Loading...

Arq Group

ASX:ARQ
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARQ
ASX
A$81M
Market Cap
  1. Home
  2. AU
  3. Software
Company description

ARQ Group Limited, together with its subsidiaries, provides digital solutions worldwide. The last earnings update was 113 days ago. More info.


Add to Portfolio Compare Print
  • Arq Group has significant price volatility in the past 3 months.
ARQ Share Price and Events
7 Day Returns
6.3%
ASX:ARQ
-0.6%
AU IT
0%
AU Market
1 Year Returns
-79.2%
ASX:ARQ
10.1%
AU IT
4.8%
AU Market
ARQ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Arq Group (ARQ) 6.3% -51.8% -60.9% -79.2% -60.9% -57.8%
AU IT -0.6% 2.6% -0.2% 10.1% 47.6% 44.2%
AU Market 0% 0.9% 6.8% 4.8% 20.1% 12.2%
1 Year Return vs Industry and Market
  • ARQ underperformed the IT industry which returned 10.1% over the past year.
  • ARQ underperformed the Market in Australia which returned 4.8% over the past year.
Price Volatility
ARQ
Industry
5yr Volatility vs Market
Related Companies

ARQ Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Arq Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Arq Group.

ASX:ARQ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.8%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:ARQ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.987 (1 + (1- 30%) (92.77%))
1.421
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.42
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.421 * 5.96%)
10.78%

Discounted Cash Flow Calculation for ASX:ARQ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Arq Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:ARQ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 10.78%)
2020 12.10 Analyst x2 10.92
2021 15.15 Analyst x2 12.34
2022 16.93 Est @ 11.76% 12.45
2023 18.44 Est @ 8.92% 12.24
2024 19.72 Est @ 6.94% 11.82
2025 20.82 Est @ 5.55% 11.26
2026 21.77 Est @ 4.58% 10.63
2027 22.62 Est @ 3.9% 9.97
2028 23.39 Est @ 3.42% 9.31
2029 24.12 Est @ 3.09% 8.66
Present value of next 10 years cash flows A$109.62
ASX:ARQ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$24.12 × (1 + 2.31%) ÷ (10.78% – 2.31%)
A$291.32
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$291.32 ÷ (1 + 10.78%)10
A$104.64
ASX:ARQ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$109.62 + A$104.64
A$214.26
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$214.26 / 118.88
A$1.8
ASX:ARQ Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$1.80
Current discount Discount to share price of A$0.68
= -1 x (A$0.68 - A$1.80) / A$1.80
62.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Arq Group is available for.
Intrinsic value
>50%
Share price is A$0.68 vs Future cash flow value of A$1.8
Current Discount Checks
For Arq Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Arq Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Arq Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Arq Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Arq Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:ARQ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$-0.02
ASX:ARQ Share Price ** ASX (2019-07-19) in AUD A$0.68
Australia IT Industry PE Ratio Median Figure of 17 Publicly-Listed IT Companies 20.72x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Arq Group.

ASX:ARQ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:ARQ Share Price ÷ EPS (both in AUD)

= 0.68 ÷ -0.02

-32.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arq Group is loss making, we can't compare its value to the AU IT industry average.
  • Arq Group is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Arq Group's expected growth come at a high price?
Raw Data
ASX:ARQ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -32.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
55.7%per year
Australia IT Industry PEG Ratio Median Figure of 12 Publicly-Listed IT Companies 1.21x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Arq Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Arq Group's assets?
Raw Data
ASX:ARQ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.37
ASX:ARQ Share Price * ASX (2019-07-19) in AUD A$0.68
Australia IT Industry PB Ratio Median Figure of 32 Publicly-Listed IT Companies 2.99x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.7x
ASX:ARQ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:ARQ Share Price ÷ Book Value per Share (both in AUD)

= 0.68 ÷ 1.37

0.5x

* Primary Listing of Arq Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arq Group is good value based on assets compared to the AU IT industry average.
X
Value checks
We assess Arq Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Arq Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ARQ Future Performance

