ASX:TTI

Stock Analysis Report

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Executive Summary

Traffic Technologies Limited, together with its subsidiaries, provides traffic solutions in Australia and internationally. More Details


Snowflake Analysis

Adequate balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TTI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.4%

TTI

-1.7%

AU Infrastructure

-2.4%

AU Market


1 Year Return

176.5%

TTI

-10.1%

AU Infrastructure

-8.3%

AU Market

Return vs Industry: TTI exceeded the Australian Infrastructure industry which returned -10.4% over the past year.

Return vs Market: TTI exceeded the Australian Market which returned -8.9% over the past year.


Shareholder returns

TTIIndustryMarket
7 Day4.4%-1.7%-2.4%
30 Day51.6%-4.4%1.8%
90 Day135.0%-0.8%1.7%
1 Year176.5%176.5%-7.0%-10.1%-5.0%-8.3%
3 Year38.0%34.3%26.1%10.7%14.6%-0.08%
5 Year17.8%14.6%62.9%30.9%41.6%12.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TTI (A$0.05) is trading below our estimate of fair value (A$0.91)

Significantly Below Fair Value: TTI is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TTI is overvalued based on its PB Ratio (3.2x) compared to the AU Infrastructure industry average (1.5x).


Next Steps

Future Growth

How is Traffic Technologies forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

44.3%

Forecasted Transportation industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Traffic Technologies has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Traffic Technologies performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TTI is currently unprofitable.

Growing Profit Margin: TTI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TTI is unprofitable, but has reduced losses over the past 5 years at a rate of 8.4% per year.

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

Earnings vs Industry: TTI is unprofitable, making it difficult to compare its past year earnings growth to the Infrastructure industry (-22.4%).


Return on Equity

High ROE: TTI has a negative Return on Equity (-195.92%), as it is currently unprofitable.


Next Steps

Financial Health

How is Traffic Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: TTI's short term assets (A$21.6M) exceed its short term liabilities (A$21.6M).

Long Term Liabilities: TTI's short term assets (A$21.6M) exceed its long term liabilities (A$4.4M).


Debt to Equity History and Analysis

Debt Level: TTI's debt to equity ratio (157.8%) is considered high.

Reducing Debt: TTI's debt to equity ratio has increased from 75.6% to 157.8% over the past 5 years.


Balance Sheet


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: Whilst unprofitable TTI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TTI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 20% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

7.8yrs

Average board tenure


CEO

Con Liosatos (58 yo)

no data

Tenure

AU$540,046

Compensation

Mr. Constantinos Lambros Liosatos, also known as Con, MAICD, has been the Managing Director of Traffic Technologies Limited since April 2003 and serves as its Chief Executive Officer. Mr. Liosatos served a ...


CEO Compensation Analysis

Compensation vs Market: Con's total compensation ($USD385.83K) is above average for companies of similar size in the Australian market ($USD277.88K).

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


Board Members

NamePositionTenureCompensationOwnership
Constantinos Liosatos
CEO, MD & Executive Directorno dataAU$540.05k6.99%
A$ 1.5m
Garry Lowrey
Independent Non-Executive Chairman4.92yrsAU$119.00k1.49%
A$ 315.3k
Mark Hardgrave
Independent Non-Executive Director7.75yrsAU$63.24k0.67%
A$ 141.5k

7.8yrs

Average Tenure

58yo

Average Age

Experienced Board: TTI's board of directors are considered experienced (7.8 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Traffic Technologies Limited
  • Ticker: TTI
  • Exchange: ASX
  • Founded: 2004
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: AU$21.218m
  • Shares outstanding: 482.22m
  • Website: https://www.trafficltd.com.au

Location

  • Traffic Technologies Limited
  • 31 Brisbane Street
  • Eltham
  • Victoria
  • 3095
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TTIASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2004
TTICHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2004

Biography

Traffic Technologies Limited, together with its subsidiaries, provides traffic solutions in Australia and internationally. The company designs, manufactures, and installs traffic signals, traffic controlle ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 10:38
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.