company background image
NOV

Novatti Group ASX:NOV Stock Report

Last Price

AU$0.17

Market Cap

AU$55.3m

7D

0%

1Y

-72.3%

Updated

03 Jul, 2022

Data

Company Financials
NOV fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health4/6
Dividends0/6

NOV Stock Overview

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

Novatti Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Novatti Group
Historical stock prices
Current Share PriceAU$0.17
52 Week HighAU$0.61
52 Week LowAU$0.15
Beta2.14
1 Month Change-17.50%
3 Month Change-34.00%
1 Year Change-72.27%
3 Year Change6.45%
5 Year Change13.79%
Change since IPO-15.38%

Recent News & Updates

Shareholder Returns

NOVAU SoftwareAU Market
7D0%-3.2%-0.5%
1Y-72.3%-26.4%-12.2%

Return vs Industry: NOV underperformed the Australian Software industry which returned -26.4% over the past year.

Return vs Market: NOV underperformed the Australian Market which returned -12.2% over the past year.

Price Volatility

Is NOV's price volatile compared to industry and market?
NOV volatility
NOV Average Weekly Movement11.5%
Software Industry Average Movement11.4%
Market Average Movement9.9%
10% most volatile stocks in AU Market16.6%
10% least volatile stocks in AU Market4.4%

Stable Share Price: NOV is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: NOV's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1994n/aPeter Cookhttps://www.novatti.com

Novatti Group Limited, together with its subsidiaries, provides software technology, utility billing, and payment services worldwide. It operates through Technology, Business Automation, Acquiring, Alternative Payments, Banking Services, and Issuing segments. The Technology segment develops, deploys, and supports mobile and alternate payment technology, primarily through the deployment of the Novatti platform; and provides billing and CIS solutions to service providers in the utility industry.

Novatti Group Fundamentals Summary

How do Novatti Group's earnings and revenue compare to its market cap?
NOV fundamental statistics
Market CapAU$55.32m
Earnings (TTM)-AU$18.62m
Revenue (TTM)AU$22.43m

2.5x

P/S Ratio

-3.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NOV income statement (TTM)
RevenueAU$22.43m
Cost of RevenueAU$29.52m
Gross Profit-AU$7.09m
Other ExpensesAU$11.52m
Earnings-AU$18.62m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.056
Gross Margin-31.64%
Net Profit Margin-83.01%
Debt/Equity Ratio0.5%

How did NOV perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is NOV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NOV?

Other financial metrics that can be useful for relative valuation.

NOV key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2x
Enterprise Value/EBITDA-3.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does NOV's PS Ratio compare to its peers?

NOV PS Ratio vs Peers
The above table shows the PS ratio for NOV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average25.4x
LVT LiveTiles
0.8x15.4%AU$42.8m
YOJ Yojee
51.1x76.9%AU$76.8m
ESK Etherstack
4.3x29.7%AU$53.6m
EIQ Echo IQ
45.5xn/aAU$42.4m
NOV Novatti Group
2.5xn/aAU$55.3m

Price-To-Sales vs Peers: NOV is good value based on its Price-To-Sales Ratio (2.5x) compared to the peer average (25.4x).


Price to Earnings Ratio vs Industry

How does NOV's PE Ratio compare vs other companies in the AU Software Industry?

Price-To-Sales vs Industry: NOV is good value based on its Price-To-Sales Ratio (2.5x) compared to the Australian Software industry average (4.2x)


Price to Sales Ratio vs Fair Ratio

What is NOV's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NOV PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.5x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate NOV's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of NOV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate NOV's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate NOV's fair value for valuation analysis.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NOV's PEG Ratio to determine if it is good value.


Discover undervalued companies

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


30.7%

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.


Discover growth companies

  • Examine Novatti Group's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Novatti Group competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Novatti Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-31.4%

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 31.4% 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 (21.2%).


Return on Equity

High ROE: NOV has a negative Return on Equity (-44.69%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Novatti Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: NOV's short term assets (A$60.3M) exceed its short term liabilities (A$51.9M).

Long Term Liabilities: NOV's short term assets (A$60.3M) exceed its long term liabilities (A$2.0M).


Debt to Equity History and Analysis

Debt Level: NOV has more cash than its total debt.

Reducing Debt: Insufficient data to determine if NOV's debt to equity ratio has reduced over the 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: 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 10.4% each year


Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NOV has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

8.4yrs

Average management tenure


CEO

Peter Cook (62 yo)

19.92yrs

Tenure

AU$800,692

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 ($USD543.51K) is above average for companies of similar size in the Australian market ($USD281.90K).

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


Leadership Team

Experienced Management: NOV's management team is seasoned and experienced (8.4 years average tenure).


Board Members

Experienced Board: NOV's board of directors are considered experienced (6.5 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 37.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Novatti Group Limited
  • Ticker: NOV
  • Exchange: ASX
  • Founded: 1994
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: AU$55.324m
  • Shares outstanding: 335.30m
  • Website: https://www.novatti.com

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2021/12/31
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.