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AD8

Audinate Group ASX:AD8 Stock Report

Last Price

AU$9.04

Market Cap

AU$709.2m

7D

-8.1%

1Y

-13.3%

Updated

11 Aug, 2022

Data

Company Financials +
AD8 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

AD8 Stock Overview

Audinate Group Limited develops and sells digital audio visual (AV) networking solutions worldwide.

Audinate Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Audinate Group
Historical stock prices
Current Share PriceAU$9.04
52 Week HighAU$11.01
52 Week LowAU$4.99
Beta0.95
1 Month Change19.58%
3 Month Change63.77%
1 Year Change-13.33%
3 Year Change25.38%
5 Year Change447.88%
Change since IPO490.85%

Recent News & Updates

Aug 02
Brokers Are Upgrading Their Views On Audinate Group Limited (ASX:AD8) With These New Forecasts

Brokers Are Upgrading Their Views On Audinate Group Limited (ASX:AD8) With These New Forecasts

Celebrations may be in order for Audinate Group Limited ( ASX:AD8 ) shareholders, with the analysts delivering a...

Jun 28
What Is Audinate Group Limited's (ASX:AD8) Share Price Doing?

What Is Audinate Group Limited's (ASX:AD8) Share Price Doing?

Audinate Group Limited ( ASX:AD8 ), might not be a large cap stock, but it led the ASX gainers with a relatively large...

Shareholder Returns

AD8AU ElectronicAU Market
7D-8.1%0.07%0.5%
1Y-13.3%-33.5%-8.8%

Return vs Industry: AD8 exceeded the Australian Electronic industry which returned -33.5% over the past year.

Return vs Market: AD8 underperformed the Australian Market which returned -8.8% over the past year.

Price Volatility

Is AD8's price volatile compared to industry and market?
AD8 volatility
AD8 Average Weekly Movement7.9%
Electronic Industry Average Movement11.3%
Market Average Movement10.5%
10% most volatile stocks in AU Market17.8%
10% least volatile stocks in AU Market4.6%

Stable Share Price: AD8 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: AD8's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2003n/aAidan Williamshttps://www.audinate.com

Audinate Group Limited develops and sells digital audio visual (AV) networking solutions worldwide. The company provides Dante, a technology platform that distributes digital audio and video signals over computer networks to original equipment manufacturers. It offers software products, such as Dante Controller, a real-time network monitoring device; Dante Virtual Soundcard that provides access to various audio devices on the network; Dante Via, a software that delivers multi-channel routing of computer-based audio; and Dante Domain Manager, as well as Dante AVIO adapter, an audio networking solution.

Audinate Group Fundamentals Summary

How do Audinate Group's earnings and revenue compare to its market cap?
AD8 fundamental statistics
Market CapAU$709.20m
Earnings (TTM)-AU$4.38m
Revenue (TTM)AU$38.22m

18.3x

P/S Ratio

-159.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AD8 income statement (TTM)
RevenueAU$38.22m
Cost of RevenueAU$9.25m
Gross ProfitAU$28.97m
Other ExpensesAU$33.36m
Earnings-AU$4.38m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 21, 2022

Earnings per share (EPS)-0.057
Gross Margin75.80%
Net Profit Margin-11.46%
Debt/Equity Ratio0%

How did AD8 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is AD8 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AD8?

Other financial metrics that can be useful for relative valuation.

AD8 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue17x
Enterprise Value/EBITDA-96x
PEG Ration/a

Price to Sales Ratio vs Peers

How does AD8's PS Ratio compare to its peers?

AD8 PS Ratio vs Peers
The above table shows the PS ratio for AD8 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.3x
CDA Codan
3.2x7.0%AU$1.6b
DDR Dicker Data
0.8x11.5%AU$1.9b
CAT Catapult Group International
2.1x19.5%AU$223.1m
RWL Rubicon Water
3xn/aAU$228.7m
AD8 Audinate Group
18.3x26.7%AU$709.2m

Price-To-Sales vs Peers: AD8 is expensive based on its Price-To-Sales Ratio (18.3x) compared to the peer average (2.3x).


Price to Earnings Ratio vs Industry

How does AD8's PE Ratio compare vs other companies in the AU Electronic Industry?

Price-To-Sales vs Industry: AD8 is expensive based on its Price-To-Sales Ratio (18.3x) compared to the Australian Electronic industry average (2.3x)


Price to Sales Ratio vs Fair Ratio

What is AD8's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AD8 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio18.3x
Fair PS Ratio40.5x

Price-To-Sales vs Fair Ratio: AD8 is good value based on its Price-To-Sales Ratio (18.3x) compared to the estimated Fair Price-To-Sales Ratio (40.5x).


Share Price vs Fair Value

What is the Fair Price of AD8 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AD8 (A$9.04) is trading below our estimate of fair value (A$9.57)

Significantly Below Fair Value: AD8 is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is Audinate Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


101.9%

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 (1.8%).

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 is expected to become profitable in the next 3 years.

Revenue vs Market: AD8's revenue (26.7% per year) is forecast to grow faster than the Australian market (6% per year).

High Growth Revenue: AD8's revenue (26.7% 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 (1.1%).


Discover growth companies

Past Performance

How has Audinate Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


33.8%

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 33.8% 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 (-39.5%).


Return on Equity

High ROE: AD8 has a negative Return on Equity (-5.67%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Audinate Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: AD8's short term assets (A$67.2M) exceed its short term liabilities (A$7.8M).

Long Term Liabilities: AD8's short term assets (A$67.2M) exceed its long term liabilities (A$1.4M).


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: AD8 has sufficient cash runway for more than 3 years 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.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AD8 has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Aidan Williams

2.92yrs

Tenure

AU$831,701

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 ($USD590.03K) is about average for companies of similar size in the Australian market ($USD806.01K).

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


Leadership Team

Experienced Management: AD8's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: AD8's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AD8 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Audinate Group Limited's 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
  • Implied Market Cap: AU$709.198m
  • Shares outstanding: 77.17m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2021/12/31
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.