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

Adequate 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 more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: NOV's weekly volatility (17%) has been stable over the past year, but is still higher than 75% of Australian stocks.


Market Performance


7 Day Return

2.5%

NOV

-8.0%

AU Software

-1.6%

AU Market


1 Year Return

131.4%

NOV

38.9%

AU Software

8.6%

AU Market

Return vs Industry: NOV exceeded the Australian Software industry which returned 38.9% over the past year.

Return vs Market: NOV exceeded the Australian Market which returned 8.6% over the past year.


Shareholder returns

NOVIndustryMarket
7 Day2.5%-8.0%-1.6%
30 Day65.3%-9.6%0.5%
90 Day50.0%-8.7%2.7%
1 Year131.4%131.4%39.9%38.9%12.2%8.6%
3 Year50.0%50.0%99.4%93.0%28.3%12.8%
5 Year132.0%125.0%152.3%148.1%61.6%30.2%

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?

11.77x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NOV is overvalued based on its PB Ratio (11.8x) compared to the AU Software industry average (4.6x).


Next Steps

Future Growth

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

34.4%

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?

-20.8%

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 20.8% 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 (44.9%).


Return on Equity

High ROE: NOV has a negative Return on Equity (-94.23%), as it is currently unprofitable.


Next Steps

Financial Health

How is Novatti Group's financial position?


Financial Position Analysis

Short Term Liabilities: NOV's short term assets (A$29.1M) exceed its short term liabilities (A$28.7M).

Long Term Liabilities: NOV's short term assets (A$29.1M) exceed its long term liabilities (A$2.3M).


Debt to Equity History and Analysis

Debt Level: NOV's debt to equity ratio (65%) is considered high.

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 sufficient cash runway for 2 years if free cash flow continues to reduce at historical rates of 8.8% 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?

8.6yrs

Average management tenure


CEO

Peter Cook (60 yo)

18.5yrs

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 ($USD538.48K) is above average for companies of similar size in the Australian market ($USD293.70K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Cook
Founder18.5yrsAU$697.98kno data
Steven Stamboultgis
Chief Financial Officerno dataAU$256.14k0.0088%
A$ 8.1k
Alan Munday
Chief Operating Officerno dataAU$347.43k0.022%
A$ 20.2k
Alistair Swain
Key Account Directorno datano datano data
Kim Beveridge
Chief Technology Officer14.08yrsno datano data
Mark Maglaras
Sales Director8.58yrsno datano data
Peter Christo
Head of China Payments Division4yrsno datano data
Ian Hobson
Company Secretary5.33yrsno datano data

8.6yrs

Average Tenure

Experienced Management: NOV's management team is seasoned and experienced (8.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Cook
Founder18.5yrsAU$697.98kno data
Peter Pawlowitsch
Non-Executive Chairmanno dataAU$259.17k1.04%
A$ 953.0k
Paul Burton
Non-Executive Director4.75yrsAU$85.93k0.12%
A$ 106.6k
Kenneth Lai
Non-Executive Director4.75yrsAU$73.43k5.77%
A$ 5.3m
Yang Qi
Non-Executive Director3.33yrsAU$85.93kno data

4.8yrs

Average Tenure

50yo

Average Age

Experienced Board: NOV's board of directors are considered experienced (4.8 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$91.998m
  • 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 Analysis2021/02/28 07:04
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
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.