ASX:QUB

Stock Analysis Report

Executive Summary

Qube Holdings Limited, together with its subsidiaries, provides integrated import and export logistics services in Australia.

Snowflake

Fundamentals

Second-rate dividend payer with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

QUB

0.04%

AU Infrastructure

0.4%

AU Market


1 Year Return

32.0%

QUB

30.0%

AU Infrastructure

9.8%

AU Market

Return vs Industry: QUB exceeded the Australian Infrastructure industry which returned 30% over the past year.

Return vs Market: QUB exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

QUBIndustryMarket
7 Day0%0.04%0.4%
30 Day3.2%-0.1%-1.1%
90 Day4.8%-2.1%-0.6%
1 Year35.1%32.0%35.3%30.0%16.1%9.8%
3 Year55.3%43.0%60.8%40.6%36.1%17.9%
5 Year57.0%35.8%134.8%89.1%49.4%15.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

26.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: QUB (A$3.26) is trading above our estimate of fair value (A$1.85)

Significantly Undervalued: QUB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: QUB is poor value based on its PE Ratio (26.6x) compared to the Infrastructure industry average (25.9x).

PE vs Market: QUB is poor value based on its PE Ratio (26.6x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: QUB is poor value based on its PEG Ratio (9.6x)


Price to Book Ratio

PB vs Industry: QUB is good value based on its PB Ratio (1.9x) compared to the XO Infrastructure industry average (1.9x).


Next Steps

Future Growth

How is Qube Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QUB's forecast earnings growth (2.8% per year) is above the savings rate (2.3%).

Earnings vs Market: QUB's earnings (2.8% per year) are forecast to grow slower than the Australian market (10.3% per year).

High Growth Earnings: QUB's earnings are forecast to grow, but not significantly.

Revenue vs Market: QUB's revenue (8.1% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: QUB's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: QUB's Return on Equity is forecast to be low in 3 years time (5.9%).


Next Steps

Past Performance

How has Qube Holdings performed over the past 5 years?

21.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: QUB's earnings have grown significantly by 21.2% per year over the past 5 years.

Accelerating Growth: QUB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: QUB had negative earnings growth (-1.4%) over the past year, making it difficult to compare to the Infrastructure industry average (-1.4%).


Return on Equity

High ROE: QUB's Return on Equity (7%) is considered low.


Return on Assets

ROA vs Industry: QUB's Return on Assets is below or equal to the Infrastructure industry average last year.


Return on Capital Employed

ROCE Improving: QUB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Qube Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: QUB's short term assets (A$506.6M) exceeds its short term liabilities (A$346.5M)

Long Term Liabilities: QUB's short term assets (506.6M) do not cover its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: QUB's debt to equity ratio (53.4%) is considered high

Reducing Debt: QUB's debt to equity ratio has increased from 24.3% to 53.4% over the past 5 years.

Debt Coverage: QUB's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: QUB's interest payments on its debt are well covered by EBIT (11x coverage).


Balance Sheet

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

Debt Coverage by Assets: QUB's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

2.09%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%2.4%markettop25%5.6%industryaverage3.6%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: QUB's dividend (2.09%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: QUB's dividend (2.09%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

Stable Dividend: QUB's dividend payments have been volatile in the past 10 years.

Growing Dividend: QUB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.5%), QUB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: QUB's dividends in 3 years are forecast to be covered by earnings (66.7% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Transportation industry.

Management

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

3.3yrs

Average management tenure


CEO

Maurice James (62yo)

0yrs

Tenure

AU$4,186,093

Compensation

Mr. Maurice A. James, B. Engineering, MBA serves as the Managing Director of Qube Holdings Limited (alternate name: Qube Logistics Holdings Limited) since September 1, 2011. Mr. James has over 30 years’ ex ...


CEO Compensation Analysis

Compensation vs. Market: Maurice's total compensation ($USD2.87M) is about average for companies of similar size in the Australian market ($USD2.30M).

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


Management Age and Tenure

3.3yrs

Average Tenure

Experienced Management: QUB's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

64.5yo

Average Age

Experienced Board: QUB's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$42,900,15406 Mar 19
Perpetual Limited
EntityCompany
Shares16,852,734
Max PriceAU$2.55
SellAU$98,721,99806 Mar 19
Perpetual Limited
EntityCompany
Shares36,578,308
Max PriceAU$2.70
SellAU$125,04528 Feb 19
Peter Dexter
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares44,500
Max PriceAU$2.81

Ownership Breakdown


Management Team

  • Don Smithwick

    • Tenure: 3.3yrs
    • Compensation: AU$998.18k
  • Paul Digney

    Chief Operating Officer

    • Tenure: 3.3yrs
    • Compensation: AU$1.98m
  • Maurice James (62yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$4.19m
  • Paul Lewis

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: AU$1.66m
  • William Hara

    Director of Strategic Assets Division

    • Tenure: 6.8yrs
    • Compensation: AU$1.65m
  • Adam Jacobs

    Company Secretary

    • Tenure: 3.3yrs

Board Members

  • Sam Kaplan (69yo)

    Non-Executive Deputy Chairman

    • Tenure: 8.6yrs
    • Compensation: AU$200.63k
  • Ross Burney (48yo)

    Non-Executive Director

    • Tenure: 8.1yrs
    • Compensation: AU$114.29k
  • Steve Mann

    Independent Non-Executive Director

    • Tenure: 0.08yrs
  • Allan Davies (67yo)

    Independent Non-Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: AU$260.41k
  • Peter Dexter (76yo)

    Non Executive Director

    • Tenure: 8.1yrs
    • Compensation: AU$139.79k
  • Sue Palmer (62yo)

    Non Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$117.99k
  • Maurice James (62yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$4.19m
  • Alan Miles

    Independent Non-Executive Director

    • Tenure: 8.1yrs
    • Compensation: AU$132.14k
  • Åge Holm

    Alternate Non-Executive Director

    • Tenure: 7.9yrs

Company Information

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


Key Information

  • Name: Qube Holdings Limited
  • Ticker: QUB
  • Exchange: ASX
  • Founded: 2011
  • Industry: Marine Ports and Services
  • Sector: Transportation
  • Market Cap: AU$5.293b
  • Shares outstanding: 1.62b
  • Website: https://www.qube.com.au

Location

  • Qube Holdings Limited
  • 45 Clarence Street
  • Level 27
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QUBASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 2007
QUBCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 2007
1K1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2007

Biography

Qube Holdings Limited, together with its subsidiaries, provides integrated import and export logistics services in Australia. The company’s Operating Division offers services relating to the import and exp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 10:34
End of Day Share Price2019/10/18 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.