ASX:SDA

Stock Analysis Report

Speedcast International

Executive Summary

Speedcast International Limited, together with its subsidiaries, provides remote communications and IT services.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Speedcast International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SDA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

SDA

-1.8%

AU Telecom

0.3%

AU Market


1 Year Return

-78.9%

SDA

-10.7%

AU Telecom

-22.9%

AU Market

Return vs Industry: SDA underperformed the Australian Telecom industry which returned -10.6% over the past year.

Return vs Market: SDA underperformed the Australian Market which returned -22.8% over the past year.


Shareholder returns

SDAIndustryMarket
7 Day0%-1.8%0.3%
30 Day0%-13.0%-27.8%
90 Day-14.1%-15.9%-30.0%
1 Year-78.9%-78.9%-7.5%-10.7%-19.4%-22.9%
3 Year-76.6%-77.4%-22.0%-32.9%-8.3%-20.8%
5 Year-64.4%-69.0%-34.9%-49.6%2.9%-20.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Speedcast International 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: SDA (A$0.79) is trading below our estimate of fair value (A$6.81)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SDA is good value based on its PB Ratio (1.3x) compared to the AU Telecom industry average (1.8x).


Next Steps

Future Growth

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

100.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SDA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

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

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

Revenue vs Market: SDA's revenue (3.8% per year) is forecast to grow slower than the Australian market (4.2% per year).

High Growth Revenue: SDA's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SDA's Return on Equity is forecast to be high in 3 years time (33.7%)


Next Steps

Past Performance

How has Speedcast International performed over the past 5 years?

-81.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SDA is currently unprofitable.

Growing Profit Margin: SDA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SDA is unprofitable, and losses have increased over the past 5 years at a rate of -81.9% per year.

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

Earnings vs Industry: SDA is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-8.9%).


Return on Equity

High ROE: SDA has a negative Return on Equity (-184.99%), as it is currently unprofitable.


Next Steps

Financial Health

How is Speedcast International's financial position?


Financial Position Analysis

Short Term Liabilities: SDA's short term assets ($361.7M) exceed its short term liabilities ($281.1M).

Long Term Liabilities: SDA's short term assets ($361.7M) do not cover its long term liabilities ($754.6M).


Debt to Equity History and Analysis

Debt Level: SDA's debt to equity ratio (717.1%) is considered high.

Reducing Debt: SDA's debt to equity ratio has increased from 175.1% to 717.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: SDA's debt is not covered by short term assets (assets are 0.5x 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: Insufficient data to determine if SDA has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is Speedcast International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: SDA is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

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

1.2yrs

Average management tenure


CEO

Peter Shaper (53yo)

no data

Tenure

Mr. Peter Todd Shaper serves as Chief Executive Officer of Speedcast International Limited since March 01, 2020, serves as an Executive Director since February 01, 2020 and served as an Interim Co-Chief Ex ...


Leadership Team

NamePositionTenureCompensationOwnership
Keith Johnson
Executive Vice President of Energy1.17yrsUS$554.57kno data
Erwan Emilian
Executive Vice President of Enterprise & Emerging Marketsno dataUS$276.24kno data
Athina Vezyri
Chief Commercial Officer of Maritimeno dataUS$468.30k0.60% $1.1m
Peter Shaper
CEO & Executive Directorno datano datano data
Joseph Spytek
President0.50yrno datano data
Peter Myers
CFO & Joint Company Secretary0.33yrno datano data
Jennifer Grigel
Chief Operating Officer0.17yrno datano data
John Truschinger
Chief Administrative Officer1.17yrsno datano data
Vanessa Cardonnel
Senior Vice President of Corporate Development & Investor Relationsno datano datano data
Dominic Thomas Gyngell
General Counsel & Joint Company Secretary2.17yrsno datano data

1.2yrs

Average Tenure

Experienced Management: SDA's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Peter Shaper
CEO & Executive Directorno datano datano data
Joseph Spytek
President0.50yrno datano data
Peter Edward Jackson
Independent Non-Executive Director7.42yrsUS$80.00k0.16% $310.4k
Grant Ferguson
Independent Non-Executive Director7.17yrsUS$85.00k0.19% $368.9k
Michael Malone
Independent Non-Executive Director5.83yrsUS$75.00k0.15% $290.2k
Stephe Wilks
Chairman0.58yrno data0.042% $79.0k

3.2yrs

Average Tenure

56yo

Average Age

Experienced Board: SDA's board of directors are considered experienced (3.2 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Speedcast International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Speedcast International Limited
  • Ticker: SDA
  • Exchange: ASX
  • Founded: 1999
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: AU$189.396m
  • Shares outstanding: 239.74m
  • Website: https://www.speedcast.com

Number of Employees


Location

  • Speedcast International Limited
  • Lakes Business Park
  • Unit 4F
  • Botany
  • New South Wales
  • 2019
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SDAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2014
SDACHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2014
7SCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2014
SPPD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2014

Biography

Speedcast International Limited, together with its subsidiaries, provides remote communications and IT services. The company offers managed satellite, cellular, and fiber network services; and designs, deploys, operates, and maintains telecommunications networks. It also provides value-added services, including user applications, network optimization, and network monitoring and management. In addition, the company offers professional services, such as project management, network design and optimization, managed cyber-security services, training, and remote it management and support services; and wholesale voice services to telecom customers. Further, it sells network equipment directly to customers comprising satellite terminals, modems, routers, and other types of equipment related to the provision of network and value added services. Additionally, the company provides network and IT systems integration services to public safety, utility, oil and gas telecom, and maritime clients. Speedcast International Limited has a strategic partnership with Contiamo GmbH to deliver analytics solutions for optimized operational decision-making. The company was founded in 1999 and is headquartered in Botany, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 10:48
End of Day Share Price2020/01/31 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.