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RXP Services

ASX:RXP
Snowflake Description

Very undervalued with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RXP
ASX
A$71M
Market Cap
  1. Home
  2. AU
  3. Software
Company description

RXP Services Limited provides information and communications technology consulting, development, support, and maintenance services to corporations and government bodies in the Asia-Pacific Region. The last earnings update was 150 days ago. More info.


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RXP Share Price and Events
7 Day Returns
0%
ASX:RXP
-0.6%
AU IT
0%
AU Market
1 Year Returns
-11.1%
ASX:RXP
10.1%
AU IT
4.8%
AU Market
RXP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
RXP Services (RXP) 0% -2.2% 1.1% -11.1% -31.3% -30.2%
AU IT -0.6% 2.6% -0.2% 10.1% 47.6% 44.2%
AU Market 0% 0.9% 6.8% 4.8% 20.1% 12.2%
1 Year Return vs Industry and Market
  • RXP underperformed the IT industry which returned 10.1% over the past year.
  • RXP underperformed the Market in Australia which returned 4.8% over the past year.
Price Volatility
RXP
Industry
5yr Volatility vs Market

RXP Value

 Is RXP Services 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 RXP Services 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 RXP Services.

ASX:RXP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
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:RXP
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 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.987 (1 + (1- 30%) (32.45%))
1.142
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.142 * 5.96%)
9.12%

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

The calculations below outline how an intrinsic value for RXP Services 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:RXP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 9.12%)
2020 11.22 Est @ 5.73% 10.29
2021 11.75 Est @ 4.7% 9.87
2022 12.22 Est @ 3.98% 9.41
2023 12.65 Est @ 3.48% 8.92
2024 13.04 Est @ 3.13% 8.43
2025 13.42 Est @ 2.89% 7.95
2026 13.78 Est @ 2.71% 7.48
2027 14.14 Est @ 2.59% 7.04
2028 14.50 Est @ 2.51% 6.61
2029 14.85 Est @ 2.45% 6.21
Present value of next 10 years cash flows A$82.20
ASX:RXP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$14.85 × (1 + 2.31%) ÷ (9.12% – 2.31%)
A$223.28
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$223.28 ÷ (1 + 9.12%)10
A$93.31
ASX:RXP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$82.20 + A$93.31
A$175.52
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$175.52 / 161.10
A$1.09
ASX:RXP Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$1.09
Current discount Discount to share price of A$0.44
= -1 x (A$0.44 - A$1.09) / A$1.09
59.6%

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

Current Discount
Amount off the current price RXP Services is available for.
Intrinsic value
>50%
Share price is A$0.44 vs Future cash flow value of A$1.09
Current Discount Checks
For RXP Services to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • RXP Services's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • RXP Services's share price is below the future cash flow value, and 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 RXP Services's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are RXP Services's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:RXP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.05
ASX:RXP Share Price ** ASX (2019-07-18) in AUD A$0.44
Australia IT Industry PE Ratio Median Figure of 17 Publicly-Listed IT Companies 20.72x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.1x

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

** Primary Listing of RXP Services.

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

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

= 0.44 ÷ 0.05

8.72x

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

  • RXP Services is good value based on earnings compared to the AU IT industry average.
  • RXP Services is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does RXP Services's expected growth come at a high price?
Raw Data
ASX:RXP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.72x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
20%per year
Australia IT Industry PEG Ratio Median Figure of 12 Publicly-Listed IT Companies 1.21x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.72x ÷ 20%

0.44x

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

  • RXP Services is good value based on expected growth next year.
Price based on value of assets
What value do investors place on RXP Services's assets?
Raw Data
ASX:RXP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.75
ASX:RXP Share Price * ASX (2019-07-18) in AUD A$0.44
Australia IT Industry PB Ratio Median Figure of 32 Publicly-Listed IT Companies 2.99x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.7x
ASX:RXP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 0.44 ÷ 0.75

0.58x

* Primary Listing of RXP Services.

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

  • RXP Services is good value based on assets compared to the AU IT industry average.
X
Value checks
We assess RXP Services'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. RXP Services has a total score of 6/6, 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.

