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Gentrack Group

NZSE:GTK
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GTK
NZSE
NZ$562M
Market Cap
  1. Home
  2. NZ
  3. Software
Company description

Gentrack Group Limited engages in the development, integration, and support of enterprise billing and customer management software solutions for the energy and water utility, and airport industries in Australia, New Zealand, the United Kingdom, and internationally. The last earnings update was 171 days ago. More info.


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GTK Share Price and Events
7 Day Returns
-0.7%
NZSE:GTK
0.6%
NZ
0.6%
NZ Market
1 Year Returns
-23.1%
NZSE:GTK
10.4%
NZ
10.4%
NZ Market
GTK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Gentrack Group (GTK) -0.7% 2.3% 9.8% -23.1% 128.4% -
NZ 0.6% 1.7% 7.1% 10.4% 26.2% 51.2%
NZ Market 0.6% 1.7% 7.1% 10.4% 26.2% 51.2%
1 Year Return vs Industry and Market
  • GTK underperformed the Market industry which returned 10.4% over the past year.
  • GTK underperformed the Market in New Zealand which returned 10.4% over the past year.
Price Volatility
GTK
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Gentrack Group's competitors could be found in our database.

GTK Value

 Is Gentrack Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Gentrack Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Gentrack Group.

NZSE:GTK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 2.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NZSE:GTK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NZ Govt Bond Rate 2.4%
Equity Risk Premium S&P Global 6%
Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.892 (1 + (1- 28%) (0%))
0.928
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.37% + (0.928 * 5.96%)
7.9%

Discounted Cash Flow Calculation for NZSE:GTK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Gentrack Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NZSE:GTK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NZD, Millions) Source Present Value
Discounted (@ 7.9%)
2019 23.00 Analyst x1 21.32
2020 26.00 Analyst x1 22.33
2021 28.00 Analyst x1 22.29
2022 29.65 Est @ 5.9% 21.88
2023 31.09 Est @ 4.84% 21.26
2024 32.36 Est @ 4.1% 20.51
2025 33.52 Est @ 3.58% 19.69
2026 34.60 Est @ 3.22% 18.83
2027 35.62 Est @ 2.96% 17.97
2028 36.62 Est @ 2.79% 17.12
Present value of next 10 years cash flows NZ$203.19
NZSE:GTK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= NZ$36.62 × (1 + 2.37%) ÷ (7.9% – 2.37%)
NZ$677.87
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$677.87 ÷ (1 + 7.9%)10
NZ$316.91
NZSE:GTK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$203.19 + NZ$316.91
NZ$520.10
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$520.10 / 98.64
NZ$5.27
NZSE:GTK Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$5.27
Current discount Discount to share price of NZ$5.71
= -1 x (NZ$5.71 - NZ$5.27) / NZ$5.27
-8.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Gentrack Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Gentrack Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Gentrack Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:GTK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in NZD NZ$0.16
NZSE:GTK Share Price ** NZSE (2019-05-17) in NZD NZ$5.71
New Zealand Industry PE Ratio Median Figure of 90 Publicly-Listed Companies 17.94x
New Zealand Market PE Ratio Median Figure of 90 Publicly-Listed Companies 17.94x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Gentrack Group.

NZSE:GTK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NZSE:GTK Share Price ÷ EPS (both in NZD)

= 5.71 ÷ 0.16

35.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gentrack Group is overvalued based on earnings compared to the NZ Market industry average.
  • Gentrack Group is overvalued based on earnings compared to the New Zealand market.
Price based on expected Growth
Does Gentrack Group's expected growth come at a high price?
Raw Data
NZSE:GTK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 35.66x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
17.8%per year
New Zealand Industry PEG Ratio Median Figure of 66 Publicly-Listed Companies 1.51x
New Zealand Market PEG Ratio Median Figure of 66 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

NZSE:GTK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 35.66x ÷ 17.8%

2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gentrack Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Gentrack Group's assets?
Raw Data
NZSE:GTK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in NZD NZ$2.20
NZSE:GTK Share Price * NZSE (2019-05-17) in NZD NZ$5.71
New Zealand Industry PB Ratio Median Figure of 125 Publicly-Listed Companies 1.55x
New Zealand Market PB Ratio Median Figure of 125 Publicly-Listed Companies 1.55x
NZSE:GTK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:GTK Share Price ÷ Book Value per Share (both in NZD)

= 5.71 ÷ 2.20

2.6x

* Primary Listing of Gentrack Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gentrack Group is overvalued based on assets compared to the NZ Market industry average.
X
Value checks
We assess Gentrack Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the industry average (and greater than 0)? (1 check)
  5. Gentrack Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GTK Future Performance

