DB:4CQ

Stock Analysis Report

Executive Summary

Clean TeQ Holdings Limited, together with its subsidiaries, provides metals recovery and industrial water treatment services primarily in Australia.

Rewards

Earnings are forecast to grow -27.4% per year

Risk Analysis

Earnings are forecast to decline by an average of -27.4% per year for the next 3 years

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Excellent balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 4CQ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.8%

4CQ

-0.3%

DE Commercial Services

0.7%

DE Market


1 Year Return

-36.9%

4CQ

7.3%

DE Commercial Services

15.6%

DE Market

Return vs Industry: 4CQ underperformed the German Commercial Services industry which returned 9.1% over the past year.

Return vs Market: 4CQ underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

4CQIndustryMarket
7 Day4.8%-0.3%0.7%
30 Day29.7%-1.0%1.7%
90 Day25.7%9.9%6.3%
1 Year-36.9%-36.9%11.2%7.3%19.2%15.6%
3 Year-45.3%-45.3%8.1%-1.3%18.3%7.9%
5 Yearn/a9.1%-6.4%26.8%9.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.94x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 4CQ's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 4CQ's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 4CQ is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: 4CQ is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 4CQ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 4CQ is good value based on its PB Ratio (0.9x) compared to the DE Commercial Services industry average (3.2x).


Next Steps

Future Growth

How is Clean TeQ Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-27.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4CQ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: 4CQ is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 4CQ's is expected to become profitable in the next 3 years.

Revenue vs Market: 4CQ's revenue is expected to decline over the next 3 years (-34.8% per year).

High Growth Revenue: 4CQ's revenue is forecast to decline over the next 3 years (-34.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4CQ is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Clean TeQ Holdings performed over the past 5 years?

-20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4CQ is currently unprofitable.

Growing Profit Margin: 4CQ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 4CQ is unprofitable, and losses have increased over the past 5 years at a rate of -20.8% per year.

Accelerating Growth: Unable to compare 4CQ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 4CQ is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (6.2%).


Return on Equity

High ROE: 4CQ has a negative Return on Equity (-7.59%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Clean TeQ Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 4CQ's short term assets (A$97.5M) exceed its short term liabilities (A$12.1M).

Long Term Liabilities: 4CQ's short term assets (A$97.5M) exceed its long term liabilities (A$885.0K).


Debt to Equity History and Analysis

Debt Level: 4CQ's debt to equity ratio (0.06%) is considered satisfactory.

Reducing Debt: 4CQ's debt to equity ratio has reduced from 36.7% to 0.06% over the past 5 years.


Balance Sheet

Inventory Level: 4CQ has a high level of physical assets or inventory.

Debt Coverage by Assets: 4CQ's debt is covered by short term assets (assets are 711.7x debt).


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: 4CQ has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 4CQ has less than a year of cash runway if free cash flow continues to reduce at historical rates of -63.6% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.5%industryaverage3.3%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 4CQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 4CQ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 4CQ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 4CQ'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 4CQ's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Sam Riggall (47yo)

5.2yrs

Tenure

AU$662,240

Compensation

Mr. Sam Riggall, LLB (Hons), B.Comm., MBA, has been Managing Director and Chief Executive Officer of Clean TeQ Holdings Limited since April 24, 2017. He has been Executive Director of Clean TeQ Holdings Li ...


CEO Compensation Analysis

Compensation vs Market: Sam's total compensation ($USD457.03K) is about average for companies of similar size in the German market ($USD638.09K).

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


Management Age and Tenure

5.1yrs

Average Tenure

47yo

Average Age

Experienced Management: 4CQ's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

58yo

Average Age

Experienced Board: 4CQ's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: 4CQ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€68,61326 Dec 19
Ian Knight
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares488,400
Max Price€0.14
Sell€6,06609 Dec 19
Ian Knight
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares40,000
Max Price€0.15
Sell€1,579,85625 Sep 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares3,947,570
Max Price€0.40
Buy€7,806,38025 Sep 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares19,516,456
Max Price€0.40

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.7%.


