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OCL

Objective ASX:OCL Stock Report

Last Price

AU$13.15

Market Cap

AU$1.2b

7D

-5.1%

1Y

-28.7%

Updated

29 Sep, 2022

Data

Company Financials +
OCL fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance6/6
Financial Health6/6
Dividends0/6

OCL Stock Overview

Objective Corporation Limited, together with its subsidiaries, supplies information technology software and services in Australia, the United Kingdom, New Zealand, and internationally.

Objective Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Objective
Historical stock prices
Current Share PriceAU$13.15
52 Week HighAU$22.11
52 Week LowAU$12.50
Beta0.71
1 Month Change-15.00%
3 Month Change-8.36%
1 Year Change-28.69%
3 Year Change216.87%
5 Year Change396.23%
Change since IPO1,321.62%

Recent News & Updates

Aug 04
With EPS Growth And More, Objective (ASX:OCL) Makes An Interesting Case

With EPS Growth And More, Objective (ASX:OCL) Makes An Interesting Case

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Jul 07
Estimating The Intrinsic Value Of Objective Corporation Limited (ASX:OCL)

Estimating The Intrinsic Value Of Objective Corporation Limited (ASX:OCL)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Objective Corporation...

Shareholder Returns

OCLAU SoftwareAU Market
7D-5.1%-5.2%-3.8%
1Y-28.7%-26.6%-12.6%

Return vs Industry: OCL underperformed the Australian Software industry which returned -26.6% over the past year.

Return vs Market: OCL underperformed the Australian Market which returned -12.6% over the past year.

Price Volatility

Is OCL's price volatile compared to industry and market?
OCL volatility
OCL Average Weekly Movement5.3%
Software Industry Average Movement11.0%
Market Average Movement9.6%
10% most volatile stocks in AU Market16.8%
10% least volatile stocks in AU Market4.2%

Stable Share Price: OCL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: OCL's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1987n/aTony Wallshttps://www.objective.com.au

Objective Corporation Limited, together with its subsidiaries, supplies information technology software and services in Australia, the United Kingdom, New Zealand, and internationally. It offers Objective 3Sixty to discover, organize, and manage enterprise information; Objective Nexus, a SaaS based solution providing records compliance, enterprise scale information management, and process automation; Objective Inform, which provides document management, records management, office 365, SharePoint governance, reporting insights, and drawings management solutions; Objective Perform to streamline and automate content-driven processes; Objective ECM, an information management and process automation solution; Objective Connect, a secure external file sharing application; Objective Redact, a redaction software for security for conscious organizations; and Objective GOV365. The company also provides Objective Ministerials, a workflow software for ministerial briefs and correspondence, as well as offers professional, managed, training and education, and technical support services; Objective Build, a management platform; Objective OpenGov to locate, collaborate, protect, and release information; Objective Trapeze, a software purpose-built for planners and building teams; Objective Keystone solution to author, approve, and publish documents; Objective REGWORKS, a software designed specifically for regulation, compliance, and enforcement; and Objective REACH, a solution for matching data.

Objective Fundamentals Summary

How do Objective's earnings and revenue compare to its market cap?
OCL fundamental statistics
Market CapAU$1.24b
Earnings (TTM)AU$19.56m
Revenue (TTM)AU$106.51m

63.9x

P/E Ratio

11.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OCL income statement (TTM)
RevenueAU$106.51m
Cost of RevenueAU$5.62m
Gross ProfitAU$100.88m
Other ExpensesAU$81.32m
EarningsAU$19.56m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.21
Gross Margin94.72%
Net Profit Margin18.37%
Debt/Equity Ratio0%

How did OCL perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

53%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

OCL 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/Revenue11.1x
Enterprise Value/EBITDA41.7x
PEG Ratio2.8x

Price to Earnings Ratio vs Peers

How does OCL's PE Ratio compare to its peers?

