ASX:ESK

Stock Analysis Report

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.

Snowflake

Fundamentals

Imperfect balance sheet with poor track record.

Risks

  • Etherstack has significant price volatility in the past 3 months.
  • Etherstack is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-11.9%

ESK

0.6%

AU Software

1.0%

AU Market


1 Year Return

n/a

ESK

30.0%

AU Software

7.2%

AU Market

No trading data on ESK.

No trading data on ESK.


Share holder returns

ESKIndustryMarket
7 Day-11.9%0.6%1.0%
30 Day2.0%5.8%3.2%
90 Day18.2%3.8%1.4%
1 Yearn/a31.1%30.0%13.4%7.2%
3 Year44.4%44.4%122.1%112.0%40.7%21.8%
5 Year-23.5%-23.5%139.3%120.8%50.8%17.0%

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

1985.83x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Etherstack is overvalued based on earnings compared to the AU Software industry average.

Etherstack is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Etherstack, we can't assess if its growth is good value.


Price Based on Value of Assets

Etherstack has negative assets, we can't compare the value of its assets to the AU Software industry average.


Next Steps

Future Growth

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

32.7%

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?

34.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Etherstack has delivered over 20% year on year earnings growth in the past 5 years.

Etherstack has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Etherstack has become profitable in the last year making it difficult to compare the AU Software industry average.


Return on Equity

It is difficult to establish if Etherstack has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

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


Return on Capital Employed

It is difficult to establish if Etherstack improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to its liabilities exceeding its assets.


Next Steps

Financial Health

How is Etherstack's financial position?


Financial Position Analysis

Etherstack's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

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


Debt to Equity History and Analysis

Etherstack has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Etherstack's debt level has increased considering it has negative shareholder equity.

Debt is well covered by operating cash flow (94.5%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 0.2x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Etherstack has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

7.5yrs

Average board tenure


CEO

David Deacon 0

7.6yrs

Tenure

US$262,132

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

David's remuneration is about average for companies of similar size in Australia.

David's compensation has increased in line with Etherstack recently becoming profitable.


Board Age and Tenure

7.5yrs

Average Tenure

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


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Paul Barnes (66yo)

    Company Secretary & Non Executive Director

    • Tenure: 7.6yrs
    • Compensation: US$45.84k
  • David Deacon

    Founder

    • Tenure: 7.6yrs
    • Compensation: US$262.13k
  • David Carter

    Chief Financial Officer

    • Tenure: 8yrs

Board Members

  • Peter Francis Stephens (64yo)

    Non-Executive Chairman

    • Tenure: 7.3yrs
    • Compensation: US$34.71k
  • Paul Barnes (66yo)

    Company Secretary & Non Executive Director

    • Tenure: 7.6yrs
    • Compensation: US$45.84k
  • David Deacon

    Founder

    • Tenure: 7.6yrs
    • Compensation: US$262.13k
  • Scott Minehane

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: US$36.85k

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$32.389m
  • Shares outstanding: 111.69m
  • Website: https://www.etherstack.com

Number of Employees


Location

  • Etherstack plc
  • 28 Poland Street
  • 1st Floor
  • London
  • Berkshire
  • 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 Analysis2019/09/20 10:37
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.