ASX:AD8

Stock Analysis Report

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Executive Summary

Audinate Group Limited develops and sells digital audio visual networking solutions worldwide. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AD8 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AD8's weekly volatility has decreased from 11% to 6% over the past year.


Market Performance


7 Day Return

4.3%

AD8

2.2%

AU Electronic

-0.3%

AU Market


1 Year Return

-7.2%

AD8

35.9%

AU Electronic

-1.6%

AU Market

Return vs Industry: AD8 underperformed the Australian Electronic industry which returned 35.9% over the past year.

Return vs Market: AD8 underperformed the Australian Market which returned -1.6% over the past year.


Shareholder returns

AD8IndustryMarket
7 Day4.3%2.2%-0.3%
30 Day4.1%8.2%0.5%
90 Day19.7%10.5%10.1%
1 Year-7.2%-7.2%39.3%35.9%1.7%-1.6%
3 Year181.5%181.5%132.3%115.9%26.2%10.7%
5 Yearn/a210.5%184.1%68.7%35.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.08x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AD8 (A$8.08) is trading above our estimate of fair value (A$7.07)

Significantly Below Fair Value: AD8 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AD8 is unprofitable, so we can't compare its PE Ratio to the XO Electronic industry average.

PE vs Market: AD8 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 AD8's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AD8 is overvalued based on its PB Ratio (13.1x) compared to the AU Electronic industry average (4.2x).


Next Steps

Future Growth

How is Audinate Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

54.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AD8 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: AD8 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AD8's is expected to become profitable in the next 3 years.

Revenue vs Market: AD8's revenue (19.4% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: AD8's revenue (19.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AD8's Return on Equity is forecast to be low in 3 years time (5.1%).


Next Steps

Past Performance

How has Audinate Group performed over the past 5 years?

39.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AD8 is currently unprofitable.

Growing Profit Margin: AD8 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AD8 is unprofitable, but has reduced losses over the past 5 years at a rate of 39.5% per year.

Accelerating Growth: Unable to compare AD8's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AD8 is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-0.9%).


Return on Equity

High ROE: AD8 has a negative Return on Equity (-9.86%), as it is currently unprofitable.


Next Steps

Financial Health

How is Audinate Group's financial position?


Financial Position Analysis

Short Term Liabilities: AD8's short term assets (A$33.8M) exceed its short term liabilities (A$6.1M).

Long Term Liabilities: AD8's short term assets (A$33.8M) exceed its long term liabilities (A$2.2M).


Debt to Equity History and Analysis

Debt Level: AD8 is debt free.

Reducing Debt: AD8 has not had any debt for 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: Insufficient data to determine if AD8 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if AD8 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AD8's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AD8'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 AD8's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AD8'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 AD8'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?

3.7yrs

Average board tenure


CEO

Aidan Williams

1.33yrs

Tenure

AU$559,329

Compensation

Mr. Aidan Williams is Co-Founder of Audinate Group Limited. He serves as Chief Executive Officer and Director at Audinate Group Limited since September 16, 2019 and served as its Chief Technology Officer s...


CEO Compensation Analysis

Compensation vs Market: Aidan's total compensation ($USD431.71K) is below average for companies of similar size in the Australian market ($USD703.69K).

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


Board Members

NamePositionTenureCompensationOwnership
Aidan Williams
Co-Founder1.33yrsAU$559.33k2.58%
A$ 15.9m
David Krall
Independent Non-Executive Chairman3.75yrsAU$147.60k0.52%
A$ 3.2m
John Dyson
Independent Non-Executive Director3.75yrsAU$81.67k0.24%
A$ 1.5m
Alison Ledger
Independent Non-Executive Director3.67yrsAU$88.33k0.0084%
A$ 52.1k
Tim Finlayson
Independent Non-Executive Director3.67yrsAU$88.33k0.17%
A$ 1.1m
Roger Price
Independent Non-Executive Director3.75yrsAU$77.50k0.10%
A$ 629.1k

3.7yrs

Average Tenure

Experienced Board: AD8's board of directors are considered experienced (3.7 years average tenure).


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 12.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Audinate Group Limited
  • Ticker: AD8
  • Exchange: ASX
  • Founded: 2003
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: AU$616.129m
  • Shares outstanding: 76.25m
  • Website: https://www.audinate.com

Number of Employees


Location

  • Audinate Group Limited
  • 64 Kippax Street
  • Level 7
  • Surry Hills
  • New South Wales
  • 2010
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AD8ASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2017
AD8CHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2017
AUDG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2017

Biography

Audinate Group Limited develops and sells digital audio visual networking solutions worldwide. It offers Dante Controller, a software application that enables users to route audio and configure devices on ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/17 07:06
End of Day Share Price2021/01/15 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.