OCL PE Ratio vs Peers
The above table shows the PE ratio for OCL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average36.6x
HSN Hansen Technologies
20.9x5.3%AU$877.8m
IRE Iress
30.4x18.5%AU$1.9b
IFM Infomedia
51.8x34.5%AU$426.3m
TNE Technology One
45.5x13.1%AU$3.5b
OCL Objective
63.1x23.1%AU$1.2b

Price-To-Earnings vs Peers: OCL is expensive based on its Price-To-Earnings Ratio (63.9x) compared to the peer average (36.6x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: OCL is expensive based on its Price-To-Earnings Ratio (63.9x) compared to the Australian Software industry average (46.5x)


Price to Earnings Ratio vs Fair Ratio

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

OCL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio63.9x
Fair PE Ratio41.1x

Price-To-Earnings vs Fair Ratio: OCL is expensive based on its Price-To-Earnings Ratio (63.9x) compared to the estimated Fair Price-To-Earnings Ratio (41.1x).


Share Price vs Fair Value

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

Below Fair Value: OCL (A$13.15) is trading below our estimate of fair value (A$14.55)

Significantly Below Fair Value: OCL is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Objective forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OCL's forecast earnings growth (23.1% per year) is above the savings rate (1.8%).

Earnings vs Market: OCL's earnings (23.1% per year) are forecast to grow faster than the Australian market (6.6% per year).

High Growth Earnings: OCL's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OCL's revenue (14.7% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: OCL's revenue (14.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OCL's Return on Equity is forecast to be high in 3 years time (33.9%)


Discover growth companies

Past Performance

How has Objective performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


21.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OCL has high quality earnings.

Growing Profit Margin: OCL's current net profit margins (18.4%) are higher than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: OCL's earnings have grown significantly by 21.5% per year over the past 5 years.

Accelerating Growth: OCL's earnings growth over the past year (21.6%) exceeds its 5-year average (21.5% per year).

Earnings vs Industry: OCL earnings growth over the past year (21.6%) exceeded the Software industry -10.7%.


Return on Equity

High ROE: OCL's Return on Equity (31.6%) is considered high.


Discover strong past performing companies

Financial Health

How is Objective's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: OCL's short term assets (A$86.4M) exceed its short term liabilities (A$71.7M).

Long Term Liabilities: OCL's short term assets (A$86.4M) exceed its long term liabilities (A$6.8M).


Debt to Equity History and Analysis

Debt Level: OCL is debt free.

Reducing Debt: OCL has not had any debt for past 5 years.

Debt Coverage: OCL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: OCL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Objective 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

  • Cash Flow Coverage


0.84%

Current Dividend Yield

Dividend Yield vs Market

Objective Dividend Yield vs Market
How does Objective dividend yield compare to the market?
SegmentDividend Yield
Company (Objective)0.8%
Market Bottom 25% (AU)2.8%
Market Top 25% (AU)7.2%
Industry Average (Software)1.1%
Analyst forecast in 3 Years (Objective)1.3%

Notable Dividend: OCL's dividend (0.84%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.8%).

High Dividend: OCL's dividend (0.84%) is low compared to the top 25% of dividend payers in the Australian market (7.19%).


Stability and Growth of Payments

Stable Dividend: OCL is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: OCL is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: OCL is not paying a notable dividend for the Australian market.


Cash Payout to Shareholders

Cash Flow Coverage: OCL is not paying a notable dividend for the Australian market.


Discover strong dividend paying companies

Management

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

14.2yrs

Average board tenure


CEO

Tony Walls

31.67yrs

Tenure

AU$299,687

Compensation

Mr. Tony Walls serves as the Chairman and Chief Executive Officer at Objective Corporation Limited. Mr. Walls founded Objective Corp. Ltd in 1987. Mr. Walls served as Chief Executive Officer of Asia Pacifi...


