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WCG

Webcentral GroupASX:WCG Stock Report

Market Cap

AU$75.4m

7D

-3.0%

1Y

203.1%

Updated

25 Oct, 2021

Data

Company Financials
WCG fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health0/6
Dividends0/6

WCG Overview

Webcentral Group Limited provides digital services for small and medium businesses in Australia and New Zealand.

Webcentral Group Competitors

Alphabet

NasdaqGS:GOOG.L

US$1.8t

Intuit

NasdaqGS:INTU

US$161.3b

Price History & Performance

Summary of all time highs, changes and price drops for Webcentral Group
Historical stock prices
Current Share PriceAU$0.48
52 Week HighAU$0.15
52 Week LowAU$0.74
Beta2.34
1 Month Change-3.00%
3 Month Change-3.00%
1 Year Change203.13%
3 Year Change-77.65%
5 Year Change-75.19%
Change since IPO-93.98%

Recent News & Updates

Shareholder Returns

WCGAU ITAU Market
7D-3.0%1.4%0.6%
1Y203.1%8.4%21.3%

Return vs Industry: WCG exceeded the Australian IT industry which returned 8.4% over the past year.

Return vs Market: WCG exceeded the Australian Market which returned 21.3% over the past year.

Price Volatility

Is WCG's price volatile compared to industry and market?
WCG volatility
WCG Beta2.34
Industry Beta1.68
Market Beta1

Stable Share Price: WCG is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: WCG's weekly volatility has decreased from 13% to 7% over the past year.

About the Company

FoundedEmployeesCEOWebsite
1996623Joe Demasehttps://www.webcentralgroup.com.au

Webcentral Group Limited provides digital services for small and medium businesses in Australia and New Zealand. It offers domain name registrations and renewals, website and email hosting, website development, digital marketing, office and productivity applications, online and search engine marketing, and social advertising campaigns. The company was formerly known as Arq Group Limited and changed its name to Webcentral Group Limited in June 2020.

Webcentral Group Fundamentals Summary

How do Webcentral Group's earnings and revenue compare to its market cap?
WCG fundamental statistics
Market CapAU$75.41m
Earnings (TTM)-AU$41.30m
Revenue (TTM)AU$52.18m

1.4x

P/S Ratio

-1.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WCG income statement (TTM)
RevenueAU$52.18m
Cost of RevenueAU$21.14m
Gross ProfitAU$31.03m
ExpensesAU$72.33m
Earnings-AU$41.30m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.27
Gross Margin59.48%
Net Profit Margin-79.16%
Debt/Equity Ratio-156.5%

How did WCG perform over the long term?

See historical performance and comparison

Valuation

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


In this section, we usually try to help investors determine whether Webcentral Group is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Webcentral Group has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Future Growth

How is Webcentral Group 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 Webcentral Group 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 Webcentral Group performed over the past 5 years?

-75.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WCG is currently unprofitable.

Growing Profit Margin: WCG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WCG is unprofitable, and losses have increased over the past 5 years at a rate of 75.1% per year.

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

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


Return on Equity

High ROE: WCG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Webcentral Group's financial position?


Financial Position Analysis

Short Term Liabilities: WCG has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: WCG has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: WCG has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: WCG's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


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

Forecast Cash Runway: WCG has less than a year of cash runway if free cash flow continues to reduce at historical rates of 45.3% each year


Dividend

What is Webcentral Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if WCG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WCG is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WCG'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?

1.4yrs

Average management tenure


CEO

Joe Demase

1

Tenure

AU$537,721

Compensation

Mr. Joseph Demase, also known as Joe, B.Bus (Accy), serves as Director of Cirrus Networks Holdings Limited since October 15, 2021. He serves as Director at Webcentral Group Limited since October 16, 2020 a...


Leadership Team

Experienced Management: WCG's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: WCG's board of directors are not considered experienced ( 1 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 diluted in the past year, with total shares outstanding growing by 27.3%.


Top Shareholders

Company Information

Webcentral Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Webcentral Group Limited
  • Ticker: WCG
  • Exchange: ASX
  • Founded: 1996
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: AU$75.413m
  • Shares outstanding: 155.49m
  • Website: https://www.webcentralgroup.com.au

Number of Employees


Location

  • Webcentral Group Limited
  • 505 Little Collins Street
  • Level 7
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:36
End of Day Share Price2021/10/25 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.