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ST1

Spirit Technology SolutionsASX:ST1 Stock Report

Market Cap

AU$177.2m

7D

12.5%

1Y

-21.7%

Updated

26 Oct, 2021

Data

Company Financials +
ST1 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance2/6
Financial Health5/6
Dividends0/6

ST1 Overview

Spirit Technology Solutions Ltd. provides telecommunication, cloud, managed IT, and cyber security services to small, medium, and enterprise size businesses in Australia.

Spirit Technology Solutions Competitors

Sern Kou Resources Berhad

KLSE:SERNKOU

RM473.6m

Wegmans Holdings Berhad

KLSE:WEGMANS

RM151.3m

SWS Capital Berhad

KLSE:SWSCAP

RM102.6m

Eurospan Holdings Berhad

KLSE:EUROSP

RM59.5m

Price History & Performance

Summary of all time highs, changes and price drops for Spirit Technology Solutions
Historical stock prices
Current Share PriceAU$0.27
52 Week HighAU$0.21
52 Week LowAU$0.45
Beta0.85
1 Month Change12.50%
3 Month Change-10.00%
1 Year Change-21.74%
3 Year Change68.75%
5 Year Change116.00%
Change since IPO134.78%

Recent News & Updates

Shareholder Returns

ST1AU TelecomAU Market
7D12.5%-0.6%0.8%
1Y-21.7%34.1%24.4%

Return vs Industry: ST1 underperformed the Australian Telecom industry which returned 34.1% over the past year.

Return vs Market: ST1 underperformed the Australian Market which returned 24.4% over the past year.

Price Volatility

Is ST1's price volatile compared to industry and market?
ST1 volatility
ST1 Beta0.85
Industry Beta0.59
Market Beta1

Stable Share Price: ST1 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ST1's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aSol Lukatskyhttps://www.spirit.com.au

Spirit Technology Solutions Ltd. provides telecommunication, cloud, managed IT, and cyber security services to small, medium, and enterprise size businesses in Australia. The company offers managed IT services; cyber security; work from home; back-up internet connections and unified communications; personal and business internet; and IT support services. It also provides cyber security services; managed print and Wi-FI services; and cloud services.

Spirit Technology Solutions Fundamentals Summary

How do Spirit Technology Solutions's earnings and revenue compare to its market cap?
ST1 fundamental statistics
Market CapAU$177.23m
Earnings (TTM)AU$1.16m
Revenue (TTM)AU$102.79m

153.4x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ST1 income statement (TTM)
RevenueAU$102.79m
Cost of RevenueAU$82.77m
Gross ProfitAU$20.02m
ExpensesAU$18.86m
EarningsAU$1.16m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0018
Gross Margin19.47%
Net Profit Margin1.13%
Debt/Equity Ratio9.1%

How did ST1 perform over the long term?

See historical performance and comparison

Valuation

Is Spirit Technology Solutions undervalued compared to its fair value and its price relative to the market?

153.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ST1's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ST1's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ST1 is poor value based on its PE Ratio (153.4x) compared to the Australian Telecom industry average (57.6x).

PE vs Market: ST1 is poor value based on its PE Ratio (153.4x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: ST1 is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: ST1 is good value based on its PB Ratio (1.6x) compared to the AU Telecom industry average (3.4x).


Future Growth

How is Spirit Technology Solutions forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

46.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ST1's forecast earnings growth (46.7% per year) is above the savings rate (1.9%).

Earnings vs Market: ST1's earnings (46.7% per year) are forecast to grow faster than the Australian market (12.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ST1's revenue (14.5% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: ST1's revenue (14.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ST1's Return on Equity is forecast to be low in 3 years time (8.4%).


Past Performance

How has Spirit Technology Solutions performed over the past 5 years?

22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ST1 has a large one-off loss of A$1.7M impacting its June 30 2021 financial results.

Growing Profit Margin: ST1 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ST1 has become profitable over the past 5 years, growing earnings by 22.4% per year.

Accelerating Growth: ST1 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ST1 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Telecom industry (2.1%).


Return on Equity

High ROE: ST1's Return on Equity (1.1%) is considered low.


Financial Health

How is Spirit Technology Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: ST1's short term assets (A$28.1M) do not cover its short term liabilities (A$43.0M).

Long Term Liabilities: ST1's short term assets (A$28.1M) exceed its long term liabilities (A$19.5M).


Debt to Equity History and Analysis

Debt Level: ST1's debt to equity ratio (9.1%) is considered satisfactory.

Reducing Debt: ST1's debt to equity ratio has reduced from 64.8% to 9.1% over the past 5 years.

Debt Coverage: ST1's debt is well covered by operating cash flow (50.5%).

Interest Coverage: ST1's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Dividend

What is Spirit Technology Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ST1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ST1'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 ST1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ST1'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 ST1'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?

2.1yrs

Average management tenure


CEO

Sol Lukatsky

2.08yrs

Tenure

AU$947,550

Compensation

Mr. Solomon Lukatsky, also known as Sol, has been an Executive Director of Spirit Technology Solutions Ltd. (formerly known as Spirit Telecom Limited) since June 21, 2019 and its Managing Director since Se...


CEO Compensation Analysis

Compensation vs Market: Sol's total compensation ($USD710.31K) is above average for companies of similar size in the Australian market ($USD301.38K).

Compensation vs Earnings: Sol's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ST1's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: ST1's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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 21.4%.


Top Shareholders

Company Information

Spirit Technology Solutions Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: Spirit Technology Solutions Ltd
  • Ticker: ST1
  • Exchange: ASX
  • Founded: NaN
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: AU$177.228m
  • Shares outstanding: 656.40m
  • Website: https://www.spirit.com.au

Location

  • Spirit Technology Solutions Ltd
  • 19-25 Raglan Street
  • Level 2
  • Melbourne
  • Victoria
  • 3205
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 16:27
End of Day Share Price2021/10/26 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.