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rhipe

ASX:RHP
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RHP
ASX
A$245M
Market Cap
  1. Home
  2. AU
  3. Software
Company description

rhipe Limited, a cloud channel company, provides cloud based licensing programs and services to software vendors in the Asia Pacific. The last earnings update was 34 days ago. More info.


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  • rhipe has significant price volatility in the past 3 months.
RHP Share Price and Events
7 Day Returns
-2.7%
ASX:RHP
0.8%
AU IT
0.3%
AU Market
1 Year Returns
86.3%
ASX:RHP
20.5%
AU IT
4.5%
AU Market
RHP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
rhipe (RHP) -2.7% 10.6% 47.5% 86.3% 52.6% -
AU IT 0.8% 6% 25.1% 20.5% 62.4% 52.5%
AU Market 0.3% 1.3% 12.6% 4.5% 20.7% 5.7%
1 Year Return vs Industry and Market
  • RHP outperformed the IT industry which returned 20.5% over the past year.
  • RHP outperformed the Market in Australia which returned 4.5% over the past year.
Price Volatility
RHP
Industry
5yr Volatility vs Market

RHP Value

 Is rhipe 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 rhipe 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 rhipe.

ASX:RHP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
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:RHP
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 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.056 (1 + (1- 30%) (0%))
1.037
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.037 * 5.96%)
8.49%

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

The calculations below outline how an intrinsic value for rhipe 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:RHP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.49%)
2019 5.10 Analyst x2 4.70
2020 8.77 Analyst x3 7.45
2021 11.00 Analyst x2 8.61
2022 12.70 Analyst x1 9.17
2023 16.70 Analyst x1 11.11
2024 19.24 Est @ 15.23% 11.80
2025 21.43 Est @ 11.35% 12.11
2026 23.28 Est @ 8.64% 12.13
2027 24.85 Est @ 6.74% 11.93
2028 26.19 Est @ 5.41% 11.59
Present value of next 10 years cash flows A$100.59
ASX:RHP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$26.19 × (1 + 2.31%) ÷ (8.49% – 2.31%)
A$433.50
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$433.50 ÷ (1 + 8.49%)10
A$191.84
ASX:RHP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$100.59 + A$191.84
A$292.43
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$292.43 / 138.59
A$2.11
ASX:RHP Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$2.11
Current discount Discount to share price of A$1.77
= -1 x (A$1.77 - A$2.11) / A$2.11
16.1%

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

Current Discount
Amount off the current price rhipe is available for.
Intrinsic value
16%
Share price is A$1.77 vs Future cash flow value of A$2.11
Current Discount Checks
For rhipe to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • rhipe's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • rhipe'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 rhipe's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are rhipe's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:RHP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.04
ASX:RHP Share Price ** ASX (2019-03-22) in AUD A$1.77
Australia IT Industry PE Ratio Median Figure of 15 Publicly-Listed IT Companies 15.78x
Australia Market PE Ratio Median Figure of 544 Publicly-Listed Companies 16.29x

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

** Primary Listing of rhipe.

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

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

= 1.77 ÷ 0.04

47.85x

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

  • rhipe is overvalued based on earnings compared to the AU IT industry average.
  • rhipe is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does rhipe's expected growth come at a high price?
Raw Data
ASX:RHP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 47.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
27.5%per year
Australia IT Industry PEG Ratio Median Figure of 12 Publicly-Listed IT Companies 1.29x
Australia Market PEG Ratio Median Figure of 362 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 47.85x ÷ 27.5%

1.74x

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

  • rhipe is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on rhipe's assets?
Raw Data
ASX:RHP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.34
ASX:RHP Share Price * ASX (2019-03-22) in AUD A$1.77
Australia IT Industry PB Ratio Median Figure of 31 Publicly-Listed IT Companies 2.58x
Australia Market PB Ratio Median Figure of 1,668 Publicly-Listed Companies 1.69x
ASX:RHP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 1.77 ÷ 0.34

5.25x

* Primary Listing of rhipe.