 How is Gentrack Group expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Gentrack Group expected to grow at an attractive rate?
  • Gentrack Group's earnings growth is expected to exceed the low risk savings rate of 2.4%.
Growth vs Market Checks
  • Gentrack Group's earnings growth is expected to exceed the New Zealand market average.
  • Gentrack Group's revenue growth is expected to exceed the New Zealand market average.
Annual Growth Rates Comparison
Raw Data
NZSE:GTK Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:GTK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 17.8%
NZSE:GTK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 10%
New Zealand Industry Earnings Growth Rate Market Cap Weighted Average 6.9%
New Zealand Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 6.9%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NZSE:GTK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NZSE:GTK Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 140 29 24 4
2020-09-30 127 26 20 4
2019-09-30 113 24 17 4
NZSE:GTK Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2018-09-30 104 22 14
2018-06-30 101 23 14
2018-03-31 98 23 15
2017-12-31 87 18 13
2017-09-30 75 14 12
2017-06-30 67 14 12
2017-03-31 58 13 11
2016-12-31 56 14 10
2016-09-30 53 16 10
2016-06-30 50 14 10
2016-03-31 47 13 10
2015-12-31 44 13 10

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Gentrack Group's earnings are expected to grow by 17.8% yearly, however this is not considered high growth (20% yearly).
  • Gentrack Group's revenue is expected to grow by 10% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NZSE:GTK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Gentrack Group Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:GTK Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30 0.24 0.27 0.23 4.00
2020-09-30 0.20 0.23 0.19 4.00
2019-09-30 0.17 0.18 0.17 4.00
NZSE:GTK Past Financials Data
Date (Data in NZD Millions) EPS *
2018-09-30 0.16
2018-06-30 0.17
2018-03-31 0.17
2017-12-31 0.16
2017-09-30 0.15
2017-06-30 0.15
2017-03-31 0.16
2016-12-31 0.14
2016-09-30 0.13
2016-06-30 0.14
2016-03-31 0.14
2015-12-31 0.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Gentrack Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Gentrack Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the New Zealand market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the New Zealand market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Gentrack Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GTK Past Performance

  How has Gentrack Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Gentrack Group's growth in the last year to its industry ().
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Gentrack Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Gentrack Group's 1-year earnings growth is less than its 5-year average (17.3% vs 21.8%)
  • Gentrack Group's earnings growth has exceeded the NZ Market industry average in the past year (17.3% vs 0.8%).
Earnings and Revenue History
Gentrack Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Gentrack Group Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:GTK Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 104.48 13.87 1.54
2018-06-30 101.35 14.25 2.07
2018-03-31 98.21 14.63 4.70
2017-12-31 86.70 13.23 4.01
2017-09-30 75.18 11.83 1.22
2017-06-30 66.80 11.59 1.95
2017-03-31 58.42 11.36 2.68
2016-12-31 55.57 10.48 2.66
2016-09-30 52.73 9.61 2.64
2016-06-30 49.78 9.81 2.60
2016-03-31 46.83 10.02 2.56
2015-12-31 44.45 9.69 2.51
2015-09-30 42.07 9.37 2.45
2015-06-30 40.62 6.77 3.06
2015-03-31 39.18 4.17 3.66
2014-12-31 38.86 3.78 3.03
2014-09-30 38.53 3.38 2.40
2014-06-30 39.78 5.21 1.66
2014-03-31 41.03 7.04 0.92
2013-12-31 40.58 6.84 1.38
2013-09-30 40.13 6.64 1.84
2012-09-30 26.09 2.63 6.47

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Gentrack Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Gentrack Group used its assets less efficiently than the NZ Market industry average last year based on Return on Assets.
  • Gentrack Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Gentrack Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Gentrack Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GTK Health

 How is Gentrack Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Gentrack Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Gentrack Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Gentrack Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Gentrack Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Gentrack Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Gentrack Group Company Filings, last reported 7 months ago.

