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TNT

TesserentASX:TNT Stock Report

Market Cap

AU$277.5m

7D

-4.2%

1Y

-38.7%

Updated

20 Oct, 2021

Data

Company Financials +
TNT fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health4/6
Dividends0/6

TNT Overview

Tesserent Limited provides cyber security consulting, cloud, and managed services in Australia and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Tesserent
Historical stock prices
Current Share PriceAU$0.23
52 Week HighAU$0.18
52 Week LowAU$0.44
Beta0.35
1 Month Change-2.13%
3 Month Change-19.30%
1 Year Change-38.67%
3 Year Change238.24%
5 Year Change48.39%
Change since IPO-6.12%

Recent News & Updates

Jun 08
Tesserent (ASX:TNT) Is Making Moderate Use Of Debt

Tesserent (ASX:TNT) Is Making Moderate Use Of Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

TNTAU SoftwareAU Market
7D-4.2%5.5%1.7%
1Y-38.7%25.0%20.2%

Return vs Industry: TNT underperformed the Australian Software industry which returned 25% over the past year.

Return vs Market: TNT underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is TNT's price volatile compared to industry and market?
TNT volatility
TNT Beta0.35
Industry Beta0.84
Market Beta1

Stable Share Price: TNT is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: TNT's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2015305Kurt Hansenhttps://tesserent.com

Tesserent Limited provides cyber security consulting, cloud, and managed services in Australia and internationally. The company operates through three segments: Tesserent Commercial, Tesserent Federal, and Tesserent New Zealand. Its services include cyber strategy and consulting; security advisory; technical assurance and testing, including penetration testing, application security, and threat intelligence services; and identity and access management.

Tesserent Fundamentals Summary

How do Tesserent's earnings and revenue compare to its market cap?
TNT fundamental statistics
Market CapAU$277.46m
Earnings (TTM)-AU$4.53m
Revenue (TTM)AU$67.39m

4.1x

P/S Ratio

-61.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TNT income statement (TTM)
RevenueAU$67.39m
Cost of RevenueAU$18.33m
Gross ProfitAU$49.06m
ExpensesAU$53.59m
Earnings-AU$4.53m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0037
Gross Margin72.80%
Net Profit Margin-6.73%
Debt/Equity Ratio29.2%

How did TNT perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TNT (A$0.23) is trading below our estimate of fair value (A$0.51)

Significantly Below Fair Value: TNT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TNT is unprofitable, so we can't compare its PE Ratio to the Australian 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 good value based on its PB Ratio (3.2x) compared to the AU Software industry average (5.2x).


Future Growth

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

58.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TNT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

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

Revenue vs Market: TNT's revenue (26.9% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: TNT's revenue (26.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TNT's Return on Equity is forecast to be low in 3 years time (10.5%).


Past Performance

How has Tesserent performed over the past 5 years?

-30.8%

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 30.8% 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 (37.5%).


Return on Equity

High ROE: TNT has a negative Return on Equity (-5.17%), as it is currently unprofitable.


Financial Health

How is Tesserent's financial position?


Financial Position Analysis

Short Term Liabilities: TNT's short term assets (A$51.4M) do not cover its short term liabilities (A$53.4M).

Long Term Liabilities: TNT's short term assets (A$51.4M) exceed its long term liabilities (A$40.1M).


Debt to Equity History and Analysis

Debt Level: TNT's debt to equity ratio (29.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if TNT's debt to equity ratio has reduced over the 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: Whilst unprofitable TNT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TNT is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 13% per year.


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?

0.5yrs

Average management tenure


CEO

Kurt Hansen

1.58yrs

Tenure

AU$476,190

Compensation

Mr. Kurt Hansen, Grad. Dip. Engg, serves as Executive Director of Tesserent Limited since December 12, 2019 and serves as its Co-Chief Executive Officer since March 2020 and serves as its Co-Managing Direc...


CEO Compensation Analysis

Compensation vs Market: Kurt's total compensation ($USD356.03K) is below average for companies of similar size in the Australian market ($USD547.68K).

Compensation vs Earnings: Kurt's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TNT's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: TNT's board of directors are not considered experienced ( 1.8 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 54.4%.


Top Shareholders

Company Information

Tesserent Limited's 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$277.461m
  • Shares outstanding: 1.21b
  • Website: https://tesserent.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 15:34
End of Day Share Price2021/10/20 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.