ASX:TTI

Stock Analysis Report

Executive Summary

Traffic Technologies Limited provides solutions to the traffic industry in Australia and internationally.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-10.5%

TTI

0.04%

AU Infrastructure

0.4%

AU Market


1 Year Return

-48.5%

TTI

30.0%

AU Infrastructure

9.8%

AU Market

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

Return vs Market: TTI underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

TTIIndustryMarket
7 Day-10.5%0.04%0.4%
30 Day-5.6%-0.6%-1.3%
90 Day-19.0%-1.9%-0.5%
1 Year-48.5%-48.5%35.3%30.0%16.1%9.8%
3 Year-50.1%-51.4%60.8%40.6%36.1%17.9%
5 Year-65.1%-66.0%134.8%89.1%49.4%15.7%

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?

6.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: TTI is good value based on its PE Ratio (6.5x) compared to the Infrastructure industry average (25.9x).

PE vs Market: TTI is good value based on its PE Ratio (6.5x) compared to the Australian market (18.2x).


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 good value based on its PB Ratio (0.4x) compared to the XO Infrastructure industry average (1.9x).


Next Steps

Future Growth

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

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTI's forecast earnings growth (4.7% per year) is above the savings rate (2.3%).

Earnings vs Market: TTI's earnings (4.7% per year) are forecast to grow slower than the Australian market (10.3% per year).

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

Revenue vs Market: Insufficient data to determine if TTI's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if TTI's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TTI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Traffic Technologies performed over the past 5 years?

28.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TTI has become profitable over the past 5 years, growing earnings by 28.9% per year.

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

Earnings vs Industry: TTI had negative earnings growth (-79.2%) over the past year, making it difficult to compare to the Infrastructure industry average (-1.4%).


Return on Equity

High ROE: TTI's Return on Equity (6%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: TTI has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Traffic Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: TTI's short term assets (A$24.8M) exceeds its short term liabilities (A$11.0M)

Long Term Liabilities: TTI's short term assets (24.8M) exceeds its long term liabilities (13.3M)


Debt to Equity History and Analysis

Debt Level: TTI's debt to equity ratio (61.1%) is considered high

Reducing Debt: TTI's debt to equity ratio has reduced from 77.3% to 61.1% over the past 5 years.

Debt Coverage: TTI's debt is not well covered by operating cash flow (11.5%).

Interest Coverage: TTI's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

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

Debt Coverage by Assets: TTI's debt is covered by short term assets (assets are 1.914620x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.6%industryaverage3.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate TTI'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 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

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

6.8yrs

Average board tenure


CEO

Con Liosatos (57yo)

0yrs

Tenure

AU$543,953

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 ($USD372.39K) is about average for companies of similar size in the Australian market ($USD257.37K).

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


Board Age and Tenure

6.8yrs

Average Tenure

57yo

Average Age

Experienced Board: TTI's board of directors are considered experienced (6.8 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$137,26128 May 19
Robert Minney
EntityIndividual
Shares5,644,630
Max PriceAU$0.026
BuyAU$10,63901 Apr 19
Constantinos Liosatos
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares442,091
Max PriceAU$0.024
BuyAU$4,60222 Mar 19
Constantinos Liosatos
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares200,000
Max PriceAU$0.023

Ownership Breakdown


Management Team

  • Peter Crafter (62yo)

    CFO & Company Secretary

    • Tenure: 12yrs
    • Compensation: AU$303.06k
  • Con Liosatos (57yo)

    CEO, MD & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$543.95k

Board Members

  • Garry Lowrey (57yo)

    Independent Non-Executive Chairman

    • Tenure: 3.9yrs
    • Compensation: AU$119.00k
  • Mark Hardgrave (61yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: AU$63.24k
  • Con Liosatos (57yo)

    CEO, MD & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$543.95k

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$8.198m
  • 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 provides solutions to the traffic industry in Australia and internationally. It designs, manufactures, and installs traffic signals, traffic controllers, portable roadside tech ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 10:33
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.