ASX:AD8

Stock Analysis Report

Executive Summary

Audinate Group Limited provides professional digital audio networking technologies worldwide.


Snowflake Analysis

Flawless balance sheet with high growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

AD8

1.3%

AU Electronic

1.5%

AU Market


1 Year Return

124.0%

AD8

112.2%

AU Electronic

20.1%

AU Market

Return vs Industry: AD8 exceeded the Australian Electronic industry which returned 110.1% over the past year.

Return vs Market: AD8 exceeded the Australian Market which returned 19.4% over the past year.


Shareholder returns

AD8IndustryMarket
7 Day-3.7%1.3%1.5%
30 Day14.4%7.1%3.9%
90 Day18.4%19.7%5.5%
1 Year124.0%124.0%117.4%112.2%25.6%20.1%
3 Yearn/a94.4%81.9%39.7%20.9%
5 Yearn/a183.2%156.5%60.8%24.7%

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?

804.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AD8 (A$9) is trading above our estimate of fair value (A$3.73)

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


Price To Earnings Ratio

PE vs Industry: AD8 is poor value based on its PE Ratio (835.3x) compared to the Electronic industry average (30.4x).

PE vs Market: AD8 is poor value based on its PE Ratio (835.3x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: AD8 is poor value based on its PEG Ratio (12.2x)


Price to Book Ratio

PB vs Industry: AD8 is overvalued based on its PB Ratio (14.1x) compared to the AU Electronic industry average (4.1x).


Next Steps

Future Growth

How is Audinate Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

66.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AD8's forecast earnings growth (68.5% per year) is above the savings rate (1.1%).

Earnings vs Market: AD8's earnings (68.5% per year) are forecast to grow faster than the Australian market (9.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AD8's revenue (26.1% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: AD8's revenue (26.1% per year) is forecast to grow faster 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 (13%).


Next Steps

Past Performance

How has Audinate Group performed over the past 5 years?

19.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AD8 has a high level of non-cash earnings.

Growing Profit Margin: AD8's current net profit margins (2.3%) are lower than last year (12.9%).


Past Earnings Growth Analysis

Earnings Trend: AD8 has become profitable over the past 5 years, growing earnings by 19.5% per year.

Accelerating Growth: AD8's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AD8 had negative earnings growth (-74%) over the past year, making it difficult to compare to the Electronic industry average (-74%).


Return on Equity

High ROE: AD8's Return on Equity (1.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Audinate Group's financial position?


Financial Position Analysis

Short Term Liabilities: AD8's short term assets (A$35.6M) exceed its short term liabilities (A$5.3M).

Long Term Liabilities: AD8's short term assets (A$35.6M) exceed its long term liabilities (A$133.0K).


Debt to Equity History and Analysis

Debt Level: AD8 is debt free.

Reducing Debt: AD8 has not had any debt for past 5 years.

Debt Coverage: AD8 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AD8 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AD8 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AD8's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.5%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate AD8's dividend yield against the top 25% of dividend payers, as the company has not reported any 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

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

2.7yrs

Average board tenure


CEO

Aidan Williams 0

0.3yrs

Tenure

AU$418,331

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Aidan's total compensation ($USD288.70K) is below average for companies of similar size in the Australian market ($USD724.04K).

Compensation vs Earnings: Aidan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

2.7yrs

Average Tenure

Experienced Board: AD8's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$6,34524 Sep 19
Alison Ledger
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares900
Max PriceAU$7.05
BuyAU$3,62929 Aug 19
Alison Ledger
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares529
Max PriceAU$6.86
SellAU$4,348,53518 Jun 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares570,000
Max PriceAU$8.24
SellAU$11,447,39003 Jun 19
Telstra Super Pty Ltd.
EntityCompany
Shares1,906,627
Max PriceAU$6.00
SellAU$3,636,60606 May 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares609,500
Max PriceAU$6.26
SellAU$3,705,36919 Mar 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares704,647
Max PriceAU$5.71

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Aidan Williams

    Co-Founder

    • Tenure: 0.3yrs
    • Compensation: AU$418.33k
  • Rob Goss

    CFO & Company Secretary

    • Tenure: 2.8yrs
    • Compensation: AU$436.39k

Board Members

  • David Krall (59yo)

    Non-Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: AU$120.00k
  • John Dyson

    Non-Executive Director

    • Compensation: AU$65.00k
  • Alison Ledger

    Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$80.00k
  • Tim Finlayson

    Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$80.00k
  • Roger Price

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: AU$65.00k
  • Aidan Williams

    Co-Founder

    • Tenure: 0.3yrs
    • Compensation: AU$418.33k

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$593.906m
  • Shares outstanding: 67.80m
  • 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 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; Dante Embedded Platform, a software used in AV-over-IP solutions; and Dante Domain Manager, a network management software for Dante systems. The company also provides Dante Brooklyn II networking solutions; Dante Application Library, which delivers Dante for Windows and MacOS applications; Dante Brooklyn II PDK, a product development kits; 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 packages; 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; Dante AV, an AV-over-IP networking solutions; and Dante IP Core, a soft IP solutions, as well as Dante AVIO adapters and Dante-MY16-AUD2 cards. It primarily serves original equipment manufacturers. The company was founded in 2003 and is based in Surry Hills, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/22 10:49
End of Day Share Price2020/01/22 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.