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Objective

ASX:OCL
Snowflake Description

Adequate balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
OCL
ASX
A$270M
Market Cap
  1. Home
  2. AU
  3. Software
Company description

Objective Corporation Limited, together with its subsidiaries, provides information technology software and services in Australia, the United Kingdom, New Zealand, and internationally. The last earnings update was 88 days ago. More info.


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OCL Share Price and Events
7 Day Returns
3.6%
ASX:OCL
-4.4%
AU Software
1.2%
AU Market
1 Year Returns
-7.3%
ASX:OCL
30.8%
AU Software
4.7%
AU Market
OCL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Objective (OCL) 3.6% 1.8% 10.7% -7.3% 60.2% 150%
AU Software -4.4% 0.6% 9.3% 30.8% 84.8% 106.7%
AU Market 1.2% 1.1% 3.9% 4.7% 18.3% 9%
1 Year Return vs Industry and Market
  • OCL underperformed the Software industry which returned 30.8% over the past year.
  • OCL underperformed the Market in Australia which returned 4.7% over the past year.
Price Volatility
OCL
Industry
5yr Volatility vs Market

Value

 Is Objective undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Objective to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Objective.

ASX:OCL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:OCL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.15
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.148 (1 + (1- 30%) (4.64%))
1.124
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.124 * 5.96%)
9.01%

Discounted Cash Flow Calculation for ASX:OCL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Objective is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:OCL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 9.01%)
2019 17.89 Est @ 26.19% 16.42
2020 21.30 Est @ 19.03% 17.92
2021 24.28 Est @ 14.01% 18.75
2022 26.84 Est @ 10.5% 19.00
2023 28.99 Est @ 8.05% 18.83
2024 30.83 Est @ 6.33% 18.37
2025 32.41 Est @ 5.12% 17.71
2026 33.79 Est @ 4.28% 16.94
2027 35.04 Est @ 3.69% 16.12
2028 36.19 Est @ 3.28% 15.27
Present value of next 10 years cash flows A$175.34
ASX:OCL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$36.19 × (1 + 2.31%) ÷ (9.01% – 2.31%)
A$552.58
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$552.58 ÷ (1 + 9.01%)10
A$233.15
ASX:OCL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$175.34 + A$233.15
A$408.48
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$408.48 / 92.88
A$4.4
ASX:OCL Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$4.40
Current discount Discount to share price of A$2.90
= -1 x (A$2.90 - A$4.40) / A$4.40
34.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Objective is available for.
Intrinsic value
34%
Share price is A$2.9 vs Future cash flow value of A$4.4
Current Discount Checks
For Objective to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Objective's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Objective's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Objective's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Objective's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:OCL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.07
ASX:OCL Share Price ** ASX (2019-05-27) in AUD A$2.9
Australia Software Industry PE Ratio Median Figure of 19 Publicly-Listed Software Companies 37.38x
Australia Market PE Ratio Median Figure of 543 Publicly-Listed Companies 16.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Objective.

ASX:OCL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:OCL Share Price ÷ EPS (both in AUD)

= 2.9 ÷ 0.07

38.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Objective is overvalued based on earnings compared to the AU Software industry average.
  • Objective is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Objective's expected growth come at a high price?
Raw Data
ASX:OCL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 38.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-0.1%per year
Australia Software Industry PEG Ratio Median Figure of 13 Publicly-Listed Software Companies 2.58x
Australia Market PEG Ratio Median Figure of 358 Publicly-Listed Companies 1.41x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Objective, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Objective's assets?
Raw Data
ASX:OCL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.26
ASX:OCL Share Price * ASX (2019-05-27) in AUD A$2.9
Australia Software Industry PB Ratio Median Figure of 101 Publicly-Listed Software Companies 3.16x
Australia Market PB Ratio Median Figure of 1,682 Publicly-Listed Companies 1.66x
ASX:OCL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:OCL Share Price ÷ Book Value per Share (both in AUD)