Management Team

  • Melanie Jaye Leydin (46yo)

    Company Secretary

    • Tenure: 8.5yrs
    • Compensation: AU$96.00k
  • Nickolai Zontov

    Principal Scientist

    • Tenure: 20yrs
  • Peter Voigt (67yo)

    Founder & Chief Technical Officer

    • Tenure: 30yrs
  • Sam Riggall (47yo)

    MD, CEO & Executive Director

    • Tenure: 5.2yrs
    • Compensation: AU$662.24k
  • Ben Stockdale

    CFO & Investor Relations

    • Tenure: 5yrs
    • Compensation: AU$470.06k
  • John Carr

    Executive General Manager of Sales & Marketing

    • Ross Dive

      MD & Executive Director of UV Guard Australia Pty Ltd

      • Compensation: AU$153.60k
    • Stephen Grocott

      Chief Technical Development Officer

      • Tenure: 2yrs
    • Tim Kindred

      Project & Start-Up Director

      • Tenure: 1.9yrs
      • Compensation: AU$635.18k
    • Rae Wyatt

      General Manager of People & Culture

      • Tenure: 2yrs

    Board Members

    • Robert Martin Friedland (68yo)

      Non-Executive Co-Chairman

      • Tenure: 3.3yrs
      • Compensation: AU$127.50k
    • Eric Finlayson (58yo)

      Non-Executive Director

      • Tenure: 4.3yrs
      • Compensation: AU$90.00k
    • Judith Downes (65yo)

      Independent Non-Executive Director

      • Tenure: 1.3yrs
      • Compensation: AU$67.08k
    • Sam Riggall (47yo)

      MD, CEO & Executive Director

      • Tenure: 5.2yrs
      • Compensation: AU$662.24k
    • Mike Spreadborough

      Independent Non-Executive Director

      • Tenure: 3.1yrs
      • Compensation: AU$152.74k
    • Ross Dive

      MD & Executive Director of UV Guard Australia Pty Ltd

      • Compensation: AU$153.60k
    • Stef Loader

      Lead Independent Non-Executive Director

      • Tenure: 1yrs
      • Compensation: AU$107.50k
    • Ian Knight

      Independent Non-Executive Director

      • Tenure: 6.5yrs
      • Compensation: AU$101.95k
    • Zhaobai Jiang (56yo)

      Non-Executive Co-Chairman

      • Tenure: 2.5yrs
      • Compensation: AU$127.50k

    Company Information

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


    Key Information

    • Name: Clean TeQ Holdings Limited
    • Ticker: 4CQ
    • Exchange: DB
    • Founded: 1990
    • Industry: Environmental and Facilities Services
    • Sector: Commercial Services
    • Market Cap: AU$223.938m
    • Listing Market Cap: AU$138.787m
    • Shares outstanding: 746.46m
    • Website: https://www.cleanteq.com

    Location

    • Clean TeQ Holdings Limited
    • 21 Howleys Road
    • Unit 12
    • Notting Hill
    • Victoria
    • 3168
    • Australia

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    CLQASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2007
    CLQCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2007
    CTEQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2007
    4CQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2007
    CLQTSX (The Toronto Stock Exchange)YesOrdinary SharesCACADNov 2007

    Biography

    Clean TeQ Holdings Limited, together with its subsidiaries, provides metals recovery and industrial water treatment services primarily in Australia. It operates in two segments, Water and Metals. The Water segment offers Continuous Ionic Filtration and Macroporous Polymer Adsorption resin technologies to filter, separate, purify, and recycle polluted water for drinking, agricultural, recreational, and industrial uses. The Metals segment provides Clean-iX resin technology for the extraction and purification of a range of resources, including base and precious metals, as well as radioactive elements, such as uranium. This segment is also involved in the development of the Sunrise project in New South Wales. The company was founded in 1990 and is based in Notting Hill, Australia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 22:27
    End of Day Share Price2020/01/20 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.