ASX:OTW

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Over the Wire Holdings

Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

OTW

-3.5%

AU IT

-3.5%

AU Market


1 Year Return

-5.1%

OTW

77.7%

AU IT

-9.2%

AU Market

Return vs Industry: OTW underperformed the Australian IT industry which returned 79% over the past year.

Return vs Market: OTW exceeded the Australian Market which returned -8.3% over the past year.


Shareholder returns

OTWIndustryMarket
7 Day-1.1%-3.5%-3.5%
30 Day3.7%10.5%0.5%
90 Day17.4%21.3%2.3%
1 Year-4.1%-5.1%80.1%77.7%-6.0%-9.2%
3 Year74.4%70.2%178.7%161.9%12.4%-1.8%
5 Yearn/a99.5%75.1%39.6%10.8%

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

Valuation

Is Over the Wire Holdings undervalued compared to its fair value and its price relative to the market?

20.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OTW (A$4.46) is trading below our estimate of fair value (A$5.63)

Significantly Below Fair Value: OTW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OTW is poor value based on its PE Ratio (45.7x) compared to the AU IT industry average (20.3x).

PE vs Market: OTW is poor value based on its PE Ratio (45.7x) compared to the Australian market (21x).


Price to Earnings Growth Ratio

PEG Ratio: OTW is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: OTW is overvalued based on its PB Ratio (3.3x) compared to the AU IT industry average (3.2x).


Next Steps

Future Growth

How is Over the Wire Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

36.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OTW's forecast earnings growth (36.1% per year) is above the savings rate (2.3%).

Earnings vs Market: OTW's earnings (36.1% per year) are forecast to grow faster than the Australian market (17.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OTW's revenue (18.8% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: OTW's revenue (18.8% 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 (16.3%).


Next Steps

Past Performance

How has Over the Wire Holdings performed over the past 5 years?

28.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OTW has high quality earnings.

Growing Profit Margin: OTW's current net profit margins (5.7%) are lower than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: OTW's earnings have grown significantly by 28% 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 (-50.4%) over the past year, making it difficult to compare to the IT industry average (-10.7%).


Return on Equity

High ROE: OTW's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is Over the Wire Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: OTW's short term assets (A$22.7M) exceed its short term liabilities (A$20.2M).

Long Term Liabilities: OTW's short term assets (A$22.7M) exceed its long term liabilities (A$20.9M).


Debt to Equity History and Analysis

Debt Level: OTW's debt to equity ratio (8%) is considered satisfactory.

Reducing Debt: OTW's debt to equity ratio has reduced from 68.4% to 8% over the past 5 years.

Debt Coverage: OTW's debt is well covered by operating cash flow (210.7%).

Interest Coverage: OTW's interest payments on its debt are well covered by EBIT (19.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Over the Wire Holdings's current dividend yield, its reliability and sustainability?

0.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OTW's dividend (0.84%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.15%).

High Dividend: OTW's dividend (0.84%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).


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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.6yrs

Average management tenure


CEO

Michael Omeros

9.25yrs

Tenure

AU$456,783

Compensation

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 ($USD322.66K) is below average for companies of similar size in the Australian market ($USD523.49K).

Compensation vs Earnings: Michael's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Omeros
MD, Group CEO & Director9.25yrsAU$456.78k20.46%
A$ 53.2m
Ben Melville
Chief Financial Officer0.58yrno data0.00034%
A$ 884.1
Gary Pittorino
Chief Operating Officerno dataAU$209.09k0.00066%
A$ 1.7k
Benjamin Cornish
Chief Technology Officerno dataAU$389.88k0.19%
A$ 490.0k
Simone Dejun
Group General Counsel & Company Secretaryno datano data0.00065%
A$ 1.7k
Piers Tyler
General Manager of Sales & Marketing0.58yrno datano data
Rebecca Tuma
General Manager of People & Culture0.75yrno datano data
Scott Smith
Chief Executive Officer of Over the Wire0.58yrno data0.55%
A$ 1.4m

0.6yrs

Average Tenure

Experienced Management: OTW's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Omeros
MD, Group CEO & Director9.25yrsAU$456.78k20.46%
A$ 53.2m
John Puttick
Non-Executive Chairman4.83yrsAU$75.00k0.17%
A$ 441.0k
Brent Paddon
Non-Executive Director9.25yrsAU$332.66k18.06%
A$ 47.0m
Susan Forrester
Independent Non-Executive Director4.83yrsAU$50.00k0.29%
A$ 755.5k
Catherine Aston
Independent Non-Executive Director0.25yrno datano data

4.8yrs

Average Tenure

Experienced Board: OTW's board of directors are considered experienced (4.8 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.8%.


Top Shareholders

Company Information

Over the Wire Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Over the Wire Holdings Limited
  • Ticker: OTW
  • Exchange: ASX
  • Founded: 2005
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: AU$260.026m
  • Shares outstanding: 56.65m
  • Website: https://www.overthewire.com.au

Location

  • Over the Wire Holdings Limited
  • 100 Creek Street
  • Level 24
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OTWASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2015
OTWCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2015

Biography

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 serv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 10:45
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
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.