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ABB

Aussie BroadbandASX:ABB Stock Report

Market Cap

AU$1.1b

7D

7.2%

1Y

147.8%

Updated

19 Oct, 2021

Data

Company Financials +
ABB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health6/6
Dividends0/6

ABB Overview

Aussie Broadband Limited provides telecommunications services to residential and businesses in Australia.

Aussie Broadband Competitors

Deutsche Telekom

XTRA:DTE

€77.8b

Infineon Technologies

XTRA:IFX

€49.3b

Vodafone Group

LSE:VOD

UK£30.0b

Telstra

ASX:TLS

AU$45.5b

Price History & Performance

Summary of all time highs, changes and price drops for Aussie Broadband
Historical stock prices
Current Share PriceAU$5.08
52 Week HighAU$1.70
52 Week LowAU$5.25
Beta0
1 Month Change11.16%
3 Month Change84.73%
1 Year Change147.81%
3 Year Changen/a
5 Year Changen/a
Change since IPO165.97%

Recent News & Updates

Mar 22
Calculating The Fair Value Of Aussie Broadband Limited (ASX:ABB)

Calculating The Fair Value Of Aussie Broadband Limited (ASX:ABB)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Aussie Broadband...

Feb 24
MD & Executive Director Phillip Britt Just Sold A Bunch Of Shares In Aussie Broadband Limited (ASX:ABB)

MD & Executive Director Phillip Britt Just Sold A Bunch Of Shares In Aussie Broadband Limited (ASX:ABB)

Some Aussie Broadband Limited ( ASX:ABB ) shareholders may be a little concerned to see that the MD & Executive...

Shareholder Returns

ABBAU TelecomAU Market
7D7.2%0.5%1.7%
1Y147.8%30.5%20.2%

Return vs Industry: ABB exceeded the Australian Telecom industry which returned 31% over the past year.

Return vs Market: ABB exceeded the Australian Market which returned 20.3% over the past year.

Price Volatility

Is ABB's price volatile compared to industry and market?
ABB volatility
ABB Beta0
Industry Beta0.59
Market Beta1

Stable Share Price: ABB is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ABB's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2008n/aPhillip Britthttps://www.aussiebroadband.com.au

Aussie Broadband Limited provides telecommunications services to residential and businesses in Australia. It operates in two segments, Residential and Business. The company offers national broadband network (NBN) services to residential, small business, and large business/ enterprise customers.

Aussie Broadband Fundamentals Summary

How do Aussie Broadband's earnings and revenue compare to its market cap?
ABB fundamental statistics
Market CapAU$1.11b
Earnings (TTM)-AU$4.49m
Revenue (TTM)AU$350.27m

3.2x

P/S Ratio

-247.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABB income statement (TTM)
RevenueAU$350.27m
Cost of RevenueAU$293.33m
Gross ProfitAU$56.94m
ExpensesAU$61.43m
Earnings-AU$4.49m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.021
Gross Margin16.26%
Net Profit Margin-1.28%
Debt/Equity Ratio0%

How did ABB perform over the long term?

See historical performance and comparison

Valuation

Is Aussie Broadband undervalued compared to its fair value and its price relative to the market?

49.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABB (A$5.08) is trading below our estimate of fair value (A$9.97)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ABB is overvalued based on its PB Ratio (18.7x) compared to the AU Telecom industry average (3.2x).


Future Growth

How is Aussie Broadband forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

48.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

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

Revenue vs Market: ABB's revenue (18.1% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: ABB's revenue (18.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABB's Return on Equity is forecast to be high in 3 years time (23.2%)


Past Performance

How has Aussie Broadband performed over the past 5 years?

-39.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABB is currently unprofitable.

Growing Profit Margin: ABB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ABB is unprofitable, and losses have increased over the past 5 years at a rate of 39% per year.

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

Earnings vs Industry: ABB is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (2.1%).


Return on Equity

High ROE: ABB has a negative Return on Equity (-7.55%), as it is currently unprofitable.


Financial Health

How is Aussie Broadband's financial position?


Financial Position Analysis

Short Term Liabilities: ABB's short term assets (A$81.5M) exceed its short term liabilities (A$51.9M).

Long Term Liabilities: ABB's short term assets (A$81.5M) exceed its long term liabilities (A$5.4M).


Debt to Equity History and Analysis

Debt Level: ABB is debt free.

Reducing Debt: ABB had no debt 5 years ago.


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 ABB has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ABB is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 62.4% per year.


Dividend

What is Aussie Broadband current dividend yield, its reliability and sustainability?

0.46%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ABB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ABB's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ABB'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?

3.0yrs

Average board tenure


CEO

Phillip Britt

13.25yrs

Tenure

Mr. Phillip Britt has been Managing Director of Aussie Broadband Limited since July 2008 and serves as its Executive Director since 2008. He was Company Secretary at Aussie Broadband Limited until November...


Board Members

Experienced Board: ABB's board of directors are considered experienced (3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15%.


Top Shareholders

Company Information

Aussie Broadband Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Aussie Broadband Limited
  • Ticker: ABB
  • Exchange: ASX
  • Founded: 2008
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: AU$1.112b
  • Shares outstanding: 218.84m
  • Website: https://www.aussiebroadband.com.au

Location

  • Aussie Broadband Limited
  • 3 Electra Avenue
  • Morwell
  • Victoria
  • 3840
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 15:48
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.