RXP Future Performance

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

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
20%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is RXP Services expected to grow at an attractive rate?
  • RXP Services's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • RXP Services's earnings growth is expected to exceed the Australia market average.
  • RXP Services's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:RXP Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:RXP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 20%
ASX:RXP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 3.9%
Australia IT Industry Earnings Growth Rate Market Cap Weighted Average 26.1%
Australia IT Industry Revenue Growth Rate Market Cap Weighted Average 18.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*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:RXP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:RXP Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 159 13 14 1
2020-06-30 153 13 13 1
2019-06-30 145 11 10 1
ASX:RXP Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 146 12 8
2018-09-30 146 11 8
2018-06-30 145 9 8
2018-03-31 143 10 9
2017-12-31 140 11 10
2017-09-30 140 12 11
2017-06-30 141 12 12
2017-03-31 141 11 12
2016-12-31 142 10 12
2016-09-30 134 10 11
2016-06-30 127 9 11
2016-03-31 113 7 9

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • RXP Services's earnings are expected to grow by 20% yearly, however this is not considered high growth (20% yearly).
  • RXP Services's revenue is expected to grow by 3.9% 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:RXP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from RXP Services Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RXP Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.09 0.09 0.09 1.00
2020-06-30 0.08 0.08 0.08 1.00
2019-06-30 0.06 0.06 0.06 1.00
ASX:RXP Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.05
2018-09-30 0.05
2018-06-30 0.05
2018-03-31 0.06
2017-12-31 0.07
2017-09-30 0.07
2017-06-30 0.08
2017-03-31 0.08
2016-12-31 0.09
2016-09-30 0.08
2016-06-30 0.08
2016-03-31 0.06

*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.
  • RXP Services is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess RXP Services'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.
RXP Services has a total score of 3/6, 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.

RXP Past Performance

  How has RXP Services 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 RXP Services'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.
  • RXP Services's year on year earnings growth rate has been positive over the past 5 years.
  • RXP Services's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • RXP Services's 1-year earnings growth is negative, it can't be compared to the AU IT industry average.
Earnings and Revenue History
RXP Services'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 RXP Services Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RXP Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 146.10 8.12 3.48
2018-09-30 145.52 7.98 3.65
2018-06-30 144.95 7.84 3.82
2018-03-31 142.52 8.90 3.83
2017-12-31 140.10 9.97 3.84
2017-09-30 140.30 10.80 3.31
2017-06-30 140.50 11.64 2.78
2017-03-31 141.18 11.90 2.25
2016-12-31 141.85 12.15 1.71
2016-09-30 134.45 11.39 1.61
2016-06-30 127.06 10.62 1.51
2016-03-31 112.67 8.75 1.46
2015-12-31 98.28 6.88 1.42
2015-09-30 88.57 5.74 1.40
2015-06-30 78.87 4.59 1.37
2015-03-31 73.88 5.47 1.24
2014-12-31 68.90 6.35 1.11
2014-09-30 62.32 6.43 0.92
2014-06-30 55.73 6.50 0.73
2014-03-31 48.88 5.67 0.62
2013-12-31 42.03 4.83 0.52
2013-09-30 36.09 4.16 0.45
2013-06-30 30.16 3.49 0.38
2013-03-31 25.75 2.51 0.37
2012-12-31 21.34 1.54 0.36
2012-09-30 16.71 0.96 0.29

*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.
  • RXP Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • RXP Services used its assets less efficiently than the AU IT industry average last year based on Return on Assets.
  • RXP Services's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess RXP Services'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.
RXP Services has a total score of 1/6, 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.

RXP Health

 How is RXP Services'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 RXP Services's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • RXP Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • RXP Services's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of RXP Services'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.
  • Debt is covered by short term assets, assets are 2.1x debt.
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 RXP Services Company Filings, last reported 6 months ago.

ASX:RXP Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 121.22 23.00 12.04
2018-09-30 121.22 23.00 12.04
2018-06-30 119.91 13.00 14.09
2018-03-31 119.91 13.00 14.09
2017-12-31 118.67 14.96 12.29
2017-09-30 118.67 14.96 12.29
2017-06-30 103.10 15.43 17.75
2017-03-31 103.10 15.43 17.75
2016-12-31 99.54 16.35 13.08
2016-09-30 99.54 16.35 13.08
2016-06-30 96.43 14.97 13.69
2016-03-31 96.43 14.97 13.69
2015-12-31 98.00 12.49 9.90
2015-09-30 98.00 12.49 9.90
2015-06-30 88.33 0.00 12.37
2015-03-31 88.33 0.00 12.37
2014-12-31 87.47 0.00 10.40
2014-09-30 87.47 0.00 10.40
2014-06-30 82.40 0.00 18.73
2014-03-31 82.40 0.00 18.73
2013-12-31 74.77 0.00 25.36
2013-09-30 74.77 0.00 25.36
2013-06-30 45.26 0.00 11.33
2013-03-31 45.26 0.00 11.33
2012-12-31 29.82 0.69 5.24
2012-09-30 29.82 0.69 5.24
  • RXP Services's level of debt (19%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 19% today).
  • Debt is well covered by operating cash flow (51.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 19.1x coverage).
X
Financial health checks
We assess RXP Services'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. RXP Services has a total score of 5/6, 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.

