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CL1

ClassASX:CL1 Stock Report

Market Cap

AU$369.8m

7D

66.5%

1Y

36.7%

Updated

20 Oct, 2021

Data

Company Financials +
CL1 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance0/6
Financial Health3/6
Dividends1/6

CL1 Overview

Class Limited develops and distributes cloud-based accounting, investment reporting, document and corporate compliance, and administration software for accountants, administrators, and advisers in Australia.

Class Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Class
Historical stock prices
Current Share PriceAU$2.98
52 Week HighAU$1.41
52 Week LowAU$3.06
Beta1.38
1 Month Change65.56%
3 Month Change76.85%
1 Year Change36.70%
3 Year Change37.96%
5 Year Change-14.12%
Change since IPO111.35%

Recent News & Updates

Oct 18
Is Class Limited (ASX:CL1) Potentially Undervalued?

Is Class Limited (ASX:CL1) Potentially Undervalued?

Class Limited ( ASX:CL1 ), is not the largest company out there, but it received a lot of attention from a substantial...

Aug 20
Class Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Class Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The full-year results for Class Limited ( ASX:CL1 ) were released last week, making it a good time to revisit its...

Shareholder Returns

CL1AU SoftwareAU Market
7D66.5%5.5%1.7%
1Y36.7%25.0%20.2%

Return vs Industry: CL1 exceeded the Australian Software industry which returned 25% over the past year.

Return vs Market: CL1 exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is CL1's price volatile compared to industry and market?
CL1 volatility
CL1 Beta1.38
Industry Beta0.84
Market Beta1

Stable Share Price: CL1 is more volatile than 90% of Australian stocks over the past 3 months, typically moving +/- 18% a week.

Volatility Over Time: CL1's weekly volatility has increased from 11% to 18% over the past year.

About the Company

FoundedEmployeesCEOWebsite
2005n/aAndrew Russellhttps://www.class.com.au

Class Limited develops and distributes cloud-based accounting, investment reporting, document and corporate compliance, and administration software for accountants, administrators, and advisers in Australia. The company offers Class Super, a cloud based self-managed super fund administration solution; Class Trust, a cloud solution to simplify and automate trust accounting and administration; Class Portfolio, a cloud software solution for streamlining investment portfolio accounting, administration, and reporting for companies, trusts, and individuals; and NowInfinity, a cloud-based legal documents and entity management solution. Class Limited was incorporated in 2005 and is based in Sydney, Australia.

Class Fundamentals Summary

How do Class's earnings and revenue compare to its market cap?
CL1 fundamental statistics
Market CapAU$369.83m
Earnings (TTM)AU$3.67m
Revenue (TTM)AU$54.78m

100.9x

P/E Ratio

6.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CL1 income statement (TTM)
RevenueAU$54.78m
Cost of RevenueAU$24.01m
Gross ProfitAU$30.78m
ExpensesAU$27.11m
EarningsAU$3.67m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.03
Gross Margin56.18%
Net Profit Margin6.69%
Debt/Equity Ratio48.4%

How did CL1 perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

168%

Payout Ratio

Valuation

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

17.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CL1 (A$2.98) is trading below our estimate of fair value (A$3.63)

Significantly Below Fair Value: CL1 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CL1 is poor value based on its PE Ratio (100.9x) compared to the Australian Software industry average (45.1x).

PE vs Market: CL1 is poor value based on its PE Ratio (100.9x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: CL1 is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: CL1 is overvalued based on its PB Ratio (8.9x) compared to the AU Software industry average (5.2x).


Future Growth

How is Class forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

27.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CL1's forecast earnings growth (27.4% per year) is above the savings rate (1.9%).

Earnings vs Market: CL1's earnings (27.4% per year) are forecast to grow faster than the Australian market (11.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CL1's revenue (10.4% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: CL1's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CL1's Return on Equity is forecast to be low in 3 years time (18.5%).


Past Performance

How has Class performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CL1 has a large one-off loss of A$4.0M impacting its June 30 2021 financial results.

Growing Profit Margin: CL1's current net profit margins (6.7%) are lower than last year (15.6%).


Past Earnings Growth Analysis

Earnings Trend: CL1's earnings have declined by 2.6% per year over the past 5 years.

Accelerating Growth: CL1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CL1 had negative earnings growth (-46.4%) over the past year, making it difficult to compare to the Software industry average (37.5%).


Return on Equity

High ROE: CL1's Return on Equity (8.8%) is considered low.


Financial Health

How is Class's financial position?


Financial Position Analysis

Short Term Liabilities: CL1's short term assets (A$19.1M) exceed its short term liabilities (A$17.1M).

Long Term Liabilities: CL1's short term assets (A$19.1M) do not cover its long term liabilities (A$28.9M).


Debt to Equity History and Analysis

Debt Level: CL1's debt to equity ratio (48.4%) is considered high.

Reducing Debt: Insufficient data to determine if CL1's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CL1's debt is well covered by operating cash flow (94.2%).

Interest Coverage: CL1's interest payments on its debt are well covered by EBIT (23.2x coverage).


Balance Sheet


Dividend

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

1.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CL1's dividend (1.68%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: CL1's dividend (1.68%) is low compared to the top 25% of dividend payers in the Australian market (5.33%).


Stability and Growth of Payments

Stable Dividend: CL1 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CL1's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (168.2%), CL1's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CL1's dividends in 3 years are forecast to be covered by earnings (56.4% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Andrew Russell

2.42yrs

Tenure

AU$1,071,682

Compensation

Mr. Andrew J. Russell serves as Managing Director, Chief Executive Officer and Director of Class Limited since May 14, 2019. He served as a General Manager of Product and Distribution at Mortgage Choice Lt...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD801.26K) is above average for companies of similar size in the Australian market ($USD547.68K).

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


Leadership Team

Experienced Management: CL1's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: CL1's board of directors are considered experienced (4.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CL1 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

Class Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Class Limited
  • Ticker: CL1
  • Exchange: ASX
  • Founded: 2005
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$369.828m
  • Shares outstanding: 124.10m
  • Website: https://www.class.com.au

Number of Employees


Location

  • Class Limited
  • 580 George Street
  • Level 20
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 07:02
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.