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

  • rhipe is overvalued based on assets compared to the AU IT industry average.
X
Value checks
We assess rhipe'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. rhipe has a total score of 0/6, 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.

RHP Future Performance

 How is rhipe expected to perform in the next 1 to 3 years based on estimates from 4 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
27.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is rhipe expected to grow at an attractive rate?
  • rhipe's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • rhipe's earnings growth is expected to exceed the Australia market average.
  • rhipe's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:RHP Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:RHP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 27.5%
ASX:RHP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 14.2%
Australia IT Industry Earnings Growth Rate Market Cap Weighted Average 32.5%
Australia IT Industry Revenue Growth Rate Market Cap Weighted Average 13.4%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 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:RHP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:RHP Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 412 24 20 1
2022-06-30 365 19 17 1
2021-06-30 341 15 13 3
2020-06-30 294 12 10 3
2019-06-30 247 9 7 2
ASX:RHP Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 202 11 5
2018-09-30 199 9 4
2018-06-30 197 8 3
2018-03-31 113 9 3
2017-12-31 101 10 4
2017-09-30 129 8 3
2017-06-30 157 7 3
2017-03-31 150 2
2016-12-31 143 1 1
2016-09-30 140 0 0
2016-06-30 137 -2 0
2016-03-31 132 -1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • rhipe's earnings are expected to grow significantly at over 20% yearly.
  • rhipe's revenue is expected to grow by 14.2% yearly, however this is not considered high growth (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:RHP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from rhipe Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RHP Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 0.15 0.15 0.15 1.00
2022-06-30 0.12 0.12 0.12 1.00
2021-06-30 0.10 0.10 0.09 4.00
2020-06-30 0.07 0.07 0.07 4.00
2019-06-30 0.05 0.05 0.05 3.00
ASX:RHP Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.04
2018-09-30 0.03
2018-06-30 0.02
2018-03-31 0.02
2017-12-31 0.03
2017-09-30 0.02
2017-06-30 0.02
2017-03-31 0.01
2016-12-31 0.00
2016-09-30 0.00
2016-06-30 0.00
2016-03-31 -0.01

*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.
  • rhipe is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess rhipe'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.
rhipe has a total score of 4/6, 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.

RHP Past Performance

  How has rhipe 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 rhipe'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.
  • rhipe has delivered over 20% year on year earnings growth in the past 5 years.
  • rhipe's 1-year earnings growth is less than its 5-year average (40.7% vs 63.1%)
  • rhipe's earnings growth has not exceeded the AU IT industry average in the past year (40.7% vs 46.2%).
Earnings and Revenue History
rhipe'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 rhipe Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RHP Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 201.58 5.02 32.51
2018-09-30 199.10 4.04 30.71
2018-06-30 196.61 3.07 28.91
2018-03-31 112.92 3.32 27.17
2017-12-31 101.03 3.57 25.43
2017-09-30 129.00 3.04 25.09
2017-06-30 156.97 2.51 24.75
2017-03-31 150.07 1.58 25.73
2016-12-31 143.17 0.66 26.71
2016-09-30 140.14 0.26 26.90
2016-06-30 137.12 -0.13 27.08
2016-03-31 132.02 -1.45 26.20
2015-12-31 126.92 -2.78 25.33
2015-09-30 117.85 -2.55 22.48
2015-06-30 108.77 -2.32 19.64
2015-03-31 99.12 -1.02 16.28
2014-12-31 89.48 0.28 12.93
2014-09-30 82.01 0.58 11.67
2014-06-30 74.55 0.88 10.40
2013-06-30 51.34 0.74 7.60
2012-06-30 37.74 0.61 5.22

*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.
  • rhipe has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • rhipe used its assets less efficiently than the AU IT industry average last year based on Return on Assets.
  • rhipe has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess rhipe'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.
rhipe has a total score of 2/6, 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.

