ASX:OCL

Stock Analysis Report

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Market Cap

AU$1.6b

Last Updated

2021/07/31 08:27 UTC

Data Sources

Company Financials

Executive Summary

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

Rewards

Earnings grew by 44.9% over the past year

Risk Analysis

No risks detected for OCL from our risk checks.


Snowflake Analysis

Outstanding track record with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: OCL is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: OCL's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-2.7%

OCL

-0.9%

AU Software

0.01%

AU Market


1 Year Return

59.2%

OCL

34.8%

AU Software

27.8%

AU Market

Return vs Industry: OCL exceeded the Australian Software industry which returned 34.8% over the past year.

Return vs Market: OCL exceeded the Australian Market which returned 27.8% over the past year.


Shareholder returns

OCLIndustryMarket
7 Day-2.7%-0.9%0.01%
30 Day0.4%0.8%1.8%
90 Day28.0%1.6%4.7%
1 Year60.2%59.2%35.8%34.8%32.6%27.8%
3 Year554.0%529.9%100.8%95.3%34.4%18.1%
5 Year1,059.5%968.4%227.3%207.1%66.2%33.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

112.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OCL (A$16.88) is trading above our estimate of fair value (A$6.99)

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


Price To Earnings Ratio

PE vs Industry: OCL is poor value based on its PE Ratio (112.7x) compared to the Australian Software industry average (29.7x).

PE vs Market: OCL is poor value based on its PE Ratio (112.7x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OCL is overvalued based on its PB Ratio (43.2x) compared to the AU Software industry average (4.7x).


Future Growth

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

27.0%

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 Objective 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.


Past Performance

How has Objective performed over the past 5 years?

16.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OCL has high quality earnings.

Growing Profit Margin: OCL's current net profit margins (16.8%) are higher than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: OCL's earnings have grown by 16.2% per year over the past 5 years.

Accelerating Growth: OCL's earnings growth over the past year (44.9%) exceeds its 5-year average (16.2% per year).

Earnings vs Industry: OCL earnings growth over the past year (44.9%) exceeded the Software industry 32.9%.


Return on Equity

High ROE: OCL's Return on Equity (38.3%) is considered high.


Financial Health

How is Objective's financial position?


Financial Position Analysis

Short Term Liabilities: OCL's short term assets (A$38.8M) do not cover its short term liabilities (A$44.3M).

Long Term Liabilities: OCL's short term assets (A$38.8M) exceed its long term liabilities (A$10.9M).


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


Dividend

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

0.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OCL's dividend (0.41%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: OCL's dividend (0.41%) is low compared to the top 25% of dividend payers in the Australian market (4.98%).


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OCL'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?

5.9yrs

Average management tenure


CEO

Tony Walls

no data

Tenure

AU$318,846

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

Compensation vs Market: Tony's total compensation ($USD234.24K) is below average for companies of similar size in the Australian market ($USD894.99K).

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


Leadership Team

Experienced Management: OCL's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: OCL's board of directors are considered experienced (3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Objective Corporation Limited
  • Ticker: OCL
  • Exchange: ASX
  • Founded: 1987
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$1.588b
  • Shares outstanding: 94.06m
  • Website: https://www.objective.com

Number of Employees


Location

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

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 08:27
End of Day Share Price2021/07/30 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.