ASX:SLC

Stock Analysis Report

Executive Summary

Superloop Limited engages in the design, development, construction, and operation of independent telecommunications infrastructure in the Asia Pacific region.


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SLC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

SLC

-0.3%

AU Telecom

0.02%

AU Market


1 Year Return

-44.1%

SLC

14.5%

AU Telecom

14.6%

AU Market

Return vs Industry: SLC underperformed the Australian Telecom industry which returned 14.5% over the past year.

Return vs Market: SLC underperformed the Australian Market which returned 14.6% over the past year.


Shareholder returns

SLCIndustryMarket
7 Day0.6%-0.3%0.02%
30 Day-6.5%-0.7%0.2%
90 Day-9.8%5.5%5.4%
1 Year-42.0%-44.1%19.0%14.5%19.7%14.6%
3 Year-62.5%-63.9%-4.4%-18.6%38.7%20.2%
5 Yearn/a-19.2%-36.6%50.6%17.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.77x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SLC (A$0.87) is trading above our estimate of fair value (A$0.3)

Significantly Below Fair Value: SLC is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SLC is good value based on its PB Ratio (0.8x) compared to the AU Telecom industry average (2.9x).


Next Steps

Future Growth

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

35.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SLC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SLC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SLC's revenue (10.8% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: SLC's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SLC is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Superloop performed over the past 5 years?

-81.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLC is currently unprofitable.

Growing Profit Margin: SLC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SLC is unprofitable, and losses have increased over the past 5 years at a rate of -81.2% per year.

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

Earnings vs Industry: SLC is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-14.2%).


Return on Equity

High ROE: SLC has a negative Return on Equity (-20.46%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Superloop's financial position?


Financial Position Analysis

Short Term Liabilities: SLC's short term assets (A$37.4M) exceed its short term liabilities (A$31.1M).

Long Term Liabilities: SLC's short term assets (A$37.4M) do not cover its long term liabilities (A$87.9M).


Debt to Equity History and Analysis

Debt Level: SLC's debt to equity ratio (10.2%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: SLC's debt is not covered by short term assets (assets are 0.9x 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: SLC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SLC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -5.2% each year


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%5.4%industryaverage3.7%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate SLC'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 SLC's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

1.4yrs

Average management tenure


CEO

Drew Kelton 0

1.6yrs

Tenure

AU$500,000

Compensation

Mr. Alexander Andrew Kelton, also known as Drew, served as Non-Executive Director of Megaport Limited until June 1, 2019. Mr. Kelton has been the Chief Executive Officer of Superloop Ltd since July 1, 2018 ...


CEO Compensation Analysis

Compensation vs Market: Drew's total compensation ($USD331.76K) is about average for companies of similar size in the Australian market ($USD450.00K).

Compensation vs Earnings: Insufficient data to compare Drew's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Kelton
CEO, MD & Director1.6yrsAU$500.00kno data
Bevan Slattery
Founder & Non-Executive Director5.8yrsAU$60.00k17.5% A$55.7m
Louise Bolger
General Counsel & Company Secretary0yrsAU$29.17k0.020% A$64.7k
Jason Ashton
Consultant1.4yrsAU$240.21kno data
Lidia Valenzuela
Group Chief Financial Officer0.2yrsno datano data
Adrian Martin
Group Head of Global Sales0.08yrsno datano data
Ashleigh Loughnan
Group Head of People & Culture0yrsno datano data
Matthew Whitlock
Chief Operations Officer of Infrastructure0yrsAU$355.32kno data
Ryan Crouch
Chief Operating Officer of Networks0yrsAU$488.64kno data
Julian Breen
Head of Customer Experience0yrsno datano data

1.4yrs

Average Tenure

Experienced Management: SLC's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Alexander Kelton
CEO, MD & Director1.6yrsAU$500.00kno data
Bevan Slattery
Founder & Non-Executive Director5.8yrsAU$60.00k17.5% A$55.7m
Vivian Stewart
Independent Non-Executive Director3.2yrsAU$90.00k0.16% A$502.6k
Gregory Baynton
Independent Non Executive Director5.8yrsAU$90.00k0.27% A$845.1k
Michael Malone
Independent Non-Executive Chairman2.7yrsAU$110.00k0.21% A$674.7k
Richard Anthony Clark
Independent Non Executive Director4.2yrsAU$60.00k0.13% A$428.3k

3.7yrs

Average Tenure

49yo

Average Age

Experienced Board: SLC's board of directors are considered experienced (3.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SLC insiders have only sold shares 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 19.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Superloop Limited
  • Ticker: SLC
  • Exchange: ASX
  • Founded: 2014
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: AU$318.304m
  • Shares outstanding: 365.87m
  • Website: https://www.superloop.com

Number of Employees


Location

  • Superloop Limited
  • 545 Queen Street
  • Level 1
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SLCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2015
SLCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2015
9SLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2015

Biography

Superloop Limited engages in the design, development, construction, and operation of independent telecommunications infrastructure in the Asia Pacific region. It offers network solutions for wholesale, enterprise, and channel customers. The company is also involved in the operation of a fixed wireless broadband network; and provision of outsourced cloud and managed services, and cyber security and cyber safety services. In addition, it manages and delivers broadband solutions for campus environments, including student accommodations, hotels, and schools; and offers residential and small business broadband services through fixed wireless or fixed line NBN services. The company was founded in 2014 and is headquartered in Brisbane, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 10:49
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.