RXP Dividends

 What is RXP Services'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
8.52%
Current annual income from RXP Services dividends. Estimated to be 8.64% next year.
If you bought A$2,000 of RXP Services shares you are expected to receive A$170 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?
  • RXP Services's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.53%).
  • RXP Services's dividend is above the markets top 25% of dividend payers in Australia (5.79%).
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:RXP 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 1 Analyst Estimates (S&P Global) See Below
Australia IT Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.4%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

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

ASX:RXP Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.04 1.00
2020-06-30 0.04 1.00
2019-06-30 0.03 1.00
ASX:RXP Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-20 0.038 8.295
2018-08-15 0.035 7.216
2018-02-21 0.045 8.751
2017-08-15 0.045 6.003
2017-02-15 0.035 4.328
2016-08-16 0.040 4.479
2016-02-15 0.020 3.412
2015-08-17 0.013 2.326

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

  • RXP Services has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but RXP Services only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of RXP Services's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
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 RXP Services's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - 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 RXP Services afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. RXP Services has a total score of 4/6, see the detailed checks below.


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

RXP Management

 What is the CEO of RXP Services'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
Ross Fielding
COMPENSATION A$721,709
CEO Bio

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 Information Officer for Telstra's Retail business. He has over 29 years of experience in the information Technology and Telecommunications industry and played a key role in many major Business transformation programmes throughout his career. He served as an Executive Director of Products and services in Telstra, driving innovation, development and implementation into the market. Mr. Fielding served as a Director of Mercury Mobility Limited (AKA Mnemon Limited) since November 6, 2009. He serves a Director of m.Net Corporation Limited and Australian Mobile Telecommunications Association. Mr. Fielding served as an Executive Director of Telstra Corporation. Mr. Fielding served as a Director of Mnemon Limited from November 6, 2009 to May 27, 2013.

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

Average tenure of the RXP Services management team in years:

2.2
Average Tenure
  • The tenure for the RXP Services management team is about average.
Management Team

Ross Fielding

TITLE
CEO, MD & Executive Director
COMPENSATION
A$722K

David Royale

TITLE
CFO & Company Secretary
COMPENSATION
A$265K
TENURE
4.3 yrs

Kevin Brough

TITLE
Group Executive of Northern Region
COMPENSATION
A$484K
TENURE
2.2 yrs

Jared Charles Hill

TITLE
Group Executive of Digital Services & Delivery
COMPENSATION
A$318K
TENURE
2.2 yrs

Felicity Law

TITLE
Group Executive of People & Culture
TENURE
1.5 yrs
Board of Directors Tenure

Average tenure of the RXP Services board of directors in years:

5.7
Average Tenure
  • The tenure for the RXP Services board of directors is about average.
Board of Directors

John Pittard

TITLE
Chairman
COMPENSATION
A$115K
AGE
66
TENURE
5.7 yrs

Ross Fielding

TITLE
CEO, MD & Executive Director
COMPENSATION
A$722K
TENURE
8.8 yrs

Sandra Hook

TITLE
Non-Executive Director
COMPENSATION
A$95K
TENURE
3.3 yrs

Adrian Fitzpatrick

TITLE
Non-Executive Director
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
02. Jul 19 Sell Regal Funds Management Pty Limited Company 07. Jun 19 28. Jun 19 -2,633,264 A$0.44 A$-1,131,840
02. Jul 19 Buy Regal Funds Management Pty Limited Company 08. May 19 28. Jun 19 1,347,167 A$0.43 A$571,989
12. Apr 19 Buy Australian Ethical Investment Ltd Company 24. Sep 18 11. Apr 19 1,651,345 A$0.53 A$788,504
04. Mar 19 Sell Regal Funds Management Pty Limited Company 12. Dec 18 28. Feb 19 -1,019,669 A$0.50 A$-492,738
24. Sep 18 Buy Australian Ethical Investment Ltd Company 14. May 18 21. Sep 18 1,595,191 A$0.59 A$825,680
X
Management checks
We assess RXP Services'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. RXP Services 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.

