ASX:CLT

Stock Analysis Report

Executive Summary

Cellnet Group Limited engages in the distribution, warehousing, and logistics businesses primarily in Australia and New Zealand.

Rewards

PE ratio (27.4x) is below the Electronic industry average (30.9x)

Risk Analysis

Interest payments are not well covered by earnings

High level of non-cash earnings

Does not have a meaningful market cap (A$13M)

Profit margins (0.4%) are lower than last year (6.8%)

+ 1 more risk


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CLT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-12.5%

CLT

-1.2%

AU Electronic

0.4%

AU Market


1 Year Return

-58.3%

CLT

110.9%

AU Electronic

19.5%

AU Market

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

Return vs Market: CLT underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

CLTIndustryMarket
7 Day-12.5%-1.2%0.4%
30 Day0%7.6%4.4%
90 Day2.9%20.2%5.0%
1 Year-58.3%-58.3%116.0%110.9%24.9%19.5%
3 Year-25.9%-31.4%95.0%82.0%38.6%19.9%
5 Year-31.3%-42.6%190.4%162.8%60.0%24.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

26.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CLT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CLT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CLT is good value based on its PE Ratio (27.4x) compared to the Electronic industry average (30.9x).

PE vs Market: CLT is poor value based on its PE Ratio (30.4x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CLT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CLT is good value based on its PB Ratio (0.5x) compared to the AU Electronic industry average (4.1x).


Next Steps

Future Growth

How is Cellnet Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

45.1%

Forecasted Tech 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 Cellnet 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.


Next Steps

Past Performance

How has Cellnet Group performed over the past 5 years?

48.4%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: CLT's current net profit margins (0.4%) are lower than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: CLT has become profitable over the past 5 years, growing earnings by 48.4% per year.

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

Earnings vs Industry: CLT had negative earnings growth (-93.2%) over the past year, making it difficult to compare to the Electronic industry average (-74%).


Return on Equity

High ROE: CLT's Return on Equity (1.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cellnet Group's financial position?


Financial Position Analysis

Short Term Liabilities: CLT's short term assets (A$37.1M) exceed its short term liabilities (A$22.7M).

Long Term Liabilities: CLT's short term assets (A$37.1M) exceed its long term liabilities (A$1.8M).


Debt to Equity History and Analysis

Debt Level: CLT's debt to equity ratio (45.7%) is considered high.

Reducing Debt: CLT's debt to equity ratio has reduced from 55.6% to 45.7% over the past 5 years.

Debt Coverage: CLT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: CLT's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet

Inventory Level: CLT has a high level of physical assets or inventory.

Debt Coverage by Assets: CLT's debt is covered by short term assets (assets are 3.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%5.5%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CLT'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 Cellnet Group's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average board tenure


CEO

Alan Sparks 0

5.7yrs

Tenure

AU$343,538

Compensation

Mr. Alan Sparks, GAICD, CTA, CA (SA) has been the Chief Executive Officer of Cellnet Group Limited since May 7, 2014. Mr. Sparks is an accomplished senior executive with over many years' experience in tech ...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD237.09K) is about average for companies of similar size in the Australian market ($USD262.68K).

Compensation vs Earnings: Alan's compensation has been consistent with company performance over the past year.


Board Age and Tenure

3.0yrs

Average Tenure

Experienced Board: CLT's board of directors are considered experienced (3 years average tenure).


Insider Trading

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.8%.


Management Team

  • J. Satriano

    Group Warehouse Manager

    • Compensation: AU$144.65k
  • N. Chan

    Financial Controller of Cellular Cellnet (NZ) Ltd

    • Alan Sparks

      Chief Executive Officer

      • Tenure: 5.7yrs
      • Compensation: AU$343.54k
    • Chris Barnes

      Company Secretary & CFO

      • Tenure: 8.8yrs
      • Compensation: AU$248.92k
    • Dave Clark

      General Manager of New Zealand

      • Compensation: AU$262.49k
    • Craig Kingshott

      Chief Commercial Officer

      • Compensation: AU$68.70k

    Board Members

    • Tony Pearson (44yo)

      Independent Non Executive Director

      • Tenure: 1.3yrs
      • Compensation: AU$22.12k
    • Michael Wendt

      Non-Executive Chairman

      • Tenure: 3yrs
      • Compensation: AU$26.67k
    • Kevin Gilmore

      Non-Executive Director

      • Tenure: 3yrs
      • Compensation: AU$26.67k
    • Michael Reddie

      Non-Executive Director

      • Tenure: 3yrs
      • Compensation: AU$26.67k

    Company Information

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


    Key Information

    • Name: Cellnet Group Limited
    • Ticker: CLT
    • Exchange: ASX
    • Founded: 1992
    • Industry: Technology Distributors
    • Sector: Tech
    • Market Cap: AU$10.954m
    • Shares outstanding: 62.60m
    • Website: https://www.cellnet.com.au

    Location

    • Cellnet Group Limited
    • Tenancy E1
    • 5 Grevillea Place
    • Brisbane
    • Queensland
    • 4008
    • Australia

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    CLTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 1999
    CLTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 1999

    Biography

    Cellnet Group Limited engages in the distribution, warehousing, and logistics businesses primarily in Australia and New Zealand. The company sources and distributes brands of lifestyle technology products, including mobile phones, gaming, tablets, and notebooks/hybrid accessories through retail and business channels; and fulfillment services to the mobile telecommunications and retail industries. Cellnet Group Limited was founded in 1992 and is based in Brisbane, Australia. Cellnet Group Limited is a subsidiary of Wentronic Holding GmbH. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/25 10:32
    End of Day Share Price2020/01/24 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.