CEO Compensation Analysis

Tony Walls's Compensation vs Objective Earnings
How has Tony Walls's remuneration changed compared to Objective's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022AU$300kAU$276k

AU$20m

Mar 31 2022n/an/a

AU$19m

Dec 31 2021n/an/a

AU$18m

Sep 30 2021n/an/a

AU$17m

Jun 30 2021AU$303kAU$278k

AU$16m

Mar 31 2021n/an/a

AU$15m

Dec 31 2020n/an/a

AU$14m

Sep 30 2020n/an/a

AU$13m

Jun 30 2020AU$319kAU$279k

AU$11m

Mar 31 2020n/an/a

AU$10m

Dec 31 2019n/an/a

AU$10m

Sep 30 2019n/an/a

AU$9m

Jun 30 2019AU$319kAU$280k

AU$9m

Mar 31 2019n/an/a

AU$8m

Dec 31 2018n/an/a

AU$7m

Sep 30 2018n/an/a

AU$7m

Jun 30 2018AU$300kAU$280k

AU$7m

Mar 31 2018n/an/a

AU$8m

Dec 31 2017n/an/a

AU$9m

Sep 30 2017n/an/a

AU$8m

Jun 30 2017AU$300kAU$280k

AU$8m

Mar 31 2017n/an/a

AU$8m

Dec 31 2016n/an/a

AU$8m

Sep 30 2016n/an/a

AU$6m

Jun 30 2016AU$299kAU$280k

AU$5m

Compensation vs Market: Tony's total compensation ($USD194.27K) is below average for companies of similar size in the Australian market ($USD1.08M).

Compensation vs Earnings: Tony's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: OCL's board of directors are seasoned and experienced ( 14.2 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

ASX:OCL Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
06 Sep 22SellAU$4,350,000Marlaine LtdCompany300,000AU$14.50
09 Nov 21SellAU$40,399,998Marlaine LtdCompany2,000,000AU$20.20

Ownership Breakdown

What is the ownership structure of OCL?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders1,117,7231.2%
Institutions3,503,4363.7%
General Public22,503,62723.7%
Private Companies67,884,83271.5%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 76.29% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
65.26%
TBW Group Pty Limited
62,000,000A$815.3m0%no data
5.58%
Marlaine Ltd
5,300,000A$69.7m-5.36%no data
1.31%
Anacacia Capital Pty Limited
1,245,991A$16.4m0%8.91%
0.74%
Norges Bank Investment Management
702,963A$9.2m0%no data
0.65%
Mirrabooka Investments Limited
614,444A$8.1m0%1.74%
0.32%
David Gordon
300,000A$3.9m0%no data
0.31%
Arras Pty Ltd
294,832A$3.9m0%no data
0.31%
Truebell Capital Pty Ltd
290,000A$3.8m0%no data
0.29%
Amcil Limited
274,075A$3.6m0%3.24%
0.26%
Jeremy Goddard
250,000A$3.3m0%no data
0.19%
MAM Pty Limited
182,335A$2.4m0%0.15%
0.19%
Darc Dencker-Rasmussen
180,214A$2.4m0%no data
0.17%
Ben Tregoning
162,509A$2.1m-49.81%no data
0.16%
BlackRock, Inc.
147,815A$1.9m6.47%no data
0.14%
Dimensional Fund Advisors LP
131,865A$1.7m-0.02%no data
0.13%
Stephen Bool
125,000A$1.6m0%no data
0.11%
Nicholas Kingsbury
100,000A$1.3m0%no data
0.063%
The Vanguard Group, Inc.
60,290A$792.8k3.69%no data
0.042%
Bessemer Investment Management LLC
39,455A$518.8k92.73%no data
0.028%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
26,485A$348.3k0%no data
0.021%
NFS Capital AG
20,000A$263.0k0%0.08%
0.014%
Credit Suisse Asset Management (Switzerland)
13,467A$177.1k0%no data
0.0099%
UBS Asset Management
9,416A$123.8k0%no data
0.0073%
Geode Capital Management, LLC
6,911A$90.9k-6.67%no data
0.007%
KLP Kapitalforvaltning AS
6,696A$88.1k0%no data

Company Information

Objective Corporation Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Objective Corporation Limited
  • Ticker: OCL
  • Exchange: ASX
  • Founded: 1987
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: AU$1.235b
  • Shares outstanding: 95.01m
  • Website: https://www.objective.com.au

Number of Employees


Location

  • Objective Corporation Limited
  • 177 Pacific Highway
  • Level 30
  • North Sydney
  • New South Wales
  • 2060
  • Australia


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OCLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2000
OCLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2000

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.