SEHK:3738

Stock Analysis Report

Executive Summary

Vobile Group Limited, an investment holding company, provides software as a service in the United States, Japan, Mainland China, Australia, and internationally.

Risk Analysis

Earnings have declined by -69.02% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

How has Vobile Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3738's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

3738

2.0%

HK Software

0.6%

HK Market


1 Year Return

-39.2%

3738

0.5%

HK Software

-1.5%

HK Market

Return vs Industry: 3738 underperformed the Hong Kong Software industry which returned 0.5% over the past year.

Return vs Market: 3738 underperformed the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

3738IndustryMarket
7 Day-0.5%2.0%0.6%
30 Day-7.9%-8.3%-3.9%
90 Day-15.6%-4.6%-0.3%
1 Year-39.2%-39.2%0.8%0.5%2.0%-1.5%
3 Yearn/a11.0%9.7%17.1%5.2%
5 Yearn/a4.2%-1.6%17.0%-2.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Vobile Group undervalued compared to its fair value and its price relative to the market?

2.76x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 3738's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 3738's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 3738 is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: 3738 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3738's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3738 is overvalued based on its PB Ratio (2.8x) compared to the HK Software industry average (1.2x).


Next Steps

Future Growth

How is Vobile Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

50.8%

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 Vobile 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

Past Performance

How has Vobile Group performed over the past 5 years?

-69.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3738 is currently unprofitable.

Growing Profit Margin: 3738 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 3738 is unprofitable, and losses have increased over the past 5 years at a rate of -69% per year.

Accelerating Growth: Unable to compare 3738's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 3738 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (5%).


Return on Equity

High ROE: 3738 has a negative Return on Equity (-9.17%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vobile Group's financial position?


Financial Position Analysis

Short Term Liabilities: 3738's short term assets ($23.6M) exceed its short term liabilities ($5.8M).

Long Term Liabilities: 3738's short term assets ($23.6M) exceed its long term liabilities ($495.0K).


Debt to Equity History and Analysis

Debt Level: 3738 is debt free.

Reducing Debt: 3738 had no debt 5 years ago.


Balance Sheet

Inventory Level: 3738 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 3738'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: 3738 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 3738 has sufficient cash runway for 1.149181 years if free cash flow continues to reduce at historical rates of -109.4% each year.


Next Steps

Dividend

What is Vobile Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.3%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 3738's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3738'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 3738's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3738'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 3738's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Bernard Wang (50yo)

14.9yrs

Tenure

US$485,000

Compensation

Mr. Yangbin Wang, also known as Bernard, has been Chairman of Board and Executive Director at Vobile Group Ltd since June 21, 2017 and July 28, 2016 respectively. Mr. Wang serves as Chief Executive Direct ...


CEO Compensation Analysis

Compensation vs Market: Bernard's total compensation ($USD485.00K) is above average for companies of similar size in the Hong Kong market ($USD213.05K).

Compensation vs Earnings: Bernard's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

5.8yrs

Average Tenure

50yo

Average Age

Experienced Management: 3738's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 3738's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 3738 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$8,780,66215 Nov 19
J. Wargo
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares3,980,000
Max PriceUS$2.21
BuyUS$3,315,00112 Nov 19
J. Wargo
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,500,000
Max PriceUS$2.21
BuyUS$4,938,00306 Nov 19
J. Wargo
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,000,000
Max PriceUS$2.47
BuyUS$2,585,00401 Nov 19
Yangbin Wang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares1,100,000
Max PriceUS$2.35
BuyUS$7,194,89801 Nov 19
J. Wargo
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares3,000,000
Max PriceUS$2.40
SellUS$264,47508 Aug 19
Steamboat Ventures, LLC
EntityCompany
Shares97,632
Max PriceUS$2.71
SellUS$58,22708 Aug 19
Steamboat Ventures, LLC
EntityCompany
Shares22,000
Max PriceUS$2.65
BuyUS$5,594,20702 Aug 19
J. Wargo
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,000,000
Max PriceUS$2.80
BuyUS$890,73031 Jul 19
Vernon Altman
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares300,000
Max PriceUS$2.97
BuyUS$5,729,99530 Jul 19
J. Wargo
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,000,000
Max PriceUS$2.86
BuyUS$14,465,01230 Jul 19
Yangbin Wang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,000,000
Max PriceUS$2.89
BuyUS$2,885,00327 Jul 19
Yangbin Wang
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares1,000,000
Max PriceUS$2.89
BuyUS$15,840,00524 Jul 19
J. Wargo
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares5,500,000
Max PriceUS$2.88
SellUS$881,36924 Jul 19
EDB Investments Pte. Ltd.
EntityCompany
Shares300,000
Max PriceUS$2.94
SellUS$42,19509 Apr 19
Steamboat Ventures Management Corporation Inc.
EntityCompany
Shares13,099
Max PriceUS$3.22
SellUS$11,206,24609 Apr 19
Steamboat Ventures, LLC
EntityCompany
Shares3,478,901
Max PriceUS$3.22
SellUS$39,000,04822 Mar 19
IPV Capital II HK Limited
EntityCompany
Shares13,000,000
Max PriceUS$3.00
SellUS$2,269,80111 Jan 19
IPV Capital II HK Limited
EntityCompany
Shares585,000
Max PriceUS$3.88

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.4%.


Management Team

  • Tim Erwin (50yo)

    Senior Vice President of Sales & Customer Relations

    • Tenure: 4.8yrs
  • Bernard Wang (50yo)

    Chairman & CEO

    • Tenure: 14.9yrs
    • Compensation: US$485.00k
  • Mike Witte (60yo)

    Executive VP of Business Development & Sales and Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$287.00k
  • Ben Smith (43yo)

    Senior Vice President of Business Development

    • Tenure: 5.8yrs
  • Vincent Ho (33yo)

    Financial Controller & Company Secretary

    • Tenure: 3.1yrs

Board Members

  • J. Wargo (66yo)

    Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: US$15.00k
  • Vernon Altman (73yo)

    Vice Chairman

    • Tenure: 1.4yrs
    • Compensation: US$15.00k
  • Jim Chiddix (73yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: US$15.00k
  • Stephen Wong (51yo)

    Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$25.00k
  • Bernard Wang (50yo)

    Chairman & CEO

    • Tenure: 14.9yrs
    • Compensation: US$485.00k
  • Mike Witte (60yo)

    Executive VP of Business Development & Sales and Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$287.00k
  • Kevin Chan (39yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: US$15.00k
  • Charles Eesley (39yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: US$15.00k

Company Information

Vobile Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vobile Group Limited
  • Ticker: 3738
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Application Software
  • Sector: Software
  • Market Cap: HK$913.472m
  • Shares outstanding: 424.87m
  • Website: https://www.vobilegroup.com

Number of Employees


Location

  • Vobile Group Limited
  • 2880 Lakeside Drive
  • Suite 360
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3738SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2018

Biography

Vobile Group Limited, an investment holding company, provides software as a service in the United States, Japan, Mainland China, Australia, and internationally. The company offers online video content prot ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 13:01
End of Day Share Price2019/12/06 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.