ASX:CV1

Stock Analysis Report

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Executive Summary

CV Check Ltd provides personal and professional information screening and verification check services to private and government organizations, employers, and individuals.


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CV1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

22.1%

CV1

3.6%

AU IT

-2.0%

AU Market


1 Year Return

-55.3%

CV1

49.2%

AU IT

-12.1%

AU Market

Return vs Industry: CV1 underperformed the Australian IT industry which returned 49.3% over the past year.

Return vs Market: CV1 underperformed the Australian Market which returned -12.3% over the past year.


Shareholder returns

CV1IndustryMarket
7 Day22.1%3.6%-2.0%
30 Day31.3%18.5%-1.0%
90 Day61.5%80.6%12.0%
1 Year-55.3%-55.3%51.6%49.2%-8.5%-12.1%
3 Year0%0%146.5%131.5%15.2%-0.08%
5 Yearn/a142.8%115.4%28.7%0.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

4.5x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CV1's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CV1's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CV1 is unprofitable, so we can't compare its PE Ratio to the AU IT industry average.

PE vs Market: CV1 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 CV1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CV1 is overvalued based on its PB Ratio (4.5x) compared to the AU IT industry average (2.3x).


Next Steps

Future Growth

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

44.4%

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 CV Check 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 CV Check performed over the past 5 years?

37.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CV1 is currently unprofitable.

Growing Profit Margin: CV1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CV1 is unprofitable, but has reduced losses over the past 5 years at a rate of 37.6% per year.

Accelerating Growth: Unable to compare CV1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CV1 is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (-0.3%).


Return on Equity

High ROE: CV1 has a negative Return on Equity (-17.72%), as it is currently unprofitable.


Next Steps

Financial Health

How is CV Check's financial position?


Financial Position Analysis

Short Term Liabilities: CV1's short term assets (A$7.3M) exceed its short term liabilities (A$3.9M).

Long Term Liabilities: CV1's short term assets (A$7.3M) exceed its long term liabilities (A$205.7K).


Debt to Equity History and Analysis

Debt Level: CV1 is debt free.

Reducing Debt: CV1 has no debt compared to 5 years ago when its debt to equity ratio was 3.4%.


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: CV1 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: CV1 has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 26.5% each year


Next Steps

Dividend

What is CV Check current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CV1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CV1'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 CV1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CV1'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 CV1'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?

3.7yrs

Average management tenure


CEO

Rod Sherwood

3.67yrs

Tenure

AU$360,522

Compensation

Mr. Rodney Cameron Sherwood, also known as Rod, has been the Chief Executive Officer at CV Check Ltd. since November 2, 2016 and also has been its Chief Financial Officer since 2014 and Executive Director  ...


CEO Compensation Analysis

Compensation vs Market: Rod's total compensation ($USD250.66K) is about average for companies of similar size in the Australian market ($USD262.81K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rodney Sherwood
CEO, CFO & Executive Director3.67yrsAU$360.52k4.93% A$1.5m
Awhina Bishop-Smith
Chief Operations Officer8.08yrsno datano data
Jenny Cutri
Company Secretaryno datano datano data
James Sutherland
Managing Director of Newzealandno datano datano data
Mark Thompson
Chief Revenue Officer0.58yrno datano data

3.7yrs

Average Tenure

Experienced Management: CV1's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rodney Sherwood
CEO, CFO & Executive Director3.67yrsAU$360.52k4.93% A$1.5m
Ivan Gustavino
Independent Non-Executive Chair1.92yrsAU$266.72k0.31% A$96.6k
George Cameron-Dow
Non-Executive Director3.42yrsAU$54.75k0.068% A$21.0k

3.4yrs

Average Tenure

Experienced Board: CV1's board of directors are considered experienced (3.4 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 been diluted in the past year, with total shares outstanding growing by 7%.


Top Shareholders

Company Information

CV Check Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CV Check Ltd
  • Ticker: CV1
  • Exchange: ASX
  • Founded: 2004
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: AU$30.681m
  • Shares outstanding: 292.20m
  • Website: https://cvcheck.com

Location

  • CV Check Ltd
  • The Garden Office Park
  • Building E
  • Osborne Park
  • Western Australia
  • 6017
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CV1ASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 2015
CV1CHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 2015

Biography

CV Check Ltd provides personal and professional information screening and verification check services to private and government organizations, employers, and individuals. The company offers national and international police checks; traffic and license checks; employment and qualification checks, including verification of qualifications, memberships, and employment history; and VEVO visa and work entitlement, traffic, credit, business, and licensing checks, as well as predictive psychometric assessment services. It provides approximately 1000 checks in 190 countries worldwide through its online platform. The company has a strategic alliance with Xref Limited. CV Check Ltd was founded in 2004 and is based in Osborne Park, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/12 10:44
End of Day Share Price2020/07/09 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.