ASX:SEN

Stock Analysis Report

Executive Summary

Senetas Corporation Limited provides network data security solutions to businesses and governments worldwide.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SEN

3.9%

AU Communications

0.3%

AU Market


1 Year Return

-39.4%

SEN

-39.4%

AU Communications

-22.9%

AU Market

Return vs Industry: SEN matched the Australian Communications industry which returned -39.4% over the past year.

Return vs Market: SEN underperformed the Australian Market which returned -22.9% over the past year.


Shareholder returns

SENIndustryMarket
7 Day0%3.9%0.3%
30 Day-25.9%-25.0%-25.3%
90 Day-41.2%-41.4%-29.9%
1 Year-39.0%-39.4%-39.2%-39.4%-19.4%-22.9%
3 Year-54.9%-57.0%4.5%-0.7%-8.3%-20.8%
5 Year-58.1%-60.0%12.9%2.3%2.9%-20.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

39.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SEN (A$0.04) is trading below our estimate of fair value (A$0.07)

Significantly Below Fair Value: SEN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SEN is poor value based on its PE Ratio (1739.1x) compared to the Communications industry average (26.1x).

PE vs Market: SEN is poor value based on its PE Ratio (1739.1x) compared to the Australian market (12.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SEN is good value based on its PB Ratio (2.3x) compared to the AU Communications industry average (2.3x).


Next Steps

Future Growth

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

19.2%

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 Senetas 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 Senetas performed over the past 5 years?

-39.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEN has high quality earnings.

Growing Profit Margin: SEN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SEN's earnings have declined by -39.8% per year over the past 5 years.

Accelerating Growth: SEN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SEN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (1.3%).


Return on Equity

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


Next Steps

Financial Health

How is Senetas's financial position?


Financial Position Analysis

Short Term Liabilities: SEN's short term assets (A$21.6M) exceed its short term liabilities (A$10.4M).

Long Term Liabilities: SEN's short term assets (A$21.6M) exceed its long term liabilities (A$6.2M).


Debt to Equity History and Analysis

Debt Level: SEN is debt free.

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

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

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


Balance Sheet

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

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


Next Steps

Dividend

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

1.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SEN's dividend (1.15%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (3.35%).

High Dividend: SEN's dividend (1.15%) is low compared to the top 25% of dividend payers in the Australian market (8.5%).


Stability and Growth of Payments

Stable Dividend: SEN is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: SEN is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SEN's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

7.6yrs

Average management tenure


CEO

Andrew Wilson (48yo)

7.58s

Tenure

AU$492,617

Compensation

Mr. Andrew R. Wilson, BEcon, CA, ACIS, has been the Chief Executive Officer at Senetas Corp. Ltd. since August 15, 2012 and served as its Acting Chief Executive Officer from August 2012 to August 15, 2012  ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD302.14K) is about average for companies of similar size in the Australian market ($USD245.34K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Wilson
CEO & Executive Director7.58yrsAU$492.62k0.10% A$45.0k
Julian Fay
Chief Technology Officer9.25yrsAU$304.22k0.041% A$17.7k
John Weston
Chief Solutions Architectno dataAU$303.67k0.18% A$79.8k
Barbara McMeekin
Chief Accountant7.58yrsno datano data
Brendan Case
Company Secretary7.58yrsno datano data
Gareth Jones
General Manager of Senetas Europeno dataAU$202.40kno data

7.6yrs

Average Tenure

Experienced Management: SEN's management team is seasoned and experienced (7.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Wilson
CEO & Executive Director7.58yrsAU$492.62k0.10% A$45.0k
Francis Galbally
Non Executive Chairman6.92yrsAU$288.57k13.03% A$5.6m
Philip Schofield
Non-Executive Director2.25yrsAU$115.00k0.0040% A$1.7k
Lawrence Hansen
Non-Executive Director4.58yrsAU$115.00kno data
Kenneth Gillespie
Non-Executive Director6.92yrsAU$115.00kno data
Lachlan Given
Non-Executive Director7yrsAU$115.00kno data

6.9yrs

Average Tenure

51yo

Average Age

Experienced Board: SEN's board of directors are considered experienced (6.9 years average tenure).


Ownership

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


Insider Trading Volume

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 4.6%.


Top Shareholders

Company Information

Senetas Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Senetas Corporation Limited
  • Ticker: SEN
  • Exchange: ASX
  • Founded: 1999
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: AU$43.282m
  • Shares outstanding: 1.08b
  • Website: https://www.senetas.com

Number of Employees


Location

  • Senetas Corporation Limited
  • 312 Kings Way
  • South Melbourne
  • Victoria
  • 3205
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SENASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 1993
SENCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 1993
SNES.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1993

Biography

Senetas Corporation Limited provides network data security solutions to businesses and governments worldwide. The company’s products include CN series hardware and CV series virtualized network encryptors, Votiro content disarm and reconstruction, SureDrop secure file sharing, and CM7 network encryption management. It also offers support and maintenance services. The company’s products are used in cloud services and networks, data center interconnects, big data protection, branch office locations, SCADA and industrial control networks, and CCTV networks applications. It serves commercial, defense, energy and utilities, financial, gaming, government, and healthcare sectors. Senetas Corporation Limited was founded in 1999 and is headquartered in South Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 10:34
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.