NZSE:GTK Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 216.43 0.00 11.40
2018-06-30 216.43 0.00 11.40
2018-03-31 123.24 44.68 7.11
2017-12-31 123.24 44.68 7.11
2017-09-30 118.53 44.99 9.73
2017-06-30 118.53 44.99 9.73
2017-03-31 106.61 30.27 79.22
2016-12-31 106.61 30.27 79.22
2016-09-30 70.96 0.00 18.82
2016-06-30 70.96 0.00 18.82
2016-03-31 68.08 0.00 9.88
2015-12-31 68.08 0.00 9.88
2015-09-30 69.50 0.00 12.37
2015-06-30 69.50 0.00 12.37
2015-03-31 66.16 0.00 5.44
2014-12-31 66.16 0.00 5.44
2014-09-30 65.70 0.01 5.25
2014-06-30 65.70 0.01 5.25
2014-03-31 29.65 33.73 3.22
2013-12-31 29.65 33.73 3.22
2013-09-30 33.82 28.73 0.14
2012-09-30 26.95 37.86 0.47
  • Gentrack Group has no debt.
  • Gentrack Group has no debt compared to 5 years ago when it was 85.2%.
  • Gentrack Group has no debt, it does not need to be covered by operating cash flow.
  • Gentrack Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Gentrack Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Gentrack Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GTK Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.55%
Current annual income from Gentrack Group dividends. Estimated to be 3.22% next year.
If you bought NZ$2,000 of Gentrack Group shares you are expected to receive NZ$51 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Gentrack Group's pays a lower dividend yield than the bottom 25% of dividend payers in New Zealand (3.3%).
  • Gentrack Group's dividend is below the markets top 25% of dividend payers in New Zealand (5.68%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NZSE:GTK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
New Zealand Industry Average Dividend Yield Market Cap Weighted Average of 73 Stocks 3.8%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 73 Stocks 3.8%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 2.2%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.3%
New Zealand Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NZSE:GTK Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2021-09-30 0.21 4.00
2020-09-30 0.18 4.00
2019-09-30 0.16 4.00
NZSE:GTK Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2018-11-29 0.146 2.818
2018-05-29 0.144 2.074
2017-11-29 0.127 1.912
2016-11-23 0.119 2.750
2016-05-25 0.114 3.619
2015-11-25 0.144 5.956
2015-05-28 0.082 4.028
2014-11-27 0.036 1.597

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gentrack Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Gentrack Group only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Gentrack Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Gentrack Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Gentrack Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Gentrack Group has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GTK Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ian Black
TENURE AS CEO 3.3 years
CEO Bio

Mr. Ian Black has been the Chief Executive Officer at Gentrack Group Limited, the holding company of Gentrack Limited since January 18, 2016. Mr. Black is a 30-year old veteran of the technology industry. Mr. Black has served as Chief Operating Officer of SAP Australia, Chief Executive Officer of SAP New Zealand and held sales management positions in both SAP and Oracle in APAC and the UK. Before joining Gentrack, he was a director of several number of innovative high growth start-up software and SaaS businesses.

CEO Compensation
  • Insufficient data for Ian to compare compensation growth.
  • Insufficient data for Ian to establish whether their remuneration is reasonable compared to companies of similar size in New Zealand.
Management Team Tenure

Average tenure of the Gentrack Group management team in years:

3.3
Average Tenure
  • The tenure for the Gentrack Group management team is about average.
Management Team

Ian Black

TITLE
Chief Executive Officer
TENURE
3.3 yrs

Tim Bluett

TITLE
Chief Financial Officer
TENURE
1.1 yrs

David Wills

TITLE
Chief Operating Officer

Jan Behrens

TITLE
Chief Technology Officer
TENURE
2.7 yrs

Jon Kershaw

TITLE
GM of Commercial & Legal and Company Secretary

Aaron Baker

TITLE
General Manager of Smart World Solutions and Marketing Manager
TENURE
13.9 yrs

Melina Lemalie

TITLE
Human Resources Manager
TENURE
3.3 yrs

Saul Nurtman

TITLE
Managing Director of UK & Europe

Glenn Sutherland

TITLE
Vice President of Asia
Board of Directors Tenure

Average tenure of the Gentrack Group board of directors in years:

6
Average Tenure
  • The tenure for the Gentrack Group board of directors is about average.
Board of Directors

John Clifford

TITLE
Non-Executive Chairman
COMPENSATION
NZ$103K
TENURE
12 yrs

Fiona Oliver

TITLE
Non-Executive Director
TENURE
0.3 yrs

Leigh Warren

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$62K
TENURE
7 yrs

Andy Coupe

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$62K
TENURE
5.1 yrs

James Docking

TITLE
Non-Executive Director
COMPENSATION
NZ$62K
TENURE
7 yrs

Nick Luckock

TITLE
Non-Executive Director
COMPENSATION
NZ$36K
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
02. Dec 18 Sell Mawer Investment Management Limited Company 29. Nov 18 29. Nov 18 -45,000 NZ$6.00 NZ$-269,784
23. Jul 18 Sell Harbour Asset Management Limited Company 11. Apr 18 20. Jul 18 -95,341 NZ$7.13 NZ$-679,995
23. Jul 18 Buy Harbour Asset Management Limited Company 11. Apr 18 20. Jul 18 1,580,289 NZ$6.53 NZ$10,322,350
23. Jul 18 Sell First NZ Capital Ltd., Asset Management Arm Company 11. Apr 18 20. Jul 18 -2,371,986 NZ$7.01 NZ$-16,616,229
23. Jul 18 Buy First NZ Capital Ltd., Asset Management Arm Company 11. Apr 18 20. Jul 18 2,347,328 NZ$6.99 NZ$16,416,682
28. Jun 18 Sell Glenn Sutherland Individual 21. Jun 18 25. Jun 18 -14,300 NZ$7.20 NZ$-102,999
X
Management checks
We assess Gentrack Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Gentrack Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GTK News

