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Audinate Group

ASX:AD8
Snowflake Description

Flawless balance sheet with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AD8
ASX
A$510M
Market Cap
  1. Home
  2. AU
  3. Tech
Company description

Audinate Group Limited provides professional digital audio networking technologies worldwide. The last earnings update was 117 days ago. More info.


Add to Portfolio Compare Print
  • Audinate Group has significant price volatility in the past 3 months.
AD8 Share Price and Events
7 Day Returns
2.3%
ASX:AD8
4.1%
AU Electronic
1.7%
AU Market
1 Year Returns
95.1%
ASX:AD8
27.5%
AU Electronic
5.4%
AU Market
AD8 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Audinate Group (AD8) 2.3% 11.7% 40.3% 95.1% - -
AU Electronic 4.1% 1.8% 21% 27.5% 11.8% 61.3%
AU Market 1.7% 3.5% 5.8% 5.4% 25% 12.3%
1 Year Return vs Industry and Market
  • AD8 outperformed the Electronic industry which returned 27.5% over the past year.
  • AD8 outperformed the Market in Australia which returned 5.4% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

AD8 Value

 Is Audinate Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Audinate Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Audinate Group.

ASX:AD8 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:AD8
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.095 (1 + (1- 30%) (0%))
1.063
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.06
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.063 * 5.96%)
8.65%

Discounted Cash Flow Calculation for ASX:AD8 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Audinate Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:AD8 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.65%)
2019 1.00 Analyst x2 0.92
2020 5.70 Analyst x2 4.83
2021 10.20 Analyst x2 7.95
2022 14.31 Est @ 40.34% 10.27
2023 18.46 Est @ 28.93% 12.19
2024 22.32 Est @ 20.95% 13.57
2025 25.75 Est @ 15.36% 14.41
2026 28.70 Est @ 11.44% 14.78
2027 31.20 Est @ 8.7% 14.78
2028 33.31 Est @ 6.79% 14.53
Present value of next 10 years cash flows A$108.23
ASX:AD8 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$33.31 × (1 + 2.31%) ÷ (8.65% – 2.31%)
A$537.71
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$537.71 ÷ (1 + 8.65%)10
A$234.55
ASX:AD8 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$108.23 + A$234.55
A$342.78
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$342.78 / 64.26
A$5.33
ASX:AD8 Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$5.33
Current discount Discount to share price of A$7.94
= -1 x (A$7.94 - A$5.33) / A$5.33
-48.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Audinate Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Audinate Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Audinate Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:AD8 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.02
ASX:AD8 Share Price ** ASX (2019-06-14) in AUD A$7.94
Australia Electronic Industry PE Ratio Median Figure of 6 Publicly-Listed Electronic Companies 19.86x
Australia Market PE Ratio Median Figure of 545 Publicly-Listed Companies 16.25x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Audinate Group.

ASX:AD8 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:AD8 Share Price ÷ EPS (both in AUD)

= 7.94 ÷ 0.02

402.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Audinate Group is overvalued based on earnings compared to the AU Electronic industry average.
  • Audinate Group is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Audinate Group's expected growth come at a high price?
Raw Data
ASX:AD8 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 402.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
90.8%per year
Global Electronic Industry PEG Ratio Median Figure of 160 Publicly-Listed Electronic Companies 1.43x
Australia Market PEG Ratio Median Figure of 357 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

ASX:AD8 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 402.43x ÷ 90.8%

4.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Audinate Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Audinate Group's assets?
Raw Data
ASX:AD8 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.35
ASX:AD8 Share Price * ASX (2019-06-14) in AUD A$7.94
Australia Electronic Industry PB Ratio Median Figure of 26 Publicly-Listed Electronic Companies 1.87x
Australia Market PB Ratio Median Figure of 1,687 Publicly-Listed Companies 1.65x
ASX:AD8 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:AD8 Share Price ÷ Book Value per Share (both in AUD)

= 7.94 ÷ 0.35

22.54x

* Primary Listing of Audinate Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Audinate Group is overvalued based on assets compared to the AU Electronic industry average.
X
Value checks
We assess Audinate Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Audinate Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

