ASX:GBT

Stock Analysis Report

Executive Summary

GBST Holdings Limited provides client accounting and securities transaction technology solutions for the finance, banking, and capital market industries worldwide.

Rewards

Trading at 0.9% below its fair value

Earnings are forecast to grow 11.26% per year

Earnings grew by 103.2% over the past year

Risk Analysis

No risks detected for GBT from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GBT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

GBT

-9.2%

AU IT

-6.2%

AU Market


1 Year Return

125.8%

GBT

18.8%

AU IT

7.9%

AU Market

Return vs Industry: GBT exceeded the Australian IT industry which returned 34.4% over the past year.

Return vs Market: GBT exceeded the Australian Market which returned 19.4% over the past year.


Shareholder returns

GBTIndustryMarket
7 Day0%-9.2%-6.2%
30 Day0.5%-7.4%-5.9%
90 Day0.3%0.1%-2.7%
1 Year148.4%125.8%20.7%18.8%12.6%7.9%
3 Year15.7%0%49.7%38.1%31.3%13.8%
5 Year22.6%1.3%95.0%71.9%42.6%10.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GBT (A$3.85) is trading below our estimate of fair value (A$3.88)

Significantly Below Fair Value: GBT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GBT is good value based on its PE Ratio (20.6x) compared to the IT industry average (21.5x).

PE vs Market: GBT is poor value based on its PE Ratio (20.6x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: GBT is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: GBT is overvalued based on its PB Ratio (3.2x) compared to the AU IT industry average (2.7x).


Next Steps

Future Growth

How is GBST Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GBT's forecast earnings growth (11.3% per year) is above the savings rate (2.3%).

Earnings vs Market: GBT's earnings (11.3% per year) are forecast to grow faster than the Australian market (9.6% per year).

High Growth Earnings: GBT's earnings are forecast to grow, but not significantly.

Revenue vs Market: GBT's revenue (7.2% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: GBT's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GBT's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

How has GBST Holdings performed over the past 5 years?

-11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GBT has high quality earnings.

Growing Profit Margin: GBT's current net profit margins (13.5%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: GBT's earnings have declined by -11% per year over the past 5 years.

Accelerating Growth: GBT's earnings growth over the past year (103.2%) exceeds its 5-year average (-11% per year).

Earnings vs Industry: GBT earnings growth over the past year (103.2%) exceeded the IT industry 60.9%.


Return on Equity

High ROE: GBT's Return on Equity (15.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GBST Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: GBT's short term assets (A$43.7M) exceed its short term liabilities (A$35.3M).

Long Term Liabilities: GBT's short term assets (A$43.7M) exceed its long term liabilities (A$10.8M).


Debt to Equity History and Analysis

Debt Level: GBT is debt free.

Reducing Debt: GBT has no debt compared to 5 years ago when its debt to equity ratio was 9.3%.

Debt Coverage: GBT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GBT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: GBT has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if GBT's debt is covered by short term assets.


Next Steps

Dividend

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

2.19%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.7%industryaverage2.6%forecastin3Years2.2%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate GBT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GBT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GBT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GBT is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GBT'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?

3.3yrs

Average management tenure


CEO

Rob DeDominicis 0

3.9yrs

Tenure

AU$623,116

Compensation

Mr. Robert DeDominicis, also known as Rob, has been the Chief Executive Officer and Managing Director of GBST Holdings Limited since December 15, 2015. Mr. DeDominicis served as an Interim Group Chief Exec ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD429.00K) is about average for companies of similar size in the Australian market ($USD509.47K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert DeDominicis
MD & CEO3.9yrsAU$623.12kno data
Denis Orrock
Head of Asia Pacific11.5yrsAU$392.80k0.018% A$49.6k
David Simpson
Head of Europe3.3yrsAU$615.35kno data
Matthew Walton
Chief Financial Officer1.1yrsno datano data
Isabel Sanchez
Chief Technology Operations Officer0.6yrsAU$239.88kno data
Jillian Bannan
Company Secretary & General Counsel3.3yrsno datano data
Belinda Armstrong
Head of Human Resources2.3yrsno datano data
John Kehoe
Head of Business Development - North America6.2yrsno datano data

3.3yrs

Average Tenure

Experienced Management: GBT's management team is considered experienced (3.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GBST Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GBST Holdings Limited
  • Ticker: GBT
  • Exchange: ASX
  • Founded: 1984
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: AU$268.107m
  • Shares outstanding: 69.64m
  • Website: https://www.gbst.com

Number of Employees


Location

  • GBST Holdings Limited
  • West Tower
  • Level 4
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GBTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2005
GBTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2005

Biography

GBST Holdings Limited provides client accounting and securities transaction technology solutions for the finance, banking, and capital market industries worldwide. The company offers GBST Syn~ shares and derivatives platforms to process equities, derivatives, fixed income, and managed funds transactions for capital markets. It also provides GBST Composer platform, which offers end to end funds administration and management software to the wealth management industry; and an integrated system for the administration of wrap platforms, including individual savings accounts, pensions, self-invested personal pension, and superannuation, as well as master trusts, unit trusts, risk and debt, and other investment assets. In addition, the company provides technology hub solutions; data analytics and quantitative services for the measurement of portfolio performance; and Website and mobile platform design and digital agency services. Further, it offers software licenses; maintenance and upgrade services for licensed software; hosting services; chargeable support services; proof of concept services; and development and implementation services, as well as sells third party products. GBST Holdings Limited was founded in 1984 and is based in Brisbane, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/08 10:33
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.