 How is Arq Group expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
55.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Arq Group expected to grow at an attractive rate?
  • Arq Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Arq Group's earnings growth is expected to exceed the Australia market average.
  • Arq Group's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:ARQ Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:ARQ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 55.7%
ASX:ARQ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 1.8%
Australia IT Industry Earnings Growth Rate Market Cap Weighted Average 26.1%
Australia IT Industry Revenue Growth Rate Market Cap Weighted Average 18.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:ARQ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:ARQ Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 236 1
2021-12-31 206 21 10 3
2020-12-31 194 18 7 3
2019-12-31 194 16 6 3
ASX:ARQ Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 213 18 -2
2018-09-30 216 1
2018-06-30 219 25 4
2018-03-31 208 19 9
2017-12-31 197 13 14
2017-09-30 187 13 15
2017-06-30 177 12 16
2017-03-31 173 13 13
2016-12-31 168 14 11
2016-09-30 166 13 9
2016-06-30 164 12 7
2016-03-31 157 13 6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Arq Group's earnings are expected to grow significantly at over 20% yearly.
  • Arq Group's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:ARQ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Arq Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:ARQ Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 0.10 0.10 0.10 1.00
2020-12-31 0.08 0.08 0.08 1.00
2019-12-31 0.09 0.09 0.09 1.00
ASX:ARQ Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 -0.02
2018-09-30 0.00
2018-06-30 0.03
2018-03-31 0.08
2017-12-31 0.13
2017-09-30 0.14
2017-06-30 0.16
2017-03-31 0.13
2016-12-31 0.11
2016-09-30 0.09
2016-06-30 0.07
2016-03-31 0.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Arq Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Arq Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Arq Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ARQ Past Performance

  How has Arq Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Arq Group's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Arq Group does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Arq Group's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Arq Group's 1-year growth to the AU IT industry average as it is not currently profitable.
Earnings and Revenue History
Arq Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Arq Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:ARQ Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 213.01 -2.46 73.85
2018-09-30 215.86 0.59 75.53
2018-06-30 219.10 3.60 77.21
2018-03-31 208.43 8.78 73.60
2017-12-31 197.37 13.98 69.98
2017-09-30 186.90 14.94 65.93
2017-06-30 176.70 16.16 61.89
2017-03-31 172.57 13.44 61.01
2016-12-31 168.44 10.73 60.13
2016-09-30 166.15 8.70 60.12
2016-06-30 163.85 6.66 60.12
2016-03-31 157.06 6.14 58.37
2015-12-31 150.26 5.61 56.62
2015-09-30 142.27 5.94 54.29
2015-06-30 134.29 6.28 51.95
2015-03-31 129.50 3.38 50.03
2014-12-31 124.71 0.48 48.10
2014-09-30 118.19 -0.92 49.23
2014-06-30 111.68 -2.32 47.99
2014-03-31 107.55 1.94 46.18
2013-12-31 103.41 6.20 44.37
2013-09-30 150.98 10.38 67.45
2013-06-30 103.23 9.29 42.04
2013-03-31 105.85 8.99 43.05
2012-12-31 108.47 8.69 44.05
2012-09-30 143.04 10.41 59.21

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Arq Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Arq Group used its assets less efficiently than the AU IT industry average last year based on Return on Assets.
  • It is difficult to establish if Arq Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Arq Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Arq Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ARQ Health

 How is Arq Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Arq Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Arq Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Arq Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Arq Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Arq Group Company Filings, last reported 6 months ago.

