Over the Wire Holdings Limited provides data network and Internet, voice, cloud and managed, and data center co-location services in Australia and New Zealand.
Undervalued with solid track record.
Share Price & News
How has Over the Wire Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: OTW's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: OTW underperformed the Australian IT industry which returned 32.5% over the past year.
Return vs Market: OTW underperformed the Australian Market which returned 15.5% over the past year.
Price Volatility Vs. Market
How volatile is Over the Wire Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall StCan We See Significant Insider Ownership On The Over the Wire Holdings Limited (ASX:OTW) Share Register?
2 weeks ago | Simply Wall StDoes Over the Wire Holdings (ASX:OTW) Deserve A Spot On Your Watchlist?
1 month ago | Simply Wall StIf You Had Bought Over the Wire Holdings (ASX:OTW) Stock Three Years Ago, You Could Pocket A 91% Gain Today
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$3.25) is trading below our estimate of fair value (A$5.97)
Significantly Below Fair Value: OTW is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: OTW is good value based on its PE Ratio (18.1x) compared to the IT industry average (22.4x).
PE vs Market: OTW is good value based on its PE Ratio (18.1x) compared to the Australian market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: OTW is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: OTW is overvalued based on its PB Ratio (2.5x) compared to the AU IT industry average (2.5x).
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 (21.1% per year) is above the savings rate (1.1%).
Earnings vs Market: OTW's earnings (21.1% per year) are forecast to grow faster than the Australian market (9.3% 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 (4.1% 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 (15%).
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 (10.5%) are higher than last year (10.2%).
Past Earnings Growth Analysis
Earnings Trend: OTW's earnings have grown significantly by 35.7% per year over the past 5 years.
Accelerating Growth: OTW's earnings growth over the past year (42%) exceeds its 5-year average (35.7% per year).
Earnings vs Industry: OTW earnings growth over the past year (42%) exceeded the IT industry 27.7%.
Return on Equity
High ROE: OTW's Return on Equity (13.9%) is considered low.
Return on Assets
Return on Capital Employed
How is Over the Wire Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: OTW's short term assets (A$20.5M) exceed its short term liabilities (A$20.1M).
Long Term Liabilities: OTW's short term assets (A$20.5M) exceed its long term liabilities (A$16.4M).
Debt to Equity History and Analysis
Debt Level: OTW's debt to equity ratio (11.1%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if OTW's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: OTW's debt is well covered by operating cash flow (138.1%).
Interest Coverage: OTW's interest payments on its debt are well covered by EBIT (34.8x coverage).
Inventory Level: OTW has a low level of unsold assets or inventory.
Debt Coverage by Assets: OTW's debt is covered by short term assets (assets are 2.8x debt).
What is Over the Wire Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: OTW's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.3%).
High Dividend: OTW's dividend (1%) is low compared to the top 25% of dividend payers in the Australian market (5.35%).
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 board tenure
Michael Omeros 0
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 ...
CEO Compensation Analysis
Compensation vs Market: Michael's total compensation ($USD0.00) is below average for companies of similar size in the Australian market ($USD253.04K).
Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.
|MD, CEO & Director||8.6yrs||AU$353.67k||25.12% A$42.2m|
|Executive Director||8.6yrs||AU$297.86k||22.27% A$37.4m|
|Non-Executive Chairman||4.2yrs||AU$85.00k||0.24% A$397.4k|
|Non-Executive Director||4.2yrs||AU$60.00k||0.35% A$582.4k|
Experienced Board: OTW's board of directors are considered experienced (6.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: OTW insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.9%.
Over the Wire Holdings Limited's company bio, employee growth, exchange listings and data sources
- Name: Over the Wire Holdings Limited
- Ticker: OTW
- Exchange: ASX
- Founded: 2005
- Industry: Internet Services and Infrastructure
- Sector: Software
- Market Cap: AU$167.830m
- Shares outstanding: 51.64m
- Website: https://www.overthewire.com.au
- Over the Wire Holdings Limited
- 100 Creek Street
- Level 24
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|OTW||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Dec 2015|
|OTW||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Dec 2015|
Over the Wire Holdings Limited provides data network and Internet, voice, cloud and managed, and data center co-location services 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 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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/21 10:52|
|End of Day Share Price||2020/02/21 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.