RHP Health

 How is rhipe'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 rhipe's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • rhipe is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • rhipe's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of rhipe'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.
  • rhipe has no debt, it does not need to be covered by short term assets.
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 rhipe Company Filings, last reported 2 months ago.

ASX:RHP Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 46.40 0.00 23.24
2018-09-30 46.40 0.00 23.24
2018-06-30 43.98 0.00 22.88
2018-03-31 43.98 0.00 22.88
2017-12-31 41.43 0.00 17.30
2017-09-30 41.43 0.00 17.30
2017-06-30 42.81 0.00 20.35
2017-03-31 42.81 0.00 20.35
2016-12-31 40.04 0.00 11.39
2016-09-30 40.04 0.00 11.39
2016-06-30 40.00 0.00 14.27
2016-03-31 40.00 0.00 14.27
2015-12-31 41.03 0.00 6.77
2015-09-30 41.03 0.00 6.77
2015-06-30 38.46 0.00 12.73
2015-03-31 38.46 0.00 12.73
2014-12-31 33.76 0.00 6.75
2014-09-30 33.76 0.00 6.75
2014-06-30 8.43 0.00 4.49
2013-06-30 1.42 0.00 2.04
2012-06-30 1.20 0.00 2.51
  • rhipe has no debt.
  • rhipe has not taken on any debt in the past 5 years.
  • rhipe has no debt, it does not need to be covered by operating cash flow.
  • rhipe has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess rhipe'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. rhipe has a total score of 6/6, 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.

RHP Dividends

 What is rhipe'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
1.13%
Current annual income from rhipe dividends. Estimated to be 1.96% next year.
If you bought A$2,000 of rhipe shares you are expected to receive A$23 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?
  • rhipe's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.63%).
  • rhipe's dividend is below the markets top 25% of dividend payers in Australia (5.71%).
Upcoming dividend payment

Purchase rhipe on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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:RHP 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 4 Analyst Estimates (S&P Global) See Below
Australia IT Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.2%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

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

ASX:RHP Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 0.05 1.00
2022-06-30 0.04 1.00
2021-06-30 0.04 4.00
2020-06-30 0.03 4.00
2019-06-30 0.02 3.00
ASX:RHP Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-18 0.020 1.167
2018-07-25 0.020 1.581
2018-02-05 0.010 0.999

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

  • rhipe is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.
  • rhipe 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 rhipe's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of rhipe's dividends as it is not paying a notable one for Australia.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess rhipe's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - 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 rhipe afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. rhipe has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RHP Management

 What is the CEO of rhipe'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
Dominic O'Hanlon
COMPENSATION A$1,076,538
TENURE AS CEO 4.6 years
CEO Bio

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 Chief Executive Officer of Haley Limited since November 2006. He served as Group General Manager, South Asia Pacific, with Oracle Corporation for which he was responsible for strategy and regional sales to government, education and healthcare organisations. He is a well-known and successful technology entrepreneur who has nearly 25 years experience in software development,marketing, sales, implementation and support. He served as the Chief Strategy Officer for MYOB. He served as Senior Vice President of Oracle Corporation. He was ANZ Managing Director for Geac Corporation. For 15 years, he has held other senior executive positions within NASDAQ listed multi-national ICT sales companies including those of Managing Director, General Manager, Sales Director and Operations Manager. He has a solid understanding of corporate governance obligations including those which attach to Australian and US GAAP Standards. He has been a Director of Rhipe Limited., since June 15, 2015. He holds numerous memberships and he is a Fellow of the Australian Institute of Company Directors. He served as an Executive Director of Haley Limited. He has also successfully completed several professional courses and programs, including those run by the Australian Graduate School of Management and the Columbia Business School. He is a Fellow of the Australian Institute of Company Directors. He is a graduate of the Columbia University Senior Executive Program and possesses a BA (Econ) Hons. from the University of Sydney.

