ASX:5GN

Stock Analysis Report

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Executive Summary

5G Networks Limited, together with its subsidiaries, operates as a licensed telecommunications carrier in Australia. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

5GN

-1.7%

AU Telecom

-0.8%

AU Market


1 Year Return

100.0%

5GN

-18.4%

AU Telecom

-12.4%

AU Market

Return vs Industry: 5GN exceeded the Australian Telecom industry which returned -18.4% over the past year.

Return vs Market: 5GN exceeded the Australian Market which returned -12.4% over the past year.


Shareholder returns

5GNIndustryMarket
7 Day-0.3%-1.7%-0.8%
30 Day-12.1%-6.1%-3.8%
90 Day35.8%-8.3%0.3%
1 Year101.1%100.0%-14.7%-18.4%-9.2%-12.4%
3 Yearn/a-3.2%-16.9%16.4%1.5%
5 Yearn/a-32.5%-48.8%41.7%12.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 5GN (A$1.67) is trading below our estimate of fair value (A$8.19)

Significantly Below Fair Value: 5GN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 5GN is unprofitable, so we can't compare its PE Ratio to the AU 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 (4.1x) compared to the AU Telecom industry average (3x).


Next Steps

Future Growth

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

93.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5GN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: 5GN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 5GN's is expected to become profitable in the next 3 years.

Revenue vs Market: 5GN's revenue (13.3% per year) is forecast to grow faster than the Australian market (4.3% per year).

High Growth Revenue: 5GN's revenue (13.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 5GN's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has 5G Networks performed over the past 5 years?

62.6%

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 (6.8%).


Return on Equity

High ROE: 5GN has a negative Return on Equity (-4.33%), as it is currently unprofitable.


Next Steps

Financial Health

How is 5G Networks's financial position?


Financial Position Analysis

Short Term Liabilities: 5GN's short term assets (A$27.8M) exceed its short term liabilities (A$16.7M).

Long Term Liabilities: 5GN's short term assets (A$27.8M) exceed its long term liabilities (A$15.5M).


Debt to Equity History and Analysis

Debt Level: 5GN's debt to equity ratio (9.9%) is considered satisfactory.

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


Balance Sheet


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: Whilst unprofitable 5GN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 5GN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 125.8% per year.


Next Steps

Dividend

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

0.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 5GN's dividend (0.6%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.38%).

High Dividend: 5GN's dividend (0.6%) is low compared to the top 25% of dividend payers in the Australian market (5.65%).


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

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

AU$700k

CEO Compensation


CEO

Joe Demase

no data

Tenure

AU$699,562

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 ($USD504.12K) is above average for companies of similar size in the Australian market ($USD276.97K).

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


Ownership

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


Insider Trading Volume

Insider Buying: 5GN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 64.7%.


Top Shareholders

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$178.477m
  • Shares outstanding: 106.87m
  • 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, together with its subsidiaries, operates as a licensed telecommunications carrier in Australia. The company offers data connectivity, cloud and data center, and managed services. It pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 19:04
End of Day Share Price2020/09/22 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.