ASX:SRH

Stock Analysis Report

Saferoads Holdings

Executive Summary

Saferoads Holdings Limited researches, designs, develops, produces, and sells road safety products and solutions that protect motorists, road construction workers, and pedestrians in Australia, New Zealand, and the United States.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.8%

SRH

-4.9%

AU Electronic

-2.0%

AU Market


1 Year Return

-45.6%

SRH

86.5%

AU Electronic

16.7%

AU Market

Return vs Industry: SRH underperformed the Australian Electronic industry which returned 86.5% over the past year.

Return vs Market: SRH underperformed the Australian Market which returned 16.7% over the past year.


Shareholder returns

SRHIndustryMarket
7 Day2.8%-4.9%-2.0%
30 Day-7.5%2.1%0.1%
90 Day-14.0%10.3%0.4%
1 Year-45.6%-45.6%91.2%86.5%22.5%16.7%
3 Year54.2%54.2%60.9%51.6%35.4%16.8%
5 Year60.9%60.9%150.5%123.3%60.6%24.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.92x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SRH is good value based on its PB Ratio (0.9x) compared to the AU Electronic industry average (4.1x).


Next Steps

Future Growth

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

47.4%

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 Saferoads Holdings 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 Saferoads Holdings performed over the past 5 years?

75.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRH is currently unprofitable.

Growing Profit Margin: SRH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SRH is unprofitable, but has reduced losses over the past 5 years at a rate of 75.6% per year.

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

Earnings vs Industry: SRH is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-74%).


Return on Equity

High ROE: SRH has a negative Return on Equity (-0.57%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Saferoads Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SRH's short term assets (A$6.5M) exceed its short term liabilities (A$3.7M).

Long Term Liabilities: SRH's short term assets (A$6.5M) exceed its long term liabilities (A$4.4M).


Debt to Equity History and Analysis

Debt Level: SRH's debt to equity ratio (24.3%) is considered satisfactory.

Reducing Debt: SRH's debt to equity ratio has reduced from 88.7% to 24.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: SRH's debt is covered by short term assets (assets are 3.6x debt).


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: Insufficient data to determine if SRH has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SRH has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.6%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

9.0yrs

Average board tenure


CEO

Darren Hotchkin (55yo)

7.7yrs

Tenure

AU$361,635

Compensation

Mr. Darren John Hotchkin Founded Saferoads Holdings Limited in 1992 and has been its Chief Executive Officer since June 30, 2012. Mr. Hotchkin served as an Acting Chief Executive Officer at Saferoads Holdi ...


CEO Compensation Analysis

Compensation vs Market: Darren's total compensation ($USD247.83K) is about average for companies of similar size in the Australian market ($USD255.57K).

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


Board Age and Tenure

9.0yrs

Average Tenure

67yo

Average Age

Experienced Board: SRH's board of directors are considered experienced (9 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$12,60004 Sep 19
David Albert Ashmore
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares60,000
Max PriceAU$0.21
BuyAU$107,80022 Aug 19
Darren Hotchkin
EntityIndividual
Role
Chief Executive Officer
Founder
Shares490,000
Max PriceAU$0.22
BuyAU$28,02120 Aug 19
Darren Hotchkin
EntityIndividual
Role
Chief Executive Officer
Founder
Shares127,370
Max PriceAU$0.22

Ownership Breakdown

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


Management Team

  • Darren Hotchkin (55yo)

    Founder

    • Tenure: 7.7yrs
    • Compensation: AU$361.64k
  • Casey McMaster

    National Engineering Solutions Manager

    • Tenure: 0yrs
    • Compensation: AU$188.44k
  • Peter Fearns

    CFO & Company Secretary

    • Tenure: 8yrs
    • Compensation: AU$194.46k

Board Members

  • Darren Hotchkin (55yo)

    Founder

    • Tenure: 7.7yrs
    • Compensation: AU$361.64k
  • David Cleland (74yo)

    Non Executive Director

    • Tenure: 9yrs
    • Compensation: AU$65.00k
  • David Albert Ashmore (67yo)

    Non-Executive Chairman

    • Tenure: 6.3yrs
    • Compensation: AU$82.50k

Company Information

Saferoads Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Saferoads Holdings Limited
  • Ticker: SRH
  • Exchange: ASX
  • Founded:
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: AU$6.552m
  • Shares outstanding: 36.40m
  • Website: https://www.saferoads.com.au

Location

  • Saferoads Holdings Limited
  • 22 Commercial Drive
  • Pakenham
  • Victoria
  • 3810
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2005

Biography

Saferoads Holdings Limited researches, designs, develops, produces, and sells road safety products and solutions that protect motorists, road construction workers, and pedestrians in Australia, New Zealand ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 10:34
End of Day Share Price2019/12/05 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.