ASX:SLC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable growth potential and fair value.

Risks

  • Superloop has significant price volatility in the past 3 months.

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

1.7%

ASX:SLC

-3.7%

AU Telecom

-0.4%

AU Market


1 Year Return

-61.9%

ASX:SLC

15.9%

AU Telecom

2.1%

AU Market

SLC underperformed the Telecom industry which returned 15.9% over the past year.

SLC underperformed the Market in Australia which returned 2.1% over the past year.


Share holder returns

SLCIndustryMarket
7 Day1.7%-3.7%-0.4%
30 Day0%-1.3%-2.5%
90 Day-47.4%2.7%0.5%
1 Year-61.6%-61.9%21.7%15.9%8.0%2.1%
3 Year-68.3%-68.6%-24.5%-35.6%32.4%14.9%
5 Yearn/a-9.1%-30.6%39.6%8.3%

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 based on future cash flows and its price relative to the stock market?

41%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Superloop's share price is below the future cash flow value, and at a moderate discount (> 20%).

Superloop's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Superloop is overvalued based on earnings compared to the AU Telecom industry average.

Superloop is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Superloop is poor value based on expected growth next year.


Price Based on Value of Assets

Superloop is good value based on assets compared to the AU Telecom industry average.


Next Steps

Future Growth

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

58.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Superloop's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).

Superloop's earnings are expected to grow significantly at over 20% yearly.

Superloop's revenue growth is expected to exceed the Australia market average.

Superloop's earnings growth is expected to exceed the Australia market average.

Superloop's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Superloop will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Superloop performed over the past 5 years?

69.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Superloop has delivered over 20% year on year earnings growth in the past 5 years.

Superloop has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Superloop has become profitable in the last year making it difficult to compare the AU Telecom industry average.


Return on Equity

Superloop has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Superloop used its assets less efficiently than the AU Telecom industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Superloop improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Superloop's financial position?


Financial Position Analysis

Superloop's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Superloop's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Superloop's level of debt (23.8%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Superloop's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (37.3%, greater than 20% of total debt).

Unable to confirm if the interest payments on Superloop's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

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

0.14%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Superloop's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Superloop's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Superloop has not reported any payouts.

Unable to verify if Superloop's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Superloop has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Superloop's dividends in 3 years as they are not expected to pay a notable one for Australia.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Drew Kelton 0

1.1yrs

Tenure

0

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 ...


Management Age and Tenure

1.0yrs

Average Tenure

The average tenure for the Superloop management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.2yrs

Average Tenure

49yo

Average Age

The tenure for the Superloop board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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
SellAU$5,350,91110 Sep 18
Smallco Investment Manager Limited
EntityCompany
Shares2,246,000
Max PriceAU$2.51
BuyAU$6,537,79809 Sep 18
BlackRock, Inc.
EntityCompany
Shares2,564,246
Max PriceAU$2.55
SellAU$224,52209 Sep 18
BlackRock, Inc.
EntityCompany
Shares98,029
Max PriceAU$2.45
SellAU$807,46331 Aug 18
Jason Ashton
EntityIndividual
Role
Consultant
Consultant
Shares352,604
Max PriceAU$2.29

Ownership Breakdown


Management Team

  • Drew Kelton

    CEO & Director

    • Tenure: 1.1yrs
  • Jason Ashton (47yo)

    Consultant

    • Tenure: 0.9yrs
    • Compensation: AU$388.28k
  • Bevan Slattery (48yo)

    Founder & Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$500.00k
  • Louise Bolger

    General Counsel & Company Secretary

    • Tenure: 0.0yrs
    • Compensation: AU$70.00k
  • Ashleigh Loughnan

    Group Head of People & Culture

    • Tenure: 0.0yrs
  • Alex West

    Group Chief Operating Officer

    • Tenure: 1.0yrs
    • Compensation: AU$379.07k
  • Matt Whitlock

    Chief Operations Officer of Infrastructure

    • Tenure: 0.0yrs
    • Compensation: AU$355.32k
  • Ryan Crouch

    Chief Operating Officer of Networks

    • Tenure: 0.0yrs
    • Compensation: AU$488.64k
  • Julian Breen

    Head of Customer Experience

    • Tenure: 0.0yrs
  • Jon Tidd

    Chief Financial Officer

    • Tenure: 0.9yrs

Board Members

  • Vivian Stewart (47yo)

    Independent Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$80.00k
  • Greg Baynton (50yo)

    Independent Non Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$80.00k
  • Michael Malmone (50yo)

    Independent Non-Executive Chairman

    • Tenure: 2.2yrs
    • Compensation: AU$110.00k
  • Drew Kelton

    CEO & Director

    • Tenure: 1.1yrs
  • Bevan Slattery (48yo)

    Founder & Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$500.00k
  • Tony Clark

    Independent Non Executive Director

    • Tenure: 3.7yrs
    • 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$233.037m
  • Shares outstanding: 253.30m
  • 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
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, construction, development, and operation of independent telecommunications infrastructure in the Asia Pacific region. The company offers network solutions for whole ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 10:36
End of Day Share Price2019/08/21 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.