ASX:5GN

Stock Analysis Report

Executive Summary

5G Networks Limited provides high speed network and the cloud infrastructure services in Australia.

Snowflake

Fundamentals

Imperfect balance sheet with weak fundamentals.

Risks

  • 5G Networks has significant price volatility in the past 3 months.
  • 5G Networks is not covered by any analysts.

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


Market Performance


7 Day Return

1.0%

ASX:5GN

-5.5%

AU Telecom

-2.5%

AU Market


1 Year Return

84.3%

ASX:5GN

15.2%

AU Telecom

-0.6%

AU Market

5GN outperformed the Telecom industry which returned 15.2% over the past year.

5GN outperformed the Market in Australia which returned -0.6% over the past year.


Share holder returns

5GNIndustryMarket
7 Day1.0%-5.5%-2.5%
30 Day-29.3%-2.0%-4.4%
90 Day-12.4%2.8%-1.1%
1 Year84.3%84.3%21.0%15.2%5.1%-0.6%
3 Yearn/a-24.8%-35.8%30.2%13.1%
5 Yearn/a-9.3%-30.7%36.5%5.9%

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 based on future cash flows and its price relative to the stock market?

7.02x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

5G Networks's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

5G Networks's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

5G Networks is loss making, we can't compare its value to the AU Telecom industry average.

5G Networks is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for 5G Networks, we can't assess if its growth is good value.


Price Based on Value of Assets

5G Networks is overvalued based on assets compared to the AU Telecom industry average.


Next Steps

Future Growth

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

7.7%

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?

-727.0%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

5G Networks does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.

Unable to compare 5G Networks's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare 5G Networks's 1-year growth to the AU Telecom industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if 5G Networks has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if 5G Networks has efficiently used its assets last year compared to the AU Telecom industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if 5G Networks improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is 5G Networks's financial position?


Financial Position Analysis

5G Networks's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

5G Networks's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

5G Networks's level of debt (51.8%) compared to net worth is high (greater than 40%).

Unable to establish if 5G Networks's debt level has increased without past 5-year debt data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.2x 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.

Whilst loss making 5G Networks has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making 5G Networks has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 3.5% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate 5G Networks's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate 5G Networks's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as 5G Networks has not reported any payouts.

Unable to verify if 5G Networks's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as 5G Networks has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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$329k

CEO Compensation


CEO

Joe Demase 0

0.0yrs

Tenure

AU$329,320

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

Joe's remuneration is about average for companies of similar size in Australia.

Insufficient data for Joe to compare compensation growth.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyAU$8,60720 Nov 18
Joseph Demase
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares20,518
Max PriceAU$0.42

Ownership Breakdown


Management Team

  • Joe Demase

    MD & Director

    • Tenure: 0.0yrs
    • Compensation: AU$329.32k
  • Garry White

    National Sales Director

    • Tenure: 0.0yrs
    • Compensation: AU$265.49k
  • Glen Dymond

    CFO & Company Secretary

    • Tenure: 0.1yrs
  • Glenn Flower

    Chief Marketing Officer

    • Tenure: 0.8yrs
  • Marco Mattiuzzo

    Chief Technical Manager

    • Tenure: 0.0yrs

Board Members

  • Albert Cheok (69yo)

    Independent Chairman

    • Tenure: 0.0yrs
    • Compensation: AU$82.45k
  • Joe Demase

    MD & Director

    • Tenure: 0.0yrs
    • Compensation: AU$329.32k
  • Joe Gangi

    Non-Executive Director

    • Tenure: 0.0yrs
    • Compensation: AU$57.13k

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$60.326m
  • Shares outstanding: 63.50m
  • 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

Biography

5G Networks Limited provides high speed network and the cloud infrastructure services in Australia. It offers various services, including integrated fiber and wireless network, cloud infrastructure, high s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 10:39
End of Day Share Price2019/08/19 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.