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

Fundamentals

Overvalued with concerning outlook.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

10.6%

SLC

0.7%

AU Telecom

1.0%

AU Market


1 Year Return

-41.3%

SLC

6.5%

AU Telecom

11.7%

AU Market

Return vs Industry: SLC underperformed the Australian Telecom industry which returned 6.5% over the past year.

Return vs Market: SLC underperformed the Australian Market which returned 11.7% over the past year.


Shareholder returns

SLCIndustryMarket
7 Day10.6%0.7%1.0%
30 Day2.3%-2.8%-0.2%
90 Day4.3%-4.1%0.3%
1 Year-39.1%-41.3%10.6%6.5%18.1%11.7%
3 Year-60.8%-62.2%-16.5%-28.8%37.4%19.0%
5 Yearn/a-11.2%-31.5%51.7%17.6%

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?

0.8x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: SLC (A$1.1) is trading above our estimate of fair value (A$0.67)

Significantly Undervalued: 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

Low 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 (2.4x).


Next Steps

Future Growth

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

59.7%

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 (7.5% per year) is forecast to grow faster than the Australian market (3.5% per year).

High Growth Revenue: SLC's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Superloop performed over the past 5 years?

-74.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SLC is unprofitable, and losses have increased over the past 5 years at a rate of -74.1% 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 (-40%).


Return on Equity

High ROE: SLC has a negative Return on Equity (-20.82%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Superloop's financial position?


Financial Position Analysis

Short Term Liabilities: SLC's short term assets (A$54.1M) do not cover its short term liabilities (A$59.7M)

Long Term Liabilities: SLC's short term assets (54.1M) do not cover its long term liabilities (123.7M)


Debt to Equity History and Analysis

Debt Level: SLC's debt to equity ratio (23.9%) 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 0.7x 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: Insufficient data to determine if SLC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

0.12%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.6%industryaverage4.2%forecastin3Years0.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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 .


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

What is the CEO of Superloop's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Drew Kelton 0

1.3yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

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


Management Age and Tenure

1.2yrs

Average Tenure

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


Board Age and Tenure

3.3yrs

Average Tenure

49yo

Average Age

Experienced Board: SLC's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: SLC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$94,40701 Oct 19
Gregory Baynton
EntityIndividual
Role
Member of the Board of Directors
Independent Non Executive Director
Shares115,131
Max PriceAU$0.82
BuyAU$008 Jul 19
BlackRock, Inc.
EntityCompany
Shares82,134
Max PriceAU$2.25
SellAU$008 Jul 19
BlackRock, Inc.
EntityCompany
Shares3,229,211
Max PriceAU$2.22
BuyAU$27,76028 Mar 19
Richard Anthony Clark
EntityIndividual
Role
Member of the Board of Directors
Independent Non Executive Director
Shares22,208
Max PriceAU$1.25
BuyAU$54,82612 Mar 19
Gregory Baynton
EntityIndividual
Role
Member of the Board of Directors
Independent Non Executive Director
Shares43,861
Max PriceAU$1.25
BuyAU$35,50612 Mar 19
Michael Malmone
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares28,405
Max PriceAU$1.25
BuyAU$4,247,87512 Mar 19
Bevan Slattery
EntityIndividual
Role
Member of the Board of Directors
Founder & Executive Director
Shares3,398,300
Max PriceAU$1.25

Ownership Breakdown


Management Team

  • Drew Kelton

    CEO & Director

    • Tenure: 1.3yrs
    • Compensation: AU$500.00k
  • Jason Ashton (47yo)

    Consultant

    • Tenure: 0yrs
    • Compensation: AU$240.21k
  • Bevan Slattery (48yo)

    Founder & Executive Director

    • Tenure: 5.5yrs
    • Compensation: AU$60.00k
  • Louise Bolger

    General Counsel & Company Secretary

    • Tenure: 0yrs
    • Compensation: AU$29.17k
  • Ashleigh Loughnan

    Group Head of People & Culture

    • Tenure: 0yrs
  • Alex West

    Group Chief Operating Officer

    • Tenure: 1.2yrs
    • Compensation: AU$379.07k
  • Matt Whitlock

    Chief Operations Officer of Infrastructure

    • Tenure: 0yrs
    • Compensation: AU$355.32k
  • Ryan Crouch

    Chief Operating Officer of Networks

    • Tenure: 0yrs
    • Compensation: AU$488.64k
  • Julian Breen

    Head of Customer Experience

    • Tenure: 0yrs
  • Jon Tidd

    Chief Financial Officer

    • Tenure: 1.1yrs

Board Members

  • Vivian Stewart (47yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: AU$90.00k
  • Greg Baynton (50yo)

    Independent Non Executive Director

    • Tenure: 5.5yrs
    • Compensation: AU$90.00k
  • Michael Malmone (50yo)

    Independent Non-Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: AU$110.00k
  • Drew Kelton

    CEO & Director

    • Tenure: 1.3yrs
    • Compensation: AU$500.00k
  • Bevan Slattery (48yo)

    Founder & Executive Director

    • Tenure: 5.5yrs
    • Compensation: AU$60.00k
  • Tony Clark

    Independent Non Executive Director

    • Tenure: 3.8yrs
    • Compensation: AU$60.00k

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$313.593m
  • Shares outstanding: 301.53m
  • Website: https://www.superloop.com

Number of Employees


Location

  • Superloop Limited
  • 333 Ann Street
  • Level 17
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SLCAOASX (Australian Securities Exchange)NPV DFD 21/10/19(EX-RIGHTS)AUAUDNo data
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, ent ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 10:44
End of Day Share Price2019/10/15 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.