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ESK

EtherstackASX:ESK Stock Report

Market Cap

AU$60.8m

7D

0%

1Y

-26.2%

Updated

19 Oct, 2021

Data

Company Financials
ESK fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends0/6

ESK Overview

Etherstack plc, a wireless technology company, engages in licensing mission critical radio technologies to equipment manufacturers and network operators worldwide.

Price History & Performance

Summary of all time highs, changes and price drops for Etherstack
Historical stock prices
Current Share PriceAU$0.48
52 Week HighAU$0.46
52 Week LowAU$0.84
Beta3.16
1 Month Change-11.11%
3 Month Change-22.58%
1 Year Change-26.15%
3 Year Change104.26%
5 Year Change65.52%
Change since IPO-71.77%

Recent News & Updates

Shareholder Returns

ESKAU SoftwareAU Market
7D0%4.1%1.7%
1Y-26.2%23.3%20.3%

Return vs Industry: ESK underperformed the Australian Software industry which returned 23.3% over the past year.

Return vs Market: ESK underperformed the Australian Market which returned 20.3% over the past year.

Price Volatility

Is ESK's price volatile compared to industry and market?
ESK volatility
ESK Beta3.16
Industry Beta0.85
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
201228David Deaconhttps://www.etherstack.com

Etherstack plc, a wireless technology company, engages in licensing mission critical radio technologies to equipment manufacturers and network operators worldwide. The company offers wireless protocol stacks (waveforms) for embedded hardware and software defined radios. It provides PMR protocol stacks consisting of DMR mobile station and base station, P25 mobile station and base station, and TETRA mobile station and base station protocol stacks, as well as custom stack development technologies; Etherstack lightweight integrated test environment development tool that allows testing of Etherstack protocol stacks; and Etherstack TraceViewer that allows protocol stack execution traces and test transcripts to be analyzed in intuitive visual formats, such as message sequence charts, timeslot diagrams, and structural views.

Etherstack Fundamentals Summary

How do Etherstack's earnings and revenue compare to its market cap?
ESK fundamental statistics
Market CapUS$45.05m
Earnings (TTM)US$783.00k
Revenue (TTM)US$6.61m

59.5x

P/E Ratio

7.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ESK income statement (TTM)
RevenueUS$6.61m
Cost of RevenueUS$2.00m
Gross ProfitUS$4.61m
ExpensesUS$3.83m
EarningsUS$783.00k

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.006
Gross Margin69.79%
Net Profit Margin11.85%
Debt/Equity Ratio7.3%

How did ESK perform over the long term?

See historical performance and comparison

Valuation

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

59.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: ESK is poor value based on its PE Ratio (59.5x) compared to the Australian Software industry average (44.1x).

PE vs Market: ESK is poor value based on its PE Ratio (59.5x) compared to the Australian market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ESK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ESK is overvalued based on its PB Ratio (8.4x) compared to the AU Software industry average (5.2x).


Future Growth

How is Etherstack forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

41.1%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Etherstack has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Etherstack performed over the past 5 years?

28.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESK has a high level of non-cash earnings.

Growing Profit Margin: ESK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ESK has become profitable over the past 5 years, growing earnings by 28.9% per year.

Accelerating Growth: ESK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ESK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (37.5%).


Return on Equity

High ROE: ESK's Return on Equity (14.1%) is considered low.


Financial Health

How is Etherstack's financial position?


Financial Position Analysis

Short Term Liabilities: ESK's short term assets ($6.9M) exceed its short term liabilities ($6.1M).

Long Term Liabilities: ESK's short term assets ($6.9M) exceed its long term liabilities ($653.0K).


Debt to Equity History and Analysis

Debt Level: ESK's debt to equity ratio (7.3%) is considered satisfactory.

Reducing Debt: ESK had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: ESK's debt is well covered by operating cash flow (197.3%).

Interest Coverage: ESK's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

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

9.5yrs

Average board tenure


CEO

David Deacon

9.67yrs

Tenure

US$261,968

Compensation

Mr. David Deacon founded Auria Wireless Pty Ltd and serves as its Chief Executive Officer. Mr. Deacon founded Etherstack plc in 2002 and has been its Chief Executive Officer since 2002. He guides growth an...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD261.97K) is about average for companies of similar size in the Australian market ($USD301.95K).

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


Board Members

Experienced Board: ESK's board of directors are considered experienced (9.5 years average tenure).


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 8.1%.


Top Shareholders

Company Information

Etherstack plc's employee growth, exchange listings and data sources


Key Information

  • Name: Etherstack plc
  • Ticker: ESK
  • Exchange: ASX
  • Founded: 2012
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$60.785m
  • Shares outstanding: 130.72m
  • Website: https://www.etherstack.com

Number of Employees


Location

  • Etherstack plc
  • 93A Sheperd Street
  • Level 1
  • Chippendale
  • New South Wales
  • 2008
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 07:02
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.