Simply Wall St News

Does Gentrack Group Limited (NZSE:GTK)'s Capital Return Make The Cut?

and want to begin learning the link between Gentrack Group Limited (NZSE:GTK)’s return fundamentals and stock market performance. … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Thus, to understand how your money can grow by investing in Gentrack Group, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Is Gentrack Group Limited's (NZSE:GTK) 12% Worse Than Average?

We'll use ROE to examine Gentrack Group Limited (NZSE:GTK), by way of a worked example. … That means that for every NZ$1 worth of shareholders' equity, it generated NZ$0.12 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Be Tempted To Sell Gentrack Group Limited (NZSE:GTK) Because Of Its PE Ratio?

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … While GTK might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … Check out our latest analysis for Gentrack Group

Simply Wall St -

Gentrack Group Limited (NZSE:GTK): Is Growth Priced In?

Gentrack Group Limited (NZSE:GTK) is considered a high growth stock. … What can we expect from Gentrack Group in the future. … Gentrack Group's extremely high growth potential in the near future is attracting investors

Simply Wall St -

Gentrack Group Limited (NZSE:GTK): A Look At Return On Capital

and want a simplistic look at the return on Gentrack Group Limited (NZSE:GTK) stock. … To understand Gentrack Group’s capital returns we will look at a useful metric called return on capital employed. … Gentrack Group's Return On Capital Employed

Simply Wall St -

A Look At Gentrack Group Limited (NZSE:GTK) And The Tech Sector

The line between hardware and software companies has blurred, with many businesses shifting from pure-hardware to software-defined hardware and from products to services and solutions … As enterprises in various industry sector look to technology to enable their own transformations, the opportunities for technology companies have widened extensively … However, more specifically in the IT service industry, tech analysts are forecasting

Simply Wall St -

Gentrack Group Limited (NZSE:GTK): What Can We Expect From Future Profit Margins?

As analysts project … Gentrack Group Limited (NZSE:GTK) to … earnings growth of 19.08% annualised

Simply Wall St -

What You Must Know About Gentrack Group Limited's (NZSE:GTK) Return on Equity

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Gentrack Group Limited (NZSE:GTK) delivered a less impressive 11.87% ROE over the past year, compared to the 15.52% return generated by its industry. … See our latest analysis for Gentrack Group

Simply Wall St -

Gentrack Group Limited (NZSE:GTK) Is Trading At A 24.81% Discount

by estimating the company's future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Is Gentrack Group Limited (NZSE:GTK) A Smart Choice For Dividend Investors?

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Gentrack Group Limited (NZSE:GTK) has returned to shareholders over the past 4 years, an average dividend yield of 3.00% annually. … Let's dig deeper into whether Gentrack Group should have a place in your portfolio.

Simply Wall St -

GTK Company Info

Description

Gentrack Group Limited engages in the development, integration, and support of enterprise billing and customer management software solutions for the energy and water utility, and airport industries in Australia, New Zealand, the United Kingdom, and internationally. It operates in two segments, Utility Billing Software and Airport Management Software. The company’s Velocity and Junifer solutions provide billing and customer management solutions. Its Airport 20/20, BlipTrack, and Concessionaire Analyzer+ offers operation solutions. The company was founded in 1989 and is headquartered in Auckland, New Zealand.

Details
Name: Gentrack Group Limited
GTK
Exchange: NZSE
Founded: 1989
NZ$562,275,525
98,644,829
Website: http://www.gentrack.com
Address: Gentrack Group Limited
17 Hargreaves Street,
St Marys Bay,
Auckland,
1011,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE GTK Ordinary Shares New Zealand Stock Exchange NZ NZD 25. Jun 2014
ASX GTK Ordinary Shares Australian Securities Exchange AU AUD 25. Jun 2014
CHIA GTK Ordinary Shares Chi-X Australia AU AUD 25. Jun 2014
Number of employees
Current staff
Staff numbers
530
Gentrack Group employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/19 10:35
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/04/26
Last earnings filing: 2018/11/29
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.