ASX:NOV

Stock Analysis Report

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Executive Summary

Novatti Group Limited, together with its subsidiaries, provides software technology, utility billing, and payment services worldwide. More Details


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NOV is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: NOV's weekly volatility has decreased from 15% to 9% over the past year.


Market Performance


7 Day Return

6.0%

NOV

6.4%

AU Software

1.4%

AU Market


1 Year Return

23.3%

NOV

27.1%

AU Software

-0.6%

AU Market

Return vs Industry: NOV underperformed the Australian Software industry which returned 27.1% over the past year.

Return vs Market: NOV exceeded the Australian Market which returned -0.6% over the past year.


Shareholder returns

NOVIndustryMarket
7 Day6.0%6.4%1.4%
30 Day6.0%-0.2%3.0%
90 Day-3.6%5.9%11.9%
1 Year23.3%23.3%28.1%27.1%2.8%-0.6%
3 Year-24.3%-24.3%106.4%99.5%27.0%11.4%
5 Year30.1%26.2%173.0%169.0%68.6%34.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Novatti Group is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Novatti Group has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of NOV's management and see if the CEO's compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don't know where to start, we recommend reading through Novatti Group regulatory filings.
  • Explore potentially undervalued companies in the Software industry.

Future Growth

How is Novatti Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

30.9%

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 Novatti Group 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.


Next Steps

Past Performance

How has Novatti Group performed over the past 5 years?

-25.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOV is currently unprofitable.

Growing Profit Margin: NOV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NOV is unprofitable, and losses have increased over the past 5 years at a rate of 25.4% per year.

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

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


Return on Equity

High ROE: NOV's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Novatti Group's financial position?


Financial Position Analysis

Short Term Liabilities: NOV has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: NOV has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: NOV has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: NOV's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


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

Forecast Cash Runway: NOV has less than a year of cash runway if free cash flow continues to reduce at historical rates of 15.7% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

8.5yrs

Average management tenure


CEO

Peter Cook (60 yo)

18.42yrs

Tenure

AU$697,981

Compensation

Mr. Peter Samuel Cook, BSc, Gr.Dip Compng, Gr.Dip Secu, GAICD., is the Founder of Novatti Group Limited (also known as Total Tel International Pty Ltd) and has been its Chief Executive Officer since August...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD538.61K) is above average for companies of similar size in the Australian market ($USD293.77K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Cook
Founder18.42yrsAU$697.98kno data
Steven Stamboultgis
Chief Financial Officerno dataAU$256.14k0.0088%
A$ 5.3k
Alan Munday
Chief Operating Officerno dataAU$347.43k0.022%
A$ 13.2k
Alistair Swain
Key Account Directorno datano datano data
Kim Beveridge
Chief Technology Officer14yrsno datano data
Mark Maglaras
Sales Director8.5yrsno datano data
Peter Christo
Head of China Payments Division3.92yrsno datano data
Ian Hobson
Company Secretary5.25yrsno datano data

8.5yrs

Average Tenure

Experienced Management: NOV's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Cook
Founder18.42yrsAU$697.98kno data
Peter Pawlowitsch
Non-Executive Chairmanno dataAU$259.17k1.04%
A$ 623.6k
Paul Burton
Non-Executive Director4.67yrsAU$85.93k0.12%
A$ 69.7k
Kenneth Lai
Non-Executive Director4.67yrsAU$73.43k5.77%
A$ 3.5m
Yang Qi
Non-Executive Director3.25yrsAU$85.93kno data

4.7yrs

Average Tenure

50yo

Average Age

Experienced Board: NOV's board of directors are considered experienced (4.7 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 35.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Novatti Group Limited
  • Ticker: NOV
  • Exchange: ASX
  • Founded: 1994
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$60.196m
  • Shares outstanding: 227.16m
  • Website: https://www.novattigroup.com

Location

  • Novatti Group Limited
  • 461 Bourke Street
  • Level 3
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOVASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 2016
NOVCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 2016

Biography

Novatti Group Limited, together with its subsidiaries, provides software technology, utility billing, and payment services worldwide. It operates in five segments: Novatti Platform, Billing Solutions, Tran...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/24 07:09
End of Day Share Price2021/01/22 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.