NZSE:GTK

Stock Analysis Report

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Executive Summary

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. More Details

Rewards

Trading at 51.7% below our estimate of its fair value

Earnings are forecast to grow 112.96% per year

Risk Analysis

No risks detected for GTK from our risk checks.


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GTK is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GTK's weekly volatility has decreased from 10% to 5% over the past year.


Market Performance


7 Day Return

5.3%

GTK

2.9%

NZ Software

-2.1%

NZ Market


1 Year Return

-20.0%

GTK

-14.2%

NZ Software

8.8%

NZ Market

Return vs Industry: GTK underperformed the NZ Software industry which returned -14.2% over the past year.

Return vs Market: GTK underperformed the NZ Market which returned 8.8% over the past year.


Shareholder returns

GTKIndustryMarket
7 Day5.3%2.9%-2.1%
30 Day19.4%1.5%-6.5%
90 Day6.0%-3.6%-2.5%
1 Year-20.0%-20.0%-11.6%-14.2%12.7%8.8%
3 Year-72.9%-74.7%-7.8%-13.3%46.4%27.9%
5 Year-20.4%-30.4%42.4%30.6%88.5%43.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gentrack 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: GTK (NZ$1.6) is trading below our estimate of fair value (NZ$3.32)

Significantly Below Fair Value: GTK is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GTK is good value based on its PB Ratio (1x) compared to the NZ Software industry average (9.5x).


Next Steps

Future Growth

How is Gentrack Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

113.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GTK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

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

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

Revenue vs Market: GTK's revenue (1.7% per year) is forecast to grow slower than the NZ market (7.1% per year).

High Growth Revenue: GTK's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GTK's Return on Equity is forecast to be low in 3 years time (1.9%).


Next Steps

  • Explore growth companies in the Software industry.

Past Performance

How has Gentrack Group performed over the past 5 years?

-54.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GTK is currently unprofitable.

Growing Profit Margin: GTK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GTK is unprofitable, and losses have increased over the past 5 years at a rate of 54.2% per year.

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

Earnings vs Industry: GTK is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (32.4%).


Return on Equity

High ROE: GTK has a negative Return on Equity (-19.76%), as it is currently unprofitable.


Next Steps

Financial Health

How is Gentrack Group's financial position?


Financial Position Analysis

Short Term Liabilities: GTK's short term assets (NZ$38.7M) exceed its short term liabilities (NZ$30.2M).

Long Term Liabilities: GTK's short term assets (NZ$38.7M) exceed its long term liabilities (NZ$17.9M).


Debt to Equity History and Analysis

Debt Level: GTK's debt to equity ratio (1.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if GTK's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GTK's debt is well covered by operating cash flow (866.2%).

Interest Coverage: Insufficient data to determine if GTK's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

0.81%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if GTK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GTK is not paying a notable dividend for the NZ market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GTK's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.3yrs

Average management tenure


CEO

Gary Miles

0.33

Tenure

Mr. Gary Miles serves as Chief Executive Officer at Gentrack Limited since 2020 and serves as its Director. He Joined Gentrack in October 2020. He serves as Managing Director and Chief Executive Officer at...


Leadership Team

NamePositionTenureCompensationOwnership
Gary Miles
MD, CEO & Executive Director0.33yrno datano data
Alastair Spence
Chief Financial Officer1.08yrsno datano data
Zeev Berkowitz
Chief Operations Officer0.25yrno datano data
Loukas Tzitzis
Chief Technology Officer0.083yrno datano data
Jonathan Kershaw
GM of Commercial & Legal and Company Secretaryno datano datano data
Aaron Baker
Marketing & Communications Directorno datano datano data
Melina Lemalie
Head of PXno datano datano data
Richard Moore
Chief Information Security Officer of European Utilities0.17yrno datano data
James Williamson
Chief Executive Officer of Veovo1.17yrsno datano data
Glenn Sutherland
Vice President of Asiano datano datano data

0.3yrs

Average Tenure

Experienced Management: GTK's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gary Miles
MD, CEO & Executive Director0.33yrno datano data
Nicholas Luckock
Non-Executive Director3yrsNZ$20.70kno data
Andrew Green
Independent Chairman of Board0.25yrno datano data
Stewart Sherriff
Independent Non-Executive Director0.33yrno datano data
Fiona Oliver
Independent Non-Executive Director2yrsNZ$88.30kno data
Darc Rasmussen
Independent Non Executive Director1.17yrsNZ$49.80kno data

1.2yrs

Average Tenure

Experienced Board: GTK's board of directors are not considered experienced ( 1.2 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Gentrack Group Limited
  • Ticker: GTK
  • Exchange: NZSE
  • Founded: 1989
  • Industry: Application Software
  • Sector: Software
  • Market Cap: NZ$155.859m
  • Shares outstanding: 98.64m
  • Website: https://www.gentrack.com

Number of Employees


Location

  • Gentrack Group Limited
  • 17 Hargreaves Street
  • St Marys Bay
  • Auckland
  • 1011
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GTKNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJun 2014
GTKASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2014
GTKCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2014

Biography

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 Aust...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/01 06:01
End of Day Share Price2021/03/01 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.