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Over the Wire Holdings

ASX:OTW
Snowflake Description

High growth potential with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
OTW
ASX
A$250M
Market Cap
  1. Home
  2. AU
  3. Software
Company description

Over the Wire Holdings Limited provides data network and Internet, voice, and data center co-location, and cloud and managed services for corporate clients in Australia and New Zealand. The last earnings update was 157 days ago. More info.


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OTW Share Price and Events
7 Day Returns
-2.6%
ASX:OTW
-0.6%
AU IT
0%
AU Market
1 Year Returns
44.5%
ASX:OTW
10.1%
AU IT
4.8%
AU Market
OTW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Over the Wire Holdings (OTW) -2.6% 3.9% -0.2% 44.5% 115.1% -
AU IT -0.6% 2.6% -0.2% 10.1% 47.6% 44.2%
AU Market 0% 0.9% 6.8% 4.8% 20.1% 12.2%
1 Year Return vs Industry and Market
  • OTW outperformed the IT industry which returned 10.1% over the past year.
  • OTW outperformed the Market in Australia which returned 4.8% over the past year.
Price Volatility
OTW
Industry
5yr Volatility vs Market

Value

 Is Over the Wire Holdings 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 Over the Wire Holdings 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 Over the Wire Holdings.

ASX:OTW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.4%
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:OTW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.987 (1 + (1- 30%) (4.96%))
1.014
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.014 * 5.96%)
8.36%

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

The calculations below outline how an intrinsic value for Over the Wire Holdings 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:OTW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.36%)
2020 14.35 Analyst x2 13.24
2021 17.40 Analyst x2 14.82
2022 19.86 Est @ 14.15% 15.61
2023 21.97 Est @ 10.6% 15.93
2024 23.75 Est @ 8.11% 15.90
2025 25.26 Est @ 6.37% 15.61
2026 26.57 Est @ 5.15% 15.15
2027 27.71 Est @ 4.3% 14.58
2028 28.74 Est @ 3.7% 13.95
2029 29.68 Est @ 3.29% 13.30
Present value of next 10 years cash flows A$148.09
ASX:OTW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$29.68 × (1 + 2.31%) ÷ (8.36% – 2.31%)
A$502.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$502.25 ÷ (1 + 8.36%)10
A$225.07
ASX:OTW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$148.09 + A$225.07
A$373.16
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$373.16 / 51.60
A$7.23
ASX:OTW Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$7.23
Current discount Discount to share price of A$4.84
= -1 x (A$4.84 - A$7.23) / A$7.23
33.1%

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

Current Discount
Amount off the current price Over the Wire Holdings is available for.
Intrinsic value
33%
Share price is A$4.84 vs Future cash flow value of A$7.23
Current Discount Checks
For Over the Wire Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Over the Wire Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Over the Wire Holdings'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 Over the Wire Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Over the Wire Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:OTW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.14
ASX:OTW Share Price ** ASX (2019-07-19) in AUD A$4.84
Australia IT Industry PE Ratio Median Figure of 17 Publicly-Listed IT Companies 20.72x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.1x

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

** Primary Listing of Over the Wire Holdings.

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

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

= 4.84 ÷ 0.14

33.64x

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

  • Over the Wire Holdings is overvalued based on earnings compared to the AU IT industry average.
  • Over the Wire Holdings is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Over the Wire Holdings's expected growth come at a high price?
Raw Data
ASX:OTW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
31.6%per year
Australia IT Industry PEG Ratio Median Figure of 12 Publicly-Listed IT Companies 1.21x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

ASX:OTW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 33.64x ÷ 31.6%

1.06x

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

  • Over the Wire Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Over the Wire Holdings's assets?
Raw Data
ASX:OTW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.34
ASX:OTW Share Price * ASX (2019-07-19) in AUD A$4.84
Australia IT Industry PB Ratio Median Figure of 32 Publicly-Listed IT Companies 2.99x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.7x
ASX:OTW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 4.84 ÷ 1.34

3.61x

* Primary Listing of Over the Wire Holdings.

