Class Limited develops and distributes cloud-based accounting, investment reporting, and administration software for accountants, administrators, and advisers in Australia. More Details
Excellent balance sheet with moderate growth potential.
Share Price & News
How has Class's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CL1's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: CL1 exceeded the Australian Software industry which returned 24.1% over the past year.
Return vs Market: CL1 exceeded the Australian Market which returned -5.7% over the past year.
Price Volatility Vs. Market
How volatile is Class's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StClass Limited's (ASX:CL1) Stock's On An Uptrend: Are Strong Financials Guiding The Market?
2 weeks ago | Simply Wall StIs There Now An Opportunity In Class Limited (ASX:CL1)?
1 month ago | Simply Wall StIf You Had Bought Class' (ASX:CL1) Shares Three Years Ago You Would Be Down 44%
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$2.12) is trading below our estimate of fair value (A$2.68)
Significantly Below Fair Value: CL1 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CL1 is poor value based on its PE Ratio (36.9x) compared to the AU Software industry average (34.8x).
PE vs Market: CL1 is poor value based on its PE Ratio (36.9x) compared to the Australian market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: CL1 is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: CL1 is overvalued based on its PB Ratio (6.2x) compared to the AU Software industry average (5.7x).
How is Class forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CL1's forecast earnings growth (14.2% per year) is above the savings rate (2.3%).
Earnings vs Market: CL1's earnings (14.2% per year) are forecast to grow slower than the Australian market (17.5% per year).
High Growth Earnings: CL1's earnings are forecast to grow, but not significantly.
Revenue vs Market: CL1's revenue (11.3% per year) is forecast to grow faster than the Australian market (4.6% per year).
High Growth Revenue: CL1's revenue (11.3% 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 high in 3 years time (21.6%)
How has Class performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CL1 has high quality earnings.
Growing Profit Margin: CL1's current net profit margins (15.6%) are lower than last year (23.4%).
Past Earnings Growth Analysis
Earnings Trend: CL1's earnings have grown by 12.4% 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 (-23.7%) over the past year, making it difficult to compare to the Software industry average (21%).
Return on Equity
High ROE: CL1's Return on Equity (16.4%) is considered low.
How is Class's financial position?
Financial Position Analysis
Short Term Liabilities: CL1's short term assets (A$21.6M) exceed its short term liabilities (A$9.9M).
Long Term Liabilities: CL1's short term assets (A$21.6M) exceed its long term liabilities (A$12.5M).
Debt to Equity History and Analysis
Debt Level: CL1's debt to equity ratio (24%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if CL1's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: CL1's debt is well covered by operating cash flow (173.6%).
Interest Coverage: CL1's interest payments on its debt are well covered by EBIT (513.2x coverage).
What is Class's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CL1's dividend (2.36%) is higher than the bottom 25% of dividend payers in the Australian market (2.15%).
High Dividend: CL1's dividend (2.36%) is low compared to the top 25% of dividend payers in the Australian market (5.51%).
Stability and Growth of Payments
Stable Dividend: CL1 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: CL1's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (87%), CL1's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CL1's dividends in 3 years are forecast to be covered by earnings (59.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Andrew J. Russell serves as Managing Director, Chief Executive Officer and Director of Class Limited since May 14, 2019. He served as a General Manager of Product and Distribution at Mortgage Choice Lt ...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD603.67K) is about average for companies of similar size in the Australian market ($USD516.02K).
Compensation vs Earnings: Insufficient data to compare Andrew's compensation with company performance.
|MD, CEO & Director||1.42yrs||AU$852.02k||0.093% |
|CFO & Company Secretary||no data||AU$385.33k||0.60% |
|Chief Operating Officer||no data||no data||no data|
|Chief Technology Officer||0.58yr||no data||no data|
|Investor Relations Manager & Asst Co. Secretary||no data||no data||no data|
|Chief People Officer||2.75yrs||no data||no data|
|Chief Strategy Officer||1.75yrs||no data||no data|
|Chief Customer Officer||0.25yr||no data||no data|
Experienced Management: CL1's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
|MD, CEO & Director||1.42yrs||AU$852.02k||0.093% |
|Non-Executive Chairman||3.67yrs||AU$142.35k||0.26% |
|Independent Non-Executive Director||0.92yr||no data||0.13% |
|Independent Non-Executive Director||3.5yrs||AU$98.55k||0.12% |
|Independent Non-Executive Director||5.25yrs||AU$98.55k||0.067% |
|Independent Non-Executive Director||0.75yr||no data||0.041% |
Experienced Board: CL1's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
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 been diluted in the past year, with total shares outstanding growing by 6.2%.
Class Limited's company bio, employee growth, exchange listings and data sources
- Name: Class Limited
- Ticker: CL1
- Exchange: ASX
- Founded: 2005
- Industry: Application Software
- Sector: Software
- Market Cap: AU$258.947m
- Shares outstanding: 123.31m
- Website: https://www.class.com.au
Number of Employees
- Class Limited
- 228 Pitt Street
- Level 3
- New South Wales
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CL1||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Dec 2015|
|CL1||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Dec 2015|
|1X6||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Dec 2015|
Class Limited develops and distributes cloud-based accounting, investment reporting, and administration software for accountants, administrators, and advisers in Australia. The company offers Class Super, ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/19 10:34|
|End of Day Share Price||2020/10/19 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.