ASX:NEA

Stock Analysis Report

Executive Summary

Nearmap Ltd provides online aerial photomapping services in Australia, New Zealand, and North America.

Snowflake

Fundamentals

High growth potential with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

17.1%

NEA

-0.6%

AU Software

0.4%

AU Market


1 Year Return

101.4%

NEA

39.0%

AU Software

9.8%

AU Market

Return vs Industry: NEA exceeded the Australian Software industry which returned 39% over the past year.

Return vs Market: NEA exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

NEAIndustryMarket
7 Day17.1%-0.6%0.4%
30 Day10.5%-1.4%-1.1%
90 Day-6.1%2.4%-0.6%
1 Year101.4%101.4%40.2%39.0%16.1%9.8%
3 Year231.5%231.5%117.9%108.4%36.1%17.9%
5 Year417.5%417.5%169.6%148.0%49.4%15.7%

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?

15.09x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NEA (A$2.95) is trading above our estimate of fair value (A$0.22)

Significantly Below Fair Value: NEA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NEA is unprofitable, so we can't compare its PE Ratio to the 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 (15.1x) compared to the AU Software industry average (4.6x).


Next Steps

Future Growth

How is Nearmap forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

74.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NEA's revenue (25.8% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: NEA's revenue (25.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEA's Return on Equity is forecast to be low in 3 years time (14.9%).


Next Steps

Past Performance

How has Nearmap performed over the past 5 years?

-50.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NEA is unprofitable, and losses have increased over the past 5 years at a rate of -50.5% 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 (22%).


Return on Equity

High ROE: NEA has a negative Return on Equity (-17.04%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Nearmap's financial position?


Financial Position Analysis

Short Term Liabilities: NEA's short term assets (A$96.2M) exceeds its short term liabilities (A$59.1M)

Long Term Liabilities: NEA's short term assets (96.2M) exceeds its long term liabilities (11.5M)


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

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

Debt Coverage by Assets: Insufficient data to determine if NEA'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: NEA has sufficient cash runway for more than 3 years 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's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.6%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate NEA'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 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

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

1.8yrs

Average management tenure


CEO

Rob Newman (55yo)

4yrs

Tenure

AU$1,300,553

Compensation

Dr. Robert Melville Newman, also known as Rob, B.Eng(1st Hons), Ph.D., has been the Chief Executive Officer, Managing Director and Executive Director at Nearmap Ltd. (Alternate Name: ipernica ltd.) since O ...


CEO Compensation Analysis

Compensation vs. Market: Rob's total compensation ($USD890.36K) is about average for companies of similar size in the Australian market ($USD992.67K).

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


Management Age and Tenure

1.8yrs

Average Tenure

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


Board Age and Tenure

3.8yrs

Average Tenure

55yo

Average Age

Experienced Board: NEA's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: NEA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellAU$367,50011 Oct 19
Ian Morris
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares150,000
Max PriceAU$2.45
BuyAU$1,084,00028 Mar 19
Robert Newman
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares400,000
Max PriceAU$2.71
SellAU$1,578,00005 Mar 19
Clifford Rosenberg
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares600,000
Max PriceAU$2.63
SellAU$4,883,00026 Feb 19
Ross Stewart Norgard
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares2,000,000
Max PriceAU$2.44

Ownership Breakdown


Management Team

  • Rob Newman (55yo)

    CEO, MD & Executive Director

    • Tenure: 4yrs
    • Compensation: AU$1.30m
  • Tony Agresta

    Executive Vice President of Product

    • Tenure: 1.3yrs
    • Compensation: AU$594.02k
  • Tom Celinski

    Executive Vice President of Technology & Engineering

    • Tenure: 1.7yrs
    • Compensation: AU$751.33k
  • Shannon Coates

    Company Secretary

    • Tenure: 6.3yrs
  • Patrick Quigley

    Executive VP and GM of International & Partners

    • Tenure: 1.8yrs
    • Compensation: AU$1.24m
  • Andy Watt

    Chief Financial Officer

    • Tenure: 2.8yrs
    • Compensation: AU$729.16k
  • Sue Steel

    Executive Vice President of People & Culture

    • Tenure: 2.7yrs
    • Compensation: AU$460.95k
  • Shane Preston

    Executive Vice President of Sales - Australia

    • Tenure: 1.8yrs
    • Compensation: AU$754.10k
  • Daniel Maurer

    Head of Investor Relations & Corporate Strategy

    • Tenure: 0yrs
  • Harvey Sanchez

    Chief Marketing Officer

    • Tenure: 1yrs
    • Compensation: AU$495.77k

Board Members

  • Rob Newman (55yo)

    CEO, MD & Executive Director

    • Tenure: 4yrs
    • Compensation: AU$1.30m
  • Tracey Horton (55yo)

    Independent Non-Executive Director

    • Tenure: 0.08yrs
  • Ross Stewart Norgard (73yo)

    Non Executive Director

    • Tenure: 32.8yrs
    • Compensation: AU$80.00k
  • Peter James (69yo)

    Independent Non-Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: AU$152.04k
  • Cliff Rosenberg (55yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: AU$92.62k
  • Sue Klose

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$93.90k
  • Ian Morris

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: AU$119.47k

Company Information

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


Key Information

  • Name: Nearmap Ltd
  • Ticker: NEA
  • Exchange: ASX
  • Founded: 2000
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$1.329b
  • Shares outstanding: 450.45m
  • Website: https://www.nearmap.com.au

Location

  • Nearmap Ltd
  • Tower One
  • Level 4
  • Barangaroo
  • 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 photomapping services in Australia, New Zealand, and North America. Its solutions are used in the architecture and engineering, construction, insurance, rail, property, r ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 10:37
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.