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

  • Over the Wire Holdings is overvalued based on assets compared to the AU IT industry average.
X
Value checks
We assess Over the Wire Holdings'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 IT 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 IT industry average (and greater than 0)? (1 check)
  5. Over the Wire Holdings 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 Over the Wire Holdings expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

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
31.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Over the Wire Holdings expected to grow at an attractive rate?
  • Over the Wire Holdings's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Over the Wire Holdings's earnings growth is expected to exceed the Australia market average.
  • Over the Wire Holdings's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:OTW Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:OTW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 31.6%
ASX:OTW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 20.7%
Australia IT Industry Earnings Growth Rate Market Cap Weighted Average 26.1%
Australia IT Industry Revenue Growth Rate Market Cap Weighted Average 18.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*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:OTW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:OTW Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 115 22 14 3
2020-06-30 101 19 11 3
2019-06-30 81 14 8 2
ASX:OTW Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 64 12 7
2018-09-30 59 11 6
2018-06-30 54 10 6
2018-03-31 49 9 5
2017-12-31 44 8 4
2017-09-30 39 6 4
2017-06-30 34 5 4
2017-03-31 31 5 3
2016-12-31 27 4 3
2016-09-30 25 5 3
2016-06-30 24 5 3
2016-03-31 21 4 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Over the Wire Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Over the Wire Holdings's revenue is expected to grow significantly at over 20% yearly.
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:OTW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Over the Wire Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:OTW Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.30 0.33 0.27 2.00
2020-06-30 0.22 0.25 0.19 3.00
2019-06-30 0.16 0.17 0.16 3.00
ASX:OTW Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.14
2018-09-30 0.14
2018-06-30 0.13
2018-03-31 0.11
2017-12-31 0.10
2017-09-30 0.09
2017-06-30 0.08
2017-03-31 0.08
2016-12-31 0.07
2016-09-30 0.07
2016-06-30 0.07
2016-03-31 0.08

*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.
  • Over the Wire Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Over the Wire Holdings'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.
Over the Wire Holdings has a total score of 5/6, 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 Over the Wire Holdings 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 Over the Wire Holdings's growth in the last year to its industry (IT).
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.
  • Over the Wire Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Over the Wire Holdings's 1-year earnings growth exceeds its 5-year average (54.8% vs 31.3%)
  • Over the Wire Holdings's earnings growth has exceeded the AU IT industry average in the past year (54.8% vs 50.5%).
Earnings and Revenue History
Over the Wire Holdings'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 Over the Wire Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:OTW 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 63.93 6.51 0.70
2018-09-30 58.78 6.02 0.68
2018-06-30 53.64 5.53 0.66
2018-03-31 48.97 4.87 0.74
2017-12-31 44.31 4.21 0.83
2017-09-30 39.28 3.90 0.75
2017-06-30 34.24 3.60 0.68
2017-03-31 30.52 3.30 0.55
2016-12-31 26.80 3.00 0.43
2016-09-30 25.21 2.92 0.33
2016-06-30 23.61 2.85 0.24
2016-03-31 21.49 2.80 0.20
2015-12-31 19.37 2.75 0.16
2015-09-30 17.76 2.36 0.15
2015-06-30 16.14 1.97 0.15
2013-06-30 10.58 -0.12 4.05

*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.
  • Over the Wire Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Over the Wire Holdings used its assets more efficiently than the AU IT industry average last year based on Return on Assets.
  • Over the Wire Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Over the Wire Holdings'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 IT 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.
Over the Wire Holdings has a total score of 4/6, 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 Over the Wire Holdings'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 Over the Wire Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Over the Wire Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Over the Wire Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Over the Wire Holdings'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.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.6x 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 Over the Wire Holdings Company Filings, last reported 6 months ago.

ASX:OTW Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 58.63 12.38 8.43
2018-09-30 58.63 12.38 8.43
2018-06-30 24.87 13.09 7.67
2018-03-31 24.87 13.09 7.67
2017-12-31 21.64 15.04 4.76
2017-09-30 21.64 15.04 4.76
2017-06-30 19.02 3.70 5.98
2017-03-31 19.02 3.70 5.98
2016-12-31 17.26 0.13 6.26
2016-09-30 17.26 0.13 6.26
2016-06-30 16.16 0.08 7.04
2016-03-31 16.16 0.08 7.04
2015-12-31 14.73 1.46 6.49
2015-09-30 14.73 1.46 6.49
2015-06-30 2.03 1.58 2.16
2013-06-30
  • Over the Wire Holdings's level of debt (21.1%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Over the Wire Holdings's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (93.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 19.6x coverage).
X
Financial health checks
We assess Over the Wire Holdings'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. Over the Wire Holdings has a total score of 3/6, 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 Over the Wire Holdings'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
0.57%
Current annual income from Over the Wire Holdings dividends. Estimated to be 0.79% next year.
If you bought A$2,000 of Over the Wire Holdings shares you are expected to receive A$11 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?
  • Over the Wire Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.53%).
  • Over the Wire Holdings's dividend is below the markets top 25% of dividend payers in Australia (5.79%).
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:OTW 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 3 Analyst Estimates (S&P Global) See Below
Australia IT Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.4%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