RXP News

Simply Wall St News

Do Institutions Own RXP Services Limited (ASX:RXP) Shares?

View our latest analysis for RXP Services ASX:RXP Ownership Summary, July 16th 2019 What Does The Institutional Ownership Tell Us About RXP Services? … Private Company Ownership Our data indicates that Private Companies hold 13%, of the company's shares. … Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual.

Simply Wall St -

Does The Hype Around RXP Services Limited's (ASX:RXP) Growth Justify Its July Share Price?

RXP Services Limited (ASX:RXP) is considered a high growth stock. … RXP Services is poised for extremely high earnings growth in the near future. … A PE ratio of 9.31x and expected year-on-year earnings growth of 20% give RXP Services an extremely low PEG ratio of 0.47x.

Simply Wall St -

Is RXP Services Limited (ASX:RXP) A Good Dividend Stock?

Dividend paying stocks like RXP Services Limited (ASX:RXP) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … It's positive to see that RXP Services's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to evaluate if earnings per share (EPS) are growing - it's not worth taking the risk on a dividend getting cut, unless you might be rewarded with larger dividends in future. While there may be fluctuations in the past , RXP Services's earnings per share have basically not grown from where they were five years ago. Flat earnings per share are acceptable for a time, but over the long term, the purchasing power of the company's dividends could be eroded by inflation. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Why RXP Services Limited’s (ASX:RXP) Return On Capital Employed Looks Uninspiring

What is Return On Capital Employed (ROCE)? … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for RXP Services: 0.096 = AU$14m ÷ (AU$171m - AU$26m) (Based on the trailing twelve months to December 2018.) Therefore, RXP Services has an ROCE of 9.6%. … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual.

Simply Wall St -

Does The Data Make RXP Services Limited (ASX:RXP) An Attractive Investment?

RXP's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. … Take a look at our free research report of analyst consensus for RXP’s outlook. … Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

Simply Wall St -

Here's What RXP Services Limited's (ASX:RXP) P/E Ratio Is Telling Us

Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. … We'll look at RXP Services Limited's (ASX:RXP) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

How Much is RXP Services Limited's (ASX:RXP) CEO Getting Paid?

How Does Ross Fielding's Compensation Compare With Similar Sized Companies. … According to our data, RXP Services Limited has a market capitalization of AU$70m, and pays its CEO total annual compensation worth AU$722k. … We examined a group of similar sized companies, with market capitalizations of below AU$279m

Simply Wall St -

How Financially Strong Is RXP Services Limited (ASX:RXP)?

While small-cap stocks, such as RXP Services Limited (ASX:RXP) with its market cap of AU$74m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … since poor capital management may bring about bankruptcies, … The following basic checks can help you get a picture of the company's balance sheet strength.

Simply Wall St -

Volatility 101: Should RXP Services (ASX:RXP) Shares Have Dropped 27%?

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Looking back five years, both RXP Services's share price and EPS declined; the latter at a rate of 1.5% per year. … Readers should note that the share price has fallen faster than the EPS, at a rate of 6.2% per year, over the period.

Simply Wall St -

4 Days Left Before RXP Services Limited (ASX:RXP) Will Be Trading Ex-Dividend

To qualify for the dividend check of AU$0.018 per share, investors must have owned the shares prior to 20 March 2019, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … 5 questions I ask before picking a dividend stock? … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:?

Simply Wall St -

RXP Company Info

Description

RXP Services Limited provides information and communications technology consulting, development, support, and maintenance services to corporations and government bodies 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 is based in Melbourne, Australia.

Details
Name: RXP Services Limited
RXP
Exchange: ASX
Founded:
A$70,882,761
161,097,185
Website: http://www.rxpservices.com
Address: RXP Services Limited
15 Queen Street,
Level 31,
Melbourne,
Victoria, 3000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX RXP Ordinary Shares Australian Securities Exchange AU AUD 28. Nov 2011
CHIA RXP Ordinary Shares Chi-X Australia AU AUD 28. Nov 2011
Number of employees
Current staff
Staff numbers
0
RXP Services employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 10:42
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/02/22
Last earnings filing: 2019/02/20
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.