= 2.9 ÷ 0.26

11.33x

* Primary Listing of Objective.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Objective is overvalued based on assets compared to the AU Software industry average.
X
Value checks
We assess Objective's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Objective has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Objective expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Objective, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Objective expected to grow at an attractive rate?
  • Objective's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Objective's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • Unable to compare Objective's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:OCL Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:OCL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -0.1%
Australia Software Industry Earnings Growth Rate Market Cap Weighted Average 29.3%
Australia Software Industry Revenue Growth Rate Market Cap Weighted Average 17.8%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.9%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:OCL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:OCL Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
ASX:OCL Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 59 17 7
2018-09-30 61 14 7
2018-06-30 63 11 7
2018-03-31 64 12 8
2017-12-31 66 13 9
2017-09-30 64 11 8
2017-06-30 63 10 8
2017-03-31 60 5 8
2016-12-31 58 1 8
2016-09-30 54 0 6
2016-06-30 50 -2 5
2016-03-31 49 2 5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Objective's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if Objective is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:OCL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Objective Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:OCL Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
ASX:OCL Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.07
2018-09-30 0.08
2018-06-30 0.08
2018-03-31 0.09
2017-12-31 0.09
2017-09-30 0.09
2017-06-30 0.09
2017-03-31 0.09
2016-12-31 0.08
2016-09-30 0.07
2016-06-30 0.06
2016-03-31 0.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Objective will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Objective's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Objective has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Objective performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Objective's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Objective's year on year earnings growth rate has been positive over the past 5 years.
  • Objective's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Objective's 1-year earnings growth is negative, it can't be compared to the AU Software industry average.
Earnings and Revenue History
Objective's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Objective Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:OCL Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 58.95 6.91 35.64 12.78
2018-09-30 61.03 7.15 37.09 12.92
2018-06-30 63.11 7.38 38.55 13.07
2018-03-31 64.39 7.98 39.06 13.14
2017-12-31 65.67 8.57 39.57 13.20
2017-09-30 64.14 8.39 38.61 13.03
2017-06-30 62.60 8.20 37.65 12.85
2017-03-31 60.11 7.87 35.94 12.46
2016-12-31 57.62 7.54 34.24 12.07
2016-09-30 53.89 6.40 32.93 11.67
2016-06-30 50.15 5.26 31.63 11.26
2016-03-31 49.47 4.76 31.68 11.09
2015-12-31 48.79 4.25 31.74 10.92
2015-09-30 49.40 4.36 32.03 10.94
2015-06-30 50.01 4.47 32.31 10.96
2015-03-31 50.46 4.86 32.44 10.72
2014-12-31 50.91 5.26 32.57 10.47
2014-09-30 49.75 5.47 31.59 10.09
2014-06-30 48.58 5.69 30.61 9.70
2014-03-31 46.12 5.43 29.20 9.48
2013-12-31 43.66 5.18 27.79 9.25
2013-09-30 42.34 4.53 27.18 9.30
2013-06-30 41.02 3.89 26.57 9.36
2013-03-31 39.81 3.24 26.45 9.36
2012-12-31 38.59 2.59 26.33 9.37
2012-09-30 39.15 3.60 25.50 9.21
2012-06-30 39.71 4.60 24.66 9.05

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Objective has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Objective used its assets more efficiently than the AU Software industry average last year based on Return on Assets.
  • Objective's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Objective's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Objective has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Objective's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Objective's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Objective is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Objective's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Objective's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Objective Company Filings, last reported 4 months ago.

