ASX:ISD

Stock Analysis Report

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Executive Summary

Isentia Group Limited provides media intelligence services to the public and private sector clients in Australia, New Zealand, Asia, and internationally. More Details


Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ISD

1.1%

AU Software

-0.3%

AU Market


1 Year Return

-52.4%

ISD

31.0%

AU Software

-6.9%

AU Market

Return vs Industry: ISD underperformed the Australian Software industry which returned 31% over the past year.

Return vs Market: ISD underperformed the Australian Market which returned -6.9% over the past year.


Shareholder returns

ISDIndustryMarket
7 Day0%1.1%-0.3%
30 Day-7.1%11.6%5.1%
90 Day8.3%22.4%4.2%
1 Year-52.4%-52.4%32.0%31.0%-3.5%-6.9%
3 Year-81.2%-81.3%122.3%114.7%18.1%3.0%
5 Year-95.0%-95.3%195.5%173.8%44.2%15.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ISD (A$0.2) is trading below our estimate of fair value (A$0.87)

Significantly Below Fair Value: ISD is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ISD is good value based on its PB Ratio (0.8x) compared to the AU Software industry average (5.7x).


Next Steps

Future Growth

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

89.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ISD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: ISD is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ISD's is expected to become profitable in the next 3 years.

Revenue vs Market: ISD's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: ISD's revenue is forecast to decline over the next 3 years (-0.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ISD's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Isentia Group performed over the past 5 years?

-52.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ISD is currently unprofitable.

Growing Profit Margin: ISD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ISD is unprofitable, and losses have increased over the past 5 years at a rate of 52.8% per year.

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

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


Return on Equity

High ROE: ISD has a negative Return on Equity (-22.83%), as it is currently unprofitable.


Next Steps

Financial Health

How is Isentia Group's financial position?


Financial Position Analysis

Short Term Liabilities: ISD's short term assets (A$35.6M) exceed its short term liabilities (A$34.9M).

Long Term Liabilities: ISD's short term assets (A$35.6M) do not cover its long term liabilities (A$49.6M).


Debt to Equity History and Analysis

Debt Level: ISD's debt to equity ratio (85.3%) is considered high.

Reducing Debt: ISD's debt to equity ratio has increased from 25.9% to 85.3% over the past 5 years.


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 ISD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ISD is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 1.6% per year.


Next Steps

Dividend

What is Isentia Group current dividend yield, its reliability and sustainability?

0.95%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

1.8yrs

Average management tenure


CEO

Ed Harrison

2.17yrs

Tenure

AU$1,199,442

Compensation

Mr. Ed Harrison has been Managing Director, Director and Chief Executive Officer of Isentia Group Limited since August 6, 2018. Mr. Harrison served as the Chief Executive Officer of Yahoo7 from 2014 to Jun ...


CEO Compensation Analysis

Compensation vs Market: Ed's total compensation ($USD853.03K) is above average for companies of similar size in the Australian market ($USD277.63K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ed Harrison
MD, CEO & Executive Director2.17yrsAU$1.20m0.51%
A$ 200.2k
Peter McClelland
Chief Financial Officer1.75yrsAU$794.10kno data
Tom Gerstmyer
Chief Operations Officer2.58yrsno datano data
Paul Russell
Chief Technology Officer1.92yrsno datano data
Jacqueline Shanahan
General Counsel & Company Secretaryno datano datano data
Kelly Young
Chief Human Resources Officer1.75yrsno datano data
Jen Marshall
Chief Product Officer1.75yrsno datano data
James Merritt
Chief Executive of Asia1yrno datano data
Russ Horell
Chief Commercial Officerno datano datano data

1.8yrs

Average Tenure

Experienced Management: ISD's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ed Harrison
MD, CEO & Executive Director2.17yrsAU$1.20m0.51%
A$ 200.2k
Fiona Pak-Poy
Independent Non-Executive Director6.42yrsAU$114.43k0.11%
A$ 44.7k
Travyn Rhall
Independent Non-Executive Director2.25yrsAU$104.03k0.40%
A$ 156.0k
Douglas Snedden
Independent Non-Executive Chairman2.92yrsAU$187.25k0.18%
A$ 69.8k
Jeffrey Strong
Alternate Director2.25yrsno datano data
Justin Kane
Non-Executive Director2.25yrsAU$90.25k0.22%
A$ 87.2k
Abigail Cheadle
Independent Non-Executive Director1.75yrsAU$114.43kno data

2.3yrs

Average Tenure

Experienced Board: ISD's board of directors are not considered experienced ( 2.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Isentia Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Isentia Group Limited
  • Ticker: ISD
  • Exchange: ASX
  • Founded: 1982
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$39.241m
  • Shares outstanding: 201.23m
  • Website: https://www.isentia.com

Number of Employees


Location

  • Isentia Group Limited
  • 219-241 Cleveland Street
  • Level 3
  • Sydney
  • New South Wales
  • 2012
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ISDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2014
ISDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2014
6IGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2014

Biography

Isentia Group Limited provides media intelligence services to the public and private sector clients in Australia, New Zealand, Asia, and internationally. The company develops software-as-a-service platform ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 10:34
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.