Executive Summary
ARQ Group Limited, together with its subsidiaries, provides digital solutions worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential and fair value.
Similar Companies
Share Price & News
How has Arq Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ARQ's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
1.3%
ARQ
-1.8%
AU IT
-0.07%
AU Market
1 Year Return
-79.7%
ARQ
29.9%
AU IT
19.1%
AU Market
Return vs Industry: ARQ underperformed the Australian IT industry which returned 29.9% over the past year.
Return vs Market: ARQ underperformed the Australian Market which returned 19.1% over the past year.
Shareholder returns
| ARQ | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.3% | -1.8% | -0.07% |
| 30 Day | -13.2% | 4.6% | -0.6% |
| 90 Day | -28.2% | 1.2% | 0.4% |
| 1 Year | -79.3%-79.7% | 32.5%29.9% | 25.0%19.1% |
| 3 Year | -77.3%-79.8% | 58.2%46.1% | 36.0%17.4% |
| 5 Year | -65.3%-71.1% | 93.8%70.0% | 63.2%26.5% |
Price Volatility Vs. Market
How volatile is Arq Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Imagine Owning Arq Group (ASX:ARQ) And Trying To Stomach The 81% Share Price Drop1 month ago | Simply Wall St
Is Arq Group (ASX:ARQ) A Risky Investment?2 months ago | Simply Wall St
Insider Buying: The Arq Group Limited (ASX:ARQ) Non-Executive Director Just Bought AU$113k Worth Of SharesValuation
Is Arq Group 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: ARQ (A$0.4) is trading below our estimate of fair value (A$1.48)
Significantly Below Fair Value: ARQ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ARQ is unprofitable, so we can't compare its PE Ratio to the IT industry average.
PE vs Market: ARQ is unprofitable, so we can't compare its PE Ratio to the Australian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ARQ's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ARQ is good value based on its PB Ratio (0.3x) compared to the AU IT industry average (2.5x).
Next Steps
Future Growth
How is Arq Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
120.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARQ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).
Earnings vs Market: ARQ is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: ARQ's is expected to become profitable in the next 3 years.
Revenue vs Market: ARQ's revenue (5.8% per year) is forecast to grow faster than the Australian market (3.6% per year).
High Growth Revenue: ARQ's revenue (5.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ARQ's Return on Equity is forecast to be low in 3 years time (3.3%).
Next Steps
Past Performance
How has Arq Group performed over the past 5 years?
4.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARQ is currently unprofitable.
Growing Profit Margin: ARQ is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ARQ is unprofitable, but has reduced losses over the past 5 years at a rate of 4.4% per year.
Accelerating Growth: Unable to compare ARQ's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ARQ is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (60.9%).
Return on Equity
High ROE: ARQ has a negative Return on Equity (-0.18%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Arq Group's financial position?
Financial Position Analysis
Short Term Liabilities: ARQ's short term assets (A$81.8M) exceed its short term liabilities (A$75.8M).
Long Term Liabilities: ARQ's short term assets (A$81.8M) do not cover its long term liabilities (A$119.0M).
Debt to Equity History and Analysis
Debt Level: ARQ's debt to equity ratio (49.8%) is considered high.
Reducing Debt: ARQ's debt to equity ratio has increased from 0% to 49.8% over the past 5 years.
Debt Coverage: ARQ's debt is not well covered by operating cash flow (6.9%).
Interest Coverage: ARQ is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Inventory Level: ARQ has a low level of unsold assets or inventory.
Debt Coverage by Assets: ARQ's debt is covered by short term assets (assets are 1x debt).
Next Steps
Dividend
What is Arq Group's current dividend yield, its reliability and sustainability?
4.77%
Forecast Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate ARQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate ARQ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ARQ's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ARQ's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: ARQ is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ARQ'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 Arq Group's salary, the management and board of directors tenure and is there insider trading?
1.1yrs
Average management tenure
CEO
Tristan Sternson 0
0.3yrs
Tenure
Mr. Tristan Sternson serves as Interim Chief Executive Officer at Arq Group Limited (previously known as Melbourne IT Limited) since September 23, 2019 and also serves as its Executive Director of Customer ...
Management Age and Tenure
1.1yrs
Average Tenure
Experienced Management: ARQ's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Age and Tenure
2.4yrs
Average Tenure
Experienced Board: ARQ's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: ARQ insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 133,340 |
| Max Price | AU$0.39 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 300,000 |
| Max Price | AU$0.38 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 155,963 |
| Max Price | AU$0.38 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 23,144 |
| Max Price | AU$0.56 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 16,447 |
| Max Price | AU$1.52 |
| Entity | Individual |
| Role | Chairman of the Board Non-Executive Chairman |
| Shares | 95,660 |
| Max Price | AU$1.65 |
| Entity | Individual |
| Role | Chairman of the Board Non-Executive Chairman |
| Shares | 26,840 |
| Max Price | AU$1.65 |
| Entity | Individual |
| Shares | 190,941 |
| Max Price | AU$1.75 |
| Entity | Individual |
| Shares | 190,941 |
| Max Price | AU$1.75 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Tristan Sternson
Interim CEO & Executive Director of Customer Solutions
- Tenure: 0.3yrs
Fraser Bearsley
CFO & Company Secretary
- Tenure: 2.2yrs
- Compensation: AU$295.56k
Eytan Lenko
Executive Director of Mobile Practice
- Tenure: 0yrs
Steve McCormick
Executive Director of Cloud Practice
- Tenure: 0yrs
Garth Jones
Head of Managed Services
- Tenure: 0yrs
Gideon Kowadlo
Executive Director of Innovation
- Tenure: 2.4yrs
Anne Jordan
Company Secretary
- Tenure: 1.3yrs
Sam Cavanagh
Chief People & Culture Officer
- Tenure: 0.9yrs
Annie Mackin
Chief Marketing Officer
- Tenure: 0.3yrs
Board Members
Karl Peter Siegling
Non-Executive Director
- Tenure: 0.3yrs
Andrew Reitzer (64yo)
Non-Executive Chairman
- Tenure: 1.3yrs
- Compensation: AU$80.67k
Naseema Sparks (66yo)
Non-Executive Director
- Tenure: 7.7yrs
- Compensation: AU$95.13k
Simon Martin
Non-Executive Director
- Tenure: 2.4yrs
- Compensation: AU$90.57k
Larry Bloch
Non-Executive Director
- Tenure: 5.7yrs
- Compensation: AU$84.18k
Andrew Macpherson
Non-Executive Director
- Tenure: 2.4yrs
- Compensation: AU$84.18k
Company Information
Arq Group Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Arq Group Limited
- Ticker: ARQ
- Exchange: ASX
- Founded: 1996
- Industry: Internet Services and Infrastructure
- Sector: Software
- Market Cap: AU$48.242m
- Shares outstanding: 122.13m
- Website: https://www.arq.group
Number of Employees
Location
- Arq Group Limited
- 680 George Street
- Level 23
- Sydney
- New South Wales
- 2000
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ARQ | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Dec 1999 |
| MLBE.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Dec 1999 |
| ARQ | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Dec 1999 |
Biography
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 registrati ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/11 10:31 |
| End of Day Share Price | 2019/12/11 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.