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

ASX:OTW Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.04 3.00
2020-06-30 0.04 3.00
2019-06-30 0.03 3.00
ASX:OTW Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-13 0.028 0.553
2018-08-21 0.025 0.525
2017-08-24 0.025 0.900
2017-02-21 0.015 0.710
2016-10-12 0.010 0.377

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

  • Over the Wire Holdings is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.
  • Over the Wire Holdings is not paying a notable dividend for Australia, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Over the Wire Holdings's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Over the Wire Holdings's dividends as it is not paying a notable one for Australia.
Future Payout to shareholders
  • No need to calculate the sustainability of Over the Wire Holdings's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess Over the Wire Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - 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 Over the Wire Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Over the Wire Holdings has a total score of 0/6, 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 Over the Wire Holdings'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
Michael Omeros
COMPENSATION A$353,666
TENURE AS CEO 8 years
CEO Bio

Mr. Michael Nictarios Omeros, MAICD, BE(Electronics)(Hons), BInfoTech, co-founded Over the Wire Holdings Limited and has been its Chief Executive Officer, Managing Director and Director since July 01, 2011. Mr. Omeros has over 20 years of experience in the telecommunications and IT services sectors. Prior to Over the Wire, he held a Senior Management role at GBST, worked for Zurich Insurance in the UK and founded Celentia which has been absorbed Over the Wire. He graduated from QUT in 1994 with a Bachelor of Electronics Engineering (First Class Honours) and Bachelor of IT (with Distinction).

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

Michael Omeros

TITLE
MD, CEO & Director
COMPENSATION
A$354K
TENURE
8 yrs

Mike Stabb

TITLE
CFO & Company Secretary
COMPENSATION
A$481K
TENURE
7 yrs

Ben Cornish

TITLE
Chief Operating Officer
COMPENSATION
A$471K

Brent Paddon

TITLE
Executive Director
COMPENSATION
A$298K
Board of Directors Tenure

Average tenure of the Over the Wire Holdings board of directors in years:

5.8
Average Tenure
  • The tenure for the Over the Wire Holdings board of directors is about average.
Board of Directors

John Puttick

TITLE
Non-Executive Chairman
COMPENSATION
A$85K
TENURE
3.6 yrs

Michael Omeros

TITLE
MD, CEO & Director
COMPENSATION
A$354K
TENURE
8 yrs

Brent Paddon

TITLE
Executive Director
COMPENSATION
A$298K
TENURE
8 yrs

Susan Forrester

TITLE
Non-Executive Director
COMPENSATION
A$60K
AGE
51
TENURE
3.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
03. Dec 18 Sell John Puttick Individual 28. Nov 18 29. Nov 18 -20,000 A$4.83 A$-96,155
28. Nov 18 Sell Brent Paddon Individual 27. Nov 18 27. Nov 18 -1,000,000 A$4.60 A$-4,599,999
24. Oct 18 Buy Susan Forrester Individual 23. Oct 18 23. Oct 18 4,186 A$5.00 A$20,930
19. Oct 18 Buy John Puttick Individual 18. Oct 18 18. Oct 18 14,500 A$5.39 A$78,126
X
Management checks
We assess Over the Wire Holdings'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. Over the Wire Holdings 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

We Think Over the Wire Holdings (ASX:OTW) Can Manage Its Debt With Ease

ASX:OTW Historical Debt, July 11th 2019 A Look At Over the Wire Holdings's Liabilities The latest balance sheet data shows that Over the Wire Holdings had liabilities of AU$24.7m due within a year, and liabilities of AU$19.7m falling due after that. … Because it carries more debt than cash, we think it's worth watching Over the Wire Holdings's balance sheet over time. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

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Investors Who Bought Over the Wire Holdings (ASX:OTW) Shares Three Years Ago Are Now Up 124%

For example, the Over the Wire Holdings Limited (ASX:OTW) share price has soared 124% in the last three years. … During three years of share price growth, Over the Wire Holdings achieved compound earnings per share growth of 20% per year. … As it happens, Over the Wire Holdings's TSR for the last 3 years was 129%, which exceeds the share price return mentioned earlier.

