AIM:ADAM

Stock Analysis Report

Executive Summary

Adamas Finance Asia Limited, an investment holding company, invests primarily in unlisted assets in the areas of mining, power generation, telecommunications, and media and technology.

Snowflake

Fundamentals

Overvalued with worrying balance sheet.

Share Price & News

How has Adamas Finance Asia's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

ADAM

-1.3%

GB Capital Markets

-0.4%

GB Market


1 Year Return

-48.5%

ADAM

19.7%

GB Capital Markets

2.9%

GB Market

Return vs Industry: ADAM underperformed the UK Capital Markets industry which returned 19.7% over the past year.

Return vs Market: ADAM underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

ADAMIndustryMarket
7 Day0%-1.3%-0.4%
30 Day-20.0%-3.1%-1.4%
90 Day-40.0%3.0%-2.1%
1 Year-48.5%-48.5%22.6%19.7%8.0%2.9%
3 Year-78.1%-78.1%77.2%64.6%18.0%3.6%
5 Year-78.6%-78.6%148.0%118.6%35.8%6.4%

Price Volatility Vs. Market

How volatile is Adamas Finance Asia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Adamas Finance Asia undervalued compared to its fair value and its price relative to the market?

0.29x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: ADAM is unprofitable, so we can't compare its PE Ratio to the Capital Markets industry average.

PE vs Market: ADAM is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ADAM is good value based on its PB Ratio (0.3x) compared to the GB Capital Markets industry average (1.3x).


Next Steps

Future Growth

How is Adamas Finance Asia forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.9%

Forecasted Diversified Financials 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 Adamas Finance Asia 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 Adamas Finance Asia performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ADAM is unprofitable, but has reduced losses over the past 5 years at a rate of 4.2% per year.

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

Earnings vs Industry: ADAM is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (4.6%).


Return on Equity

High ROE: ADAM has a negative Return on Equity (-2.3%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ADAM is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ADAM is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Adamas Finance Asia's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ADAM has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ADAM's debt is covered by short term assets.


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: ADAM has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: ADAM has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -31.5% each year


Financial Institutions Analysis

Asset Level: ADAM's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ADAM has a sufficient allowance for bad loans.

Low Risk Liabilities: ADAM reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ADAM has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ADAM has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ADAM has an appropriate level of bad loans.


Next Steps

Dividend

What is Adamas Finance Asia's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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


Next Steps

Management

What is the CEO of Adamas Finance Asia's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average board tenure


CEO

Adamas Finance Asia has no CEO, or we have no data on them.


Board Age and Tenure

2.1yrs

Average Tenure

64yo

Average Age

Experienced Board: ADAM's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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

BuyUS$1,187,99924 Sep 19
Cachet Asset Management Limited
EntityCompany
Shares3,300,000
Max PriceUS$0.36

Ownership Breakdown


Management Team

  • Suresh Withana (47yo)

    Co-Founder & Managing Partner of Harmony Capital Investors Limited

    • Tenure: 2.1yrs

Board Members

  • Hugh Trenchard (70yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: US$38.55k
  • Lee George Lam (60yo)

    Non-Executive Director

    • Tenure: 2yrs
    • Compensation: US$38.27k
  • John Croft (66yo)

    Non-Executive Chairman

    • Tenure: 6.7yrs
    • Compensation: US$79.84k
  • Stuart Crocker (62yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs

Company Information

Adamas Finance Asia Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Adamas Finance Asia Limited
  • Ticker: ADAM
  • Exchange: AIM
  • Founded:
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£21.076m
  • Shares outstanding: 87.82m
  • Website: https://www.adamasfinance.com

Location

  • Adamas Finance Asia Limited
  • CMA Building
  • 19th/Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADAMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPFeb 2014
1CP2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2014

Biography

Adamas Finance Asia Limited, an investment holding company, invests primarily in unlisted assets in the areas of mining, power generation, telecommunications, and media and technology. The company owns a l ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:52
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.