Class Limited develops and distributes cloud-based accounting, investment reporting, document and corporate compliance, and administration software for accountants, administrators, and advisers in Australia.
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$2.98|
|52 Week High||AU$1.41|
|52 Week Low||AU$3.06|
|1 Month Change||65.56%|
|3 Month Change||76.85%|
|1 Year Change||36.70%|
|3 Year Change||37.96%|
|5 Year Change||-14.12%|
|Change since IPO||111.35%|
Recent News & Updates
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...
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...
|CL1||AU Software||AU Market|
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.
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
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
|CL1 fundamental statistics|
Is CL1 overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CL1 income statement (TTM)|
|Cost of Revenue||AU$24.01m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.03|
|Net Profit Margin||6.69%|
How did CL1 perform over the long term?See historical performance and comparison
1.7%Current Dividend Yield
Is Class undervalued compared to its fair value and its price relative to the market?
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).
How is Class forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
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%).
How has Class performed over the past 5 years?
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.
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$28.9M).
Debt to Equity History and Analysis
Debt Level: CL1's debt to equity ratio (48.4%) is considered high.
Reducing Debt: Insufficient data to determine if CL1's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: CL1's debt is well covered by operating cash flow (94.2%).
Interest Coverage: CL1's interest payments on its debt are well covered by EBIT (23.2x coverage).
What is Class's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CL1's dividend (1.68%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.27%).
High Dividend: CL1's dividend (1.68%) is low compared to the top 25% of dividend payers in the Australian market (5.33%).
Stability and Growth of Payments
Stable Dividend: CL1 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: CL1's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (168.2%), CL1's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CL1's dividends in 3 years are forecast to be covered by earnings (56.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Andrew J. Russell serves as Managing Director, Chief Executive Officer and Director of Class Limited since May 14, 2019. He served as a General Manager of Product and Distribution at Mortgage Choice Lt...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($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.
Experienced Management: CL1's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Experienced Board: CL1's board of directors are considered experienced (4.5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Class Limited's employee growth, exchange listings and data sources
- 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
- Class Limited
- 580 George Street
- Level 20
- New South Wales
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/20 07:02|
|End of Day Share Price||2021/10/20 00:00|
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.