ASX:ELO

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Executive Summary

Elmo Software Limited provides software-as-a-service, cloud-based human resource (HR) and payroll solutions for organizations in Australia, New Zealand, and the United Kingdom. More Details


Snowflake Analysis

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ELO is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ELO's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

ELO

2.9%

AU Software

1.7%

AU Market


1 Year Return

-7.0%

ELO

24.9%

AU Software

-1.6%

AU Market

Return vs Industry: ELO underperformed the Australian Software industry which returned 24.9% over the past year.

Return vs Market: ELO underperformed the Australian Market which returned -1.6% over the past year.


Shareholder returns

ELOIndustryMarket
7 Day0.6%2.9%1.7%
30 Day12.2%7.1%9.5%
90 Day12.4%11.6%9.2%
1 Year-7.0%-7.0%25.8%24.9%1.8%-1.6%
3 Year86.5%86.5%130.4%122.0%24.8%9.2%
5 Yearn/a197.5%176.6%56.1%25.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.03x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ELO is good value based on its PB Ratio (3x) compared to the AU Software industry average (5.7x).


Next Steps

Future Growth

How is Elmo Software forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ELO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ELO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ELO's revenue (22% per year) is forecast to grow faster than the Australian market (5% per year).

High Growth Revenue: ELO's revenue (22% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ELO is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Elmo Software performed over the past 5 years?

-63.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELO is currently unprofitable.

Growing Profit Margin: ELO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ELO is unprofitable, and losses have increased over the past 5 years at a rate of 63.7% per year.

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

Earnings vs Industry: ELO is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.2%).


Return on Equity

High ROE: ELO has a negative Return on Equity (-10.39%), as it is currently unprofitable.


Next Steps

Financial Health

How is Elmo Software's financial position?


Financial Position Analysis

Short Term Liabilities: ELO's short term assets (A$152.2M) exceed its short term liabilities (A$49.2M).

Long Term Liabilities: ELO's short term assets (A$152.2M) exceed its long term liabilities (A$17.9M).


Debt to Equity History and Analysis

Debt Level: ELO is debt free.

Reducing Debt: ELO had no debt 5 years ago.


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

Forecast Cash Runway: ELO has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 63.4% each year


Next Steps

Dividend

What is Elmo Software current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

2.5yrs

Average management tenure


CEO

Danny Lessem

no data

Tenure

AU$1,216,753

Compensation

Mr. Danny Isaac Lessem serves as the Chief Executive Officer at ELMO Talent Management Software Pty Ltd. Mr. Lessem is a Co-founder of ELMO Software Limited since 2002 and serves as its Chief Executive Off...


CEO Compensation Analysis

Compensation vs Market: Danny's total compensation ($USD895.59K) is about average for companies of similar size in the Australian market ($USD697.17K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Danny Lessem
Co-Founderno dataAU$1.22m12.52%
A$ 67.6m
James Haslam
CFO & Joint Company Secretary1.75yrsAU$639.45k0.0098%
A$ 53.1k
Gordon Starkey
Chief Operating Officerno dataAU$679.74k0.49%
A$ 2.6m
Samuel Sun
Chief Technology Officerno dataAU$596.67k0.50%
A$ 2.7m
Michael Brown
Head of Investor Relationsno datano datano data
Monica Watt
Chief Human Resources Officer & GM of Human Resourcesno dataAU$395.01k0%
A$ 0
Darryl Garber
Chief Commercial Officerno dataAU$481.02k0.46%
A$ 2.5m
Michael Smith
Head of Payroll2.75yrsno datano data
Anna Sandham
Joint Company Secretary3.5yrsno datano data
James McKerlie
Consultant2.17yrsAU$190.56kno data

2.5yrs

Average Tenure

Experienced Management: ELO's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Danny Lessem
Co-Founderno dataAU$1.22m12.52%
A$ 67.6m
Barry Lewin
Independent Non-Executive Chairman2.08yrsAU$150.00k0.017%
A$ 93.8k
Catherine Hill
Independent Non-Executive Director2.42yrsAU$100.00k0.010%
A$ 56.0k
Leah Graeve
Independent Non-Executive Director1.42yrsAU$100.00kno data

2.1yrs

Average Tenure

Experienced Board: ELO's board of directors are not considered experienced ( 2.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Elmo Software Limited
  • Ticker: ELO
  • Exchange: ASX
  • Founded: 2002
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$540.101m
  • Shares outstanding: 86.42m
  • Website: https://elmosoftware.com.au

Number of Employees


Location

  • Elmo Software Limited
  • 580 George Street
  • Level 27
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELOASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2017
ELOCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2017
ELMF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2017

Biography

Elmo Software Limited provides software-as-a-service, cloud-based human resource (HR) and payroll solutions for organizations in Australia, New Zealand, and the United Kingdom. The company develops, sells,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 07:05
End of Day Share Price2020/11/27 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.