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ESK

EtherstackASX:ESK Stock Report

Market Cap

AU$60.1m

7D

0%

1Y

-20.2%

Updated

30 Nov, 2021

Data

Company Financials +
ESK fundamental analysis
Snowflake Score
Valuation0/6
Future Growth6/6
Past Performance2/6
Financial Health6/6
Dividends0/6

ESK Stock 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$0.49
52 Week HighAU$0.84
52 Week LowAU$0.40
Beta3.07
1 Month Change-1.00%
3 Month Change-11.61%
1 Year Change-20.16%
3 Year Change130.23%
5 Year Change76.79%
Change since IPO-70.88%

Recent News & Updates

Shareholder Returns

ESKAU SoftwareAU Market
7D0%-2.4%-2.3%
1Y-20.2%17.9%11.4%

Return vs Industry: ESK underperformed the Australian Software industry which returned 17.9% over the past year.

Return vs Market: ESK underperformed the Australian Market which returned 11.4% over the past year.

Price Volatility

Is ESK's price volatile compared to industry and market?
ESK volatility
ESK Average Weekly Movement9.5%
Software Industry Average Movement8.3%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.9%
10% least volatile stocks in AU Market3.6%

Stable Share Price: ESK is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: ESK's weekly volatility (10%) 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$42.80m
Earnings (TTM)US$783.00k
Revenue (TTM)US$6.61m

0.0x

P/E Ratio

0.0x

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
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?


In this section, we usually try to help investors determine whether Etherstack is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Etherstack has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Future Growth

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

57.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESK's forecast earnings growth (57.4% per year) is above the savings rate (1.9%).

Earnings vs Market: ESK's earnings (57.4% per year) are forecast to grow faster than the Australian market (11.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ESK's revenue (36.2% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: ESK's revenue (36.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ESK's Return on Equity is forecast to be high in 3 years time (25.1%)


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 has more cash than its total debt.

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?

9.6yrs

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 ($USD261.97K) is about average for companies of similar size in the Australian market ($USD290.58K).

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 (9.6 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: Insufficient data to determine if shareholders have been diluted in the past year.


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$60.131m
  • 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 Analysis2021/11/30 09:19
End of Day Share Price2021/11/30 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.