AD8 Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
90.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Audinate Group expected to grow at an attractive rate?
  • Audinate Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Audinate Group's earnings growth is expected to exceed the Australia market average.
  • Audinate Group's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:AD8 Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:AD8 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 90.8%
ASX:AD8 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 28.7%
Australia Electronic Industry Earnings Growth Rate Market Cap Weighted Average 28.1%
Australia Electronic Industry Revenue Growth Rate Market Cap Weighted Average 18.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:AD8 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:AD8 Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30
2021-06-30 49 12 6 2
2020-06-30 37 8 2 3
2019-06-30 28 3 1 3
ASX:AD8 Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 25 2 1
2018-09-30 22 1 2
2018-06-30 20 1 3
2018-03-31 18 1 0
2017-12-31 17 0 -2
2017-09-30 16 1 -11
2017-06-30 15 1 -20
2017-03-31 14 2 -18
2016-12-31 13 2 -16
2016-09-30 13 2 -8
2016-06-30 12 1 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Audinate Group's earnings are expected to grow significantly at over 20% yearly.
  • Audinate Group's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:AD8 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Audinate Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:AD8 Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30
2021-06-30 0.08 0.12 0.06 3.00
2020-06-30 0.04 0.04 0.04 2.00
2019-06-30 0.01 0.01 0.00 2.00
ASX:AD8 Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.02
2018-09-30 0.03
2018-06-30 0.04
2018-03-31 0.00
2017-12-31 -0.07
2017-09-30 -0.63
2017-06-30 -5.74
2017-03-31 -4.86
2016-12-31 -4.05
2016-09-30 -2.25
2016-06-30 0.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Audinate Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Audinate Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Audinate Group has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

AD8 Past Performance

  How has Audinate Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Audinate Group's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Audinate Group's year on year earnings growth rate has been positive over the past 5 years.
  • Audinate Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Audinate Group has become profitable in the last year making it difficult to compare the Oceania Electronic industry average.
Earnings and Revenue History
Audinate Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Audinate Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:AD8 Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 24.96 1.20 16.26
2018-09-30 22.30 1.87 15.17
2018-06-30 19.65 2.54 14.08
2018-03-31 18.49 0.15 13.17
2017-12-31 17.32 -2.24 12.27
2017-09-30 16.19 -11.34 11.37
2017-06-30 15.06 -20.44 10.48
2017-03-31 14.11 -18.06 9.83
2016-12-31 13.16 -15.67 9.17
2016-09-30 12.53 -7.81 9.04
2016-06-30 11.90 0.05 8.91
2015-06-30 8.04 0.52 6.41
2014-06-30 6.52 -0.10 5.71

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Audinate Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Audinate Group used its assets less efficiently than the AU Electronic industry average last year based on Return on Assets.
  • Audinate Group has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Audinate Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Audinate Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

AD8 Health

 How is Audinate Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Audinate Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Audinate Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Audinate Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Audinate Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Audinate Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Audinate Group Company Filings, last reported 5 months ago.

ASX:AD8 Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 21.53 0.00 12.18
2018-09-30 21.53 0.00 12.18
2018-06-30 20.37 0.00 13.74
2018-03-31 20.37 0.00 13.74
2017-12-31 20.22 0.00 14.46
2017-09-30 20.22 0.00 14.46
2017-06-30 17.58 0.00 18.80
2017-03-31 17.58 0.00 18.80
2016-12-31 6.14 0.00 3.46
2016-09-30 6.14 0.00 3.46
2016-06-30 6.29 0.00 3.21
2015-06-30 6.24 0.00 3.49
2014-06-30 5.69 0.00 3.63
  • Audinate Group has no debt.
  • Audinate Group has not taken on any debt in the past 5 years.
  • Audinate Group has no debt, it does not need to be covered by operating cash flow.
  • Audinate Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Audinate Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Audinate Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

