ASX:EPD

Stock Analysis Report

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Executive Summary

Empired Limited provides information technology solutions in Australia, New Zealand, and the United States.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.7%

EPD

5.0%

AU IT

4.8%

AU Market


1 Year Return

38.5%

EPD

21.7%

AU IT

-10.6%

AU Market

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

Return vs Market: EPD exceeded the Australian Market which returned -10.6% over the past year.


Shareholder returns

EPDIndustryMarket
7 Day-2.7%5.0%4.8%
30 Day5.9%26.2%5.5%
90 Day1.4%15.8%-10.1%
1 Year38.5%38.5%23.6%21.7%-7.0%-10.6%
3 Year-25.0%-25.0%41.1%30.5%10.3%-4.3%
5 Year-55.0%-55.0%120.6%95.6%28.3%0.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Empired 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: EPD (A$0.36) is trading below our estimate of fair value (A$1.67)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: EPD is good value based on its PB Ratio (0.9x) compared to the AU IT industry average (1.9x).


Next Steps

Future Growth

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

79.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: EPD's revenue (3.9% per year) is forecast to grow slower than the Australian market (4.3% per year).

High Growth Revenue: EPD's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EPD's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Empired performed over the past 5 years?

-50.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EPD is currently unprofitable.

Growing Profit Margin: EPD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EPD is unprofitable, and losses have increased over the past 5 years at a rate of -50.9% per year.

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

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


Return on Equity

High ROE: EPD has a negative Return on Equity (-24.26%), as it is currently unprofitable.


Next Steps

Financial Health

How is Empired's financial position?


Financial Position Analysis

Short Term Liabilities: EPD's short term assets (A$32.5M) exceed its short term liabilities (A$28.0M).

Long Term Liabilities: EPD's short term assets (A$32.5M) exceed its long term liabilities (A$24.3M).


Debt to Equity History and Analysis

Debt Level: EPD's debt to equity ratio (19.7%) is considered satisfactory.

Reducing Debt: EPD's debt to equity ratio has reduced from 32.4% to 19.7% over the past 5 years.

Debt Coverage: EPD's debt is well covered by operating cash flow (148.1%).

Interest Coverage: EPD is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

2.78%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if EPD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: EPD is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EPD'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?

3.2yrs

Average management tenure


CEO

Russell Baskerville (41yo)

no data

Tenure

AU$863,175

Compensation

Mr. Russell Baskerville, Dip of Tech (Eng) serves as the Chief Executive Officer and Managing Director of Empired Limited. Mr. Baskerville serves as the Chief Executive Officer of BigRedSky. Mr. Baskervill ...


CEO Compensation Analysis

Compensation vs Market: Russell's total compensation ($USD573.08K) is above average for companies of similar size in the Australian market ($USD252.51K).

Compensation vs Earnings: Russell's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Russell Baskerville
MD, CEO & Executive Directorno dataAU$863.18k5.68% A$3.3m
David Hinton
CFO & Company Secretary4yrsAU$564.70k0.033% A$18.8k
Simon Bright
Chief Operating Officer3.42yrsAU$583.27k0.0099% A$5.7k
John Bessey
Executive General Manager of Sales & Marketing3yrsno datano data
Rose Clements
Executive General Manager of People & Performance3yrsno datano data

3.2yrs

Average Tenure

Experienced Management: EPD's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Russell Baskerville
MD, CEO & Executive Directorno dataAU$863.18k5.68% A$3.3m
Thomas Stianos
Non-Executive Chairman1.83yrsAU$120.00k0.15% A$87.6k
Cristiano Nicolli
Independent Non-Executive Director1.58yrsAU$58.32k0.23% A$134.5k
John Bardwell
Non-Executive Director8.58yrsAU$75.00k2.69% A$1.5m
Richard Bevan
Non-Executive Director12.33yrsAU$90.00k0.050% A$28.7k

8.6yrs

Average Tenure

59yo

Average Age

Experienced Board: EPD's board of directors are considered experienced (8.6 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Empired Limited
  • Ticker: EPD
  • Exchange: ASX
  • Founded: 1999
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: AU$57.573m
  • Shares outstanding: 159.92m
  • Website: https://www.empired.com

Number of Employees


Location

  • Empired Limited
  • The Quadrant
  • Level 7
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EPDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2007
EPDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2007

Biography

Empired Limited provides information technology solutions in Australia, New Zealand, and the United States. The company offers integrated solutions, such as cloud, enterprise content management, customer relationship management, data insight and business intelligence, digital and experience design, enterprise resource planning, expert guidance, identity and access management, infrastructure transformation, change management, Internet of Things, managed infrastructure, mobile solution, application, project management office, office accelerator, spatial, system integration, and unified communication services. It serves clients in various industries, such as automotive, education, financial services and insurance, health, mining, oil and gas, and retail and manufacturing, as well as serves public sector and utilities. Empired Limited was founded in 1999 and is headquartered in Perth, 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 09:44
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.