ASX:RHP

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

rhipe Limited, a cloud channel company, provides cloud based licensing programs and services to software vendors in the Asia Pacific.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RHP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.8%

RHP

0.8%

AU IT

3.8%

AU Market


1 Year Return

-15.5%

RHP

22.8%

AU IT

-8.5%

AU Market

Return vs Industry: RHP underperformed the Australian IT industry which returned 21.2% over the past year.

Return vs Market: RHP underperformed the Australian Market which returned -10.5% over the past year.


Shareholder returns

RHPIndustryMarket
7 Day-4.8%0.8%3.8%
30 Day10.9%29.8%12.0%
90 Day1.9%13.4%-8.6%
1 Year-14.8%-15.5%24.8%22.8%-4.7%-8.5%
3 Year430.2%416.4%38.3%28.0%13.4%-1.6%
5 Year17.3%14.2%119.7%94.9%30.8%2.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

40.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RHP (A$1.89) is trading above our estimate of fair value (A$0.66)

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


Price To Earnings Ratio

PE vs Industry: RHP is poor value based on its PE Ratio (40.7x) compared to the IT industry average (22.7x).

PE vs Market: RHP is poor value based on its PE Ratio (40.7x) compared to the Australian market (15.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RHP is overvalued based on its PB Ratio (4.8x) compared to the AU IT industry average (1.9x).


Next Steps

Future Growth

How is rhipe forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

31.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RHP's forecast earnings growth (31.5% per year) is above the savings rate (2.3%).

Earnings vs Market: RHP's earnings (31.5% per year) are forecast to grow faster than the Australian market (14.4% per year).

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

Revenue vs Market: RHP's revenue (16.7% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: RHP's revenue (16.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RHP's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has rhipe performed over the past 5 years?

62.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RHP has a large one-off gain of A$1.6M impacting its December 31 2019 financial results.

Growing Profit Margin: RHP's current net profit margins (12%) are lower than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: RHP's earnings have grown significantly by 62.6% per year over the past 5 years.

Accelerating Growth: RHP's earnings growth over the past year (28.2%) is below its 5-year average (62.6% per year).

Earnings vs Industry: RHP earnings growth over the past year (28.2%) exceeded the IT industry -0.3%.


Return on Equity

High ROE: RHP's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is rhipe's financial position?


Financial Position Analysis

Short Term Liabilities: RHP's short term assets (A$65.6M) exceed its short term liabilities (A$49.3M).

Long Term Liabilities: RHP's short term assets (A$65.6M) exceed its long term liabilities (A$8.5M).


Debt to Equity History and Analysis

Debt Level: RHP is debt free.

Reducing Debt: RHP has not had any debt for past 5 years.

Debt Coverage: RHP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RHP has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is rhipe's current dividend yield, its reliability and sustainability?

1.68%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RHP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RHP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RHP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RHP's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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

5.3yrs

Average management tenure


CEO

Dominic O'Hanlon

5.83yrs

Tenure

AU$1,784,826

Compensation

Mr. Dominic John O'Hanlon, B.Sc., has been the Chief Executive Officer at Rhipe Limited since August 05, 2014 and as its Managing Director since June 15, 2015. Mr. O'Hanlon served as the President and Chie ...


CEO Compensation Analysis

Compensation vs Market: Dominic's total compensation ($USD1.18M) is above average for companies of similar size in the Australian market ($USD528.16K).

Compensation vs Earnings: Dominic's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dominic O'Hanlon
MD, CEO & Executive Director5.83yrsAU$1.78m1.9% A$5.7m
Dawn Edmonds
Co-Founder & Non-Executive Director6.17yrsAU$60.00k1.68% A$5.0m
Mark McLellan
CFO & COO3.58yrsAU$1.38m0.43% A$1.3m
Warren Nolan
Group Executive of Solutions & Professional Services14.83yrsAU$1.13m0.63% A$1.9m
Chris Sharp
Group Executive of Products & Licencing5.67yrsAU$1.03m0.48% A$1.4m
Patara Yongvanich
Managing Director of Asia4.92yrsAU$764.72k0.32% A$961.0k
Michelle Clements
Global Head of Human Resourcesno datano datano data
Marika White
Company Secretary1.17yrsno datano data

5.3yrs

Average Tenure

Experienced Management: RHP's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dominic O'Hanlon
MD, CEO & Executive Director5.83yrsAU$1.78m1.9% A$5.7m
Dawn Edmonds
Co-Founder & Non-Executive Director6.17yrsAU$60.00k1.68% A$5.0m
Julian Knights
Member of Advisory Committee6.17yrsno datano data
Leigh Curyer
Member of Advisory Committee6.17yrsAU$233.27kno data
Mark Pierce
Independent Non Executive Director6.17yrsAU$60.00k0.20% A$593.6k
Michael Tierney
Independent Non-Executive Director3.42yrsAU$60.00k1.25% A$3.7m
Gary Cox
Non-Executive Independent Chairman1.25yrsAU$37.50kno data
Inese Kingsmill
Non-Executive Independent Director1.17yrsAU$12.50k0.020% A$61.0k
Olivier Dispas
Non-Executive Independent Director1.17yrsAU$12.50kno data

5.0yrs

Average Tenure

Experienced Board: RHP's board of directors are considered experienced (5 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 been diluted in the past year, with total shares outstanding growing by 15.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: rhipe Limited
  • Ticker: RHP
  • Exchange: ASX
  • Founded: 2003
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: AU$298.901m
  • Shares outstanding: 161.13m
  • Website: https://www.rhipe.com

Number of Employees


Location

  • rhipe Limited
  • 100 Miller Street
  • Level 19
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RHPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2014
RHPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2014

Biography

rhipe Limited, a cloud channel company, provides cloud based licensing programs and services to software vendors in the Asia Pacific. The company offers licensing, business development, and knowledge services to services providers, system integrators, and software vendors to accelerate the adoption of the cloud by end customers. Its services include private, public, and hybrid cloud licensing services; cloud consulting and support services; and cloud subscription billing, provisioning, support, and marketing services. rhipe Limited was founded in 2003 and is based in North Sydney, Australia. rhipe Limited was founded in 2003 and is based in North Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 10:36
End of Day Share Price2020/06/01 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.