ASX:RHP

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with high 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


Market Performance


7 Day Return

4.2%

RHP

-5.6%

AU IT

-0.2%

AU Market


1 Year Return

143.8%

RHP

16.6%

AU IT

10.5%

AU Market

Return vs Industry: RHP exceeded the Australian IT industry which returned 16.6% over the past year.

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


Shareholder returns

RHPIndustryMarket
7 Day4.2%-5.6%-0.2%
30 Day7.1%-1.8%-1.4%
90 Day-5.2%3.6%-1.0%
1 Year146.8%143.8%18.9%16.6%16.9%10.5%
3 Year204.6%196.7%53.0%41.9%36.9%18.6%
5 Year157.1%150.5%72.0%51.2%50.2%16.2%

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?

60.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RHP (A$2.73) is trading above our estimate of fair value (A$0.8)

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 (60.3x) compared to the IT industry average (22.6x).

PE vs Market: RHP is poor value based on its PE Ratio (60.3x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: RHP is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: RHP is overvalued based on its PB Ratio (7.4x) compared to the AU IT industry average (2.1x).


Next Steps

Future Growth

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

29.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RHP's forecast earnings growth (29.7% per year) is above the savings rate (2.3%).

Earnings vs Market: RHP's earnings (29.7% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: RHP's revenue (19.2% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: RHP's revenue (19.2% 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 high in 3 years time (26.1%)


Next Steps

Past Performance

How has rhipe performed over the past 5 years?

59.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RHP's earnings have grown significantly by 59.8% per year over the past 5 years.

Accelerating Growth: RHP's earnings growth over the past year (102.7%) exceeds its 5-year average (59.8% per year).

Earnings vs Industry: RHP earnings growth over the past year (102.7%) exceeded the IT industry 60.9%.


Return on Equity

High ROE: RHP's Return on Equity (12.1%) is considered low.


Return on Assets

ROA vs Industry: RHP's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: RHP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is rhipe's financial position?


Financial Position Analysis

Short Term Liabilities: RHP's short term assets (A$66.1M) exceeds its short term liabilities (A$47.3M)

Long Term Liabilities: RHP's short term assets (66.1M) exceeds its long term liabilities (2.3M)


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

Inventory Level: RHP has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if RHP's debt is covered by short term assets.


Next Steps

Dividend

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

1.47%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%2.4%markettop25%5.6%industryaverage2.5%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RHP's dividend (1.47%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: RHP's dividend (1.47%) is low compared to the top 25% of dividend payers in the Australian market (5.61%).

Stable Dividend: RHP is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: RHP 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: 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

What is the CEO of rhipe's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Dominic O'Hanlon 0

5.2yrs

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 ($USD1.22M) is about average for companies of similar size in the Australian market ($USD458.25K).

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


Management Age and Tenure

4.6yrs

Average Tenure

Experienced Management: RHP's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

