

Financial Health

How is Thorn Group's financial position?


Financial Position Analysis

Short Term Liabilities: TGA's short term assets (A$185.2M) exceed its short term liabilities (A$127.4M).

Long Term Liabilities: TGA's short term assets (A$185.2M) exceed its long term liabilities (A$138.4M).


Debt to Equity History and Analysis

Debt Level: TGA's debt to equity ratio (228.1%) is considered high.

Reducing Debt: TGA's debt to equity ratio has increased from 85.7% to 228.1% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable TGA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TGA is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 3.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TGA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TGA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TGA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TGA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TGA is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TGA's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Peter Lirantzis

1.08yrs

Tenure

AU$799,215

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 ($USD621.52K) is above average for companies of similar size in the Australian market ($USD295.47K).

Compensation vs Earnings: Insufficient data to compare Peter's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Lirantzis
Chief Executive Officer1.08yrsAU$799.22kno data
Alexandra Rose
General Counsel and GM of Risk & Complianceno dataAU$320.14kno data
Luis Orp
Chief Financial Officer0.42yrno datano data
Mark Birkbeck
Chief Operating Officer0.83yrno datano data
Mark Perrett
Head of Digital RR1.17yrsno datano data
Jonathon Ho
Chief Strategy & Transformation Officer1.17yrsno datano data

1.1yrs

Average Tenure

Experienced Management: TGA's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Paul Oneile
Independent Non-Executive Director1.42yrsAU$39.61k0.069%
A$ 42.3k
Warren McLeland
Interim Chairman1.42yrsAU$49.40kno data
Allan Sullivan
Non-Executive Director1.58yrsAU$46.12k0.043%
A$ 26.6k
Vasilios Piperoglou
Director0.25yrno datano data
Ronald Holzer
Director0.25yrno datano data

1.4yrs

Average Tenure

73yo

Average Age

Experienced Board: TGA's board of directors are not considered experienced ( 1.4 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 bought more shares than they have sold 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 company bio, 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$61.162m
  • Shares outstanding: 339.79m
  • Website: https://www.thorn.com.au

Number of Employees


Location

  • Thorn Group Limited
  • 62 Hume Highway
  • Level 1
  • Chullora
  • New South Wales
  • 2190
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TGAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2006
TGACHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2006

Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 07:03
End of Day Share Price2021/03/05 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.