ASX:5GN

Stock Analysis Report

Executive Summary

5G Networks Limited operates as a licensed telecommunications carrier in Australia.

Rewards

Revenue grew by 846.3% over the past year

Risk Analysis

Shareholders have been substantially diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years

Does not have a meaningful market cap (A$67M)



Snowflake Analysis

Imperfect balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has 5G Networks's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 5GN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.5%

5GN

0.3%

AU Telecom

0.1%

AU Market


1 Year Return

51.8%

5GN

23.0%

AU Telecom

19.5%

AU Market

Return vs Industry: 5GN exceeded the Australian Telecom industry which returned 24.3% over the past year.

Return vs Market: 5GN exceeded the Australian Market which returned 19.4% over the past year.


Shareholder returns

5GNIndustryMarket
7 Day-7.5%0.3%0.1%
30 Day14.6%5.4%4.0%
90 Day8.1%7.7%4.8%
1 Year53.6%51.8%27.7%23.0%24.9%19.5%
3 Yearn/a-7.1%-21.0%39.7%20.9%
5 Yearn/a-17.9%-36.9%59.0%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is 5G Networks undervalued compared to its fair value and its price relative to the market?

3.35x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 5GN (A$0.99) is trading above our estimate of fair value (A$0.33)

Significantly Below Fair Value: 5GN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 5GN is unprofitable, so we can't compare its PE Ratio to the Telecom industry average.

PE vs Market: 5GN 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 5GN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 5GN is overvalued based on its PB Ratio (3.8x) compared to the AU Telecom industry average (2.5x).


Next Steps

Future Growth

How is 5G Networks forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.1%

Forecasted Telecom 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 5G Networks 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 5G Networks performed over the past 5 years?

-1174.2%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 5GN is currently unprofitable.

Growing Profit Margin: 5GN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 5GN's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: 5GN is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-40%).


Return on Equity

High ROE: 5GN has a negative Return on Equity (-25.27%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is 5G Networks's financial position?


Financial Position Analysis

Short Term Liabilities: 5GN's short term assets (A$12.5M) exceed its short term liabilities (A$11.2M).

Long Term Liabilities: 5GN's short term assets (A$12.5M) do not cover its long term liabilities (A$18.2M).


Debt to Equity History and Analysis

Debt Level: 5GN's debt to equity ratio (40.5%) is considered high.

Reducing Debt: Insufficient data to determine if 5GN's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 5GN has a high level of physical assets or inventory.

Debt Coverage by Assets: 5GN's debt is covered by short term assets (assets are 1.9x 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: 5GN has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 5GN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is 5G Networks's current dividend yield, its reliability and sustainability?

1.16%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%2.3%markettop25%5.5%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 5GN's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: 5GN's dividend (1.01%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


Stability and Growth of Payments

Stable Dividend: 5GN is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: 5GN 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: 5GN is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 5GN'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 5G Networks's salary, the management and board of directors tenure and is there insider trading?

AU$2m

CEO Compensation


CEO

Joe Demase 0

0yrs

Tenure

AU$1,881,908

Compensation

Mr. Joseph Demase, also known as Joe, B.Bus (Accy), serves as Managing Director at 5G Networks Limited. Mr. Demase is a Co-Founder of Clever Communications Australia Limited (Access Providers Ltd) and serv ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD1.30M) is above average for companies of similar size in the Australian market ($USD262.68K).

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


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 substantially diluted in the past year, with total shares outstanding growing by 61.3%.


Management Team

  • Joe Demase

    MD & Director

    • Compensation: AU$1.88m
  • Garry White

    National Sales Director

    • Compensation: AU$418.89k
  • Glen Dymond

    CFO & Company Secretary

    • Tenure: 0.3yrs
  • Glenn Flower

    Chief Marketing Officer

    • Tenure: 1.3yrs
  • Marco Mattiuzzo

    Chief Technical Manager


    Board Members

    • Albert Cheok (69yo)

      Independent Chairman

      • Compensation: AU$224.86k
    • Joe Demase

      MD & Director

      • Compensation: AU$1.88m
    • Jason Ashton (47yo)

      Non-Executive Director

      • Tenure: 0.3yrs
    • Joe Gangi

      Non-Executive Director

      • Compensation: AU$186.63k

    Company Information

    5G Networks Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: 5G Networks Limited
    • Ticker: 5GN
    • Exchange: ASX
    • Founded: 2013
    • Industry: Alternative Carriers
    • Sector: Telecom
    • Market Cap: AU$56.850m
    • Shares outstanding: 65.34m
    • Website: https://www.5gnetworks.com.au

    Number of Employees


    Location

    • 5G Networks Limited
    • 99 William Street
    • Level 8
    • Melbourne
    • Victoria
    • 3000
    • Australia

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    5GNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2017
    5GNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2017
    FNGW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2017

    Biography

    5G Networks Limited operates as a licensed telecommunications carrier in Australia. The company offers data connectivity, cloud and data center, and managed services. It provides cloud-based solutions and network services; and operates fiber and wireless infrastructure, cloud computing environment, and data center. The company was incorporated in 2013 and is headquartered in Melbourne, Australia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/28 10:52
    End of Day Share Price2020/01/28 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.