ASX:STC

Stock Analysis Report

Executive Summary

Sinetech Limited does not have significant operations.

Snowflake

Fundamentals

Fair value with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

STC

2.1%

AU Software

1.3%

AU Market


1 Year Return

-66.7%

STC

39.8%

AU Software

9.9%

AU Market


Share holder returns

STCIndustryMarket
7 Day0%2.1%1.3%
30 Day0%0.6%-0.7%
90 Day20.0%2.4%-0.4%
1 Year-66.7%-66.7%41.0%39.8%16.3%9.9%
3 Yearn/a119.8%110.0%35.8%17.6%
5 Year-75.0%-75.0%156.9%136.7%51.9%17.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sinetech undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: STC (A$0) is trading below our estimate of fair value (A$0.23)

Significantly Undervalued: STC is trading below fair value by more than 20%.


Price Based on Earnings

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

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


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: STC is good value based on its PB Ratio (1.3x) compared to the AU Software industry average (4.5x).


Next Steps

Future Growth

How is Sinetech expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

33.9%

Forecasted Software industry annual growth in earnings


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: Insufficient data to determine if STC's forecast earnings growth is above the savings rate (2.3%).

Earnings vs Market: Insufficient data to determine if STC's earnings are forecast to grow faster than the Australian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if STC's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if STC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has Sinetech performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: STC is unprofitable, but has reduced losses over the past 5 years at a rate of 14.2% per year.

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

Earnings vs Industry: STC is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (22%).


Return on Equity

High ROE: STC has a negative Return on Equity (-382.03%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: STC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: STC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Sinetech's financial position?


Financial Position Analysis

Short Term Liabilities: STC's short term assets (A$3.3M) exceeds its short term liabilities (A$1.8M)

Long Term Liabilities: STC has no long term liabilities


Debt to Equity History and Analysis

Debt Level: STC's debt to equity ratio (74.4%) is considered high

Reducing Debt: STC's debt to equity ratio has increased from 0% to 74.4% over the past 5 years.


Balance Sheet

Information is not available.

Information is not available.


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: STC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: STC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -14.5% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.6%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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

Growing Dividend: Insufficient data to determine if STC'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 STC'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 Sinetech's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Sinetech has no CEO, or we have no data on them.


Management Age and Tenure

2.8yrs

Average Tenure

Experienced Management: STC's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

1.9yrs

Average Tenure

Experienced Board: STC's board of directors are not considered experienced ( 1.9 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.


Ownership Breakdown


Management Team

  • Neville Bassett (61yo)

    Company Secretary

    • Tenure: 4.3yrs
    • Compensation: AU$60.00k
  • Stephen Harrison (61yo)

    Executive Chairman

    • Tenure: 1.9yrs
    • Compensation: AU$60.00k
  • Brent Trimnell-Ritchard

    Group Client Services Director

    • Tenure: 0yrs
    • Compensation: AU$238.55k
  • Ymania Brown

    Head of Legal Services/IP

    • Tenure: 2.6yrs
  • John Butterworth

    Chief Strategy Officer

    • Tenure: 2.8yrs

Board Members

  • Stephen Harrison (61yo)

    Executive Chairman

    • Tenure: 1.9yrs
    • Compensation: AU$60.00k
  • Gary Castledine (47yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$60.00k
  • Todd Trevillion

    Non-Executive Director

    • Tenure: 1yrs
  • Terry Butler

    Non-Executive Director

    • Tenure: 1.9yrs

Company Information

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


Key Information

  • Name: Sinetech Limited
  • Ticker: STC
  • Exchange: ASX
  • Founded:
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$2.117m
  • Shares outstanding: 705.82m
  • Website: https://citadelgroup.com.au/gruden

Number of Employees


Location

  • Sinetech Limited
  • 216 St Georges Terrace
  • Level 4
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GGLCHIA (Chi-X Australia)Common StockAUAUDNo data
STCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2009

Biography

Sinetech Limited does not have significant operations. Previously, the company was involved in the provision of IT services; and media buying business in Australia. It seeks out acquisition opportunities a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/05/08 10:33
End of Day Share Price2019/02/08 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.

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