ASX:NEA

Stock Analysis Report

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Executive Summary

Nearmap Ltd provides online aerial photomaps in Australia, New Zealand, and North America. More Details


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.7%

NEA

-2.2%

AU Software

-2.4%

AU Market


1 Year Return

-9.0%

NEA

29.8%

AU Software

-8.3%

AU Market

Return vs Industry: NEA underperformed the Australian Software industry which returned 25.9% over the past year.

Return vs Market: NEA matched the Australian Market which returned -8.9% over the past year.


Shareholder returns

NEAIndustryMarket
7 Day-4.7%-2.2%-2.4%
30 Day4.3%9.2%1.8%
90 Day4.7%19.7%1.7%
1 Year-9.0%-9.0%30.9%29.8%-5.0%-8.3%
3 Year320.7%320.7%116.2%108.8%14.6%-0.08%
5 Year587.3%587.3%189.4%167.9%41.6%12.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

39.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NEA (A$2.44) is trading below our estimate of fair value (A$4.06)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NEA is overvalued based on its PB Ratio (19.5x) compared to the AU Software industry average (5.1x).


Next Steps

Future Growth

How is Nearmap forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

54.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NEA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NEA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NEA's revenue (18.4% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: NEA's revenue (18.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEA is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Nearmap performed over the past 5 years?

-46.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEA is currently unprofitable.

Growing Profit Margin: NEA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NEA is unprofitable, and losses have increased over the past 5 years at a rate of 46.8% per year.

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

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


Return on Equity

High ROE: NEA has a negative Return on Equity (-64.7%), as it is currently unprofitable.


Next Steps

Financial Health

How is Nearmap's financial position?


Financial Position Analysis

Short Term Liabilities: NEA's short term assets (A$63.6M) do not cover its short term liabilities (A$69.8M).

Long Term Liabilities: NEA's short term assets (A$63.6M) exceed its long term liabilities (A$22.2M).


Debt to Equity History and Analysis

Debt Level: NEA is debt free.

Reducing Debt: NEA has not had any debt for 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: NEA has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.5yrs

Average management tenure


CEO

Rob Newman (56 yo)

5yrs

Tenure

AU$1,082,417

Compensation

Dr. Robert Melville Newman, also known as Rob, B.Eng(1st Hons), Ph.D., has been the Chief Executive Officer, Managing Director at Nearmap Ltd since October 15, 2015 and has been its Director since February ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD773.32K) is about average for companies of similar size in the Australian market ($USD937.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Newman
CEO, MD & Executive Director5yrsAU$1.08m1.96%
A$ 22.6m
Andrew Watt
Chief Financial Officer3.83yrsAU$622.45k0.51%
A$ 5.9m
Tom Celinski
Chief Technology Officer2.67yrsAU$681.25kno data
Harvey Sanchez
Chief Marketing Officer2yrsAU$553.26kno data
Simone Shugg
Chief People Officer1yrAU$635.51kno data
Tony Agresta
Executive Vice President of Product2.25yrsAU$710.35k0.0043%
A$ 49.8k
Jeff Adams
Chief Revenue Officer0.67yrAU$801.10kno data
Daniel Maurer
Head of Investor Relations & Corporate Strategyno datano datano data
Shannon Coates
Company Secretary7.33yrsno datano data

2.5yrs

Average Tenure

Experienced Management: NEA's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Newman
CEO, MD & Executive Director5yrsAU$1.08m1.96%
A$ 22.6m
Tracey Horton
Independent Non-Executive Director1.08yrsAU$91.67k0.0050%
A$ 57.3k
Ross Stewart Norgard
Non Executive Director33.75yrsAU$105.42k4.81%
A$ 55.4m
Peter James
Independent Non-Executive Chairman4.58yrsAU$167.71k0.49%
A$ 5.6m
Clifford Rosenberg
Independent Non-Executive Director8.25yrsAU$111.25k0.66%
A$ 7.6m
Susan Klose
Independent Non-Executive Director3.17yrsAU$115.00k0.023%
A$ 265.6k

6.4yrs

Average Tenure

56yo

Average Age

Experienced Board: NEA's board of directors are considered experienced (6.4 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 been diluted in the past year, with total shares outstanding growing by 8.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Nearmap Ltd
  • Ticker: NEA
  • Exchange: ASX
  • Founded: 2007
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$1.152b
  • Shares outstanding: 490.21m
  • Website: https://www.nearmap.com.au

Location

  • Nearmap Ltd
  • Tower One
  • Level 4
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEAP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2000
NEAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2000
NEACHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2000
QSX1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2000

Biography

Nearmap Ltd provides online aerial photomaps in Australia, New Zealand, and North America. Its solutions are used in the architecture and engineering, construction, insurance and financial services, proper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 10:37
End of Day Share Price2020/10/28 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.