ASX:APT

Stock Analysis Report

Afterpay Touch Group

Executive Summary

Afterpay Touch Group Limited operates as a payments company in Australia.

Snowflake

Fundamentals

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-8.8%

APT

2.7%

AU IT

2.5%

AU Market


1 Year Return

147.0%

APT

23.4%

AU IT

11.1%

AU Market

Return vs Industry: APT exceeded the Australian IT industry which returned 23.4% over the past year.

Return vs Market: APT exceeded the Australian Market which returned 11.1% over the past year.


Shareholder returns

APTIndustryMarket
7 Day-8.8%2.7%2.5%
30 Day1.3%6.1%0.7%
90 Day33.1%11.0%1.4%
1 Year147.0%147.0%25.9%23.4%17.5%11.1%
3 Yearn/a51.8%40.7%37.8%19.4%
5 Yearn/a75.9%54.5%51.7%17.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Afterpay Touch Group undervalued compared to its fair value and its price relative to the market?

12.52x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: APT (A$31.98) is trading above our estimate of fair value (A$29.46)

Significantly Undervalued: APT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: APT is unprofitable, so we can't compare its PE Ratio to the IT industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: APT is overvalued based on its PB Ratio (12.5x) compared to the AU IT industry average (2.1x).


Next Steps

Future Growth

How is Afterpay Touch Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

98.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: APT is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: APT's loss is forecast to worsen by 0% next year.

Revenue vs Market: APT's revenue (47.2% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: APT's revenue (47.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: APT's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Afterpay Touch Group performed over the past 5 years?

-72.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: APT is unprofitable, and losses have increased over the past 5 years at a rate of -72% per year.

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

Earnings vs Industry: APT is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (60.9%).


Return on Equity

High ROE: APT has a negative Return on Equity (-6.75%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: APT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: APT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Afterpay Touch Group's financial position?


Financial Position Analysis

Short Term Liabilities: APT's short term assets (A$696.3M) exceeds its short term liabilities (A$120.4M)

Long Term Liabilities: APT's short term assets (696.3M) exceeds its long term liabilities (51.5M)


Debt to Equity History and Analysis

Debt Level: APT's debt to equity ratio (7.7%) is considered satisfactory

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


Balance Sheet

Inventory Level: APT has a low level of unsold assets or inventory.

Debt Coverage by Assets: APT's debt is covered by short term assets (assets are 13.863920x debt).


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: APT has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: APT has less than a year of cash runway if free cash flow continues to reduce at historical rates of -56.3% each year


Next Steps

Dividend

What is Afterpay Touch Group's current dividend yield, its reliability and sustainability?

0.027%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.6%industryaverage2.6%forecastin3Years0.03%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Afterpay Touch Group's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Ant Eisen (47yo)

0.3yrs

Tenure

AU$651,355

Compensation

Mr. Anthony Mathew Eisen, also known as Ant, B.Comm., CA, is a Co-Founder of Afterpay Touch Group Limited and serves as its CEO & Managing Director since July 1, 2019. Mr. Mathew served as its Executive Ch ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Ant's total compensation is reasonable compared to companies of similar size in the Australian market.

Compensation vs Earnings: Ant's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.4yrs

Average Tenure

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


Board Age and Tenure

2.3yrs

Average Tenure

55yo

Average Age

Experienced Board: APT's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyAU$5,78630 Jul 19
Goldman Sachs Asset Management, L.P.
EntityCompany
Shares232
Max PriceAU$24.94
BuyAU$3,574,00930 Jul 19
Goldman Sachs Group, Investment Banking and Securities Investments
EntityCompany
Shares139,848
Max PriceAU$25.56
SellAU$11,256,38130 Jul 19
Goldman Sachs Group, Investment Banking and Securities Investments
EntityCompany
Shares440,671
Max PriceAU$25.55
BuyAU$123,96425 Jul 19
Goldman Sachs Asset Management, L.P.
EntityCompany
Shares5,319
Max PriceAU$23.31
BuyAU$137,882,36125 Jul 19
Goldman Sachs Group, Investment Banking and Securities Investments
EntityCompany
Shares5,987,946
Max PriceAU$23.03
SellAU$9,200,00017 Jun 19
David Hancock
EntityIndividual
Role
Senior Key Executive
Consultant
Shares400,000
Max PriceAU$23.00
SellAU$47,150,00017 Jun 19
Nicholas Molnar
EntityIndividual
Role
Member of the Board of Directors
Co-Founder
Shares2,050,000
Max PriceAU$23.00
SellAU$47,150,00017 Jun 19
Anthony Eisen
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares2,050,000
Max PriceAU$23.00
SellAU$2,969,44006 Mar 19
Clifford Rosenberg
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares150,000
Max PriceAU$19.80
SellAU$7,743,74506 Dec 18
David Hancock
EntityIndividual
Role
Senior Key Executive
Consultant
Shares550,000
Max PriceAU$14.08

Ownership Breakdown


Management Team

  • David Hancock

    Consultant

    • Tenure: 2.3yrs
    • Compensation: AU$15.46m
  • Ant Eisen (47yo)

    Co-Founder

    • Tenure: 0.3yrs
    • Compensation: AU$651.36k
  • Richard Harris

    Head of Business Expansion

    • Tenure: 2.3yrs
    • Compensation: AU$506.61k
  • Barry Odes

    Chief of Staff

    • Tenure: 0.3yrs
    • Compensation: AU$686.43k
  • Frerk-Malte Feller

    Global Chief Operating Officer

    • Tenure: 0.3yrs
  • Nick Molnar

    Co-Founder

    • Tenure: 2.3yrs
    • Compensation: AU$732.08k
  • Mathew Cagney

    Head of Pay Now

    • Tenure: 2.3yrs
  • Jon Donoghue

    Chief Technology Officer

    • Tenure: 2.3yrs
  • Luke Bortoli

    Chief Financial Officer

    • Tenure: 1.4yrs
    • Compensation: AU$3.49m
  • Christopher Stevens

    General Counsel & Company Secretary

    • Tenure: 1yrs

Board Members

  • Dana Stalder (51yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$90.00k
  • Larry Summers (64yo)

    Member of U.S. Advisory Board

    • Tenure: 0yrs
  • Elana Rubin

    Independent Interim Chair

    • Tenure: 0.3yrs
    • Compensation: AU$120.00k
  • Uli Becker (56yo)

    Member of U.S. Advisory Board

    • Tenure: 0yrs
  • Ant Eisen (47yo)

    Co-Founder

    • Tenure: 0.3yrs
    • Compensation: AU$651.36k
  • Cliff Rosenberg (55yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: AU$106.79k
  • Matt Kaness

    Member of U.S. Advisory Board

    • Tenure: 0yrs
  • Nick Molnar

    Co-Founder

    • Tenure: 2.3yrs
    • Compensation: AU$732.08k

Company Information

Afterpay Touch Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Afterpay Touch Group Limited
  • Ticker: APT
  • Exchange: ASX
  • Founded: 2017
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: AU$8.573b
  • Shares outstanding: 252.73m
  • Website: https://www.afterpaytouch.com

Number of Employees


Location

  • Afterpay Touch Group Limited
  • 406 Collins Street
  • Level 5
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2017
APTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2017
2A6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2017
AFTP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2017

Biography

Afterpay Touch Group Limited operates as a payments company in Australia. The company offers Afterpay, an instalment payment service, which enables consumers to buy products on a ‘buy now, receive now, pay ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 10:43
End of Day Share Price2019/10/17 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.