ASX:TNT

Stock Analysis Report

Executive Summary

Tesserent Limited provides Internet security-as-a-service in Australia and internationally.

Snowflake

Fundamentals

High growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

23.4%

TNT

1.8%

AU Software

2.5%

AU Market


1 Year Return

-23.7%

TNT

40.6%

AU Software

11.1%

AU Market

Return vs Industry: TNT underperformed the Australian Software industry which returned 40.6% over the past year.

Return vs Market: TNT underperformed the Australian Market which returned 11.1% over the past year.


Shareholder returns

TNTIndustryMarket
7 Day23.4%1.8%2.5%
30 Day28.9%3.3%0.7%
90 Day45.0%5.8%1.4%
1 Year-23.7%-23.7%41.8%40.6%17.5%11.1%
3 Year-61.3%-61.3%125.4%115.4%37.8%19.4%
5 Yearn/a165.3%144.3%51.7%17.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TNT (A$0.06) is trading below our estimate of fair value (A$0.24)

Significantly Undervalued: 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 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

Low 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 (29.4x) compared to the AU Software industry average (4.5x).


Next Steps

Future Growth

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

52.2%

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 (2.3%).

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

High Growth Earnings: TNT's loss is forecast to worsen by 0% next year.

Revenue vs Market: TNT's revenue (44.3% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: TNT's revenue (44.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if TNT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tesserent performed over the past 5 years?

-53.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TNT is unprofitable, and losses have increased over the past 5 years at a rate of -53.1% 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 (22%).


Return on Equity

High ROE: TNT has a negative Return on Equity (-1211.44%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Tesserent's financial position?


Financial Position Analysis

Short Term Liabilities: TNT's short term assets (A$1.9M) do not cover its short term liabilities (A$2.7M)

Long Term Liabilities: TNT's short term assets (1.9M) exceeds its long term liabilities (712.0K)


Debt to Equity History and Analysis

Debt Level: TNT is debt free.

Reducing Debt: TNT had no debt 5 years ago.


Balance Sheet

Inventory Level: TNT has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if TNT's debt is covered by short term assets.


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

Forecast Cash Runway: TNT has less than a year of cash runway if free cash flow continues to reduce at historical rates of -19.5% each year


Next Steps

Dividend

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

28.74%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.6%industryaverage1.1%forecastin3Years28.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate TNT'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 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

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

1.2yrs

Average management tenure


CEO

Julian Challingsworth 0

1.2yrs

Tenure

0

Mr. Julian Challingsworth, CPA has been the Chief Executive Officer of Tesserent Ltd since August 1, 2018 and its Managing Director since November 14, 2018. Mr. Challingsworth serves as a Director of Tesse ...


Management Age and Tenure

1.2yrs

Average Tenure

Experienced Management: TNT's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

3.9yrs

Average Tenure

Experienced Board: TNT's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: TNT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellAU$99,99725 Jul 19
Keith Glennan
EntityIndividual
Shares2,500,000
Max PriceAU$0.04
SellAU$56,55825 Jul 19
Keith Glennan
EntityIndividual
Shares1,300,000
Max PriceAU$0.044
SellAU$200,62414 Apr 19
Keith Glennan
EntityIndividual
Shares4,000,000
Max PriceAU$0.051
SellAU$120,11529 Mar 19
Keith Glennan
EntityIndividual
Shares2,183,272
Max PriceAU$0.055
SellAU$199,99620 Mar 19
Keith Glennan
EntityIndividual
Shares4,000,000
Max PriceAU$0.05
SellAU$156,90520 Mar 19
Keith Glennan
EntityIndividual
Shares2,792,448
Max PriceAU$0.059
BuyAU$249,99711 Feb 19
Geoffrey Lord
EntityIndividual
Shares5,000,000
Max PriceAU$0.05
BuyAU$451,87311 Feb 19
Belgravia Strategic Equities Pty Ltd
EntityCompany
Shares9,000,000
Max PriceAU$0.05

Ownership Breakdown


Management Team

  • Oliver Carton (55yo)

    Company Secretary

    • Tenure: 4.4yrs
    • Compensation: AU$17.50k
  • Stephan Scheffer

    Chief Financial Officer

    • Tenure: 0.9yrs
  • Julian Challingsworth

    CEO, MD & Director

    • Tenure: 1.2yrs
  • Remko Jacobs

    Chief Customer Officer

    • Tenure: 0yrs
  • Ethan Glessich

    Chief Operations & Integration Officer

    • Tenure: 0yrs
  • Alex Belcher

    Marketing Manager

    • Tenure: 0yrs

Board Members

  • Steve Bertamini (55yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$55.15k
  • Julian Challingsworth

    CEO, MD & Director

    • Tenure: 1.2yrs
  • Greg Baxter

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$55.15k
  • Rob Langford

    Non-Executive Chairman

    • Tenure: 1.7yrs
    • Compensation: AU$37.50k
  • Steve Caswell

    Independent Director

    • Tenure: 0yrs

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$13.569m
  • Shares outstanding: 251.28m
  • Website: https://www.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 Internet security-as-a-service in Australia and internationally. The company operates in two segments, IT Security Managed Services and Software Licensing. It offers security as- ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 10:39
End of Day Share Price2019/10/17 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.