ASX:5GN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

27.9%

5GN

2.1%

AU Telecom

1.7%

AU Market


1 Year Return

104.3%

5GN

6.6%

AU Telecom

10.3%

AU Market

Return vs Industry: 5GN exceeded the Australian Telecom industry which returned 6.6% over the past year.

Return vs Market: 5GN exceeded the Australian Market which returned 10.3% over the past year.


Shareholder returns

5GNIndustryMarket
7 Day27.9%2.1%1.7%
30 Day11.9%-0.04%-0.4%
90 Day-37.3%-4.4%-0.1%
1 Year106.8%104.3%10.7%6.6%16.7%10.3%
3 Yearn/a-15.6%-28.0%36.7%18.4%
5 Yearn/a-10.9%-31.3%50.9%16.9%

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 compared to its fair value and its price relative to the market?

3.64x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: 5GN (A$0.94) is trading above our estimate of fair value (A$0.3)

Significantly Undervalued: 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

Low 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 (3.6x) compared to the AU Telecom industry average (2.4x).


Next Steps

Future Growth

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

6.7%

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?

-1174.2%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 5GN is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

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

ROA vs Industry: 5GN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 5GN is currently unprofitable, so its Return on Capital Employed is negative.


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) exceeds its short term liabilities (A$11.2M)

Long Term Liabilities: 5GN's short term assets (12.5M) do not cover its long term liabilities (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 1.881880x 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?

1.06%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%2.5%markettop25%5.6%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 5GN's dividend (1.06%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.45%).

High Dividend: 5GN's dividend (1.06%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

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: Insufficient data to establish whether Joe's total compensation is reasonable compared to companies of similar size in the Australian market.

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.


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: 0yrs
    • Compensation: AU$1.88m
  • Garry White

    National Sales Director

    • Tenure: 0yrs
    • Compensation: AU$418.89k
  • Glen Dymond

    CFO & Company Secretary

    • Tenure: 0.08yrs
  • Glenn Flower

    Chief Marketing Officer

    • Tenure: 1yrs
  • Marco Mattiuzzo

    Chief Technical Manager

    • Tenure: 0yrs

Board Members

  • Albert Cheok (69yo)

    Independent Chairman

    • Tenure: 0yrs
    • Compensation: AU$224.86k
  • Joe Demase

    MD & Director

    • Tenure: 0yrs
    • Compensation: AU$1.88m
  • Jason Ashton (47yo)

    Non-Executive Director

    • Tenure: 0yrs
  • Joe Gangi

    Non-Executive Director

    • Tenure: 0yrs
    • 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$66.144m
  • Shares outstanding: 65.49m
  • 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

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 10:40
End of Day Share Price2019/10/17 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.