Gratifii (ASX:GTI) - Share price, News & Analysis

GTI fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	2/6
Financial Health	2/6
Dividends	0/6

GTI Overview

Gratifii Limited operates as a technology company that enables businesses to drive customer engagement with loyalty and rewards programs in Australia, South Africa, and Singapore.

Rewards

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Shareholders have been substantially diluted in the past year

Large one-off items impacting financial results

Does not have meaningful revenue (A$3M)

+ 1 more risk

Price History & Performance

Summary of all time highs, changes and price drops for Gratifii
Historical stock prices
Current Share Price	AU$0.032
52 Week High	AU$0.023
52 Week Low	AU$0.043
Beta	0.36
1 Month Change	14.29%
3 Month Change	14.29%
1 Year Change	n/a
3 Year Change	-77.14%
5 Year Change	n/a
Change since IPO	-88.97%

Shareholder Returns

	GTI	AU Software	AU Market
7D	0%	2.6%	0.6%
1Y	n/a	29.1%	21.3%

Return vs Industry: Insufficient data to determine how GTI performed against the Australian Software industry.

Return vs Market: Insufficient data to determine how GTI performed against the Australian Market.

Price Volatility

Is GTI's price volatile compared to industry and market?
GTI volatility
GTI Beta	0.36
Industry Beta	0.85
Market Beta	1

Stable Share Price: GTI is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: GTI's weekly volatility (11%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	n/a	Iain Dunstan	https://gratifii.com

Gratifii Limited operates as a technology company that enables businesses to drive customer engagement with loyalty and rewards programs in Australia, South Africa, and Singapore. The company operates Mosaic, a customer enterprise engagement cloud platform that allows businesses to customize, operate, and manage loyalty programs. It serves the retail, hospitality, telecom, banking, insurance, and financial service industries.

Gratifii Fundamentals Summary

How do Gratifii's earnings and revenue compare to its market cap?
GTI fundamental statistics
Market Cap	AU$19.73m
Earnings (TTM)	AU$59.28k
Revenue (TTM)	AU$3.08m

355.6x

P/E Ratio

6.4x

P/S Ratio

Is GTI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GTI income statement (TTM)
Revenue	AU$3.08m
Cost of Revenue	AU$1.02m
Gross Profit	AU$2.06m
Expenses	AU$2.00m
Earnings	AU$59.28k

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.00009
Gross Margin	66.79%
Net Profit Margin	1.93%
Debt/Equity Ratio	341.2%

How did GTI perform over the long term?

See historical performance and comparison

Valuation

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

355.56x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

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

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

Price To Earnings Ratio

PE vs Industry: GTI is poor value based on its PE Ratio (355.6x) compared to the Australian Software industry average (45.3x).

PE vs Market: GTI is poor value based on its PE Ratio (355.6x) compared to the Australian market (19.9x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: GTI is overvalued based on its PB Ratio (15x) compared to the AU Software industry average (5.2x).

Future Growth

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

31.1%

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 Gratifii 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 Gratifii performed over the past 5 years?

22.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GTI has a large one-off gain of A$1.7M impacting its June 30 2021 financial results.

Growing Profit Margin: GTI became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: GTI has become profitable over the past 5 years, growing earnings by 22.8% per year.

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

Earnings vs Industry: GTI 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: GTI's Return on Equity (4.5%) is considered low.

Financial Health

How is Gratifii's financial position?

Financial Position Analysis

Short Term Liabilities: GTI's short term assets (A$4.6M) do not cover its short term liabilities (A$6.4M).

Long Term Liabilities: GTI's short term assets (A$4.6M) exceed its long term liabilities (A$1.7M).

Debt to Equity History and Analysis

Debt Level: GTI's debt to equity ratio (341.2%) is considered high.

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

Debt Coverage: GTI's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if GTI's interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

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

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if GTI'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 GTI's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.

Next Steps

Explore strong dividend paying companies in the Software industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure

CEO

Iain Dunstan (59 yo)

2.33yrs

Tenure

AU$592,756

Compensation

Mr. Iain Maxwell Dunstan, M.Com. Law, MBA, SIA (Aff), MAICD, serves as an Executive Chairman and Director at Gratifii Limited (formerly known as Mobecom Limited) since April 17, 2020 and serves as its Chie...

CEO Compensation Analysis

Compensation vs Market: Iain's total compensation ($USD444.34K) is above average for companies of similar size in the Australian market ($USD302.38K).

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

Leadership Team

Experienced Management: GTI's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: GTI's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.

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 been substantially diluted in the past year, with total shares outstanding growing by 87.9%.

Data	Last Updated (UTC time)
Company Analysis	2021/10/25 16:57
End of Day Share Price	2021/10/25 00:00
Earnings	2021/06/30
Annual Earnings	2021/06/30

Market Cap

7D

1Y

Updated

Data