ASX:NTO

Stock Analysis Report

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Executive Summary

Nitro Software Limited provides software and software support services for document productivity through the portable document format (PDF) in Australia and internationally. More Details


Snowflake Analysis

Flawless balance sheet with concerning outlook.

Share Price & News

How has Nitro Software's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NTO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.2%

NTO

3.0%

AU Software

1.9%

AU Market


1 Year Return

n/a

NTO

12.4%

AU Software

-10.0%

AU Market

Return vs Industry: Insufficient data to determine how NTO performed against the Australian Software industry.

Return vs Market: Insufficient data to determine how NTO performed against the Australian Market.


Shareholder returns

NTOIndustryMarket
7 Day9.2%3.0%1.9%
30 Day17.2%-3.1%-1.9%
90 Day79.5%17.0%3.1%
1 Yearn/a13.3%12.4%-6.8%-10.0%
3 Yearn/a115.5%107.6%17.5%2.4%
5 Yearn/a157.6%137.7%43.6%13.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NTO (A$2.72) is trading above our estimate of fair value (A$0.52)

Significantly Below Fair Value: NTO is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NTO is overvalued based on its PB Ratio (11.3x) compared to the AU Software industry average (5.3x).


Next Steps

Future Growth

How is Nitro Software forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

15.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NTO's forecast earnings growth is above the savings rate (2.3%).

Earnings vs Market: Insufficient data to determine if NTO's earnings are forecast to grow faster than the Australian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NTO's revenue (15.7% per year) is forecast to grow faster than the Australian market (4.4% per year).

High Growth Revenue: NTO's revenue (15.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NTO is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Nitro Software performed over the past 5 years?

28.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTO is currently unprofitable.

Growing Profit Margin: NTO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NTO is unprofitable, but has reduced losses over the past 5 years at a rate of 28.8% per year.

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

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


Return on Equity

High ROE: NTO has a negative Return on Equity (-22.44%), as it is currently unprofitable.


Next Steps

Financial Health

How is Nitro Software's financial position?


Financial Position Analysis

Short Term Liabilities: NTO's short term assets ($52.0M) exceed its short term liabilities ($24.2M).

Long Term Liabilities: NTO's short term assets ($52.0M) exceed its long term liabilities ($2.3M).


Debt to Equity History and Analysis

Debt Level: NTO is debt free.

Reducing Debt: NTO had no debt 5 years ago.


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: Whilst unprofitable NTO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NTO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 94.5% per year.


Next Steps

Dividend

What is Nitro Software current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

0.4yrs

Average management tenure


CEO

Sam Chandler

no data

Tenure

US$808,760

Compensation

Mr. Sam Chandler founded Nitro PDF, Inc. and serves as its Chief Executive Officer. Mr. Chandler serves on the advisory board of Brocon Ltd. Mr. Chandler serves on the board of the Melbourne Community Foun ...


CEO Compensation Analysis

Compensation vs Market: Sam's total compensation ($USD808.76K) is about average for companies of similar size in the Australian market ($USD720.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kurt Johnson
Executive Chairman & Acting CFO1.67yrsUS$89.96k0.053%
$ 259.0k
Sam Chandler
Co-Founderno dataUS$808.76k2.21%
$ 10.8m
Richard Wenzel
Co-Founder & Executive Director15.67yrsUS$373.01k5.09%
$ 25.0m
Kathleen Miller
Executive Officer0.42yrUS$930.17kno data
Gina O'Reilly
Chief Operating Officer11.67yrsno datano data
Mark Flanagan
Senior Vice President of Global Sales0.42yrno datano data
Maria Robinson
Chief Marketing Officer0.083yrno datano data
Erica Johnson
Vice President of Peopleno datano datano data
Eric Salas
Head of Marketingno datano datano data
Sam Thorpe
Chief Product Officer0.083yrno datano data
Mark Licciardo
Company Secretary0.83yrno datano data

0.4yrs

Average Tenure

56yo

Average Age

Experienced Management: NTO's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kurt Johnson
Executive Chairman & Acting CFO1.67yrsUS$89.96k0.053%
$ 259.0k
Sam Chandler
Co-Founderno dataUS$808.76k2.21%
$ 10.8m
Richard Wenzel
Co-Founder & Executive Director15.67yrsUS$373.01k5.09%
$ 25.0m
Michael Brown
Non-Executive Director6.67yrsUS$3.25kno data
John Dyson
Non-Executive Director2.67yrsUS$3.46k0.043%
$ 211.2k
Sarah Morgan
Independent Non-Executive Director0.83yrUS$34.35k0.020%
$ 96.5k
Lisa Hennessy
Lead Independent Director0.50yrUS$27.92k0.020%
$ 96.4k

2.2yrs

Average Tenure

50yo

Average Age

Experienced Board: NTO's board of directors are not considered experienced ( 2.2 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: NTO only recently listed within the past 12 months.


Top Shareholders

Company Information

Nitro Software Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nitro Software Limited
  • Ticker: NTO
  • Exchange: ASX
  • Founded: 2005
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$490.587m
  • Shares outstanding: 189.42m
  • Website: https://www.gonitro.com

Number of Employees


Location

  • Nitro Software Limited
  • 150 Spear Street
  • Suite 1500
  • San Francisco
  • California
  • 94105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTOASX (Australian Securities Exchange)YesOrdinary sharesAUAUDDec 2019
NTOCHIA (Chi-X Australia)YesOrdinary sharesAUAUDDec 2019
NSWE.FOTCPK (Pink Sheets LLC)YesOrdinary sharesUSUSDDec 2019
3QUDB (Deutsche Boerse AG)YesOrdinary sharesDEEURDec 2019

Biography

Nitro Software Limited provides software and software support services for document productivity through the portable document format (PDF) in Australia and internationally. Its productivity suite includes ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/29 10:46
End of Day Share Price2020/09/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.