ASX:OCL Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 23.72 12.54 29.29
2018-09-30 23.72 12.54 29.29
2018-06-30 24.73 0.00 21.49
2018-03-31 24.73 0.00 21.49
2017-12-31 20.74 0.00 20.49
2017-09-30 20.74 0.00 20.49
2017-06-30 21.33 0.00 16.85
2017-03-31 21.33 0.00 16.85
2016-12-31 17.56 0.00 10.72
2016-09-30 17.56 0.00 10.72
2016-06-30 17.96 0.00 12.37
2016-03-31 17.96 0.00 12.37
2015-12-31 13.93 0.00 19.83
2015-09-30 13.93 0.00 19.83
2015-06-30 15.62 0.00 20.25
2015-03-31 15.62 0.00 20.25
2014-12-31 12.15 0.00 17.26
2014-09-30 12.15 0.00 17.26
2014-06-30 11.98 0.00 14.97
2014-03-31 11.98 0.00 14.97
2013-12-31 8.49 0.00 13.54
2013-09-30 8.49 0.00 13.54
2013-06-30 14.38 0.00 18.00
2013-03-31 14.38 0.00 18.00
2012-12-31 10.86 0.00 17.42
2012-09-30 10.86 0.00 17.42
2012-06-30 12.42 0.00 13.53
  • Objective's level of debt (52.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 52.9% today).
  • Debt is well covered by operating cash flow (133.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 37.8x coverage).
X
Financial health checks
We assess Objective's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Objective has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Objective's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.72%
Current annual income from Objective dividends.
If you bought A$2,000 of Objective shares you are expected to receive A$34 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Objective's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.59%).
  • Objective's dividend is below the markets top 25% of dividend payers in Australia (5.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:OCL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Australia Software Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.3%
Australia Market Average Dividend Yield Market Cap Weighted Average of 414 Stocks 4.2%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:OCL Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
ASX:OCL Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2018-08-29 0.050 1.837
2017-08-29 0.040 1.361
2016-08-26 0.040 1.981
2015-08-25 0.038 2.187
2014-08-27 0.035 2.272
2013-08-28 0.030 3.908
2012-08-13 0.020 3.938
2011-09-01 0.015 5.150
2010-08-31 0.013 5.750
2009-08-24 0.021 6.428

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Objective's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Objective's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Objective afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Objective has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Objective's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tony Walls
COMPENSATION A$300,409
CEO Bio

Mr. Tony Walls serves as the Executive 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 Pacific of Objective Corp. Ltd. Mr. Walls has extensive experience in the IT industry. He has been a Director of Objective Corporation Limited since 1991. Mr. Walls has a B.Math (Computing Science), a Grad. Dip in Applied Finance (SIA) and is a Fellow of the Australian Institute of Company Directors.

CEO Compensation
  • Tony's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Tony's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Objective management team in years:

3.8
Average Tenure
  • The tenure for the Objective management team is about average.
Management Team

Tony Walls

TITLE
Executive Chairman & CEO
COMPENSATION
A$300K

Ben Tregoning

TITLE
CFO & Company Secretary
COMPENSATION
A$310K
TENURE
2.8 yrs

Frank Volckmar

TITLE
Chief Operating Officer
COMPENSATION
A$338K
TENURE
3.8 yrs

Scott McIntyre

TITLE
Managing Director of EMEA
COMPENSATION
A$379K

Adrian Rudman

TITLE
Global Vice President of Keystone Solutions
COMPENSATION
A$232K

David Gordon

TITLE
Vice President Product Development
COMPENSATION
A$263K

Jeremy Goddard

TITLE
Global Vice President of Enterprise Solutions
COMPENSATION
A$480K
TENURE
5.4 yrs
Board of Directors

Tony Walls

TITLE
Executive Chairman & CEO
COMPENSATION
A$300K

Gary Fisher

TITLE
Non-Executive Director
TENURE
28.2 yrs

Nick Kingsbury

TITLE
Independent Non-Executive Director
COMPENSATION
A$63K
AGE
60

Darc Rasmussen

TITLE
Independent Non-Executive Director
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Objective insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
21. Mar 19 Buy Darc Dencker-Rasmussen Individual 18. Mar 19 19. Mar 19 8,984 A$2.77 A$24,886
X
Management checks
We assess Objective's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Objective has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Objective Corporation Limited's (ASX:OCL) Balance Sheet A Threat To Its Future?

OCL’s Debt (And Cash Flows) In the previous 12 months, OCL's rose by about AU$13m including long-term debt. … Additionally, OCL has generated cash from operations of AU$17m in the last twelve months, leading to an operating cash to total debt ratio of 133%, signalling that OCL’s debt is appropriately covered by operating cash. … Next Steps: OCL’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Can Objective Corporation Limited (ASX:OCL) Maintain Its Strong Returns?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each A$1 of shareholders' equity it has, the company made A$0.29 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Do Directors Own Objective Corporation Limited (ASX:OCL) Shares?