AD8 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Audinate Group dividends. Estimated to be 0% next year.
If you bought A$2,000 of Audinate Group shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Audinate Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Audinate Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:AD8 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Global Electronic Industry Average Dividend Yield Market Cap Weighted Average of 204 Stocks 1.9%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.7%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:AD8 Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30
2021-06-30 0.00 1.00
2020-06-30 0.00 1.00
2019-06-30 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Audinate Group has not reported any payouts.
  • Unable to verify if Audinate Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Audinate Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Audinate Group has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Audinate Group's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess Audinate Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Audinate Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Audinate Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

AD8 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lee Ellison
COMPENSATION A$633,905
TENURE AS CEO 2.2 years
CEO Bio

Mr. Lee Ellison has been Chief Executive Officer and Executive Director at Audinate Group Limited since April 19, 2017. Mr. Ellison served as Founding Senior Vice President of Worldwide Sales, Support & Global Business Development of Dilithium Inc. He joined Audinate in 2008. He has more than 25 years of global sales, marketing and general management experience in wireless telecom and computer technology industries. He served as Chief Executive Officer and Executive Director at Audinate Pty Ltd. since June 2017. He served as founding Senior Vice President of Worldwide Sales at Dilithium Networks. Prior to joining Dilithium, Mr. Ellison served as Vice President and General Manager, GTES Wireless Division for Glenayre. During his 16-year tenure with Glenayre Electronics, he held a range of sales and general management positions including Senior Vice President, Sales and Marketing and General Manager of Worldwide Operations. He was employed at EDCI Holdings, Inc. Prior to Glenayre, Mr. Ellison served as Vice President of Global Sales and International Operations for Tektronix, Inc., where he was responsible for a staff of 1,100 in 26 countries. He has also held major account roles with Sprint. He has held a series of senior management roles in both startup and publicly listed companies in the telecom and computer technology industries. He has held various senior executive and leadership roles over the last 30 years. Mr. Ellison received his BS from Ohio State University and has completed Executive Management Program at the University of Virginia's Darden Business School. He attended University of North Carolina at Chapel Hill.

CEO Compensation
  • Lee's compensation has increased in line with Audinate Group recently becoming profitable.
  • Lee's remuneration is lower than average for companies of similar size in Australia.
Management Team

Lee Ellison

TITLE
CEO & Executive Director
COMPENSATION
A$634K
TENURE
2.2 yrs

Aidan Williams

TITLE
Co-founder & CTO
COMPENSATION
A$334K

Rob Goss

TITLE
CFO & Company Secretary
COMPENSATION
A$342K
TENURE
2.2 yrs
Board of Directors Tenure

Average tenure of the Audinate Group board of directors in years:

2.2
Average Tenure
  • The average tenure for the Audinate Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

David Krall

TITLE
Chairman of the Board
COMPENSATION
A$120K
AGE
58
TENURE
2.2 yrs

Lee Ellison

TITLE
CEO & Executive Director
COMPENSATION
A$634K
TENURE
2.2 yrs

Alison Ledger

TITLE
Non-Executive Director
COMPENSATION
A$80K
TENURE
2.1 yrs

Tim Finlayson

TITLE
Non-Executive Director
COMPENSATION
A$80K
TENURE
2.1 yrs

Roger Price

TITLE
Non-Executive Director
COMPENSATION
A$65K
TENURE
2.2 yrs

John Dyson

TITLE
Non-Executive Director
COMPENSATION
A$65K
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
03. Jun 19 Sell Telstra Super Pty Ltd. Company 22. Jun 18 28. Mar 19 -1,906,627 A$6.00 A$-11,447,390
03. Jun 19 Buy Telstra Super Pty Ltd. Company 30. Aug 18 07. Jan 19 1,175,130 A$3.57 A$4,194,875
06. May 19 Sell AustralianSuper Pty Ltd Company 15. Mar 19 01. May 19 -609,500 A$6.26 A$-3,636,606
19. Mar 19 Sell AustralianSuper Pty Ltd Company 27. Feb 19 14. Mar 19 -704,647 A$5.71 A$-3,705,369
27. Sep 18 Sell AustralianSuper Pty Ltd Company 24. May 18 10. Sep 18 -1,602,789 A$3.50 A$-5,459,535
27. Sep 18 Buy AustralianSuper Pty Ltd Company 24. May 18 10. Sep 18 3,205,578 A$3.50 A$10,919,070
03. Sep 18 Sell John Dyson Individual 30. Aug 18 30. Aug 18 -20,492 A$3.75 A$-76,845
30. Aug 18 Buy Alison Ledger Individual 29. Aug 18 29. Aug 18 1,500 A$3.90 A$5,849
22. Jun 18 Sell Telstra Super Pty Ltd. Company 28. May 18 21. Jun 18 -612,578 A$4.05 A$-2,482,963
X
Management checks
We assess Audinate Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Audinate Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