CEO Compensation
  • Dominic's compensation has increased by more than 20% in the past year.
  • Dominic's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the rhipe management team in years:

4.4
Average Tenure
  • The tenure for the rhipe management team is about average.
Management Team

Dominic O'Hanlon

TITLE
MD, CEO & Executive Director
COMPENSATION
A$1M
TENURE
4.6 yrs

Dawn Edmonds

TITLE
Co-Founder & Non-Executive Director
COMPENSATION
A$60K

Mark McLellan

TITLE
CFO & COO
COMPENSATION
A$831K
TENURE
2.3 yrs

Warren Nolan

TITLE
Chief Commercial Officer
COMPENSATION
A$691K
TENURE
13.6 yrs

Chris Sharp

TITLE
Chief Strategy Officer
COMPENSATION
A$648K
TENURE
4.4 yrs

Patara Yongvanich

TITLE
MD of SEA & MD of Asia
COMPENSATION
A$465K
TENURE
3.7 yrs

Michelle Clements

TITLE
Global Head of Human Resources

Andrew Whitten

TITLE
Company Secretary
AGE
41
TENURE
4.6 yrs

Maggie Niewidok

TITLE
Company Secretary
TENURE
2.2 yrs
Board of Directors Tenure

Average tenure of the rhipe board of directors in years:

4.9
Average Tenure
  • The tenure for the rhipe board of directors is about average.
Board of Directors

Mike Hill

TITLE
Non-Executive Chairman
COMPENSATION
A$150K
AGE
46
TENURE
4.9 yrs

Dominic O'Hanlon

TITLE
MD, CEO & Executive Director
COMPENSATION
A$1M
TENURE
3.8 yrs

Dawn Edmonds

TITLE
Co-Founder & Non-Executive Director
COMPENSATION
A$60K
TENURE
4.9 yrs

Leigh Curyer

TITLE
Member of Advisory Committee
COMPENSATION
A$233K
AGE
46
TENURE
4.9 yrs

Julian Knights

TITLE
Member of Advisory Committee
TENURE
4.9 yrs

Mark Pierce

TITLE
Independent Non Executive Director
COMPENSATION
A$60K
TENURE
4.9 yrs

Mike Tierney

TITLE
Independent Non-Executive Director
COMPENSATION
A$60K
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
21. Feb 19 Sell Perennial Value Management Limited Company 24. Dec 18 18. Feb 19 -2,216,550 A$1.68 A$-3,708,933
21. Feb 19 Buy Perennial Value Management Limited Company 27. Nov 18 18. Jan 19 1,288,958 A$1.34 A$1,581,664
14. Dec 18 Sell UBS Asset Management Company 21. Nov 18 12. Dec 18 -2,087,154 A$1.24 A$-2,589,235
14. Dec 18 Buy UBS Asset Management Company 21. Nov 18 12. Dec 18 72,990 A$1.24 A$90,420
28. Nov 18 Buy Perennial Value Management Limited Company 31. Aug 18 26. Nov 18 6,450,568 A$1.42 A$8,445,597
22. Nov 18 Buy UBS Asset Management Company 30. Oct 18 20. Nov 18 1,615,276 A$1.31 A$2,115,049
22. Nov 18 Sell UBS Asset Management Company 30. Oct 18 20. Nov 18 -96,944 A$1.30 A$-126,176
22. Nov 18 Sell Dominic O'Hanlon Individual 20. Nov 18 20. Nov 18 -1,600,000 A$1.30 A$-2,079,998
20. Nov 18 Sell Pie Funds Management Ltd Company 14. Nov 18 16. Nov 18 -700,000 A$1.40 A$-980,000
31. Oct 18 Sell UBS Asset Management Company 11. Sep 18 29. Oct 18 -1,674,829 A$1.17 A$-1,958,032
31. Oct 18 Buy UBS Asset Management Company 11. Sep 18 29. Oct 18 478,795 A$1.17 A$559,968
12. Oct 18 Buy Australian Ethical Investment Ltd Company 02. Jan 18 11. Oct 18 1,714,143 A$1.18 A$1,768,300
12. Sep 18 Sell UBS Asset Management Company 25. May 18 10. Sep 18 -1,222,043 A$1.14 A$-1,391,670
12. Sep 18 Buy UBS Asset Management Company 22. May 18 10. Sep 18 4,770,992 A$1.22 A$5,843,327
13. Sep 18 Sell Credit Suisse, Investment Banking and Securities Investments Company 30. Jul 18 07. Sep 18 -1,214,633 A$1.28 A$-1,550,197
13. Sep 18 Buy Credit Suisse, Investment Banking and Securities Investments Company 26. Jul 18 06. Sep 18 225,234 A$1.26 A$283,863
12. Sep 18 Sell Michael Tierney Individual 12. Sep 18 12. Sep 18 -700,000 A$1.18 A$-826,000
12. Sep 18 Sell Dawn Edmonds Individual 12. Sep 18 12. Sep 18 -1,300,000 A$1.18 A$-1,534,000
30. Jul 18 Buy Pie Funds Management Ltd Company 07. May 18 27. Jul 18 1,468,565 A$1.25 A$1,835,706
30. Jul 18 Sell Regal Funds Management Pty Limited Company 04. May 18 26. Jul 18 -1,490,406 A$1.25 A$-1,559,304
X
Management checks
We assess rhipe'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. rhipe 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.