Generally speaking, as a company grows, institutions will increase their ownership. … We also tend to see lower insider ownership in companies that were previously publicly owned. … We can zoom in on the different ownership groups, to learn more about OCL

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Is Objective Corporation Limited's (ASX:OCL) CEO Paid At A Competitive Rate?

How Does Tony Walls's Compensation Compare With Similar Sized Companies. … According to our data, Objective Corporation Limited has a market capitalization of AU$260m, and pays its CEO total annual compensation worth AU$300k. … While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$280k

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Is Objective Corporation Limited's (ASX:OCL) High P/E Ratio A Problem For Investors?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Objective Corporation Limited's (ASX:OCL) P/E ratio and reflect on what it tells us about the company's share price. … Objective has a price to earnings ratio of 36.93, based on the last twelve months.

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Is Objective Corporation Limited (ASX:OCL) A Smart Choice For Dividend Investors?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Historically, Objective Corporation Limited (ASX:OCL) has been paying a dividend to shareholders. … Let's dig deeper into whether Objective should have a place in your portfolio.

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Is Objective Corporation Limited's (ASX:OCL) Balance Sheet A Threat To Its Future?

The direct benefit for Objective Corporation Limited (ASX:OCL), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … Is financial flexibility worth the lower cost of capital … There are well-known benefits of including debt in capital structure, primarily a lower cost of capital.

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With A -10% Earnings Drop, Is Objective Corporation Limited's (ASX:OCL) A Concern?

After looking at Objective Corporation Limited's (ASX:OCL) latest earnings update (30 June 2018), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. … OCL's trailing twelve-month earnings (from 30 June 2018) of AU$7.4m has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 14%, indicating the rate at which OCL is growing has slowed down

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Objective Corporation Limited (ASX:OCL) Delivered A Better ROE Than Its Industry

Our data shows Objective has a return on equity of 30% for the last year. … One way to conceptualize this, is that for each A$1 of shareholders' equity it has, the company made A$0.30 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Could The Objective Corporation Limited (ASX:OCL) Ownership Structure Tell Us Something Useful?

A look at the shareholders of Objective Corporation Limited (ASX:OCL) can tell us which group is most powerful. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Objective is not a large company by global standards.

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Company Info

Description

Objective Corporation Limited, together with its subsidiaries, provides information technology software and services in Australia, the United Kingdom, New Zealand, and internationally. The company offers objective enterprise content management that manages content, builds business processes, and empowers users to achieve desired outcomes; objective inform, which provides document management, records management, office 365, SharePoint governance, deployment options, reporting insights, and drawings management solutions; and objective perform, a streamline content-driven process that offers workflow designing, case management, anywhere access, transparency, accountability, and governance solutions. It also provides objective connect, which creates secure and private workspace; objective keystone, including content management, collaborative authoring, review and verification, one click publishing, multichannel distribution, and stakeholder engagement solutions; objective trapeze to transform the development application process; and objective redact, a redaction solution for security conscious organizations. The company serves the public sector, local government, healthcare, financial services, insurance, energy, and infrastructure industries. Objective Corporation Limited was founded in 1987 and is headquartered in North Sydney, Australia.

Details
Name: Objective Corporation Limited
OCL
Exchange: ASX
Founded: 1987
A$270,278,215
92,879,112
Website: http://www.objective.com
Address: Objective Corporation Limited
177 Pacific Highway,
Level 30,
North Sydney,
New South Wales, 2060,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX OCL Ordinary Shares Australian Securities Exchange AU AUD 17. Aug 2000
CHIA OCL Ordinary Shares Chi-X Australia AU AUD 17. Aug 2000
Number of employees
Current staff
Staff numbers
0
Objective employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/27 10:32
End of day share price update: 2019/05/27 00:00
Last estimates confirmation: 2016/08/26
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.