ASX:8CO

Stock Analysis Report

Executive Summary

8common Limited develops and distributes software solutions in Australia, Asia, and North America.

Snowflake

Fundamentals

Excellent balance sheet and overvalued.

Risks

  • 8common has significant price volatility in the past 3 months.
  • 8common is not covered by any analysts.

Share Price & News

How has 8common's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.0%

8CO

4.3%

AU Software

1.1%

AU Market


1 Year Return

127.9%

8CO

29.9%

AU Software

7.2%

AU Market

8CO outperformed the Software industry which returned 28.1% over the past year.

8CO outperformed the Market in Australia which returned 6.9% over the past year.


Share holder returns

8COIndustryMarket
7 Day-2.0%4.3%1.1%
30 Day-21.6%3.8%3.9%
90 Day-34.7%7.6%1.8%
1 Year127.9%127.9%31.0%29.9%13.3%7.2%
3 Year-26.3%-32.4%122.7%112.5%39.8%21.0%
5 Year-54.1%-58.3%149.2%130.0%54.4%19.9%

Price Volatility Vs. Market

How volatile is 8common's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 8common undervalued based on future cash flows and its price relative to the stock market?

2.45x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for 8common to establish if it is available at moderate discount.

Unable to calculate intrinsic value for 8common to establish if it is available at substantial discount.


Price Based on Earnings

8common is loss making, we can't compare its value to the AU Software industry average.

8common is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for 8common, we can't assess if its growth is good value.


Price Based on Value of Assets

8common is good value based on assets compared to the AU Software industry average.


Next Steps

Future Growth

How is 8common expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

32.7%

Forecasted Software 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 8common 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 8common performed over the past 5 years?

-31.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

8common does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare 8common's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare 8common's 1-year growth to the AU Software industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if 8common has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if 8common has efficiently used its assets last year compared to the AU Software industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if 8common improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is 8common's financial position?


Financial Position Analysis

8common's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

8common has no long term commitments.


Debt to Equity History and Analysis

8common has no debt.

8common has no debt compared to 5 years ago when it was 57.2%.


Balance Sheet

Low level of unsold assets.

8common has no debt, it does not need to be covered by short term assets.


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.

8common has sufficient cash runway for more than 3 years based on current free cash flow.

8common has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -29.3% each year.


Next Steps

Dividend

What is 8common's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate 8common's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate 8common's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as 8common has not reported any payouts.

Unable to verify if 8common's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as 8common has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of 8common's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Andrew Bond 0

0yrs

Tenure

0

Mr. Andrew Bond has been the Chief Executive Officer at 8common Limited since September 1, 2019 and served as its Chief Operating Officer until September 1, 2019. Mr. Bond joined 8common in August 2015 and ...


Management Age and Tenure

0.9yrs

Average Tenure

The average tenure for the 8common management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.5yrs

Average Tenure

43yo

Average Age

The tenure for the 8common board of directors is about average.


Insider Trading

Information is not available.


Recent Insider Transactions

BuyAU$29,21807 Aug 19
John Du Bois
EntityIndividual
Role
Member of the Board of Directors
Director
Shares232,560
Max PriceAU$0.13
SellAU$27,95707 Aug 19
John Du Bois
EntityIndividual
Role
Member of the Board of Directors
Director
Shares232,560
Max PriceAU$0.12
BuyAU$89,99402 Jul 19
Kok Fui Lau
EntityIndividual
Shares676,318
Max PriceAU$0.18
BuyAU$83,59222 Apr 19
Kok Fui Lau
EntityIndividual
Shares1,641,509
Max PriceAU$0.089
BuyAU$94,92911 Mar 19
Kok Fui Lau
EntityIndividual
Shares2,209,963
Max PriceAU$0.043
SellAU$333,05605 Nov 18
Kah Lim
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares8,326,652
Max PriceAU$0.04

Ownership Breakdown


Management Team

  • Nic Lim (43yo)

    Founder & Executive Chairman

    • Tenure: 3.7yrs
    • Compensation: AU$141.89k
  • Zoran Grujic (44yo)

    Chief Financial Officer

    • Tenure: 0.9yrs
    • Compensation: AU$44.35k
  • Rory Koehler

    Chief Technology Officer

    • Tenure: 2.5yrs
    • Compensation: AU$94.59k
  • Dean Jagger

    Company Secretary

    • Tenure: 0.8yrs
  • Andrew Bond

    Chief Executive Officer

    • Tenure: 0yrs
  • Ben Brockhoff

    Chief Operating Officer

    • Tenure: 0yrs

Board Members

  • Larry Gan (64yo)

    Non-Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: AU$31.25k
  • Nic Lim (43yo)

    Founder & Executive Chairman

    • Tenure: 3.7yrs
    • Compensation: AU$141.89k
  • Adrian Bunter (42yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$31.25k
  • John Du Bois

    Director

    • Tenure: 0.9yrs

Company Information

8common Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 8common Limited
  • Ticker: 8CO
  • Exchange: ASX
  • Founded: 2014
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$14.857m
  • Shares outstanding: 156.39m
  • Website: https://www.8common.com

Location

  • 8common Limited
  • 213 Miller Street
  • Suite 803
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8COASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2014

Biography

8common Limited develops and distributes software solutions in Australia, Asia, and North America. The company through two segments, Productivity & Performance and Realtors8 segments. The Productivity & Pe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 10:38
End of Day Share Price2019/09/23 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.