ASX:SKF

Stock Analysis Report

Executive Summary

Skyfii Limited, a software technology company, provides data analytics services in Australia and internationally.

Rewards

Trading at 0.1% below its fair value

Earnings are forecast to grow 96.14% per year

Risk Analysis

Shareholders have been diluted in the past year

Does not have a meaningful market cap (A$60M)



Snowflake Analysis

Excellent balance sheet with high growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.9%

SKF

2.2%

AU Software

2.0%

AU Market


1 Year Return

6.3%

SKF

49.5%

AU Software

19.8%

AU Market

Return vs Industry: SKF underperformed the Australian Software industry which returned 47.9% over the past year.

Return vs Market: SKF underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

SKFIndustryMarket
7 Day-2.9%2.2%2.0%
30 Day0%3.9%3.5%
90 Day21.4%6.6%5.8%
1 Year6.3%6.3%50.8%49.5%25.2%19.8%
3 Year157.6%157.6%154.4%143.1%39.6%20.9%
5 Year-15.0%-15.0%199.7%177.1%61.8%25.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SKF (A$0.18) is trading below our estimate of fair value (A$0.18)

Significantly Below Fair Value: SKF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SKF is overvalued based on its PB Ratio (8.1x) compared to the AU Software industry average (4.3x).


Next Steps

Future Growth

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

96.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKF is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

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

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

Revenue vs Market: SKF's revenue (25.8% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: SKF's revenue (25.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Skyfii performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKF is currently unprofitable.

Growing Profit Margin: SKF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SKF is unprofitable, but has reduced losses over the past 5 years at a rate of 3.2% per year.

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

Earnings vs Industry: SKF is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (22.6%).


Return on Equity

High ROE: SKF has a negative Return on Equity (-59.54%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Skyfii's financial position?


Financial Position Analysis

Short Term Liabilities: SKF's short term assets (A$4.5M) exceed its short term liabilities (A$3.6M).

Long Term Liabilities: SKF's short term assets (A$4.5M) exceed its long term liabilities (A$446.3K).


Debt to Equity History and Analysis

Debt Level: SKF's debt to equity ratio (7.5%) is considered satisfactory.

Reducing Debt: SKF had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: SKF's debt is covered by short term assets (assets are 8.9x debt).


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: SKF has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SKF has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate SKF'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 SKF's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Wayne Arthur 0

0yrs

Tenure

AU$503,114

Compensation

Mr. Wayne Arthur, BComm., is a Co-Founder of SkyFii Ltd. and serves as its Chief Executive Officer and Managing Director. Mr. Arthur has been an Executive Director at SkyFii Ltd. since November 20, 2014. M ...


CEO Compensation Analysis

Compensation vs Market: Wayne's total compensation ($USD347.21K) is above average for companies of similar size in the Australian market ($USD262.68K).

Compensation vs Earnings: Wayne's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.6yrs

Average Tenure

Experienced Management: SKF's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

1.3yrs

Average Tenure

Experienced Board: SKF's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$4,962,01507 Jun 19
Jagafii Pty Litd.
EntityCompany
Shares24,810,050
Max PriceAU$0.20
SellAU$2,062,50207 Jun 19
Jagafii Pty Litd.
EntityCompany
Shares12,500,000
Max PriceAU$0.17

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.6%.


Management Team

  • Wayne Arthur

    Co-Founder

    • Compensation: AU$503.11k
  • Michael Walker

    Chief Information Officer

    • Tenure: 2.6yrs
    • Compensation: AU$270.54k
  • Jason Martin

    Chief Product Officer

    • Tenure: 2.5yrs
    • Compensation: AU$456.96k
  • Ian Robinson

    Sales Director

    • Compensation: AU$378.90k
  • John Rankin

    COO & MD of ANZ

    • Tenure: 3.7yrs
    • Compensation: AU$452.98k
  • Demis Cunha

    Head of IT Operations - Latam

    • Koreen White

      Finance Director & Company Secretary

      • Compensation: AU$339.75k

    Board Members

    • Wayne Arthur

      Co-Founder

      • Compensation: AU$503.11k
    • Andrew Johnson

      Chairman of the Board

      • Tenure: 1yrs
      • Compensation: AU$89.66k
    • Lincoln Brown

      Independent Non-Executive Director

      • Tenure: 1.8yrs
      • Compensation: AU$60.00k
    • Jon Adgemis

      Non-Executive Director

      • Tenure: 1.3yrs
      • Compensation: AU$50.00k
    • Sue O’Malley

      Non-Executive Director

      • Tenure: 1.3yrs
      • Compensation: AU$55.00k

    Company Information

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


    Key Information

    • Name: Skyfii Limited
    • Ticker: SKF
    • Exchange: ASX
    • Founded:
    • Industry: Application Software
    • Sector: Software
    • Market Cap: AU$58.406m
    • Shares outstanding: 343.56m
    • Website: https://www.skyfii.io

    Number of Employees


    Location

    • Skyfii Limited
    • 100 William Street
    • Level 2
    • Sydney
    • New South Wales
    • 2011
    • Australia

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    SKFASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2003
    SKFCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2003

    Biography

    Skyfii Limited, a software technology company, provides data analytics services in Australia and internationally. Its products and services include People Counter, a platform for visitor traffic; Guest WiFi, a solution for managing WiFi experience of guests in airports, shopping centers, retailers, and other physical venues; IO Connect, which automates the collection, storage, and processing of data from various sources, such as WiFi, camera, CRM, survey, BLE/mobile apps, weather, POS/sales, ERP/accounting, and finance; and IO Insight that automates data collected in real time, such as visitor counts, dwell time, traffic flow, and venue conversion. The company also offers IO Engage, which markets tools to deliver and automate content through various channels, including email, SMS, mobile push, WiFi captive portal, and OOH digital screens; and IO Labs that provides data and reporting solutions. In addition, it offers data and marketing services for physical venues. Skyfii Limited is headquartered in Sydney, Australia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 10:31
    End of Day Share Price2020/01/17 00:00
    Earnings2019/06/30
    Annual Earnings2019/06/30


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.