ASX:SEN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.3%

SEN

0.7%

AU Communications

0.4%

AU Market


1 Year Return

-21.6%

SEN

-7.2%

AU Communications

9.8%

AU Market

Return vs Industry: SEN underperformed the Australian Communications industry which returned -7.2% over the past year.

Return vs Market: SEN underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

SENIndustryMarket
7 Day-1.3%0.7%0.4%
30 Day1.3%2.4%-1.1%
90 Day-8.4%-1.1%-0.6%
1 Year-18.5%-21.6%-6.0%-7.2%16.1%9.8%
3 Year-36.7%-39.2%-54.7%-55.7%36.1%17.9%
5 Year43.8%38.2%54.5%40.4%49.4%15.7%

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?

11.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SEN (A$0.08) is trading below our estimate of fair value (A$0.09)

Significantly Undervalued: SEN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SEN is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: SEN is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

Low 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 overvalued based on its PB Ratio (4.2x) compared to the AU Communications industry average (3x).


Next Steps

Future Growth

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

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SEN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SEN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if SEN's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if SEN's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if SEN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Senetas performed over the past 5 years?

-27.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SEN is unprofitable, and losses have increased over the past 5 years at a rate of -27.6% per year.

Accelerating Growth: Unable to compare SEN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SEN is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (9.8%).


Return on Equity

High ROE: SEN has a negative Return on Equity (-2.35%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SEN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SEN is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Senetas's financial position?


Financial Position Analysis

Short Term Liabilities: SEN's short term assets (A$25.9M) exceeds its short term liabilities (A$10.3M)

Long Term Liabilities: SEN's short term assets (25.9M) exceeds its long term liabilities (3.3M)


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?

0.60%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Senetas before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.6%marketbottom25%2.4%markettop25%5.6%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SEN's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: SEN's dividend (0.61%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

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

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

7.2yrs

Average management tenure


CEO

Andrew Wilson (48yo)

7.2yrs

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 ($USD337.25K) is above average for companies of similar size in the Australian market ($USD256.55K).

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


Management Age and Tenure

7.2yrs

Average Tenure

Experienced Management: SEN's management team is seasoned and experienced (7.2 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

51yo

Average Age

Experienced Board: SEN's board of directors are considered experienced (6.5 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.


Recent Insider Transactions

BuyAU$65,00028 Mar 19
Francis Galbally
EntityIndividual
Role
Chairman of the Board
Non Executive Chairman
Shares1,000,000
Max PriceAU$0.065

Ownership Breakdown


Management Team

  • Brendan Case

    Company Secretary

    • Tenure: 7.2yrs
  • Andrew Wilson (48yo)

    CEO & Executive Director

    • Tenure: 7.2yrs
    • Compensation: AU$492.62k
  • John Weston

    Chief Solutions Architect

    • Tenure: 0yrs
    • Compensation: AU$303.67k
  • Julian Fay

    Chief Technology Officer

    • Tenure: 8.8yrs
    • Compensation: AU$304.22k
  • Gareth Jones

    General Manager of Senetas Europe

    • Tenure: 0yrs
    • Compensation: AU$202.40k
  • Barbara McMeekin

    Chief Accountant

    • Tenure: 7.2yrs

Board Members

  • Francis Galbally (66yo)

    Non Executive Chairman

    • Tenure: 6.5yrs
    • Compensation: AU$288.57k
  • Andrew Wilson (48yo)

    CEO & Executive Director

    • Tenure: 7.2yrs
    • Compensation: AU$492.62k
  • Philip Schofield

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$115.00k
  • Dave Hansen (54yo)

    Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: AU$115.00k
  • Ken Gillespie

    Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: AU$115.00k
  • Lachie Given (42yo)

    Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: AU$115.00k

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$80.018m
  • 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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 10:32
End of Day Share Price2019/10/18 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.