ASX:EPD

Stock Analysis Report

Executive Summary

Empired Limited provides information technology solutions in Australia, New Zealand, and North America.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Risks

  • Empired has significant price volatility in the past 3 months.
  • Empired is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.9%

ASX:EPD

-0.6%

AU IT

0.02%

AU Market


1 Year Return

-40.0%

ASX:EPD

10.1%

AU IT

4.8%

AU Market

EPD underperformed the IT industry which returned 10.1% over the past year.

EPD underperformed the Market in Australia which returned 4.8% over the past year.


Share holder returns

EPDIndustryMarket
7 Day-2.9%-0.6%0.02%
30 Day11.9%2.6%0.9%
90 Day-14.3%-0.2%6.8%
1 Year-40.0%-40.0%12.0%10.1%10.8%4.8%
3 Year-13.2%-13.2%59.7%47.6%38.0%20.1%
5 Year-48.5%-49.2%64.5%44.2%44.6%12.2%

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 based on future cash flows and its price relative to the stock market?

9.39x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Empired's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Empired's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Empired is good value based on earnings compared to the AU IT industry average.

Empired is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Empired is good value based on expected growth next year.


Price Based on Value of Assets

Empired is good value based on assets compared to the AU IT industry average.


Next Steps

Future Growth

How is Empired expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

53.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Empired's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

Empired's earnings are expected to grow significantly at over 20% yearly.

Empired's revenue growth is positive but not above the Australia market average.

Empired's earnings growth is expected to exceed the Australia market average.

Empired's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Empired is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Empired performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Empired's year on year earnings growth rate has been positive over the past 5 years.

Empired's 1-year earnings growth exceeds its 5-year average (59.1% vs 9.9%)

Empired's earnings growth has exceeded the AU IT industry average in the past year (59.1% vs 50.5%).


Return on Equity

Empired has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Empired used its assets less efficiently than the AU IT industry average last year based on Return on Assets.


Return on Capital Employed

Empired has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Empired's financial position?


Financial Position Analysis

Empired is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Empired's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Empired's level of debt (28%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (60.3% vs 28% today).

Debt is well covered by operating cash flow (49.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2x debt.


Next Steps

Dividend

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

1.52%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Empired's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Empired's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Empired has not reported any payouts.

Unable to verify if Empired's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Empired has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (9.5x coverage).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Russell Baskerville (41yo)

AU$816,059

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

Russell's remuneration is higher than average for companies of similar size in Australia.

Russell's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.7yrs

Average Tenure

The tenure for the Empired management team is about average.


Board Age and Tenure

7.8yrs

Average Tenure

59yo

Average Age

The tenure for the Empired board of directors is about average.


Insider Trading

More shares have been bought than sold by Empired individual insiders in the past 3 months.


Recent Insider Transactions

BuyAU$685,29207 Jun 19
Australian Ethical Investment Ltd
EntityCompany
Shares2,059,004
Max PriceAU$0.41
BuyAU$21,67529 May 19
John Bardwell
EntityIndividual
Role
Member of the Board of Directors
Shares85,000
Max PriceAU$0.25
BuyAU$491,83921 May 19
Westoz Funds Management Pty Ltd.
EntityCompany
Shares1,800,000
Max PriceAU$0.27
BuyAU$31,50010 May 19
Cristiano Nicolli
EntityIndividual
Role
Member of the Board of Directors
Shares100,000
Max PriceAU$0.32
BuyAU$571,69102 Apr 19
Australian Ethical Investment Ltd
EntityCompany
Shares1,371,141
Max PriceAU$0.47
SellAU$893,30720 Sep 18
Australian Ethical Investment Ltd
EntityCompany
Shares1,609,977
Max PriceAU$0.56
SellAU$1,124,61516 Aug 18
Australian Ethical Investment Ltd
EntityCompany
Shares2,027,895
Max PriceAU$0.56

Ownership Breakdown


Management Team

  • David Hinton (56yo)

    CFO & Company Secretary

    • Tenure: 3.2yrs
    • Compensation: A$526.67k
  • Russell Baskerville (41yo)

    MD, CEO & Executive Director

    • Compensation: A$816.06k
  • John Bessey

    Executive General Manager of Sales & Marketing

    • Tenure: 2.3yrs
  • Rob McCready

    General Manager of PMO

    • Tenure: 2.7yrs
    • Compensation: A$400.00k
  • Simon Bright

    Chief Operating Officer

    • Tenure: 2.7yrs
    • Compensation: A$540.97k
  • Rose Clements

    Executive General Manager of People & Performance

    • Tenure: 2.3yrs

Board Members

  • Tom Stianos (66yo)

    Non-Executive Chairman

    • Tenure: 1.0yrs
    • Compensation: A$60.00k
  • Cris Nicolli (65yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • John Bardwell (59yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: A$60.00k
  • Russell Baskerville (41yo)

    MD, CEO & Executive Director

    • Tenure: 14.0yrs
    • Compensation: A$816.06k
  • Richard Bevan (53yo)

    Non-Executive Director

    • Tenure: 11.5yrs
    • Compensation: A$90.00k

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$52.842m
  • Shares outstanding: 160.13m
  • Website: Click here

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 North America. The company offers integrated solutions, such as cloud, enterprise content management, customer relat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/20 10:35
End of Day Share Price2019/07/19 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.