Executive Summary
ICO Group Limited, an investment holding company, provides IT application services to institutions and enterprises in Hong Kong and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with excellent balance sheet.
Share Price & News
How has ICO Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1460 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: 1460's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-1.7%
1460
-3.0%
HK IT
2.2%
HK Market
1 Year Return
-34.1%
1460
12.3%
HK IT
7.2%
HK Market
Return vs Industry: 1460 underperformed the Hong Kong IT industry which returned 12.5% over the past year.
Return vs Market: 1460 underperformed the Hong Kong Market which returned 7.5% over the past year.
Shareholder returns
| 1460 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | -3.0% | 2.2% |
| 30 Day | 3.6% | 5.6% | 8.4% |
| 90 Day | -12.1% | 10.7% | 15.6% |
| 1 Year | -34.1%-34.1% | 14.5%12.3% | 11.4%7.2% |
| 3 Year | -83.5%-83.5% | -10.9%-15.5% | -3.4%-13.5% |
| 5 Year | -95.6%-95.6% | 41.3%26.4% | 65.4%37.4% |
Long-Term Price Volatility Vs. Market
How volatile is ICO Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
11 months ago | Simply Wall St
Is ICO Group Limited's (HKG:1460) CEO Paid At A Competitive Rate?1 year ago | Simply Wall St
Here's Why We Don't Think ICO Group's (HKG:1460) Statutory Earnings Reflect Its Underlying Earnings Potential1 year ago | Simply Wall St
Do You Like ICO Group Limited (HKG:1460) At This P/E Ratio?Valuation
Is ICO Group 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: 1460 (HK$0.29) is trading below our estimate of fair value (HK$1.85)
Significantly Below Fair Value: 1460 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1460 is good value based on its PE Ratio (2.9x) compared to the HK IT industry average (13.4x).
PE vs Market: 1460 is good value based on its PE Ratio (2.9x) compared to the Hong Kong market (11.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 1460's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 1460 is good value based on its PB Ratio (0.4x) compared to the HK IT industry average (1.2x).
Next Steps
Future Growth
How is ICO Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
36.3%
Forecasted Software 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 ICO Group 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
- Examine whether ICO Group is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- ICO Group competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Software industry.
Past Performance
How has ICO Group performed over the past 5 years?
21.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1460 has a large one-off gain of HK$35.3M impacting its September 30 2020 financial results.
Growing Profit Margin: 1460's current net profit margins (10.8%) are higher than last year (3.5%).
Past Earnings Growth Analysis
Earnings Trend: 1460's earnings have grown significantly by 21.6% per year over the past 5 years.
Accelerating Growth: 1460's earnings growth over the past year (148.1%) exceeds its 5-year average (21.6% per year).
Earnings vs Industry: 1460 earnings growth over the past year (148.1%) exceeded the IT industry -7.6%.
Return on Equity
High ROE: 1460's Return on Equity (13.6%) is considered low.
Next Steps
Financial Health
How is ICO Group's financial position?
Financial Position Analysis
Short Term Liabilities: 1460's short term assets (HK$302.9M) exceed its short term liabilities (HK$113.8M).
Long Term Liabilities: 1460's short term assets (HK$302.9M) exceed its long term liabilities (HK$58.9M).
Debt to Equity History and Analysis
Debt Level: 1460's debt to equity ratio (3.9%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if 1460's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: 1460's debt is well covered by operating cash flow (227.4%).
Interest Coverage: 1460's interest payments on its debt are well covered by EBIT (18.8x coverage).
Balance Sheet
Next Steps
Dividend
What is ICO Group current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate 1460's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate 1460'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 1460's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 1460'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 1460's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.8yrs
Average management tenure
CEO
ICO Group has no CEO, or we have no data on them.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Director | 0.17yr | HK$6.23m | 16.59% HK$ 34.0m | |
| Executive Chairman | 0.75yr | no data | 14.03% HK$ 28.7m | |
| Company Secretary & Financial Controller | no data | no data | no data | |
| Executive Director | 0.75yr | no data | no data | |
| Managing Director of ICO Technology Limited | 14.5yrs | no data | no data |
0.8yrs
Average Tenure
49yo
Average Age
Experienced Management: 1460's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Director | 0.17yr | HK$6.23m | 16.59% HK$ 34.0m | |
| Executive Chairman | 0.75yr | no data | 14.03% HK$ 28.7m | |
| Executive Director | 0.75yr | no data | no data | |
| Independent Non-Executive Director | 0.75yr | no data | no data | |
| Independent Non-Executive Director | 0.75yr | no data | no data | |
| Independent Non-Executive Director | 0.75yr | no data | no data |
0.8yrs
Average Tenure
44yo
Average Age
Experienced Board: 1460's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.
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 been diluted in the past year, with total shares outstanding growing by 35%.
Top Shareholders
Company Information
ICO Group Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: ICO Group Limited
- Ticker: 1460
- Exchange: SEHK
- Founded: 1992
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: HK$204.867m
- Shares outstanding: 706.44m
- Website: https://www.1460.hk
Number of Employees
Location
- ICO Group Limited
- Unit A, TG Place
- 25th Floor
- Kowloon
- Kowloon
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1460 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Mar 2015 |
Biography
ICO Group Limited, an investment holding company, provides IT application services to institutions and enterprises in Hong Kong and internationally. It operates through four segments: IT Application and So...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 10:03 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.