ASX:DDR

Stock Analysis Report

Executive Summary

Dicker Data Limited engages in the wholesale distribution of computer hardware, software, and related products in Australia and New Zealand.

Rewards

PE ratio (23.1x) is below the Electronic industry average (24.9x)

Earnings grew by 35.8% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet with solid track record.

Share Price & News

How has Dicker Data's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DDR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.3%

DDR

-5.2%

AU Electronic

-1.8%

AU Market


1 Year Return

102.8%

DDR

87.1%

AU Electronic

20.0%

AU Market

Return vs Industry: DDR exceeded the Australian Electronic industry which returned 87.1% over the past year.

Return vs Market: DDR exceeded the Australian Market which returned 20% over the past year.


Shareholder returns

DDRIndustryMarket
7 Day-7.3%-5.2%-1.8%
30 Day-14.3%0.8%-0.3%
90 Day-19.4%9.5%1.1%
1 Year114.0%102.8%92.0%87.1%25.9%20.0%
3 Year214.0%162.4%68.1%57.5%36.0%17.4%
5 Year410.2%262.5%163.6%133.2%62.5%25.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Dicker Data undervalued compared to its fair value and its price relative to the market?

23.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DDR (A$5.8) is trading above our estimate of fair value (A$2.84)

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


Price To Earnings Ratio

PE vs Industry: DDR is good value based on its PE Ratio (23.1x) compared to the Electronic industry average (24.9x).

PE vs Market: DDR is poor value based on its PE Ratio (23.1x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DDR is overvalued based on its PB Ratio (10.7x) compared to the AU Electronic industry average (4.1x).


Next Steps

Future Growth

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

46.3%

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 Dicker Data 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 Dicker Data performed over the past 5 years?

27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DDR has high quality earnings.

Growing Profit Margin: DDR's current net profit margins (2.5%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: DDR's earnings have grown significantly by 27.2% per year over the past 5 years.

Accelerating Growth: DDR's earnings growth over the past year (35.8%) exceeds its 5-year average (27.2% per year).

Earnings vs Industry: DDR earnings growth over the past year (35.8%) exceeded the Electronic industry -74%.


Return on Equity

High ROE: Whilst DDR's Return on Equity (46.34%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dicker Data's financial position?


Financial Position Analysis

Short Term Liabilities: DDR's short term assets (A$439.6M) exceed its short term liabilities (A$424.6M).

Long Term Liabilities: DDR's short term assets (A$439.6M) exceed its long term liabilities (A$8.2M).


Debt to Equity History and Analysis

Debt Level: DDR's debt to equity ratio (148.7%) is considered high.

Reducing Debt: DDR's debt to equity ratio has reduced from 578.5% to 148.7% over the past 5 years.

Debt Coverage: DDR's debt is well covered by operating cash flow (29.3%).

Interest Coverage: DDR's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: DDR's debt is covered by short term assets (assets are 3.4x debt).


Next Steps

Dividend

What is Dicker Data's current dividend yield, its reliability and sustainability?

3.48%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%2.4%markettop25%5.6%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: DDR's dividend (3.48%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: DDR's dividend (3.48%) is low compared to the top 25% of dividend payers in the Australian market (5.57%).


Stability and Growth of Payments

Stable Dividend: DDR has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: DDR's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85.2%), DDR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

David Dicker 0

0yrs

Tenure

0

Mr. David John Dicker serves as the Chairman and Chief Executive Officer at Dicker Data Limited. Mr. Dicker is a co-founder of the Dicker Data Limited. He began his career of entrepreneur and businessman b ...


Management Age and Tenure

4.8yrs

Average Tenure

Experienced Management: DDR's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

Experienced Board: DDR's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$66,00006 Nov 19
Vladimir Mitnovetski
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares10,000
Max PriceAU$6.60
BuyAU$50,07724 Oct 19
Vladimir Mitnovetski
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares7,092
Max PriceAU$7.06
BuyAU$138,00029 Aug 19
Vladimir Mitnovetski
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares20,000
Max PriceAU$6.90
BuyAU$17,95527 Jun 19
Fiona Brown
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares3,500
Max PriceAU$5.13
BuyAU$72,24925 Jun 19
Vladimir Mitnovetski
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares15,000
Max PriceAU$4.82
BuyAU$29,58025 Jun 19
Mary Stojcevski
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares6,000
Max PriceAU$4.93
BuyAU$50,15711 Jun 19
Vladimir Mitnovetski
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares9,940
Max PriceAU$5.05
BuyAU$122,50023 May 19
Vladimir Mitnovetski
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares25,000
Max PriceAU$4.90
BuyAU$226,08624 Apr 19
Vladimir Mitnovetski
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares55,879
Max PriceAU$4.05
BuyAU$140,50021 Dec 18
Vladimir Mitnovetski
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares50,000
Max PriceAU$2.81

Ownership Breakdown

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


Management Team

  • Mary Stojcevski

    CFO & Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$997.95k
  • David Dicker

    Chairman & CEO

    • Tenure: 0yrs
  • Michael Demetre

    Logistics Director & Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$765.87k
  • Vlad Mitnovetski

    COO & Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$2.05m
  • Ian Welch

    Chief Information Officer & Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$818.40k
  • Erin McMullen

    Company Secretary

    • Tenure: 1.1yrs

Board Members

  • Mary Stojcevski

    CFO & Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$997.95k
  • Fiona Brown

    Non-Executive Director

    • Tenure: 36.9yrs
    • Compensation: AU$55.00k
  • David Dicker

    Chairman & CEO

    • Tenure: 0yrs
  • Michael Demetre

    Logistics Director & Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$765.87k
  • Vlad Mitnovetski

    COO & Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$2.05m
  • Ian Welch

    Chief Information Officer & Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$818.40k
  • Christopher Aleksov

    Alternate Director

    • Tenure: 0.5yrs

Company Information

Dicker Data Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dicker Data Limited
  • Ticker: DDR
  • Exchange: ASX
  • Founded: 1978
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: AU$937.370m
  • Shares outstanding: 161.62m
  • Website: https://www.dickerdata.com.au

Number of Employees


Location

  • Dicker Data Limited
  • 230 Captain Cook Drive
  • Kurnell
  • New South Wales
  • 2231
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DDRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 2011
DDRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 2011
D0DDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2011

Biography

Dicker Data Limited engages in the wholesale distribution of computer hardware, software, and related products in Australia and New Zealand. The company offers a product portfolio of various technology ven ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 10:37
End of Day Share Price2019/12/10 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.