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ADA

Adacel Technologies ASX:ADA Stock Report

Last Price

AU$0.72

Market Cap

AU$55.0m

7D

-0.7%

1Y

-43.5%

Updated

24 Sep, 2022

Data

Company Financials +
ADA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance1/6
Financial Health6/6
Dividends2/6

ADA Stock Overview

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

Adacel Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Adacel Technologies
Historical stock prices
Current Share PriceAU$0.72
52 Week HighAU$1.39
52 Week LowAU$0.71
Beta1.57
1 Month Change-15.29%
3 Month Change-12.20%
1 Year Change-43.53%
3 Year Change60.00%
5 Year Change-74.91%
Change since IPO-37.39%

Recent News & Updates

Aug 27
Should You Investigate Adacel Technologies Limited (ASX:ADA) At AU$0.82?

Should You Investigate Adacel Technologies Limited (ASX:ADA) At AU$0.82?

Adacel Technologies Limited ( ASX:ADA ), might not be a large cap stock, but it saw significant share price movement...

May 13
At AU$0.91, Is It Time To Put Adacel Technologies Limited (ASX:ADA) On Your Watch List?

At AU$0.91, Is It Time To Put Adacel Technologies Limited (ASX:ADA) On Your Watch List?

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
7D-0.7%-6.1%-2.7%
1Y-43.5%-28.9%-11.0%

Return vs Industry: ADA underperformed the Australian Software industry which returned -28.9% over the past year.

Return vs Market: ADA underperformed the Australian Market which returned -11% over the past year.

Price Volatility

Is ADA's price volatile compared to industry and market?
ADA volatility
ADA Average Weekly Movement6.9%
Software Industry Average Movement11.0%
Market Average Movement9.6%
10% most volatile stocks in AU Market16.9%
10% least volatile stocks in AU Market4.3%

Stable Share Price: ADA is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ADA's weekly volatility (7%) 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 systems and services for the military and civil sectors primarily in the United States, Canada, Estonia, and Australia. It operates through Systems and Services segments. The Systems segment is involved in the sale of advanced systems, technical software, and hardware.

Adacel Technologies Fundamentals Summary

How do Adacel Technologies's earnings and revenue compare to its market cap?
ADA fundamental statistics
Market CapAU$55.02m
Earnings (TTM)AU$4.98m
Revenue (TTM)AU$42.11m

11.0x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADA income statement (TTM)
RevenueUS$27.56m
Cost of RevenueUS$21.39m
Gross ProfitUS$6.17m
Other ExpensesUS$2.91m
EarningsUS$3.26m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.043
Gross Margin22.39%
Net Profit Margin11.84%
Debt/Equity Ratio0%

How did ADA perform over the long term?

See historical performance and comparison

Dividends

8.3%

Current Dividend Yield

97%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ADA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ADA?

Other financial metrics that can be useful for relative valuation.

ADA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA7x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does ADA's PE Ratio compare to its peers?

ADA PE Ratio vs Peers
The above table shows the PE ratio for ADA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average53.8x
MSL MSL Solutions
81.4x31.1%AU$66.3m
IRI Integrated Research
43.7xn/aAU$67.5m
ESK Etherstack
13.3x57.6%AU$47.1m
XF1 Xref
76.7xn/aAU$55.9m
ADA Adacel Technologies
11xn/aAU$55.0m

Price-To-Earnings vs Peers: ADA is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (53.8x).


Price to Earnings Ratio vs Industry

How does ADA's PE Ratio compare vs other companies in the AU Software Industry?

Price-To-Earnings vs Industry: ADA is good value based on its Price-To-Earnings Ratio (11x) compared to the Australian Software industry average (47x)


Price to Earnings Ratio vs Fair Ratio

What is ADA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ADA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ADA's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of ADA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ADA (A$0.72) is trading below our estimate of fair value (A$1.56)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.0%

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 (1.8%).

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 ADA's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ADA's revenue (7% per year) is forecast to grow faster than the Australian market (3.7% per year).

High Growth Revenue: ADA's revenue (7% 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 (31.2%)


Discover growth companies

Past Performance

How has Adacel Technologies performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-11.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ADA has a high level of non-cash earnings.

Growing Profit Margin: ADA's current net profit margins (11.8%) are lower than last year (18.3%).


Past Earnings Growth Analysis

Earnings Trend: ADA's earnings have declined by 11.9% per year over the past 5 years.

Accelerating Growth: ADA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ADA had negative earnings growth (-40.7%) over the past year, making it difficult to compare to the Software industry average (-10.7%).


Return on Equity

High ROE: ADA's Return on Equity (23.5%) is considered high.


Discover strong past performing companies

Financial Health

How is Adacel Technologies's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ADA's short term assets ($16.4M) exceed its short term liabilities ($9.4M).

Long Term Liabilities: ADA's short term assets ($16.4M) exceed its long term liabilities ($3.8M).


Debt to Equity History and Analysis

Debt Level: ADA is debt free.

Reducing Debt: ADA had no debt 5 years ago.

Debt Coverage: ADA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ADA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


8.33%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ADA's dividend (8.33%) is higher than the bottom 25% of dividend payers in the Australian market (2.78%).

High Dividend: ADA's dividend (8.33%) is in the top 25% of dividend payers in the Australian market (7.03%)


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 8 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (96.8%), ADA's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: ADA is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

1.9yrs

Average management tenure


CEO

Daniel Verret

3.17yrs

Tenure

US$354,331

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 ($USD354.33K) is about average for companies of similar size in the Australian market ($USD281.91K).

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


Leadership Team

Experienced Management: ADA's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: ADA's board of directors are seasoned and experienced ( 11.4 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.


Recent Insider Transactions

ASX:ADA Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
30 Jun 22SellAU$386,059MAM Pty LimitedCompany407,615AU$0.99
18 Mar 22BuyAU$341,663MAM Pty LimitedCompany332,223AU$1.19
01 Dec 21BuyAU$2,137,913MAM Pty LimitedCompany1,576,941AU$1.40
01 Dec 21BuyAU$23,766Michael McConnellIndividual22,222AU$1.07

Ownership Breakdown

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


Top Shareholders

Top 12 shareholders own 19.65% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
7.67%
Silvio Salom
5,861,858$4.2m-2.16%no data
3.86%
David Smith
2,951,922$2.1m0%no data
1.64%
Michael McConnell
1,250,000$900.0k0%no data
1.39%
Obena Ridge Pty Ltd
1,062,276$764.8k0%no data
1.31%
Emma Gracey
1,000,000$720.0k0%no data
0.94%
Daniel Verret
719,000$517.7k0%no data
0.78%
James Carnegie
599,564$431.7k0%no data
0.56%
Westor Asset Management Limited
431,564$310.7k59.48%2.88%
0.49%
Ian Harriss
378,074$272.2k0%no data
0.41%
Bissapp Software Proprietary Ltd.
316,000$227.5k-4.01%no data
0.36%
Michael Murray
274,470$197.6k0%no data
0.23%
Kevin Pickett
172,000$123.8k82.98%no data

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
  • Implied Market Cap: AU$55.024m
  • Shares outstanding: 76.42m
  • Website: https://www.adacel.com

Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AELT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 1998
ADAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 1998
ADACHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 1998

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.