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Is Over the Wire Holdings Limited's (ASX:OTW) 11% ROE Strong Compared To Its Industry?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Over the Wire Holdings: 11% = AU$6.5m ÷ AU$59m (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Over the Wire Holdings Have A Good Return On Equity? … Combining Over the Wire Holdings's Debt And Its 11% Return On Equity While Over the Wire Holdings does have some debt, with debt to equity of just 0.21, we wouldn't say debt is excessive.

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Have Insiders Been Selling Over the Wire Holdings Limited (ASX:OTW) Shares This Year?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for Over the Wire Holdings Over the Wire Holdings Insider Transactions Over The Last Year The Executive Director , Brent Paddon, made the biggest insider sale in the last 12 months. … Insider Ownership of Over the Wire Holdings Many investors like to check how much of a company is owned by insiders. … While we feel good about high insider ownership of Over the Wire Holdings, we can't say the same about the selling of shares.

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What Kind Of Shareholder Owns Most Over the Wire Holdings Limited (ASX:OTW) Stock?

A look at the shareholders of Over the Wire Holdings Limited (ASX:OTW) 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. … Over the Wire Holdings is not a large company by global standards.

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Has Over the Wire Holdings Limited (ASX:OTW) Been Employing Capital Shrewdly?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

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How Should Investors Feel About Over the Wire Holdings Limited's (ASX:OTW) CEO Pay?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Michael Omeros's Compensation Compare With Similar Sized Companies. … According to our data, Over the Wire Holdings Limited has a market capitalization of AU$212m, and pays its CEO total annual compensation worth AU$354k.

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Over the Wire Holdings (ASX:OTW) Shareholders Have Enjoyed An Impressive 274% Share Price Gain

To wit, the Over the Wire Holdings Limited (ASX:OTW) share price has flown 274% in the last three years. … During three years of share price growth, Over the Wire Holdings achieved compound earnings per share growth of 20% per year. … In comparison, the 55% per year gain in the share price outpaces the EPS growth.

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Are Insiders Selling Over the Wire Holdings Limited (ASX:OTW) Stock?

So we'll take a look at whether insiders have been buying or selling shares in Over the Wire Holdings Limited (ASX:OTW). … We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price. … In total, Over the Wire Holdings insiders sold more than they bought over the last year

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Taking A Look At Over the Wire Holdings Limited's (ASX:OTW) ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each A$1 of shareholders' equity it has, the company made A$0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

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Company Info

Description

Over the Wire Holdings Limited provides data network and Internet, voice, and data center co-location, and cloud and managed services for corporate clients in Australia and New Zealand. The company offers Internet connectivity services to enable Internet services, video conferencing, Software as a Service applications, and online collaboration for various businesses. It also provides Session Initiation Protocol based Internet voice solutions; and operates a platform that supports various client usage scenarios, from Private Branch exchanges (PBX) to call center dialers, for inbound and outbound calling. In addition, the company offers a range of private cloud-based services consisting of Infrastructure as a Service, hosted PBX, and Amazon Web Services Direct Connect and Microsoft Azure Express Route, as well as managed services. Further, it allows customers to house their equipment, such as servers and network equipment. The company was founded in 2005 and is headquartered in Brisbane, Australia.

Details
Name: Over the Wire Holdings Limited
OTW
Exchange: ASX
Founded: 2005
A$249,754,585
51,602,187
Website: http://www.overthewire.com.au
Address: Over the Wire Holdings Limited
71 Eagle Street,
Level 21,
Brisbane,
Queensland, 4000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX OTW Ordinary Shares Australian Securities Exchange AU AUD 03. Dec 2015
Number of employees
Current staff
Staff numbers
0
Over the Wire Holdings employees.
Industry
Internet Services and Infrastructure
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 10:39
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/06/24
Last earnings filing: 2019/02/13
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.