ASX:SGO

Stock Analysis Report

Executive Summary

Stream Group Limited develops and deploys insurance claims management and workflow management software to the insurance and construction industries.


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SGO

10.3%

AU Software

4.9%

AU Market


1 Year Return

70.0%

SGO

-1.0%

AU Software

-14.2%

AU Market

Return vs Industry: SGO exceeded the Australian Software industry which returned -5.7% over the past year.

Return vs Market: SGO exceeded the Australian Market which returned -16.2% over the past year.


Shareholder returns

SGOIndustryMarket
7 Day0%10.3%4.9%
30 Day-19.0%2.2%-8.9%
90 Day41.7%-18.2%-22.7%
1 Year70.0%70.0%-0.08%-1.0%-10.3%-14.2%
3 Yearn/a103.0%93.9%2.6%-11.6%
5 Year-79.5%-79.5%88.9%76.7%13.9%-11.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.65x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SGO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SGO's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: SGO 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 SGO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SGO is good value based on its PB Ratio (0.7x) compared to the AU Software industry average (2.8x).


Next Steps

Future Growth

How is Stream Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

37.0%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Stream Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Stream Group performed over the past 5 years?

36.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGO is currently unprofitable.

Growing Profit Margin: SGO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SGO is unprofitable, but has reduced losses over the past 5 years at a rate of 36.4% per year.

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

Earnings vs Industry: SGO is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (14.1%).


Return on Equity

High ROE: SGO has a negative Return on Equity (-49.82%), as it is currently unprofitable.


Next Steps

Financial Health

How is Stream Group's financial position?


Financial Position Analysis

Short Term Liabilities: SGO's short term assets (A$4.4M) exceed its short term liabilities (A$401.4K).

Long Term Liabilities: SGO has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: SGO is debt free.

Reducing Debt: SGO has no debt compared to 5 years ago when its debt to equity ratio was 79.9%.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SGO has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: SGO has less than a year of cash runway if free cash flow continues to grow at historical rates of 43% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SGO's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Stream Group has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
James Jobson
Chief Operating Officer - Australia6.25yrsAU$49.37kno data
Brett Crowley
Company Secretary3.92yrsno datano data
Linda Romano
Group Project Management Officer6.25yrsAU$80.34kno data
James Pittman
General Manager of United Kingdomno dataAU$101.86kno data
Brian Hill
General Manager of Group Strategyno dataAU$71.85kno data
Katherine Johnson
Senior Executiveno dataAU$196.32kno data

6.3yrs

Average Tenure

Experienced Management: SGO's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lawrence Case
Chairman4.67yrsAU$50.00k2.5% A$91.9k
Christian Bernecker
Non-Executive Director11.5yrsAU$25.00k2.63% A$96.5k
Daniel Barrins
Non-Executive Director2.58yrsAU$25.00kno data

4.7yrs

Average Tenure

Experienced Board: SGO's board of directors are considered experienced (4.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Stream Group Limited
  • Ticker: SGO
  • Exchange: ASX
  • Founded: 2007
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$3.672m
  • Shares outstanding: 216.00m
  • Website: https://www.streamgroupltd.com.au

Location

  • Stream Group Limited
  • 22 Market Street
  • Level 3
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGOASX (Australian Securities Exchange)YesNew Ordinary SharesAUAUDApr 2014
SGOCHIA (Chi-X Australia)YesNew Ordinary SharesAUAUDApr 2014

Biography

Stream Group Limited develops and deploys insurance claims management and workflow management software to the insurance and construction industries. The company supplies its proprietary software on a software-as-a-service basis to clients in Australia, New Zealand, and the United Kingdom. It offers BuildAssist, a Web-based claim management platform that includes tools to manage claims. The company was formerly known as Longreach Group Limited. Stream Group Limited was founded in 2007 and is based in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 10:32
End of Day Share Price2020/03/25 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.