RHP News

Simply Wall St News

Our Take On rhipe Limited's (ASX:RHP) CEO Salary

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Dominic O'Hanlon's Compensation Compare With Similar Sized Companies. … Our data indicates that rhipe Limited is worth AU$249m, and total annual CEO compensation is AU$1.1m.

Simply Wall St -

Why You Should Care About rhipe Limited’s (ASX:RHP) Cash Levels

I will take you through rhipe’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … rhipe generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … The two ways to assess whether rhipe’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

Simply Wall St -

Does rhipe Limited (ASX:RHP) Create Value For Shareholders?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Brief Commentary On rhipe Limited's (ASX:RHP) Fundamentals

Help shape the future of investing tools and receive a $20 prize! … I've been keeping an eye on rhipe Limited (ASX:RHP) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe RHP has a lot to offer.

Simply Wall St -

rhipe Limited (ASX:RHP): What Does Its Beta Value Mean For Your Portfolio?

Volatility is considered to be a measure of risk in modern finance theory. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility).

Simply Wall St -

Should You Be Tempted To Sell rhipe Limited (ASX:RHP) Because Of Its P/E Ratio?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … That corresponds to an earnings yield of approximately 1.7%. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

What Investors Should Know About rhipe Limited's (ASX:RHP) Financial Strength

However, it also faces higher cost of capital given interest cost is generally lower than equity. … Is RHP right in choosing financial flexibility over lower cost of capital … Debt capital generally has lower cost of capital compared to equity funding.

Simply Wall St -

What Is rhipe Limited's (ASX:RHP) Share Price Doing?

As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s examine rhipe’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

Is rhipe Limited's (ASX:RHP) ROE Of 7.0% Concerning?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows rhipe has a return on equity of 7.0% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should Investors Be Happy About rhipe Limited’s (ASX:RHP) Cash Levels?

I’ve analysed below, the health and outlook of rhipe’s cash flow, which will help you understand the stock from a cash standpoint. … rhipe’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … There are two methods I will use to evaluate the quality of rhipe’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

RHP Company Info

Description

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.

Details
Name: rhipe Limited
RHP
Exchange: ASX
Founded: 2003
A$245,299,363
138,587,211
Website: http://www.rhipe.com
Address: rhipe Limited
100 Miller Street,
Level 19,
North Sydney,
New South Wales, 2060,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX RHP Ordinary Shares Australian Securities Exchange AU AUD 17. Apr 2014
Number of employees
Current staff
Staff numbers
203
rhipe employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/23 10:32
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/02/19
Last earnings filing: 2019/02/17
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.