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Citadel Group

ASX:CGL
Snowflake Description

Solid track record with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CGL
ASX
A$213M
Market Cap
  1. Home
  2. AU
  3. Software
Company description

The Citadel Group Limited, a software and services company, provides software and managed services in Australia. The last earnings update was 94 days ago. More info.


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  • Citadel Group has significant price volatility in the past 3 months.
CGL Share Price and Events
7 Day Returns
-37.3%
ASX:CGL
-3.5%
AU IT
3.5%
AU Market
1 Year Returns
-33%
ASX:CGL
22.8%
AU IT
5.6%
AU Market
CGL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Citadel Group (CGL) -37.3% -38.7% -36% -33% 5.9% -
AU IT -3.5% 0.6% 8.6% 22.8% 45.6% 43.9%
AU Market 3.5% 3.6% 5.5% 5.6% 20.1% 9.4%
1 Year Return vs Industry and Market
  • CGL underperformed the IT industry which returned 22.8% over the past year.
  • CGL underperformed the Market in Australia which returned 5.6% over the past year.
Price Volatility
CGL
Industry
5yr Volatility vs Market

CGL Value

 Is Citadel 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 Citadel 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 Citadel Group.

ASX:CGL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
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:CGL
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 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.05 (1 + (1- 30%) (7.31%))
1.069
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.069 * 5.96%)
8.68%

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

The calculations below outline how an intrinsic value for Citadel 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:CGL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.68%)
2019 7.60 Analyst x1 6.99
2020 10.10 Analyst x1 8.55
2021 13.40 Analyst x1 10.44
2022 13.02 Est @ -2.85% 9.33
2023 12.85 Est @ -1.3% 8.47
2024 12.82 Est @ -0.22% 7.78
2025 12.89 Est @ 0.54% 7.20
2026 13.03 Est @ 1.07% 6.69
2027 13.22 Est @ 1.44% 6.25
2028 13.44 Est @ 1.7% 5.84
Present value of next 10 years cash flows A$77.54
ASX:CGL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$13.44 × (1 + 2.31%) ÷ (8.68% – 2.31%)
A$215.81
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$215.81 ÷ (1 + 8.68%)10
A$93.84
ASX:CGL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$77.54 + A$93.84
A$171.38
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$171.38 / 49.26
A$3.48
ASX:CGL Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$3.48
Current discount Discount to share price of A$4.29
= -1 x (A$4.29 - A$3.48) / A$3.48
-23.3%

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

  • The current share price of Citadel Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Citadel Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Citadel Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:CGL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.33
ASX:CGL Share Price ** ASX (2019-05-23) in AUD A$4.29
Australia IT Industry PE Ratio Median Figure of 16 Publicly-Listed IT Companies 15.58x
Australia Market PE Ratio Median Figure of 542 Publicly-Listed Companies 16.13x

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

** Primary Listing of Citadel Group.

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

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

= 4.29 ÷ 0.33

13.02x

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

  • Citadel Group is good value based on earnings compared to the AU IT industry average.
  • Citadel Group is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Citadel Group's expected growth come at a high price?
Raw Data
ASX:CGL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.02x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
11.6%per year
Australia IT Industry PEG Ratio Median Figure of 12 Publicly-Listed IT Companies 1.13x
Australia Market PEG Ratio Median Figure of 359 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

ASX:CGL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.02x ÷ 11.6%

1.12x

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

  • Citadel Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Citadel Group's assets?
Raw Data
ASX:CGL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.70
ASX:CGL Share Price * ASX (2019-05-23) in AUD A$4.29
Australia IT Industry PB Ratio Median Figure of 32 Publicly-Listed IT Companies 2.53x
Australia Market PB Ratio Median Figure of 1,680 Publicly-Listed Companies 1.65x
ASX:CGL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 4.29 ÷ 1.70

2.53x

* Primary Listing of Citadel Group.

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

  • Citadel Group is good value based on assets compared to the AU IT industry average.
X
Value checks
We assess Citadel 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. Citadel 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.

