ASX:DXN

Stock Analysis Report

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Executive Summary

DXN Limited designs, builds, owns, and operates data centers and related infrastructure for communications networks in Australia. More Details


Snowflake Analysis

High growth potential and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

DXN

1.9%

AU IT

-0.4%

AU Market


1 Year Return

-60.0%

DXN

81.8%

AU IT

-7.0%

AU Market

Return vs Industry: DXN underperformed the Australian IT industry which returned 83.8% over the past year.

Return vs Market: DXN underperformed the Australian Market which returned -6.2% over the past year.


Shareholder returns

DXNIndustryMarket
7 Day0%1.9%-0.4%
30 Day-4.3%17.3%4.3%
90 Day-12.0%22.9%4.3%
1 Year-54.0%-60.0%84.3%81.8%-3.8%-7.0%
3 Yearn/a185.1%168.1%17.0%2.3%
5 Yearn/a109.9%84.2%42.9%14.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DXN (A$0.02) is trading below our estimate of fair value (A$0.08)

Significantly Below Fair Value: DXN is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: DXN is good value based on its PB Ratio (1.5x) compared to the AU IT industry average (3.1x).


Next Steps

Future Growth

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

114.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DXN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: DXN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DXN's is expected to become profitable in the next 3 years.

Revenue vs Market: DXN's revenue (72.8% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: DXN's revenue (72.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DXN's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has DXN performed over the past 5 years?

-70.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: DXN is currently unprofitable.

Growing Profit Margin: DXN is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: DXN is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (-10.7%).


Return on Equity

High ROE: DXN has a negative Return on Equity (-84.37%), as it is currently unprofitable.


Next Steps

Financial Health

How is DXN's financial position?


Financial Position Analysis

Short Term Liabilities: DXN's short term assets (A$5.7M) exceed its short term liabilities (A$3.6M).

Long Term Liabilities: DXN's short term assets (A$5.7M) do not cover its long term liabilities (A$13.3M).


Debt to Equity History and Analysis

Debt Level: DXN's debt to equity ratio (22.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if DXN'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: DXN has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if DXN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is DXN current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

1.2yrs

Average management tenure


CEO

Matthew Madden

1.17yrs

Tenure

AU$583,225

Compensation

Mr. Matthew Madden has been Chief Executive Officer at DXN Limited since August 19, 2019 and its Managing Director & Director since August 26, 2020. Mr. Madden served as the General Manager of Business Mar ...


CEO Compensation Analysis

Compensation vs Market: Matthew's total compensation ($USD414.69K) is above average for companies of similar size in the Australian market ($USD275.49K).

Compensation vs Earnings: Insufficient data to compare Matthew's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Madden
MD, CEO & Director1.17yrsAU$583.23k0.47%
A$ 100.0k
Greg Blenkiron
Chief Financial Officer1yrAU$369.64k0.047%
A$ 10.0k
George Lazarou
Company Secretary3yrsAU$72.97k0%
A$ 0
Shalini Lagrutta
Global Head of Sales - Infrastructureno datano datano data
Cardin Bransgrove
Head of Sales - Data Centre Servicesno datano datano data
Srikanth Murugan
Global Head of Pre-sales - Infrastructureno datano datano data
Lisa Cesare
Financial Controllerno datano datano data

1.2yrs

Average Tenure

Experienced Management: DXN's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Matthew Madden
MD, CEO & Director1.17yrsAU$583.23k0.47%
A$ 100.0k
Richard Carden
Non-Executive Director3.17yrsAU$34.80k0.31%
A$ 66.3k
John Baillie
Independent Non-Executive Chairman0.58yrAU$40.86k0.25%
A$ 52.7k
John Dimitropoulos
Non Executive Directorno datano datano data

0.6yrs

Average Tenure

Experienced Board: DXN's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


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 substantially diluted in the past year, with total shares outstanding growing by 192.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: DXN Limited
  • Ticker: DXN
  • Exchange: ASX
  • Founded: 2017
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: AU$21.216m
  • Shares outstanding: 1.06b
  • Website: https://dxn.solutions

Number of Employees


Location

  • DXN Limited
  • 9 Mumford Place
  • Balcatta
  • Western Australia
  • 6021
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DXNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2018
DXNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2018

Biography

DXN Limited designs, builds, owns, and operates data centers and related infrastructure for communications networks in Australia. The company’s data centers provide colocation services that offer space, po ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 10:38
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.