ASX:CNW

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Cirrus Networks Holdings

Executive Summary

Cirrus Networks Holdings Limited, together with its subsidiaries, provides information technology (IT) services and related third-party products in Australia.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

Share Price & News

How has Cirrus Networks Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.3%

CNW

4.5%

AU IT

4.2%

AU Market


1 Year Return

-42.1%

CNW

26.7%

AU IT

-7.3%

AU Market

Return vs Industry: CNW underperformed the Australian IT industry which returned 28% over the past year.

Return vs Market: CNW underperformed the Australian Market which returned -7% over the past year.


Shareholder returns

CNWIndustryMarket
7 Day-4.3%4.5%4.2%
30 Day4.8%17.7%12.6%
90 Day-8.3%25.5%-2.5%
1 Year-42.1%-42.1%28.6%26.7%-3.5%-7.3%
3 Year22.2%22.2%44.6%33.8%18.6%3.0%
5 Yearn/a121.1%96.0%33.4%4.6%

Price Volatility Vs. Market

How volatile is Cirrus Networks Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cirrus Networks Holdings undervalued compared to its fair value and its price relative to the market?

49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CNW's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CNW's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CNW is poor value based on its PE Ratio (49x) compared to the IT industry average (25.9x).

PE vs Market: CNW is poor value based on its PE Ratio (49x) compared to the Australian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: CNW is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: CNW is good value based on its PB Ratio (1.7x) compared to the AU IT industry average (2.2x).


Next Steps

Future Growth

How is Cirrus Networks Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

100.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNW's forecast earnings growth (100.8% per year) is above the savings rate (2.3%).

Earnings vs Market: CNW's earnings (100.8% per year) are forecast to grow faster than the Australian market (15% per year).

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

Revenue vs Market: CNW's revenue (10.4% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: CNW'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: Insufficient data to determine if CNW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Cirrus Networks Holdings performed over the past 5 years?

70.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNW has a large one-off loss of A$128.1K impacting its December 31 2019 financial results.

Growing Profit Margin: CNW's current net profit margins (0.4%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: CNW has become profitable over the past 5 years, growing earnings by 70.9% per year.

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

Earnings vs Industry: CNW had negative earnings growth (-88.2%) over the past year, making it difficult to compare to the IT industry average (-0.3%).


Return on Equity

High ROE: CNW's Return on Equity (3.5%) is considered low.


Next Steps

Financial Health

How is Cirrus Networks Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CNW's short term assets (A$17.7M) do not cover its short term liabilities (A$18.8M).

Long Term Liabilities: CNW's short term assets (A$17.7M) exceed its long term liabilities (A$1.9M).


Debt to Equity History and Analysis

Debt Level: CNW's debt to equity ratio (8.9%) is considered satisfactory.

Reducing Debt: CNW had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: CNW's debt is well covered by operating cash flow (33.3%).

Interest Coverage: CNW's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Cirrus Networks Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CNW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CNW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CNW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CNW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CNW's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

4.9yrs

Average board tenure


CEO

Matt Sullivan

no data

Tenure

AU$352,141

Compensation

Mr. Matthew Leon Sullivan, also known as Matt, has been the Chief Executive Officer and Executive Director at Cirrus Networks Holdings Limited since December 21, 2016 and March, 2016 respectively. Mr. Sull ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD246.01K) is about average for companies of similar size in the Australian market ($USD261.07K).

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


Board Members

NamePositionTenureCompensationOwnership
Matthew Sullivan
CEO, MD & Executive Directorno dataAU$352.14k5.46% A$1.1m
Andrew Milner
Independent Non-Executive Chairman4.92yrsAU$75.18k5.02% A$975.1k
Daniel Rohr
Independent Non-Executive Director4.92yrsno data0.87% A$168.9k
Paul Everingham
Independent Non-Executive Director1.92yrsAU$44.37k2% A$388.1k

4.9yrs

Average Tenure

Experienced Board: CNW's board of directors are 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

Cirrus Networks Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cirrus Networks Holdings Limited
  • Ticker: CNW
  • Exchange: ASX
  • Founded: 2003
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: AU$19.434m
  • Shares outstanding: 883.38m
  • Website: https://www.cirrusnetworks.com.au

Location

  • Cirrus Networks Holdings Limited
  • Arcadia Chambers
  • Level 3
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNWASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2015
CNWCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2015
LG4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2015

Biography

Cirrus Networks Holdings Limited, together with its subsidiaries, provides information technology (IT) services and related third-party products in Australia. The company offers business and technology consulting services; and integration services, such as connectivity and communications, data center, collaboration, infrastructure security, and project management services. It also provides managed and infrastructure services. Cirrus Networks Holdings Limited was founded in 2003 and is headquartered in Subiaco, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 11:05
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
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.