CGL Future Performance

 How is Citadel Group expected to perform in the next 1 to 3 years based on estimates from 4 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
11.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Citadel Group expected to grow at an attractive rate?
  • Citadel Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Citadel Group's earnings growth is expected to exceed the Australia market average.
  • Citadel Group's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:CGL Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:CGL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 11.6%
ASX:CGL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 8%
Australia IT Industry Earnings Growth Rate Market Cap Weighted Average 29.8%
Australia IT Industry Revenue Growth Rate Market Cap Weighted Average 15.3%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.2%

*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:CGL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:CGL Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 140 36 16 1
2022-06-30 133 41 17 1
2021-06-30 132 29 17 4
2020-06-30 118 22 13 4
2019-06-30 101 14 9 3
ASX:CGL Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 110 21 16
2018-09-30 109 20 16
2018-06-30 107 19 16
2018-03-31 104 14
2017-12-31 102 22 12
2017-09-30 99 21 12
2017-06-30 97 20 11
2017-03-31 86 9
2016-12-31 76 0 7
2016-09-30 75 4 7
2016-06-30 75 9 8
2016-03-31 79 14 9

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Citadel Group's earnings are expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).
  • Citadel Group's revenue is expected to grow by 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:CGL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Citadel Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:CGL Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 0.43 0.43 0.43 1.00
2022-06-30 0.44 0.44 0.44 1.00
2021-06-30 0.35 0.40 0.29 4.00
2020-06-30 0.28 0.37 0.22 4.00
2019-06-30 0.20 0.36 0.13 4.00
ASX:CGL Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.33
2018-09-30 0.33
2018-06-30 0.32
2018-03-31 0.29
2017-12-31 0.26
2017-09-30 0.25
2017-06-30 0.24
2017-03-31 0.19
2016-12-31 0.15
2016-09-30 0.16
2016-06-30 0.17
2016-03-31 0.19

*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.
  • Citadel Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Citadel 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.
Citadel 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.

CGL Past Performance

  How has Citadel 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 Citadel 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.
  • Citadel Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Citadel Group's 1-year earnings growth exceeds its 5-year average (31.7% vs 27.9%)
  • Citadel Group's earnings growth has not exceeded the AU IT industry average in the past year (31.7% vs 50.5%).
Earnings and Revenue History
Citadel 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 Citadel Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:CGL Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 110.12 16.27 28.56
2018-09-30 108.80 16.03 28.57
2018-06-30 107.49 15.79 28.58
2018-03-31 104.02 13.95 27.36
2017-12-31 101.51 12.36 26.13
2017-09-30 99.32 11.89 24.78
2017-06-30 97.13 11.42 23.43
2017-03-31 86.40 9.19 22.15
2016-12-31 75.68 6.97 20.87
2016-09-30 75.28 7.42 19.56
2016-06-30 74.87 7.87 18.25
2016-03-31 79.45 8.82 17.38
2015-12-31 84.03 9.78 16.52
2015-09-30 78.17 8.15 16.15
2015-06-30 72.31 6.53 15.79
2015-03-31 64.90 5.59 14.24
2014-12-31 57.48 4.65 12.68
2014-09-30 53.52 4.39 11.42
2014-06-30 49.56 4.13 10.16
2013-06-30 49.98 3.44 1.63
2012-06-30 53.53 1.69 1.66

*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.
  • Citadel Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Citadel Group used its assets more efficiently than the AU IT industry average last year based on Return on Assets.
  • Citadel Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Citadel 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.
Citadel Group has a total score of 5/6, 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.

CGL Health

 How is Citadel 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 Citadel Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Citadel Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Citadel Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Citadel 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 3.8x 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 Citadel Group Company Filings, last reported 4 months ago.

ASX:CGL Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 84.97 15.60 15.97
2018-09-30 84.97 15.60 15.97
2018-06-30 87.04 17.80 24.91
2018-03-31 87.04 17.80 24.91
2017-12-31 77.91 19.82 19.18
2017-09-30 77.91 19.82 19.18
2017-06-30 75.45 8.86 29.82
2017-03-31 75.45 8.86 29.82
2016-12-31 72.19 10.65 19.34
2016-09-30 72.19 10.65 19.34
2016-06-30 64.56 1.27 34.58
2016-03-31 64.56 1.27 34.58
2015-12-31 60.25 1.21 42.98
2015-09-30 60.25 1.21 42.98
2015-06-30 56.99 3.32 38.77
2015-03-31 56.99 3.32 38.77
2014-12-31 46.54 1.16 34.63
2014-09-30 46.54 1.16 34.63
2014-06-30 25.28 0.54 19.26
2013-06-30 21.58 0.60 13.01
2012-06-30 19.84 2.54 12.28
  • Citadel Group's level of debt (18.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (2.4% vs 18.4% today).
  • Debt is well covered by operating cash flow (136.6%, greater than 20% of total debt).
  • Citadel Group earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Citadel 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. Citadel Group has a total score of 5/6, 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.

