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NET

NetlinkzASX:NET Stock Report

Market Cap

AU$97.1m

7D

19.2%

1Y

-62.2%

Updated

22 Oct, 2021

Data

Company Financials
NET fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

NET Overview

Netlinkz Limited provides network solutions in Australia, New Zealand, and China.

Price History & Performance

Summary of all time highs, changes and price drops for Netlinkz
Historical stock prices
Current Share PriceAU$0.031
52 Week HighAU$0.02
52 Week LowAU$0.087
Beta1.03
1 Month Change40.91%
3 Month Change-3.13%
1 Year Change-62.20%
3 Year Change3.33%
5 Year Change3.33%
Change since IPO-80.63%

Recent News & Updates

Apr 07
Is Netlinkz (ASX:NET) Using Too Much Debt?

Is Netlinkz (ASX:NET) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

NETAU SoftwareAU Market
7D19.2%2.2%0.7%
1Y-62.2%28.7%21.4%

Return vs Industry: NET underperformed the Australian Software industry which returned 28.7% over the past year.

Return vs Market: NET underperformed the Australian Market which returned 21.4% over the past year.

Price Volatility

Is NET's price volatile compared to industry and market?
NET volatility
NET Beta1.03
Industry Beta0.85
Market Beta1

Stable Share Price: NET is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: NET's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
2004n/aJames Tsiolishttps://www.netlinkz.com

Netlinkz Limited provides network solutions in Australia, New Zealand, and China. It offers Virtual Secure Network technology that provides physical and virtual secure ‘network as a service’ capabilities for enterprises of various sizes. The company also provides secure networking consulting, design, and implementation services to its resellers, partners, and customers.

Netlinkz Fundamentals Summary

How do Netlinkz's earnings and revenue compare to its market cap?
NET fundamental statistics
Market CapAU$97.05m
Earnings (TTM)-AU$23.45m
Revenue (TTM)AU$14.39m

7.0x

P/S Ratio

-4.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NET income statement (TTM)
RevenueAU$14.39m
Cost of RevenueAU$0
Gross ProfitAU$14.39m
ExpensesAU$37.84m
Earnings-AU$23.45m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0072
Gross Margin100.00%
Net Profit Margin-162.99%
Debt/Equity Ratio6.3%

How did NET perform over the long term?

See historical performance and comparison

Valuation

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

4.73x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NET is good value based on its PB Ratio (4.7x) compared to the AU Software industry average (5.2x).


Future Growth

How is Netlinkz 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 Netlinkz 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 Netlinkz performed over the past 5 years?

-25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NET is currently unprofitable.

Growing Profit Margin: NET is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NET is unprofitable, and losses have increased over the past 5 years at a rate of 25.7% per year.

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

Earnings vs Industry: NET is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (37.5%).


Return on Equity

High ROE: NET has a negative Return on Equity (-111.15%), as it is currently unprofitable.


Financial Health

How is Netlinkz's financial position?


Financial Position Analysis

Short Term Liabilities: NET's short term assets (A$13.9M) exceed its short term liabilities (A$5.6M).

Long Term Liabilities: NET's short term assets (A$13.9M) exceed its long term liabilities (A$23.5K).


Debt to Equity History and Analysis

Debt Level: NET's debt to equity ratio (6.3%) is considered satisfactory.

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


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

Forecast Cash Runway: NET has sufficient cash runway for 1 years if free cash flow continues to reduce at historical rates of 14.5% each year.


Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if NET'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 NET'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?

1.3yrs

Average management tenure


CEO

James Tsiolis (53 yo)

5.17yrs

Tenure

AU$897,292

Compensation

Mr. James Nicholas Tsiolis has been the Chief Executive Officer of Netlinkz Limited since June 2017 and serves as it's Managing Director since April 2021. Mr. Tsiolis is the Founder of Strategic Capital Ma...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD671.98K) is above average for companies of similar size in the Australian market ($USD303.33K).

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


Leadership Team

Experienced Management: NET's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: NET's board of directors are not considered experienced ( 1.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 49.9%.


Top Shareholders

Company Information

Netlinkz Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Netlinkz Limited
  • Ticker: NET
  • Exchange: ASX
  • Founded: 2004
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$97.055m
  • Shares outstanding: 3.24b
  • Website: https://www.netlinkz.com

Location

  • Netlinkz Limited
  • 65 Stanley Street
  • Darlinghurst
  • New South Wales
  • 2010
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 07:05
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.