AD8 News

Simply Wall St News

Should Audinate Group Limited (ASX:AD8) Focus On Improving This Fundamental Metric?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each A$1 of shareholders' equity it has, the company made A$0.12 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Breaking Down Audinate Group Limited's (ASX:AD8) Ownership Structure

In this article, I'm going to take a look at Audinate Group Limited’s (ASX:AD8) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Therefore, it is beneficial for us to examine AD8's ownership structure in more detail. … ASX:AD8 Ownership Summary July 31st 18

Simply Wall St -

Audinate Group Limited (ASX:AD8)'s Return on Capital

and looking to gauge the potential return on investment in Audinate Group Limited (ASX:AD8). … As a result, your investment is being put to work to fund operations and if you want to earn an attractive return on your investment, the business needs to be making an adequate amount of money from the funds you provide … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock.

Simply Wall St -

How Confident Are Insiders About Audinate Group Limited (ASX:AD8)?

Audinate Group is one of Australia’s small-cap stocks that saw some insider buying over the past three months, with insiders investing in more than 3 million shares during this period. … ASX:AD8 Insider_trading May 9th 18 More shares have been bought than sold by Audinate Group insiders in the past three months. … Next Steps: Audinate Group’s insider meaningful buying activity tells us the shares are currently in favour, however, earnings expectations tell a different story, and the share price has not moved significantly to warrant reassessment of mispricing.

Simply Wall St -

Why Audinate Group Limited's (ASX:AD8) Ownership Structure Is Important

Private Company Ownership Potential investors in AD8 should also look at another important group of investors: private companies, with a stake of 5.33%, who are primarily invested because of strategic and capital gain interests. … An ownership of this size indicates a strong financial backing and has the potential to influence AD8's business strategy. … The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.

Simply Wall St -

AD8 Company Info

Description

Audinate Group Limited provides professional digital audio networking technologies worldwide. It offers Dante Controller, a software application that enables users to route audio and configure devices on a Dante network; Dante Virtual Soundcard, which turns the computer into a Dante-powered workstation, integrating the PC or Mac with Dante audio devices on the user network; Dante Via, an easy-to-use software that delivers unprecedented multi-channel routing of computer-based audio; and Dante Domain Manager, a network management software for Dante systems. The company also provides Dante Brooklyn II networking solution; Dante Brooklyn II PDK, a product development kit; Dante Broadway chip that delivers Dante networking for medium channel-count applications; Dante Ultimo chip, a Dante solution for low channel-count applications; Ultimo PDK, a Ultimo development platform that includes hardware, software, documentation, and a technical support package; Dante PCIe-R Soundcard recording solutions and audio processing; Dante HC networked audio solution for professional AV systems; Dante Adapter Modules, which enables development of professional audio products; and Dante IP Core, a soft IP solution, as well as Dante AVIO adapters. It primarily serves original equipment manufacturers. Audinate Group Limited was founded in 2003 and is based in Ultimo, Australia.

Details
Name: Audinate Group Limited
AD8
Exchange: ASX
Founded: 2003
A$510,224,423
64,260,003
Website: http://www.audinate.com
Address: Audinate Group Limited
458 Wattle Street,
Level 1,
Ultimo,
New South Wales, 2007,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX AD8 Ordinary Shares Australian Securities Exchange AU AUD 30. Jun 2017
Number of employees
Current staff
Staff numbers
0
Audinate Group employees.
Industry
Electronic Manufacturing Services
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 10:40
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/05/30
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.