CGL Dividends

 What is Citadel 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
3.22%
Current annual income from Citadel Group dividends. Estimated to be 2.95% next year.
If you bought A$2,000 of Citadel Group shares you are expected to receive A$64 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?
  • Citadel Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.56%).
  • Citadel Group's dividend is below the markets top 25% of dividend payers in Australia (5.69%).
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:CGL 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 4 Analyst Estimates (S&P Global) See Below
Australia IT Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.3%
Australia Market Average Dividend Yield Market Cap Weighted Average of 414 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

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

ASX:CGL Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 0.17 1.00
2022-06-30 0.18 1.00
2021-06-30 0.13 4.00
2020-06-30 0.12 3.00
2019-06-30 0.09 3.00
ASX:CGL Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-18 0.138 1.999
2018-08-20 0.138 1.716
2017-08-21 0.160 2.533
2017-02-20 0.096 1.973
2016-08-22 0.096 1.867
2016-02-15 0.096 1.982
2015-08-24 0.058 1.264

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

  • Whilst dividend payments have been stable, Citadel Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Citadel Group only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Citadel Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Citadel Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - 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 Citadel Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Citadel 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.

CGL Management

 What is the CEO of Citadel 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
Darren Stanley
COMPENSATION A$890,918
CEO Bio

Mr. Darren Stanley serves as Chief Executive Officer at The Citadel Group Limited since November 11, 2016. Mr. Stanley served as Chief Operating Officer at The Citadel Group Limited since March 9, 2016 and served as its Deputy Chief Executive Officer since September 21, 2016. Mr. Stanley served as Managing Director of SMS Consulting Australia at SMS Management & Technology Ltd. from July 1, 2013 to April 30, 2015 and served as its Regional Director of North. Mr. Stanley served as Regional Director of QLD at SMS Management & Technology Ltd. He served as Acting Regional Director of Victoria at SMS Management & Technology Ltd. Mr. Stanley was responsible to lead the Mining, Resources and Infrastructure industry within SMS. He served as Director of Mining Resources & Infrastructure of SMS Management & Technology Ltd. Mr. Stanley served as an Industry Director of Sms Management & Technology Ltd. Prior to this appointment, he held the roles of Regional Director NSW, Banking & Finance Industry Director and Senior Consultant for SMS Queensland. He was involved in establishing the UK subsidiary of SMS Management & Technology, he worked for two years in the late 1990s as managing consultant with SMS UK, assisting with development of business opportunities and market presence. He joined SMS in 1997. He has a Master of Business Administration in Technology Management from Deakin University (VIC) and a Bachelor of Science (Honours Degree) from University of New South Wales. He is a member of the Australian Institute of Company Directors.

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

Average tenure of the Citadel Group management team in years:

3.2
Average Tenure
  • The tenure for the Citadel Group management team is about average.
Management Team

Darren Stanley

TITLE
Chief Executive Officer
COMPENSATION
A$891K

Mike Ricketts

TITLE
General Manager of Technology & Integration Division
TENURE
3.7 yrs

Stewart Hollingdrake

TITLE
Head of Sales
TENURE
3.3 yrs

Sonja Butcher

TITLE
Organisational Development Manager
TENURE
3.2 yrs

Joanna Bell

TITLE
Group Manager of Human Resource

Jennifer Miller

TITLE
Head of Product

Spencer Chipperfield

TITLE
Company Secretary
TENURE
0.2 yrs
Board of Directors

Harry McCann

TITLE
Independent Non-Executive Chairman
COMPENSATION
A$145K
AGE
77

Peter Leahy

TITLE
Independent Non-Executive Director
COMPENSATION
A$82K
AGE
65

Anne Templeman-Jones

TITLE
Independent Non-Executive Director
COMPENSATION
A$62K
AGE
56
TENURE
1.7 yrs

Mark McConnell

TITLE
Non-Executive Director
COMPENSATION
A$66K
AGE
46
TENURE
12.3 yrs

Sam Weiss

TITLE
Independent Non-Executive Director
AGE
64
Who owns this company?
Recent Insider Trading
  • Citadel Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
25. Mar 19 Sell Miles Jakeman Individual 20. Mar 19 20. Mar 19 -800,000 A$7.55 A$-6,039,999
26. Dec 18 Buy Standard Life Aberdeen plc Company 27. Sep 18 21. Dec 18 1,803,442 A$9.07 A$14,701,406
21. Sep 18 Sell Mark McConnell Individual 20. Sep 18 20. Sep 18 -626,306 A$7.45 A$-4,665,979
21. Sep 18 Sell Miles Jakeman Individual 20. Sep 18 20. Sep 18 -921,407 A$7.45 A$-6,864,482
X
Management checks
We assess Citadel 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. Citadel 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.

