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SOV

Sovereign Cloud HoldingsASX:SOV Stock Report

Market Cap

AU$64.7m

7D

2.3%

1Y

n/a

Updated

18 Oct, 2021

Data

Company Financials
SOV fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

SOV Overview

Sovereign Cloud Holdings Limited provides cloud services to Australian Governments and Critical National industries.

Sovereign Cloud Holdings Competitors

Tencent Holdings

SEHK:700

HK$4.7t

Oracle

NYSE:ORCL

US$260.6b

International Business Machines

NYSE:IBM

US$129.6b

NTT DATA

TSE:9613

JP¥3.1t

Price History & Performance

Summary of all time highs, changes and price drops for Sovereign Cloud Holdings
Historical stock prices
Current Share PriceAU$0.67
52 Week HighAU$0.55
52 Week LowAU$1.32
Beta0
1 Month Change-5.00%
3 Month Change9.02%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-39.55%

Recent News & Updates

Jul 22
We're Hopeful That Sovereign Cloud Holdings (ASX:SOV) Will Use Its Cash Wisely

We're Hopeful That Sovereign Cloud Holdings (ASX:SOV) Will Use Its Cash Wisely

We can readily understand why investors are attracted to unprofitable companies. For example, although...

Mar 16
We're Hopeful That Sovereign Cloud Holdings (ASX:SOV) Will Use Its Cash Wisely

We're Hopeful That Sovereign Cloud Holdings (ASX:SOV) Will Use Its Cash Wisely

Just because a business does not make any money, does not mean that the stock will go down. For example, although...

Shareholder Returns

SOVAU ITAU Market
7D2.3%0.7%0.9%
1Yn/a9.0%20.2%

Return vs Industry: Insufficient data to determine how SOV performed against the Australian IT industry.

Return vs Market: Insufficient data to determine how SOV performed against the Australian Market.

Price Volatility

Is SOV's price volatile compared to industry and market?
SOV volatility
SOV Beta0
Industry Beta1.68
Market Beta1

Stable Share Price: SOV is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: SOV's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2017n/aPhil Dawsonhttps://www.australiacloud.com.au

Sovereign Cloud Holdings Limited provides cloud services to Australian Governments and Critical National industries. The company offers sovereign cloud Infrastructure as a Service solution. In addition, it offers a cloud operating environment, which comprises compute, storage, backup, disaster recovery, M365 Backup, and Virtual Desktop as a Service product.

Sovereign Cloud Holdings Fundamentals Summary

How do Sovereign Cloud Holdings's earnings and revenue compare to its market cap?
SOV fundamental statistics
Market CapAU$64.71m
Earnings (TTM)-AU$11.59m
Revenue (TTM)AU$2.55m

26.0x

P/S Ratio

-5.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOV income statement (TTM)
RevenueAU$2.55m
Cost of RevenueAU$6.37m
Gross Profit-AU$3.82m
ExpensesAU$7.76m
Earnings-AU$11.59m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.12
Gross Margin-150.05%
Net Profit Margin-454.63%
Debt/Equity Ratio0%

How did SOV perform over the long term?

See historical performance and comparison

Valuation

Is Sovereign Cloud Holdings undervalued compared to its fair value and its price relative to the market?

3.45x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SOV's PB Ratio (3.5x) is in line with the AU IT industry average.


Future Growth

How is Sovereign Cloud Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

48.4%

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 Sovereign Cloud Holdings 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.


Past Performance

How has Sovereign Cloud Holdings performed over the past 5 years?

-40.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: SOV is currently unprofitable.

Growing Profit Margin: SOV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if SOV's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: SOV is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (-11.2%).


Return on Equity

High ROE: SOV has a negative Return on Equity (-60.38%), as it is currently unprofitable.


Financial Health

How is Sovereign Cloud Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SOV's short term assets (A$14.4M) exceed its short term liabilities (A$4.4M).

Long Term Liabilities: SOV's short term assets (A$14.4M) exceed its long term liabilities (A$3.9M).


Debt to Equity History and Analysis

Debt Level: SOV is debt free.

Reducing Debt: SOV has not had any debt for past 5 years.


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

Forecast Cash Runway: SOV has less than a year of cash runway if free cash flow continues to grow at historical rates of 4.8% each year.


Dividend

What is Sovereign Cloud Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if SOV'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 SOV'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?


CEO

Phil Dawson

no data

Tenure

Mr. Philip Dawson, also known as Phil, is the Managing Director and Director at Sovereign Cloud Holdings Limited. He is one of the co-founders of AUCloud, he works in Canberra having arrived from the UK in...


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: SOV only recently listed within the past 12 months.


Top Shareholders

Company Information

Sovereign Cloud Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Sovereign Cloud Holdings Limited
  • Ticker: SOV
  • Exchange: ASX
  • Founded: 2017
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: AU$64.712m
  • Shares outstanding: 99.56m
  • Website: https://www.australiacloud.com.au

Location

  • Sovereign Cloud Holdings Limited
  • Plaza Offices
  • Suite 3, Level 4
  • Canberra
  • Australian Capital Territory
  • 2609
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 07:05
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.