NZSE:SKO

Stock Analysis Report

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Executive Summary

Serko Limited, a Software-as-a-Service technology business, provides computer software solutions for online travel bookings and expense management in New Zealand, Australia, North America, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SKO is more volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SKO's weekly volatility has decreased from 13% to 6% over the past year, but is still higher than 75% of NZ stocks.


Market Performance


7 Day Return

-2.9%

SKO

-3.3%

NZ Software

0.6%

NZ Market


1 Year Return

8.4%

SKO

-30.0%

NZ Software

9.2%

NZ Market

Return vs Industry: SKO exceeded the NZ Software industry which returned -29.3% over the past year.

Return vs Market: SKO matched the NZ Market which returned 8.7% over the past year.


Shareholder returns

SKOIndustryMarket
7 Day-2.9%-3.3%0.6%
30 Day10.9%7.9%5.8%
90 Day38.5%4.5%6.4%
1 Year8.4%8.4%-27.7%-30.0%13.2%9.2%
3 Year196.7%196.7%-5.9%-12.2%51.1%31.7%
5 Year535.3%535.3%29.4%18.6%105.3%56.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.94x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: SKO 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 SKO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SKO's PB Ratio (8.9x) is in line with the NZ Software industry average.


Next Steps

Future Growth

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

71.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SKO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SKO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SKO's revenue (53.7% per year) is forecast to grow faster than the NZ market (5.6% per year).

High Growth Revenue: SKO's revenue (53.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SKO is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Serko performed over the past 5 years?

-13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKO is currently unprofitable.

Growing Profit Margin: SKO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SKO is unprofitable, and losses have increased over the past 5 years at a rate of 13.9% per year.

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

Earnings vs Industry: SKO is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.2%).


Return on Equity

High ROE: SKO has a negative Return on Equity (-33.8%), as it is currently unprofitable.


Next Steps

Financial Health

How is Serko's financial position?


Financial Position Analysis

Short Term Liabilities: SKO's short term assets (NZ$35.6M) exceed its short term liabilities (NZ$5.7M).

Long Term Liabilities: SKO's short term assets (NZ$35.6M) exceed its long term liabilities (NZ$707.0K).


Debt to Equity History and Analysis

Debt Level: SKO's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: SKO had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


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: SKO has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SKO has sufficient cash runway for 1.2 years if free cash flow continues to reduce at historical rates of 17.9% each year.


Next Steps

Dividend

What is Serko current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if SKO'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 SKO'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?

3.8yrs

Average management tenure


CEO

Darrin Grafton

no data

Tenure

NZ$630,734

Compensation

Mr. Darrin John Grafton, N.Z.C.D.P. is a Co-Founder of SERKO Limited and serves as its Chief Executive Officer. Mr. Grafton served as Development Manager at Serko Limited. He has 25 years of experience in ...


CEO Compensation Analysis

Compensation vs Market: Darrin's total compensation ($USD0.00) is below average for companies of similar size in the NZ market ($USD627.33K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Darrin Grafton
Co-Founderno dataNZ$630.73k10.41%
NZ$ 59.0m
Robert Shaw
Co-Founder13.67yrsNZ$430.83k4.79%
NZ$ 27.1m
Susan Putt
Chief Financial Officer3.92yrsno data0.27%
NZ$ 1.5m
Charles Nowaczek
Chief Operating Officer3.83yrsno data0.43%
NZ$ 2.4m
Sarah Miller
General Counsel & Secretaryno datano datano data
Nick Whitehead
Head of Marketingno datano datano data
Michael Thorburn
Head of Partnershipsno datano datano data
John Challis
Head of Business Developmentno datano data0.41%
NZ$ 2.3m
Philip Ball
Chief Information Security Officer2.92yrsno data1.1%
NZ$ 6.2m
Joanne Phipps
Acting Head of Product6.83yrsno datano data
Tony D'Astolfo
Senior Vice President of NORAM2.67yrsno datano data
Murray Warner
Head of Australasian marketno datano data0.095%
NZ$ 536.0k

3.8yrs

Average Tenure

Experienced Management: SKO's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Darrin Grafton
Co-Founderno dataNZ$630.73k10.41%
NZ$ 59.0m
Robert Shaw
Co-Founder13.67yrsNZ$430.83k4.79%
NZ$ 27.1m
Claudia Batten
Independent Chairperson0.75yrNZ$83.44k0.12%
NZ$ 672.8k
Simon Botherway
Independent Non-Executive Director6.67yrsNZ$107.83k0.26%
NZ$ 1.5m
Clyde McConaghy
Independent Non-Executive Director6.67yrsNZ$83.44k0.17%
NZ$ 980.4k

6.7yrs

Average Tenure

Experienced Board: SKO's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SKO insiders have sold more shares than they have bought 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 14.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Serko Limited
  • Ticker: SKO
  • Exchange: NZSE
  • Founded: 1994
  • Industry: Application Software
  • Sector: Software
  • Market Cap: NZ$566.449m
  • Shares outstanding: 105.68m
  • Website: https://www.serko.com

Number of Employees


Location

  • Serko Limited
  • Saatchi Building
  • Unit 14D
  • Auckland
  • 1010
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SKONZSE (New Zealand Stock Exchange)YesOrdinary sharesNZNZDJun 2014
SKOASX (Australian Securities Exchange)YesOrdinary sharesAUAUDJun 2014
SKOCHIA (Chi-X Australia)YesOrdinary sharesAUAUDJun 2014
SERK.FOTCPK (Pink Sheets LLC)YesOrdinary sharesUSUSDJun 2014

Biography

Serko Limited, a Software-as-a-Service technology business, provides computer software solutions for online travel bookings and expense management in New Zealand, Australia, North America, and internationa...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 06:01
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.