ASX:ISX

Stock Analysis Report

Executive Summary

iSignthis Ltd, together with its subsidiaries, engages in remote identity verification, and payment authentication and processing activities in Australia, Europe, and British Virgin Islands.

Snowflake

Fundamentals

Excellent balance sheet with high growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

ISX

-5.7%

AU Software

0.1%

AU Market


1 Year Return

791.7%

ISX

42.6%

AU Software

11.9%

AU Market

Return vs Industry: ISX exceeded the Australian Software industry which returned 42.6% over the past year.

Return vs Market: ISX exceeded the Australian Market which returned 11.9% over the past year.


Shareholder returns

ISXIndustryMarket
7 Day0%-5.7%0.1%
30 Day1.9%-6.0%-1.1%
90 Day54.0%-4.7%-1.4%
1 Year791.7%791.7%43.8%42.6%18.5%11.9%
3 Year511.4%511.4%125.8%116.7%36.4%18.1%
5 Yearn/a165.9%144.1%50.9%16.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is iSignthis 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: ISX (A$1.07) is trading below our estimate of fair value (A$2.66)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ISX is overvalued based on its PB Ratio (90.2x) compared to the AU Software industry average (4.3x).


Next Steps

Future Growth

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

53.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

High Growth Earnings: ISX's loss is forecast to worsen by 0% next year.

Revenue vs Market: ISX's revenue (56.3% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: ISX's revenue (56.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ISX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has iSignthis performed over the past 5 years?

23.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ISX is unprofitable, but has reduced losses over the past 5 years at a rate of 23% per year.

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

Earnings vs Industry: ISX is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (22.6%).


Return on Equity

High ROE: ISX has a negative Return on Equity (-45.41%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ISX is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ISX is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is iSignthis's financial position?


Financial Position Analysis

Short Term Liabilities: ISX's short term assets (A$46.4M) exceeds its short term liabilities (A$38.4M)

Long Term Liabilities: ISX's short term assets (46.4M) exceeds its long term liabilities (554.6K)


Debt to Equity History and Analysis

Debt Level: ISX is debt free.

Reducing Debt: ISX has not had any debt for past 5 years.


Balance Sheet

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

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


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: ISX has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ISX has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

John Karantzis 0

0yrs

Tenure

AU$861,670

Compensation

Mr. Nickolas John Karantzis, also known as John, B.E. LL.M. M.Enterp FIEAust CPEng EurIng, serves as Chief Executive Officer and Managing Director of iSignthis Ltd. Mr. Karantzis is a founder of iSignthis  ...


CEO Compensation Analysis

Compensation vs. Market: John's total compensation ($USD591.56K) is below average for companies of similar size in the Australian market ($USD1.00M).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.7yrs

Average Tenure

Experienced Management: ISX's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

4.8yrs

Average Tenure

49yo

Average Age

Experienced Board: ISX's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Todd Richards

    Company Secretary & Australian Anti Money Laundering Compliance Officer

    • Tenure: 0yrs
    • Compensation: AU$418.03k
  • John Karantzis

    MD, CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$861.67k
  • Andrew Karantzis

    Global Sales & Marketing Director

    • Tenure: 7.9yrs
  • Dominic Melo

    Chief Product Officer

    • Tenure: 0yrs
  • John Kim

    Chief Architect

    • Tenure: 0yrs
  • James Cameron

    Chief Risk Officer

    • Tenure: 1.7yrs
  • Elizabeth Warrell

    Group Chief Financial Officer

    • Tenure: 0.08yrs

Board Members

  • John Karantzis

    MD, CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$861.67k
  • Tim Hart

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$65.70k
  • Takis Taoushanis (62yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: AU$47.21k
  • Barnaby Egerton-Warburton (49yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$43.80k
  • Scott Minehane

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$43.80k
  • George Theocharides (47yo)

    Director of iSignthis eMoney Ltd.

    • Tenure: 0.4yrs

Company Information

iSignthis Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: iSignthis Ltd
  • Ticker: ISX
  • Exchange: ASX
  • Founded: 2013
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$1.169b
  • Shares outstanding: 1.09b
  • Website: https://www.isignthis.com

Location

  • iSignthis Ltd
  • 456 Victoria Parade
  • East Melbourne
  • Melbourne
  • Victoria
  • 3002
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ISXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2015
ISXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2015
TA8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2015

Biography

iSignthis Ltd, together with its subsidiaries, engages in remote identity verification, and payment authentication and processing activities in Australia, Europe, and British Virgin Islands. Its solutions  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:32
End of Day Share Price2019/10/01 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.