ASX:CGO

Stock Analysis Report

Executive Summary

CPT Global Limited, together with its subsidiaries, provides information technology (IT) consultancy services for federal and state government, banking and finance, insurance, telecommunications, and retail and manufacturing sectors in Australia, Europe, North America, and South America.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has CPT Global's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CGO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.1%

CGO

-1.6%

AU IT

0.02%

AU Market


1 Year Return

44.4%

CGO

31.5%

AU IT

14.6%

AU Market

Return vs Industry: CGO exceeded the Australian IT industry which returned 31.5% over the past year.

Return vs Market: CGO exceeded the Australian Market which returned 14.6% over the past year.


Shareholder returns

CGOIndustryMarket
7 Day6.1%-1.6%0.02%
30 Day6.1%1.3%0.2%
90 Day33.3%11.9%5.7%
1 Year50.9%44.4%33.7%31.5%19.7%14.6%
3 Year83.2%73.3%62.5%49.8%38.7%20.2%
5 Year-51.8%-54.4%113.0%87.8%50.6%17.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CPT Global undervalued compared to its fair value and its price relative to the market?

9.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CGO (A$0.26) is trading above our estimate of fair value (A$0.04)

Significantly Below Fair Value: CGO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CGO is good value based on its PE Ratio (9.9x) compared to the IT industry average (22x).

PE vs Market: CGO is good value based on its PE Ratio (9.9x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CGO is good value based on its PB Ratio (1.5x) compared to the AU IT industry average (2.5x).


Next Steps

Future Growth

How is CPT Global forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

35.2%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as CPT Global has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has CPT Global performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGO has high quality earnings.

Growing Profit Margin: CGO's current net profit margins (3.5%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: CGO has become profitable over the past 5 years, growing earnings by 27.7% per year.

Accelerating Growth: CGO's earnings growth over the past year (27.2%) is below its 5-year average (27.7% per year).

Earnings vs Industry: CGO earnings growth over the past year (27.2%) underperformed the IT industry 27.7%.


Return on Equity

High ROE: CGO's Return on Equity (15.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CPT Global's financial position?


Financial Position Analysis

Short Term Liabilities: CGO's short term assets (A$7.4M) exceed its short term liabilities (A$6.3M).

Long Term Liabilities: CGO's short term assets (A$7.4M) exceed its long term liabilities (A$157.0K).


Debt to Equity History and Analysis

Debt Level: CGO's debt to equity ratio (6.5%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: CGO's debt is covered by short term assets (assets are 17.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CGO is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: CGO is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is CPT Global's current dividend yield, its reliability and sustainability?

3.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CGO's dividend (3.85%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: CGO's dividend (3.85%) is low compared to the top 25% of dividend payers in the Australian market (5.35%).


Stability and Growth of Payments

Stable Dividend: CGO's dividend payments have been volatile in the past 10 years.

Growing Dividend: CGO's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.6%), CGO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Gerry Tuddenham (68yo)

15.3yrs

Tenure

AU$425,513

Compensation

Mr. Gerard Francis Tuddenham, also known as Gerry, founded CPT Global Limited in 1993 and has been its Managing Director since November 9, 2004. Mr. Tuddenham served as Interim Company Secretary of CPT Glo ...


CEO Compensation Analysis

Compensation vs Market: Gerry's total compensation ($USD282.34K) is about average for companies of similar size in the Australian market ($USD251.50K).

Compensation vs Earnings: Gerry's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gerard Tuddenham
Founder15.3yrsAU$425.51k29.72% A$3.0m
Grant Sincock
CFO & Company Secretary4.7yrsAU$311.51k0.50% A$49.8k
Luke Tuddenham
President of North America1.6yrsAU$1.03m2.27% A$225.9k
Ben Tuddenham
Head of People Operations0yrsno data1.73% A$172.5k
Catherine Lockstone
Global Head of Delivery & Operations5.1yrsno datano data
Michael Lazorik
General Manager of Cpt Global Inc. (USA)0yrsAU$191.39k0.78% A$78.0k
Kevin Akom
General Manager of Strategic Client Relationships0yrsAU$309.18k1.48% A$146.9k

4.9yrs

Average Tenure

Experienced Management: CGO's management team is considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CPT Global Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CPT Global Limited
  • Ticker: CGO
  • Exchange: ASX
  • Founded: 1993
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: AU$9.955m
  • Shares outstanding: 38.29m
  • Website: https://www.cptglobal.com

Number of Employees


Location

  • CPT Global Limited
  • 818 Bourke Street
  • Level 3
  • Docklands
  • Victoria
  • 3008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CGOASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 2000
CGOCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 2000

Biography

CPT Global Limited, together with its subsidiaries, provides information technology (IT) consultancy services for federal and state government, banking and finance, insurance, telecommunications, and retail and manufacturing sectors in Australia, Europe, North America, and South America. The company offers digital consulting, capacity planning, cost reduction, mainframe and midrange performance, project and program management, technical support, and management IT services, as well as management, functional, and automation testing services. It also provides agile delivery, project management, application migration and remediation, and DevOps and release automation services; and enterprise testing, data virtualization and masking, test automation, command center and critical incident management, capacity planning, service availability management, monitoring and metrics, risk assessment and frameworks, and business continuity and disaster recovery services. In addition, the company offers performance engineering, solution architecture, mainframe optimization, midrange optimization, performance tuning, cloud strategy and maturity, and cloud migration services; and strategy and governance, project services, capability assessment and uplift, and code analytics services. Further, it offers storage optimization, digital product design, and innovation management services; and digital strategy, digital transformation, robotic process automation, workforce analytics and optimization, analytics and insights, artificial intelligence, and big data services. CPT Global Limited was founded in 1993 and is headquartered in Docklands, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 10:33
End of Day Share Price2020/02/21 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.