Executive Summary
Novatti Group Limited, together with its subsidiaries, provides software technology, utility billing, and payment services worldwide. More Details
Risk Analysis
+ 1 more risk
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
| NOV | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.0% | 6.4% | 1.4% |
| 30 Day | 6.0% | -0.2% | 3.0% |
| 90 Day | -3.6% | 5.9% | 11.9% |
| 1 Year | 23.3%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 Year | 30.1%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
2 weeks ago | Simply Wall St
What Can We Make Of Novatti Group's (ASX:NOV) CEO Compensation?4 months ago | Simply Wall St
What We Learned About Novatti Group's (ASX:NOV) CEO Compensation7 months ago | Simply Wall St
The Novatti Group (ASX:NOV) Share Price Is Up 96% And Shareholders Are Holding OnValuation
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
- 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.
- Novatti Group competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Software industry.
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 18.42yrs | AU$697.98k | no data | |
| Chief Financial Officer | no data | AU$256.14k | 0.0088% A$ 5.3k | |
| Chief Operating Officer | no data | AU$347.43k | 0.022% A$ 13.2k | |
| Key Account Director | no data | no data | no data | |
| Chief Technology Officer | 14yrs | no data | no data | |
| Sales Director | 8.5yrs | no data | no data | |
| Head of China Payments Division | 3.92yrs | no data | no data | |
| Company Secretary | 5.25yrs | no data | no data |
8.5yrs
Average Tenure
Experienced Management: NOV's management team is seasoned and experienced (8.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 18.42yrs | AU$697.98k | no data | |
| Non-Executive Chairman | no data | AU$259.17k | 1.04% A$ 623.6k | |
| Non-Executive Director | 4.67yrs | AU$85.93k | 0.12% A$ 69.7k | |
| Non-Executive Director | 4.67yrs | AU$73.43k | 5.77% A$ 3.5m | |
| Non-Executive Director | 3.25yrs | AU$85.93k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NOV | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 2016 |
| NOV | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/24 07:09 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.