CGL News

Simply Wall St News

Is It Worth Buying The Citadel Group Limited (ASX:CGL) For Its 2.1% Dividend Yield?

Could The Citadel Group Limited (ASX:CGL) be an attractive dividend share to own for the long haul? … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Citadel Group has grown its earnings per share at 26% per annum over the past five years. With high earnings per share growth in recent times and a modest payout ratio, we think this is an attractive combination if earnings can be reinvested to generate further growth. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Why The Citadel Group Limited (ASX:CGL) Could Be Your Next Investment

Help shape the future of investing tools and you could win a $250 gift card! … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company with great financial health as well as a

Simply Wall St -

The Citadel Group Limited (ASX:CGL) Delivered A Better ROE Than Its Industry

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every A$1 worth of equity in the company, it was able to earn A$0.23. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does The Citadel Group Limited's (ASX:CGL) CEO Salary Reflect Performance?

How Does Darren Stanley's Compensation Compare With Similar Sized Companies. … According to our data, The Citadel Group Limited has a market capitalization of AU$360m, and pays its CEO total annual compensation worth AU$891k. … We examined companies with market caps from AU$139m to AU$558m, and discovered that the median CEO total compensation of that group was AU$731k.

Simply Wall St -

The Citadel Group Limited (ASX:CGL): Time For A Financial Health Check

However, an important fact which most ignore is: how financially healthy is the business? … Understanding the company's financial health becomes. … We'll look at some basic checks that can form a snapshot the company’s financial strength.

Simply Wall St -

Read This Before Buying The Citadel Group Limited (ASX:CGL) Shares

So we'll take a look at whether insiders have been buying or selling shares in The Citadel Group Limited (ASX:CGL). … Citadel Group Insider Transactions Over The Last Year. … That means that an insider was selling shares at around the current price of AU$7.39.

Simply Wall St -

What Kind Of Shareholders Own The Citadel Group Limited (ASX:CGL)?

Citadel Group is a smaller company with a market capitalization of AU$380m, so it may still be flying under the radar of many institutional investors. … institutional investors have bought into the company … View our latest analysis for Citadel Group

Simply Wall St -

The Citadel Group Limited (ASX:CGL) Is Employing Capital Very Effectively

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Should Citadel Group Be Disappointed With Their 48% Profit?

The Citadel Group Limited (ASX:CGL) shareholders might be concerned after seeing the share price drop 18% in the last month. … During three years of share price growth, Citadel Group achieved compound earnings per share growth of 15% per year. … We don't think it is entirely coincidental that the EPS growth is reasonably close to the 14% average annual increase in the share price.

Simply Wall St -

Calculating The Fair Value Of The Citadel Group Limited (ASX:CGL)

Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

CGL Company Info

Description

The Citadel Group Limited, a software and services company, provides software and managed services in Australia. It is involved in the development and delivery of managed technology solutions. The company primarily offers term managed services, software-as-a-service, and strategic advisory services. It also provides education, specialist consulting and human resource, technology and integration, knowledge management and advisory, and information and communications technology managed services, as well as oncology patient management software. It serves customers in the e-health, national security/defense, government, and tertiary education sectors. The company is based in Symonston, Australia.

Details
Name: The Citadel Group Limited
CGL
Exchange: ASX
Founded:
A$213,292,535
49,259,246
Website: http://citadelgroup.com.au
Address: The Citadel Group Limited
11 Faulding Street,
Level 1,
Symonston,
Australian Capital Territory, 2609,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX CGL Ordinary Shares Australian Securities Exchange AU AUD 13. Nov 2014
CHIA CGL CL A 8.25 Chi-X Australia AU AUD 31. Mar 2015
Number of employees
Current staff
Staff numbers
0
Citadel Group employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 10:34
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/19
Last earnings filing: 2019/02/18
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


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.