ASX:ESK

Stock Analysis Report

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Executive Summary

Etherstack plc engages in the design, development, and deployment of wireless communications software and products for use in transceivers in the United Kingdom, North America, Australia, New Zealand, Japan, and internationally. More Details


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.8%

ESK

3.6%

AU Software

2.8%

AU Market


1 Year Return

148.1%

ESK

13.5%

AU Software

-10.6%

AU Market

Return vs Industry: ESK exceeded the Australian Software industry which returned 13.5% over the past year.

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


Shareholder returns

ESKIndustryMarket
7 Day0.8%3.6%2.8%
30 Day-2.3%-0.8%-1.8%
90 Day-48.4%20.0%2.5%
1 Year148.1%148.1%14.4%13.5%-7.4%-10.6%
3 Year239.5%239.5%120.5%112.4%18.0%2.8%
5 Year101.7%-0.8%163.9%143.8%42.1%12.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


Share Price vs. Fair Value

Below Fair Value: ESK (A$0.65) is trading above our estimate of fair value (A$0.14)

Significantly Below Fair Value: ESK is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ESK has negative assets, so we can't compare its PB Ratio to the AU Software industry average.


Next Steps

Future Growth

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

32.0%

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.


Next Steps

Past Performance

How has Etherstack performed over the past 5 years?

43.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESK is currently unprofitable.

Growing Profit Margin: ESK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ESK is unprofitable, but has reduced losses over the past 5 years at a rate of 43.2% per year.

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

Earnings vs Industry: ESK is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (21%).


Return on Equity

High ROE: ESK's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Etherstack's financial position?


Financial Position Analysis

Short Term Liabilities: ESK has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: ESK has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: ESK has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: ESK's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


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: Whilst unprofitable ESK has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ESK is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 34.4% per year.


Next Steps

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?

8.4yrs

Average board tenure


CEO

David Deacon

8.5yrs

Tenure

US$261,981

Compensation

Mr. David Deacon founded Auria Wireless Pty Ltd and serves as its Chief Executive Officer. Mr. Deacon founded Etherstack plc in 2006 and has been its Chief Executive Officer since 2006. He guides growth an ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD261.98K) is about average for companies of similar size in the Australian market ($USD278.57K).

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


Board Members

NamePositionTenureCompensationOwnership
David Deacon
Founder8.5yrsUS$261.98k39.88%
$ 30.4m
Paul Barnes
Company Secretary & Non Executive Director8.5yrsUS$45.19k5.66%
$ 4.3m
Peter Francis Stephens
Non-Executive Chairman8.33yrsUS$33.18k17.26%
$ 13.2m
Scott Minehane
Independent Non-Executive Director8.33yrsUS$34.26k0.068%
$ 51.6k

8.4yrs

Average Tenure

Experienced Board: ESK's board of directors are considered experienced (8.4 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 8.3%.


Top Shareholders

Company Information

Etherstack plc's company bio, 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$76.204m
  • Shares outstanding: 120.96m
  • Website: https://www.etherstack.com

Number of Employees


Location

  • Etherstack plc
  • 28 Poland Street
  • 1st Floor
  • London
  • W1F 8QN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESKASX (Australian Securities Exchange)YesCDI NPVAUAUDSep 2012

Biography

Etherstack plc engages in the design, development, and deployment of wireless communications software and products for use in transceivers in the United Kingdom, North America, Australia, New Zealand, Japa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/30 10:38
End of Day Share Price2020/09/30 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.