Over the Wire Holdings Limited provides telecommunication, cloud, and IT solutions to business customers in Australia and New Zealand.
Over the Wire Holdings Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$4.97|
|52 Week High||AU$3.50|
|52 Week Low||AU$5.00|
|1 Month Change||7.81%|
|3 Month Change||9.23%|
|1 Year Change||8.52%|
|3 Year Change||-2.55%|
|5 Year Change||74.39%|
|Change since IPO||270.90%|
Recent News & Updates
Calculating The Intrinsic Value Of Over the Wire Holdings Limited (ASX:OTW)
Does the September share price for Over the Wire Holdings Limited ( ASX:OTW ) reflect what it's really worth? Today, we...
|OTW||AU IT||AU Market|
Return vs Industry: OTW matched the Australian IT industry which returned 9% over the past year.
Return vs Market: OTW underperformed the Australian Market which returned 20.2% over the past year.
Stable Share Price: OTW is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: OTW's weekly volatility (5%) has been stable over the past year.
About the Company
Over the Wire Holdings Limited provides telecommunication, cloud, and IT solutions to business customers in Australia and New Zealand. The company offers data networks and internet, voice, data center co-location, cloud, and managed services. It provides cloud solutions, such as private cloud, public cloud connects, and colocation; connect solutions, including business internet, private networks, SD-WAN, and hybrid networks; collaborate solutions comprising business VoIP, hosted PBX, Microsoft teams calling, mobile fleet, and converged voice and data; and security and IT support solutions, including IT support services and data security.
Over the Wire Holdings Fundamentals Summary
|OTW fundamental statistics|
Is OTW overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|OTW income statement (TTM)|
|Cost of Revenue||AU$84.26m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.058|
|Net Profit Margin||3.05%|
How did OTW perform over the long term?See historical performance and comparison
0.8%Current Dividend Yield
Is Over the Wire Holdings undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: OTW (A$4.97) is trading below our estimate of fair value (A$6.08)
Significantly Below Fair Value: OTW is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: OTW is poor value based on its PE Ratio (86.2x) compared to the Australian IT industry average (42.6x).
PE vs Market: OTW is poor value based on its PE Ratio (86.2x) compared to the Australian market (19.8x).
Price to Earnings Growth Ratio
PEG Ratio: OTW is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: OTW is good value based on its PB Ratio (3x) compared to the AU IT industry average (3.4x).
How is Over the Wire Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OTW's forecast earnings growth (34.3% per year) is above the savings rate (1.9%).
Earnings vs Market: OTW's earnings (34.3% per year) are forecast to grow faster than the Australian market (11.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: OTW's revenue (11.5% per year) is forecast to grow faster than the Australian market (5.4% per year).
High Growth Revenue: OTW's revenue (11.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OTW's Return on Equity is forecast to be low in 3 years time (10.2%).
How has Over the Wire Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OTW has high quality earnings.
Growing Profit Margin: OTW's current net profit margins (3%) are lower than last year (5.7%).
Past Earnings Growth Analysis
Earnings Trend: OTW's earnings have grown by 10.5% per year over the past 5 years.
Accelerating Growth: OTW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: OTW had negative earnings growth (-31.8%) over the past year, making it difficult to compare to the IT industry average (-11.2%).
Return on Equity
High ROE: OTW's Return on Equity (3.4%) is considered low.
How is Over the Wire Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: OTW's short term assets (A$32.1M) do not cover its short term liabilities (A$42.3M).
Long Term Liabilities: OTW's short term assets (A$32.1M) do not cover its long term liabilities (A$67.0M).
Debt to Equity History and Analysis
Debt Level: OTW's debt to equity ratio (34.3%) is considered satisfactory.
Reducing Debt: OTW's debt to equity ratio has increased from 0.5% to 34.3% over the past 5 years.
Debt Coverage: OTW's debt is well covered by operating cash flow (71.3%).
Interest Coverage: OTW's interest payments on its debt are well covered by EBIT (4.9x coverage).
What is Over the Wire Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OTW's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.27%).
High Dividend: OTW's dividend (0.8%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).
Stability and Growth of Payments
Stable Dividend: OTW is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.
Growing Dividend: OTW is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: OTW is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of OTW's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Michael Nictarios Omeros, MAICD, BE(Electronics)(Hons), BInfoTech, co-founded Over the Wire Holdings Limited. He serves as Group Chief Executive Officer, Managing Director and Director since July 01, 2...
CEO Compensation Analysis
Compensation vs Market: Michael's total compensation ($USD338.37K) is below average for companies of similar size in the Australian market ($USD555.78K).
Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.
Experienced Management: OTW's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Experienced Board: OTW's board of directors are considered experienced (5.8 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Over the Wire Holdings Limited's employee growth, exchange listings and data sources
- Name: Over the Wire Holdings Limited
- Ticker: OTW
- Exchange: ASX
- Founded: 2007
- Industry: Internet Services and Infrastructure
- Sector: Software
- Market Cap: AU$296.022m
- Shares outstanding: 59.56m
- Website: https://www.overthewire.com.au
- Over the Wire Holdings Limited
- 100 Creek Street
- Level 24
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/16 07:04|
|End of Day Share Price||2021/10/15 00:00|
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.