ASX:ARQ Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 162.50 74.99 8.28
2018-09-30 162.50 74.99 8.28
2018-06-30 165.73 75.04 15.48
2018-03-31 165.73 75.04 15.48
2017-12-31 174.80 75.12 20.25
2017-09-30 181.62 75.12 20.25
2017-06-30 179.18 64.19 23.44
2017-03-31 179.18 64.19 23.44
2016-12-31 145.58 36.50 16.43
2016-09-30 145.58 36.50 16.43
2016-06-30 140.53 27.70 16.51
2016-03-31 140.53 27.70 16.51
2015-12-31 120.58 30.10 12.37
2015-09-30 120.58 30.10 12.37
2015-06-30 114.35 30.00 15.40
2015-03-31 114.35 30.00 15.40
2014-12-31 114.77 0.00 18.09
2014-09-30 114.77 0.00 18.09
2014-06-30 110.55 0.00 10.07
2014-03-31 110.55 0.00 10.07
2013-12-31 148.07 0.00 80.52
2013-09-30 148.07 0.00 80.52
2013-06-30 147.37 0.00 95.24
2013-03-31 147.37 0.00 95.24
2012-12-31 95.29 34.27 17.86
2012-09-30 95.29 34.27 17.86
  • Arq Group's level of debt (46.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 46.2% today).
  • Debt is well covered by operating cash flow (24.4%, greater than 20% of total debt).
  • Arq Group is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Arq Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Arq Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ARQ Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
11.76%
Current annual income from Arq Group dividends. Estimated to be 7.37% next year.
If you bought A$2,000 of Arq Group shares you are expected to receive A$235 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Arq Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.53%).
  • Arq Group's dividend is above the markets top 25% of dividend payers in Australia (5.79%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:ARQ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Australia IT Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.4%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:ARQ Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.07 1.00
2021-12-31 0.05 3.00
2020-12-31 0.04 3.00
2019-12-31 0.05 3.00
ASX:ARQ Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-25 0.080 5.910
2018-08-23 0.110 5.348
2018-02-20 0.110 3.316
2017-08-24 0.095 2.931
2017-04-13 0.080 2.971
2016-08-29 0.060 3.039
2016-02-23 0.050 2.688
2015-03-25 0.080 4.602
2015-02-24 0.080 5.933
2014-08-29 0.020 1.483
2014-03-26 0.000 0.000
2014-02-26 0.000 0.000
2013-08-27 0.000 0.000
2013-03-27 0.140 6.729
2013-02-25 0.140 6.941
2012-03-30 0.150 8.393
2012-02-20 0.150 8.919
2011-08-23 0.150 10.459
2011-02-22 0.150 8.297
2010-08-24 0.150 7.939
2010-03-30 0.150 7.671
2010-02-23 0.150 8.431
2009-08-25 0.150 8.864
2009-02-24 0.160 8.348
2008-08-19 0.140 6.705

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Arq Group's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Arq Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Arq Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Arq Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ARQ Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Martin Mercer
COMPENSATION A$925,468
TENURE AS CEO 5.3 years
CEO Bio

Mr. Martin Mercer has been the Chief Executive Officer and Managing Director at Melbourne IT Limited since April 7, 2014. Mr. Mercer has an impressive resume in strategy, sales, marketing and product development and general management. Prior to joining Melbourne IT, Mr. Mercer served as Managing Director of Strategy & Fixed at SingTel Optus Pty Limited from February 2013 to March 2014. He served as the Chief Executive Officer at vividwireless Pty Limited from July 2009 to January 2013. He served as the Head of Fixed-line Business at SingTel Optus Pty Ltd. since March 2013. He served the Chief Executive Officer of VividWireless Company and Vividwireless Group Ltd. He served in a number of significant leadership positions at Telstra for ten years. He has been a Director of Melbourne IT Limited since April 7, 2014. He served as a Director of Engin Pty Ltd since June 30, 2010 until 2011. He has a reputation for excellence in both strategy and execution. He was a Fellow of Harkness. He holds Bachelor of Arts and Bachelor of Law from University of Sydney and Graduate Diploma in Finance from security Institute of Australia. He studied economics and finance at the Woodrow Wilson School of Public and International Affairs, Princeton University.

CEO Compensation
  • Martin's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Martin's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Arq Group management team in years:

1.8
Average Tenure
  • The average tenure for the Arq Group management team is less than 2 years, this suggests a new team.
Management Team

Martin Mercer

TITLE
MD, CEO & Director
COMPENSATION
A$925K
TENURE
5.3 yrs

Fraser Bearsley

TITLE
CFO & Company Secretary
COMPENSATION
A$296K
TENURE
1.8 yrs

Danny Gorog

TITLE
Executive Director of Customer Technology & Marketing
TENURE
2 yrs

Sam Cavanagh

TITLE
Chief Brand
TENURE
0.5 yrs

Garth Jones

TITLE
Head of Managed Services

Anne Jordan

TITLE
Company Secretary
TENURE
0.9 yrs

Eytan Lenko

TITLE
Executive Director of Mobile Practice

Justin Parcell

TITLE
Executive Director of Data & Analytics Practice

Steve McCormick

TITLE
Executive Director of Cloud Practice

Tristan Sternson

TITLE
Executive Director of Customer Solutions
Board of Directors Tenure

Average tenure of the Arq Group board of directors in years:

3.6
Average Tenure
  • The tenure for the Arq Group board of directors is about average.
Board of Directors

Andrew Reitzer

TITLE
Non-Executive Chairman
COMPENSATION
A$81K
AGE
64
TENURE
0.9 yrs

Martin Mercer

TITLE
MD, CEO & Director
COMPENSATION
A$925K
TENURE
5.3 yrs

Andrew Macpherson

TITLE
Non-Executive Director
COMPENSATION
A$84K
TENURE
2 yrs

Simon Martin

TITLE
Non-Executive Director
COMPENSATION
A$91K
TENURE
2 yrs

Naseema Sparks

TITLE
Non-Executive Director
COMPENSATION
A$95K
AGE
66
TENURE
7.3 yrs

Larry Bloch

TITLE
Non-Executive Director
COMPENSATION
A$84K
TENURE
5.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
X
Management checks
We assess Arq Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Arq Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ARQ News

Simply Wall St News

We Think Arq Group (ASX:ARQ) In Taking Some Risk With Its Debt

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … The first thing to do when considering how much debt a business uses is to look at its cash and debt together. … Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it.

