ASX:RXP

Stock Analysis Report

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Executive Summary

RXP Services Limited provides information and communications technology consulting, development, support, and maintenance services in the Asia-Pacific Region.


Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RXP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.3%

RXP

3.6%

AU IT

-2.0%

AU Market


1 Year Return

-33.0%

RXP

49.2%

AU IT

-12.1%

AU Market

Return vs Industry: RXP underperformed the Australian IT industry which returned 49.2% over the past year.

Return vs Market: RXP underperformed the Australian Market which returned -12.1% over the past year.


Shareholder returns

RXPIndustryMarket
7 Day9.3%3.6%-2.0%
30 Day3.5%18.5%-1.0%
90 Day28.3%80.6%12.0%
1 Year-26.4%-33.0%51.6%49.2%-8.5%-12.1%
3 Year-55.5%-64.9%146.5%131.5%15.2%-0.08%
5 Year3.2%-25.3%142.8%115.4%28.7%0.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

39.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RXP (A$0.3) is trading below our estimate of fair value (A$0.49)

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


Price To Earnings Ratio

PE vs Industry: RXP is unprofitable, so we can't compare its PE Ratio to the AU IT industry average.

PE vs Market: RXP is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RXP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RXP is good value based on its PB Ratio (0.5x) compared to the AU IT industry average (2.3x).


Next Steps

Future Growth

How is RXP Services forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

98.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RXP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: RXP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RXP's is expected to become profitable in the next 3 years.

Revenue vs Market: RXP's revenue (3.1% per year) is forecast to grow slower than the Australian market (4.3% per year).

High Growth Revenue: RXP's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RXP's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has RXP Services performed over the past 5 years?

-21.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RXP is currently unprofitable.

Growing Profit Margin: RXP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RXP is unprofitable, and losses have increased over the past 5 years at a rate of -21.1% per year.

Accelerating Growth: Unable to compare RXP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RXP is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (-0.3%).


Return on Equity

High ROE: RXP has a negative Return on Equity (-10.2%), as it is currently unprofitable.


Next Steps

Financial Health

How is RXP Services's financial position?


Financial Position Analysis

Short Term Liabilities: RXP's short term assets (A$37.3M) do not cover its short term liabilities (A$42.2M).

Long Term Liabilities: RXP's short term assets (A$37.3M) exceed its long term liabilities (A$2.1M).


Debt to Equity History and Analysis

Debt Level: RXP's debt to equity ratio (21.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if RXP's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RXP's debt is well covered by operating cash flow (33.7%).

Interest Coverage: RXP is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

11.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RXP's dividend (11.86%) is higher than the bottom 25% of dividend payers in the Australian market (2.53%).

High Dividend: RXP's dividend (11.86%) is in the top 25% of dividend payers in the Australian market (6.54%)


Stability and Growth of Payments

Stable Dividend: RXP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RXP's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: RXP is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: RXP's dividends in 3 years are forecast to be covered by earnings (52.2% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Ross Fielding

no data

Tenure

AU$580,806

Compensation

Mr. Ross Fielding, B.Eng serves as the Chief Executive Officer and Managing Director of RXP Services Limited and has been its Executive Director since October 21, 2010. Mr. Fielding served as the Chief Inf ...


CEO Compensation Analysis

Compensation vs Market: Ross's total compensation ($USD403.81K) is above average for companies of similar size in the Australian market ($USD262.46K).

Compensation vs Earnings: Ross's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ross Fielding
CEO, MD & Executive Directorno dataAU$580.81k5.42% A$2.6m
David Royale
CFO & Company Secretary5.25yrsAU$233.04kno data
Maria Dimopoulos
Group Executive of People & Talent0.67yrAU$79.59k0.062% A$29.5k
Kevin Brough
Group Executive of Northern Region3.17yrsAU$398.83kno data
Jared Charles Hill
Group Executive of Digital Services & Delivery3.17yrsAU$289.66k0.53% A$254.2k

3.2yrs

Average Tenure

Experienced Management: RXP's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ross Fielding
CEO, MD & Executive Directorno dataAU$580.81k5.42% A$2.6m
Sandra Hook
Non-Executive Director4.33yrsAU$95.12k0.038% A$18.2k
Adrian Fitzpatrick
Non-Executive Director1yrno datano data
John Pittard
Chairman6.67yrsAU$115.36k0.062% A$29.5k

5.5yrs

Average Tenure

Experienced Board: RXP's board of directors are considered experienced (5.5 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: RXP Services Limited
  • Ticker: RXP
  • Exchange: ASX
  • Founded: 2010
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: AU$47.524m
  • Shares outstanding: 161.10m
  • Website: https://www.rxpservices.com

Number of Employees


Location

  • RXP Services Limited
  • 15 Queen Street
  • Level 31
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RXPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2011
RXPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2011

Biography

RXP Services Limited provides information and communications technology consulting, development, support, and maintenance services in the Asia-Pacific Region. The company offers innovation, customer experience and service design, mobile and app development, talent solutions, and user experience services; and application and cloud development, architecture and solutions design, bots and intelligent applications, and customer relationship management services, as well as digital experience platforms, DevOps solutions, and Internet of Things. It also provides advisory, solutions, and enterprise architecture; business analysis and process; capability uplift, learning, and development; change management; and project and delivery services. In addition, the company offers BI, reporting, analytics, and visualization; data governance; data management and migration; data quality; data integration and delivery; master data management and product information management; and strategy and architecture solutions, as well as data warehouses, marts, and lakes. Further, it provides process transformation, enterprise mobility, and field service management services; and strategic and support services, as well as delivery as a service. RXP Services Limited was incorporated in 2010 and is based in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/12 10:45
End of Day Share Price2020/07/10 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.