ASX:CRO

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Cirralto Limited develops and commercializes technology assets that enable the modernization of business IT systems through conversion, migration, and management of server based legacy data and systems to the cloud.


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

33.3%

CRO

5.0%

AU IT

4.8%

AU Market


1 Year Return

-60.0%

CRO

21.7%

AU IT

-10.6%

AU Market

Return vs Industry: CRO underperformed the Australian IT industry which returned 21.7% over the past year.

Return vs Market: CRO underperformed the Australian Market which returned -10.6% over the past year.


Shareholder returns

CROIndustryMarket
7 Day33.3%5.0%4.8%
30 Day33.3%26.2%5.5%
90 Day-20.0%15.8%-10.1%
1 Year-60.0%-60.0%23.6%21.7%-7.0%-10.6%
3 Yearn/a41.1%30.5%10.3%-4.3%
5 Yearn/a120.6%95.6%28.3%0.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: CRO is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: CRO is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CRO is good value based on its PB Ratio (1.6x) compared to the AU IT industry average (1.9x).


Next Steps

Future Growth

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

42.8%

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 Cirralto 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 Cirralto performed over the past 5 years?

15.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: CRO is currently unprofitable.

Growing Profit Margin: CRO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if CRO's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare CRO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CRO is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (-0.3%).


Return on Equity

High ROE: CRO has a negative Return on Equity (-304.54%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cirralto's financial position?


Financial Position Analysis

Short Term Liabilities: CRO's short term assets (A$1.2M) do not cover its short term liabilities (A$2.8M).

Long Term Liabilities: CRO has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: CRO's debt to equity ratio (87.4%) is considered high.

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


Balance Sheet


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: CRO has sufficient cash runway for 2 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: CRO is forecast to have sufficient cash runway for 4 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CRO'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 CRO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CRO'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 CRO'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?

3.6yrs

Average board tenure


CEO

Adrian Floate

1.58yrs

Tenure

AU$566,308

Compensation

Mr. Adrian Floate is the Founder of Cirralto. Mr. Floate has been the Managing Director of Cirralto Ltd. since September 2018 and served as its Executive Director of Sales since 2014 to 2017. He served as  ...


CEO Compensation Analysis

Compensation vs Market: Adrian's total compensation ($USD0.00) is below average for companies of similar size in the Australian market ($USD252.51K).

Compensation vs Earnings: Adrian's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Adrian Floate
MD & Executive Director1.58yrsAU$566.31k7.52% A$247.8k
Peter Richards
Independent Chairman2.33yrsAU$48.41k1.69% A$55.7k
Howard Digby
Non-Executive Director0.83yrno data0.081% A$2.7k
Stephen Dale
Non-Executive Director6yrsAU$30.00k0.18% A$6.0k

3.6yrs

Average Tenure

Experienced Board: CRO's board of directors are considered experienced (3.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CRO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Cirralto Limited
  • Ticker: CRO
  • Exchange: ASX
  • Founded:
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: AU$3.293m
  • Shares outstanding: 823.36m
  • Website: https://www.cirralto.com.au

Location

  • Cirralto Limited
  • 1B/205-207 Johnston Street
  • Fitzroy
  • Victoria
  • 3065
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CROASX (Australian Securities Exchange)YesNew Ordinary SharesAUAUDNov 2017
CROCHIA (Chi-X Australia)YesNew Ordinary SharesAUAUDNov 2017

Biography

Cirralto Limited develops and commercializes technology assets that enable the modernization of business IT systems through conversion, migration, and management of server based legacy data and systems to the cloud. The company offers Flash Convert, a migration tool; Synk’d, a solution to synk data across cloud App eco system into accounting and ERP software; and PoolBox, a pool management platform. It enables retailers, not-for-profits, franchise and buying groups, and wholesalers and distributors to migrate data. The company is based in Fitzroy, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 10:58
End of Day Share Price2020/05/29 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.