ASX:TNT

Stock Analysis Report

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Executive Summary

Tesserent Limited provides a range of Internet security services in Australia and internationally. More Details


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

51.0%

TNT

1.7%

AU Software

0.01%

AU Market


1 Year Return

600.0%

TNT

31.7%

AU Software

-5.7%

AU Market

Return vs Industry: TNT exceeded the Australian Software industry which returned 31.7% over the past year.

Return vs Market: TNT exceeded the Australian Market which returned -5.7% over the past year.


Shareholder returns

TNTIndustryMarket
7 Day51.0%1.7%0.01%
30 Day79.1%13.5%5.4%
90 Day97.4%22.2%4.0%
1 Year600.0%600.0%32.7%31.7%-2.4%-5.7%
3 Year427.4%427.4%125.4%117.6%18.0%3.0%
5 Yearn/a201.6%179.3%42.1%13.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.94x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TNT is overvalued based on its PB Ratio (11.9x) compared to the AU Software industry average (5.7x).


Next Steps

Future Growth

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

31.9%

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 Tesserent 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 Tesserent performed over the past 5 years?

-46.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TNT is currently unprofitable.

Growing Profit Margin: TNT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TNT is unprofitable, and losses have increased over the past 5 years at a rate of 46.9% per year.

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

Earnings vs Industry: TNT is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (21%).


Return on Equity

High ROE: TNT has a negative Return on Equity (-44.29%), as it is currently unprofitable.


Next Steps

Financial Health

How is Tesserent's financial position?


Financial Position Analysis

Short Term Liabilities: TNT's short term assets (A$14.3M) do not cover its short term liabilities (A$16.7M).

Long Term Liabilities: TNT's short term assets (A$14.3M) exceed its long term liabilities (A$10.0M).


Debt to Equity History and Analysis

Debt Level: TNT's debt to equity ratio (22%) is considered satisfactory.

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


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

Forecast Cash Runway: TNT is forecast to have sufficient cash runway for 11 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is Tesserent current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

0.6yrs

Average management tenure


CEO

Kurt Hansen

0.58

Tenure

AU$734,591

Compensation

Mr. Kurt Hansen, Grad. Dip. Engg, serves as Co-Managing Director at Tesserent Limited since December 2019 and has been its Executive Director since February 2020. He serves as its Co-Chief Executive Office ...


CEO Compensation Analysis

Compensation vs Market: Kurt's total compensation ($USD518.05K) is about average for companies of similar size in the Australian market ($USD509.79K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kurt Hansen
Co-CEO, Co-MD & Executive Director0.58yrAU$734.59k1.35%
A$ 3.7m
Julian Challingsworth
Co-CEO, Co-MD & Directorno dataAU$521.88k1.28%
A$ 3.6m
Stephan Scheffer
Chief Financial Officer1.92yrsAU$245.39kno data
Matthew Phillips
GM of Sales & Marketing and Head of Managed Services0.58yrAU$314.48k0.026%
A$ 71.0k
George Katavic
Managing Director of North0.58yrAU$291.44k0.83%
A$ 2.3m
Robert Silver
Chief Executive & Director of Rivium Pty Ltd.1.75yrsAU$259.56k1.6%
A$ 4.5m
Alexandra Belcher
Marketing Managerno datano datano data
Remko Jacobs
Chief Customer Officerno datano datano data
Nathan Knox
Head of Synergiesno datano datano data
Oliver Carton
Company Secretary5.42yrsAU$17.50kno data

0.6yrs

Average Tenure

Experienced Management: TNT's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kurt Hansen
Co-CEO, Co-MD & Executive Director0.58yrAU$734.59k1.35%
A$ 3.7m
Julian Challingsworth
Co-CEO, Co-MD & Directorno dataAU$521.88k1.28%
A$ 3.6m
Geoffrey Lord
Non-Executive Chairman0.75yrno data0.82%
A$ 2.3m
Patrick Flannigan
Non-Executive Director0.75yrno datano data

0.8yrs

Average Tenure

Experienced Board: TNT's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


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: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 210.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Tesserent Limited
  • Ticker: TNT
  • Exchange: ASX
  • Founded: 2015
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: AU$277.290m
  • Shares outstanding: 781.10m
  • Website: https://tesserent.com

Location

  • Tesserent Limited
  • 990 Whitehorse Road
  • Level 5
  • Box Hill
  • Victoria
  • 3128
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TNTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2016
TNTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2016

Biography

Tesserent Limited provides a range of Internet security services in Australia and internationally. The company operates through three segments: Pure Security Group, North, and IT Security Managed Services. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 10:41
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.