ASX:CCG

Stock Analysis Report

CommsChoice Group

Executive Summary

CommsChoice Group Limited engages in the information and communication technology (ICT) business in Australia, New Zealand, and Singapore.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-7.4%

CCG

-2.2%

AU IT

0.4%

AU Market


1 Year Return

-30.0%

CCG

15.5%

AU IT

9.8%

AU Market

Return vs Industry: CCG underperformed the Australian IT industry which returned 15.5% over the past year.

Return vs Market: CCG underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

CCGIndustryMarket
7 Day-7.4%-2.2%0.4%
30 Day8.6%-0.7%-1.3%
90 Day23.5%5.1%-0.5%
1 Year-30.0%-30.0%17.8%15.5%16.1%9.8%
3 Yearn/a51.1%40.1%36.1%17.9%
5 Yearn/a72.9%51.9%49.4%15.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CommsChoice 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: CCG (A$0.06) is trading below our estimate of fair value (A$0.28)

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


Price To Earnings Ratio

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

PE vs Market: CCG 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 CCG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CCG is good value based on its PB Ratio (0.9x) compared to the AU IT industry average (2.1x).


Next Steps

Future Growth

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

147.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CCG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CCG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CCG's revenue (12.7% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: CCG's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CCG's Return on Equity is forecast to be low in 3 years time (2.3%).


Next Steps

Past Performance

How has CommsChoice Group performed over the past 5 years?

-61.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CCG is unprofitable, and losses have increased over the past 5 years at a rate of -61.2% per year.

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

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


Return on Equity

High ROE: CCG has a negative Return on Equity (-206.61%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is CommsChoice Group's financial position?


Financial Position Analysis

Short Term Liabilities: CCG's short term assets (A$3.2M) do not cover its short term liabilities (A$5.4M)

Long Term Liabilities: CCG's short term assets (3.2M) exceeds its long term liabilities (942.7K)


Debt to Equity History and Analysis

Debt Level: CCG is debt free.

Reducing Debt: CCG had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if CCG's debt is covered by short term assets.


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: CCG has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CCG has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

1.59%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage2.6%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate CCG'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 CCG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CCG'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 CCG'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 CommsChoice Group's salary, the management and board of directors tenure and is there insider trading?

0.4yrs

Average management tenure


CEO

Peter McGrath 0

0.5yrs

Tenure

AU$85,471

Compensation

Mr. Peter J. McGrath serves as Chief Executive Officer at CommsChoice Group since April 23, 2019 and had been its Interim Chief Executive Officer since April 18, 2019 until April 23, 2019 and serves as its ...


CEO Compensation Analysis

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

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


Management Age and Tenure

0.4yrs

Average Tenure

Experienced Management: CCG's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

Experienced Board: CCG's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: CCG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$30,00003 Oct 19
Peter McGrath
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares500,000
Max PriceAU$0.06
BuyAU$42,00024 Sep 19
Peter McGrath
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares700,000
Max PriceAU$0.06
BuyAU$9,81006 Sep 19
Peter McGrath
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares215,610
Max PriceAU$0.045
BuyAU$20,00023 Aug 19
John Mackay
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares500,000
Max PriceAU$0.04
BuyAU$99,99823 Aug 19
Benjamen Jennings
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,500,000
Max PriceAU$0.04
BuyAU$723,98830 Jul 19
Greig & Harrison Pty Ltd.
EntityCompany
Shares18,100,000
Max PriceAU$0.04
BuyAU$299,99529 Jul 19
Peter McGrath
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares7,500,000
Max PriceAU$0.04

Ownership Breakdown


Management Team

  • Peter McGrath

    CEO, MD & Executive Director

    • Tenure: 0.5yrs
    • Compensation: AU$85.47k
  • Patrick Harsas

    Executive Officer

    • Tenure: 0yrs
    • Compensation: AU$184.30k
  • Grant J. Ellison

    GM of Business Development & Executive Director

    • Tenure: 2yrs
    • Compensation: AU$126.25k
  • Andrew Metcalfe

    Company Secretary

    • Tenure: 2yrs
  • Steven Cherry

    Executive General Manager of Business Sales & Customer Operations

    • Tenure: 0.3yrs
  • Matthew Beale

    Interim Chief Financial Officer

    • Tenure: 0.2yrs

Board Members

  • John Mackay (68yo)

    Independent Non-Executive Chairman

    • Tenure: 2yrs
    • Compensation: AU$49.95k
  • Peter McGrath

    CEO, MD & Executive Director

    • Tenure: 0.5yrs
    • Compensation: AU$85.47k
  • Ben Jennings

    Non-Executive Director

    • Tenure: 2yrs
  • Grant J. Ellison

    GM of Business Development & Executive Director

    • Tenure: 2yrs
    • Compensation: AU$126.25k
  • Claire Bibby

    Independent Non-Executive Director

    • Tenure: 0.08yrs

Company Information

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


Key Information

  • Name: CommsChoice Group Limited
  • Ticker: CCG
  • Exchange: ASX
  • Founded: 2017
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: AU$12.098m
  • Shares outstanding: 192.03m
  • Website: https://www.commschoice.com

Number of Employees


Location

  • CommsChoice Group Limited
  • 56 Clarence Street
  • Level 6
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2017
CCGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2017

Biography

CommsChoice Group Limited engages in the information and communication technology (ICT) business in Australia, New Zealand, and Singapore. The company provides hosted voice, data, enterprise networks, and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:41
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.