ASX:DXN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-6.8%

DXN

-6.4%

AU IT

0.1%

AU Market


1 Year Return

-67.6%

DXN

15.7%

AU IT

11.9%

AU Market

Return vs Industry: DXN underperformed the Australian IT industry which returned 15.7% over the past year.

Return vs Market: DXN underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

DXNIndustryMarket
7 Day-6.8%-6.4%0.1%
30 Day-12.7%-1.9%-1.1%
90 Day5.8%2.2%-1.4%
1 Year-59.7%-67.6%18.0%15.7%18.5%11.9%
3 Yearn/a50.7%39.7%36.4%18.1%
5 Yearn/a72.3%51.5%50.9%16.7%

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$0.06) is trading below our estimate of fair value (A$0.91)

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 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 (1.2x) compared to the AU IT industry average (2.4x).


Next Steps

Future Growth

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

99.6%

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 year, which is considered above average market growth.

High Growth Earnings: DXN's loss is forecast to worsen by 0% next year.

Revenue vs Market: DXN's revenue (60.2% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: DXN's revenue (60.2% 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 (12.9%).


Next Steps

Past Performance

How has DXN performed over the past 5 years?

-17.8%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if DXN's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 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 (60.9%).


Return on Equity

High ROE: DXN has a negative Return on Equity (-43.7%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: DXN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: DXN is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is DXN's financial position?


Financial Position Analysis

Short Term Liabilities: DXN's short term assets (A$7.8M) exceeds its short term liabilities (A$3.4M)

Long Term Liabilities: DXN's short term assets (7.8M) exceeds its long term liabilities (2.1M)


Debt to Equity History and Analysis

Debt Level: DXN's debt to equity ratio (17.5%) 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

Inventory Level: DXN has a high level of physical assets or inventory.

Debt Coverage by Assets: DXN's debt is covered by short term assets (assets are 2.645590x debt).


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's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of DXN's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Matthew Madden 0

0.2yrs

Tenure

0

Mr. Matthew Madden is Chief Executive Officer at DXN Limited since August 19, 2019. Mr. Madden served as the General Manager of Business Markets of Nextgen Group Holdings Pty Ltd. Previously, he served as  ...


Management Age and Tenure

0.9yrs

Average Tenure

Experienced Management: DXN's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

1.1yrs

Average Tenure

Experienced Board: DXN's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$3,307,91814 Aug 19
Newgate Capital Partners Pty Ltd
EntityCompany
Shares55,132,474
Max PriceAU$0.06
SellAU$41,50313 Aug 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares55,945,743
Max PriceAU$0.051
BuyAU$217,47611 Jun 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares3,821,177
Max PriceAU$0.059
BuyAU$239,40220 May 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares4,000,000
Max PriceAU$0.06
BuyAU$1,398,73516 May 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares27,494,306
Max PriceAU$0.07
BuyAU$136,36203 May 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares2,001,802
Max PriceAU$0.07
BuyAU$1,375,67523 Apr 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares14,061,398
Max PriceAU$0.23
SellAU$1,054,48723 Apr 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares10,544,856
Max PriceAU$0.10
BuyAU$200,00018 Feb 19
Terry Smart
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,290,323
Max PriceAU$0.15
BuyAU$483,87220 Dec 18
SG Hiscock & Company Ltd.
EntityCompany
Shares3,225,806
Max PriceAU$0.15
BuyAU$415,30705 Dec 18
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares2,207,068
Max PriceAU$0.20
BuyAU$315,01826 Nov 18
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares1,874,234
Max PriceAU$0.19

Ownership Breakdown


Management Team

  • Richard Whiting

    Chief Commercial Officer

    • Tenure: 0.9yrs
    • Compensation: AU$132.73k
  • George Lazarou

    CFO & Company Secretary

    • Tenure: 2yrs
    • Compensation: AU$145.96k
  • Simon Forth (49yo)

    Chief Operating Officer

    • Tenure: 0.9yrs
    • Compensation: AU$146.52k
  • Douglas Loh

    Executive Chairman

    • Tenure: 1.3yrs
    • Compensation: AU$113.40k
  • Matthew Madden

    Chief Executive Officer

    • Tenure: 0.2yrs
  • Lisa Cesare

    Financial Controller

    • Tenure: 0yrs
  • Justin Kellerman

    Chief Technical Architect

    • Tenure: 0yrs
  • Shalini Lagrutta

    Global Head of Sales - Infrastructure

    • Tenure: 0yrs
  • Cardin Bransgrove

    Head of Sales - Data Centre Services

    • Tenure: 0yrs
  • Srikanth Murugan

    Global Head of Pre-sales - Infrastructure

    • Tenure: 0yrs

Board Members

  • Terry Smart (54yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$39.42k
  • Richard Carden

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$119.00k
  • Douglas Loh

    Executive Chairman

    • Tenure: 1.3yrs
    • Compensation: AU$113.40k
  • Tim Desmond

    Co-Founder & Non-Executive Director

    • Tenure: 1yrs
    • Compensation: AU$225.00k
  • John Duffin

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: AU$27.00k
  • John Baillie

    Independent Non-Executive Director

    • Tenure: 0.4yrs
    • Compensation: AU$3.89k

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$21.012m
  • Shares outstanding: 362.27m
  • Website: https://dxn.solutions

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DXNNAASX (Australian Securities Exchange)NPV DFD 11/11/19(EX-RIGHTS)AUAUDNo data
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 Analysis2019/10/23 10:43
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
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.