Experienced Board: RHP's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: RHP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellAU$4,785,95910 Sep 19
Regal Funds Management Pty Limited
EntityCompany
Shares1,875,813
Max PriceAU$2.55
BuyAU$1,513,42410 Sep 19
Regal Funds Management Pty Limited
EntityCompany
Shares537,656
Max PriceAU$2.81
SellAU$2,359,99919 Aug 19
Dominic O'Hanlon
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares800,000
Max PriceAU$2.95
BuyAU$13,181,46508 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares5,553,693
Max PriceAU$2.37
BuyAU$1,308,22405 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares457,723
Max PriceAU$2.89
BuyAU$406,81622 Jul 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares144,381
Max PriceAU$2.87
BuyAU$272,95327 Jun 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares92,247
Max PriceAU$3.01
BuyAU$11,947,25525 Jun 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares5,313,348
Max PriceAU$2.27
BuyAU$20,03821 May 19
Inese Kingsmill
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares8,750
Max PriceAU$2.29
BuyAU$50,21629 Apr 19
Inese Kingsmill
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares24,154
Max PriceAU$2.08
BuyAU$7,277,37415 Apr 19
Regal Funds Management Pty Limited
EntityCompany
Shares5,563,431
Max PriceAU$1.31
SellAU$10,093,25415 Apr 19
Regal Funds Management Pty Limited
EntityCompany
Shares6,707,436
Max PriceAU$1.50
SellAU$415,52908 Apr 19
Australian Ethical Investment Ltd
EntityCompany
Shares215,607
Max PriceAU$1.93
SellAU$2,454,86705 Apr 19
Australian Ethical Investment Ltd
EntityCompany
Shares1,424,555
Max PriceAU$1.85
BuyAU$220,59105 Apr 19
Australian Ethical Investment Ltd
EntityCompany
Shares206,101
Max PriceAU$1.07
SellAU$3,708,93321 Feb 19
Perennial Value Management Limited
EntityCompany
Shares2,216,550
Max PriceAU$1.68
BuyAU$1,581,66421 Feb 19
Perennial Value Management Limited
EntityCompany
Shares1,288,958
Max PriceAU$1.34
BuyAU$90,42014 Dec 18
UBS Asset Management
EntityCompany
Shares72,990
Max PriceAU$1.24
SellAU$2,589,23514 Dec 18
UBS Asset Management
EntityCompany
Shares2,087,154
Max PriceAU$1.24
BuyAU$8,445,59728 Nov 18
Perennial Value Management Limited
EntityCompany
Shares6,450,568
Max PriceAU$1.42
SellAU$126,17622 Nov 18
UBS Asset Management
EntityCompany
Shares96,944
Max PriceAU$1.30
BuyAU$2,115,04922 Nov 18
UBS Asset Management
EntityCompany
Shares1,615,276
Max PriceAU$1.31
SellAU$2,079,99822 Nov 18
Dominic O'Hanlon
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares1,600,000
Max PriceAU$1.30
SellAU$980,00020 Nov 18
Pie Funds Management Ltd
EntityCompany
Shares700,000
Max PriceAU$1.40
SellAU$1,958,03231 Oct 18
UBS Asset Management
EntityCompany
Shares1,674,829
Max PriceAU$1.17
BuyAU$559,96831 Oct 18
UBS Asset Management
EntityCompany
Shares478,795
Max PriceAU$1.17

Ownership Breakdown


Management Team

  • Dominic O'Hanlon

    MD, CEO & Executive Director

    • Tenure: 5.2yrs
    • Compensation: AU$1.78m
  • Dawn Edmonds

    Co-Founder & Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: AU$60.00k
  • Warren Nolan

    Group Executive of Solutions & Professional Services

    • Tenure: 14.2yrs
    • Compensation: AU$1.13m
  • Patara Yongvanich (43yo)

    Managing Director of Asia

    • Tenure: 4.3yrs
    • Compensation: AU$764.72k
  • Chris Sharp

    Group Executive of Products & Licencing

    • Tenure: 5yrs
    • Compensation: AU$1.03m
  • Michelle Clements

    Global Head of Human Resources

    • Tenure: 0yrs
  • Mark McLellan

    CFO & COO

    • Tenure: 2.9yrs
    • Compensation: AU$1.38m
  • Marika White

    Company Secretary

    • Tenure: 0.5yrs

Board Members

  • Julian Knights

    Member of Advisory Committee

    • Tenure: 5.5yrs
  • Leigh Curyer (47yo)

    Member of Advisory Committee

    • Tenure: 5.5yrs
    • Compensation: AU$233.27k
  • Dominic O'Hanlon

    MD, CEO & Executive Director

    • Tenure: 5.2yrs
    • Compensation: AU$1.78m
  • Dawn Edmonds

    Co-Founder & Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: AU$60.00k
  • Mark Pierce

    Independent Non Executive Director

    • Tenure: 5.5yrs
    • Compensation: AU$60.00k
  • Mike Tierney

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: AU$60.00k
  • Gary Cox

    Non-Executive Chairman

    • Tenure: 0.6yrs
    • Compensation: AU$37.50k
  • Inese Kingsmill

    Non-Executive Director

    • Tenure: 0.5yrs
    • Compensation: AU$12.50k
  • Olivier Dispas

    Non-Executive Director

    • Tenure: 0.5yrs
    • Compensation: AU$12.50k

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$371.306m
  • Shares outstanding: 140.12m
  • 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 servi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:33
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.