Simply Wall St -

How Financially Strong Is Arq Group Limited (ASX:ARQ)?

At this current level of debt, ARQ currently has AU$8.3m remaining in cash and short-term investments , ready to be used for running the business. … Additionally, ARQ has generated AU$18m in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 24%, signalling that ARQ’s debt is appropriately covered by operating cash. … At the current liabilities level of AU$75m, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.08x.

Simply Wall St -

Have Insiders Been Selling ARQ Group Limited (ASX:ARQ) Shares?

So we'll take a look at whether insiders have been buying or selling shares in ARQ Group Limited (ASX:ARQ). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price.

Simply Wall St -

Did Changing Sentiment Drive ARQ Group's (ASX:ARQ) Share Price Down By 49%?

That downside risk was realized by ARQ Group Limited (ASX:ARQ) shareholders over the last year, as the share price declined 49%. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During the last year ARQ Group saw its earnings per share drop below zero.

Simply Wall St -

Should You Worry About ARQ Group Limited's (ASX:ARQ) CEO Pay?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Martin Mercer's Compensation Compare With Similar Sized Companies. … According to our data, ARQ Group Limited has a market capitalization of AU$248m, and pays its CEO total annual compensation worth AU$1.2m.

Simply Wall St -

Is ARQ Group Limited (ASX:ARQ) A Top Dividend Stock?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Historically, ARQ Group Limited (ASX:ARQ) has paid a dividend to shareholders. … Let's dig deeper into whether ARQ Group should have a place in your portfolio.

Simply Wall St -

Should ARQ Group Limited (ASX:ARQ) Be Your Next Stock Pick?

Help shape the future of investing tools and you could win a $250 gift card! … ARQ Group Limited (ASX:ARQ) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective.

Simply Wall St -

Should We Be Cautious About ARQ Group Limited's (ASX:ARQ) ROE Of 2.3%?

This article is for those who would like to learn about Return On Equity (ROE). … Another way to think of that is that for every A$1 worth of equity in the company, it was able to earn A$0.023. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is ARQ Group Limited's (ASX:ARQ) Balance Sheet Strong Enough To Weather A Storm?

ARQ Group Limited (ASX:ARQ) is a small-cap stock with a market capitalization of AU$236m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Need To Know: ARQ Group Limited (ASX:ARQ) Insiders Have Been Selling Shares

So shareholders might well want to know whether insiders have been buying or selling shares in ARQ Group Limited (ASX:ARQ). … ARQ Group Insider Transactions Over The Last Year. … Over the last year, we can see that insiders have bought 59.19k shares worth AU$184k

Simply Wall St -

ARQ Company Info

Description

ARQ Group Limited, together with its subsidiaries, provides digital solutions worldwide. It operates through SMB Solutions and Enterprise segments. The SMB Solutions segment provides domain name registrations and renewals, Website and email hosting, and analysis, as well as Website development services. This segment also offers digital marketing solutions, such as search engine optimization, search engine advertising, and Web design services for small and medium businesses. The Enterprise segment provides cloud professional and managed services; mobile application development; and data and analytics software and professional services to Australian enterprises and government organizations. The company was formerly known as Melbourne IT Limited and changed its name to ARQ Group Limited in May 2018. ARQ Group Limited was founded in 1996 and is based in Sydney, Australia.

Details
Name: Arq Group Limited
ARQ
Exchange: ASX
Founded: 1996
A$80,835,830
118,876,222
Website: http://www.arq.group
Address: Arq Group Limited
680 George Street,
Level 23,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX ARQ Ordinary Shares Australian Securities Exchange AU AUD 22. Dec 1999
Number of employees
Current staff
Staff numbers
689
Arq Group employees.
Industry
Internet Services and Infrastructure
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 10:32
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/01
Last earnings filing: 2019/03/29
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.