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ADA

Adacel TechnologiesASX:ADA Stock Report

Market Cap

AU$98.0m

7D

0.4%

1Y

87.6%

Updated

26 Oct, 2021

Data

Company Financials +
ADA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends3/6

ADA Overview

Adacel Technologies Limited develops and sells air traffic management, air traffic control simulation and training, and software applications and services in the civil and military aerospace sectors primarily in the United States, Canada, and Australia.

Adacel Technologies Competitors

Intuit

NasdaqGS:INTU

US$164.6b

Transurban Group

ASX:TCL

AU$42.3b

Thales

ENXTPA:HO

€17.3b

Alstom

ENXTPA:ALO

€11.5b

Price History & Performance

Summary of all time highs, changes and price drops for Adacel Technologies
Historical stock prices
Current Share PriceAU$1.29
52 Week HighAU$0.64
52 Week LowAU$1.44
Beta1.63
1 Month Change-5.17%
3 Month Change25.98%
1 Year Change87.59%
3 Year Change-17.36%
5 Year Change-50.39%
Change since IPO11.74%

Recent News & Updates

Aug 14
Adacel Technologies (ASX:ADA) Is Increasing Its Dividend To AU$0.033

Adacel Technologies (ASX:ADA) Is Increasing Its Dividend To AU$0.033

The board of Adacel Technologies Limited ( ASX:ADA ) has announced that it will be increasing its dividend on the 15th...

Aug 12
Why Adacel Technologies Limited (ASX:ADA) Could Be Worth Watching

Why Adacel Technologies Limited (ASX:ADA) Could Be Worth Watching

Adacel Technologies Limited ( ASX:ADA ), might not be a large cap stock, but it received a lot of attention from a...

Shareholder Returns

ADAAU SoftwareAU Market
7D0.4%2.8%0.8%
1Y87.6%33.4%24.4%

Return vs Industry: ADA exceeded the Australian Software industry which returned 33.4% over the past year.

Return vs Market: ADA exceeded the Australian Market which returned 24.4% over the past year.

Price Volatility

Is ADA's price volatile compared to industry and market?
ADA volatility
ADA Beta1.63
Industry Beta0.85
Market Beta1

Stable Share Price: ADA is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: ADA's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1987n/aDaniel Verrethttps://www.adacel.com

Adacel Technologies Limited develops and sells air traffic management, air traffic control simulation and training, and software applications and services in the civil and military aerospace sectors primarily in the United States, Canada, and Australia. The company offers Aurora air traffic management system for managing procedural airspace in a surveillance environment; MaxSim air traffic simulator training system; MaxSim ATC, an air traffic control simulator and training system; and AeroDrive, an immersive training simulator to train airport drivers in a safe, risk-free, and 3-D environment; and intelligent communications environment, an aviation phraseology training tool for air traffic controllers and pilots. It also provides training and simulation systems support services for military and civilian organizations.

Adacel Technologies Fundamentals Summary

How do Adacel Technologies's earnings and revenue compare to its market cap?
ADA fundamental statistics
Market CapAU$97.99m
Earnings (TTM)AU$7.33m
Revenue (TTM)AU$40.16m

13.4x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADA income statement (TTM)
RevenueAU$40.16m
Cost of RevenueAU$31.37m
Gross ProfitAU$8.80m
ExpensesAU$1.47m
EarningsAU$7.33m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.096
Gross Margin21.90%
Net Profit Margin18.25%
Debt/Equity Ratio5.2%

How did ADA perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

63%

Payout Ratio

Valuation

Is Adacel Technologies 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: ADA (A$1.29) is trading below our estimate of fair value (A$10.5)

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


Price To Earnings Ratio

PE vs Industry: ADA is good value based on its PE Ratio (13.4x) compared to the Australian Software industry average (45.3x).

PE vs Market: ADA is good value based on its PE Ratio (13.4x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ADA is good value based on its PB Ratio (5x) compared to the AU Software industry average (5.3x).


Future Growth

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

4.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ADA's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if ADA'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: ADA's revenue (4.2% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: ADA's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADA's Return on Equity is forecast to be high in 3 years time (29.2%)


Past Performance

How has Adacel Technologies performed over the past 5 years?

-20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADA has a large one-off gain of A$2.5M impacting its June 30 2021 financial results.

Growing Profit Margin: ADA's current net profit margins (18.3%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: ADA's earnings have declined by 20.8% per year over the past 5 years.

Accelerating Growth: ADA's earnings growth over the past year (101.7%) exceeds its 5-year average (-20.8% per year).

Earnings vs Industry: ADA earnings growth over the past year (101.7%) exceeded the Software industry 37.5%.


Return on Equity

High ROE: ADA's Return on Equity (37.5%) is considered high.


Financial Health

How is Adacel Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: ADA's short term assets (A$27.0M) exceed its short term liabilities (A$13.4M).

Long Term Liabilities: ADA's short term assets (A$27.0M) exceed its long term liabilities (A$7.0M).


Debt to Equity History and Analysis

Debt Level: ADA's debt to equity ratio (5.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ADA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ADA's debt is well covered by operating cash flow (1142.7%).

Interest Coverage: ADA's interest payments on its debt are well covered by EBIT (19.2x coverage).


Balance Sheet


Dividend

What is Adacel Technologies's current dividend yield, its reliability and sustainability?

5.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADA's dividend (5.06%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: ADA's dividend (5.06%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: ADA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ADA's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.5%), ADA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ADA's dividends in 3 years are forecast to be covered by earnings (71.4% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Software industry.

Management

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

2.3yrs

Average management tenure


CEO

Daniel Verret

2.25yrs

Tenure

AU$528,971

Compensation

Mr. Daniel Verret serves as Chief Executive Officer of Adacel Technologies Limited since April 15, 2020 and served as its Acting Chief Executive Officer since July 1, 2019 until April 15, 2020. He served a...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD396.53K) is above average for companies of similar size in the Australian market ($USD301.38K).

Compensation vs Earnings: Daniel's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ADA's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: ADA's board of directors are seasoned and experienced ( 10.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Adacel Technologies Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Adacel Technologies Limited
  • Ticker: ADA
  • Exchange: ASX
  • Founded: 1987
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$97.988m
  • Shares outstanding: 76.26m
  • Website: https://www.adacel.com

Location

  • Adacel Technologies Limited
  • 29/3 Westside Avenue
  • Port Melbourne
  • Victoria
  • 3207
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 16:09
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.