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SKO

SerkoNZSE:SKO Stock Report

Last Price

NZ$6.14

Market Cap

NZ$728.2m

7D

-1.1%

1Y

7.0%

Updated

17 Jan, 2022

Data

Company Financials +
SKO fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance0/6
Financial Health6/6
Dividends0/6

SKO Stock Overview

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.

Price History & Performance

Summary of all time highs, changes and price drops for Serko
Historical stock prices
Current Share PriceNZ$6.14
52 Week HighNZ$8.35
52 Week LowNZ$5.17
Beta1.66
1 Month Change-7.81%
3 Month Change-23.73%
1 Year Change6.97%
3 Year Change91.28%
5 Year Change1,946.67%
Change since IPO546.32%

Recent News & Updates

Nov 25
Here's Why We're Not Too Worried About Serko's (NZSE:SKO) Cash Burn Situation

Here's Why We're Not Too Worried About Serko's (NZSE:SKO) Cash Burn Situation

We can readily understand why investors are attracted to unprofitable companies. For example, biotech and mining...

Nov 25
The Consensus EPS Estimates For Serko Limited (NZSE:SKO) Just Fell Dramatically

The Consensus EPS Estimates For Serko Limited (NZSE:SKO) Just Fell Dramatically

The analysts covering Serko Limited ( NZSE:SKO ) delivered a dose of negativity to shareholders today, by making a...

Shareholder Returns

SKONZ SoftwareNZ Market
7D-1.1%-6.1%-1.4%
1Y7.0%0.5%-6.5%

Return vs Industry: SKO exceeded the NZ Software industry which returned 0.5% over the past year.

Return vs Market: SKO exceeded the NZ Market which returned -6.5% over the past year.

Price Volatility

Is SKO's price volatile compared to industry and market?
SKO volatility
SKO Average Weekly Movement5.9%
Software Industry Average Movement6.4%
Market Average Movement3.7%
10% most volatile stocks in NZ Market6.5%
10% least volatile stocks in NZ Market2.3%

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 (6%) has been stable over the past year, but is still higher than 75% of NZ stocks.

About the Company

FoundedEmployeesCEOWebsite
1994287Darrin Graftonhttps://www.serko.com

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. The company offers Zeno Travel, an online booking tool that corporate travelers use to book flights, trains, hotels, rental cars, and airport transfers in line with their corporate travel policies; and Zeno Expense, which automates the process of corporate card and out-of-pocket expense submission, reconciliation, and reimbursement. It also provides Serko mobile, a mobile app for iPhones and android devices that gives users access to information and travel booking functionality on their mobile devices.

Serko Fundamentals Summary

How do Serko's earnings and revenue compare to its market cap?
SKO fundamental statistics
Market CapNZ$728.25m
Earnings (TTM)-NZ$34.44m
Revenue (TTM)NZ$17.55m

41.4x

P/S Ratio

-21.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SKO income statement (TTM)
RevenueNZ$17.55m
Cost of RevenueNZ$33.19m
Gross Profit-NZ$15.64m
ExpensesNZ$18.80m
Earnings-NZ$34.44m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.29
Gross Margin-89.15%
Net Profit Margin-196.27%
Debt/Equity Ratio0.07%

How did SKO perform over the long term?

See historical performance and comparison

Valuation

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

8.18x

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 Oceanic 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 is overvalued based on its PB Ratio (8.2x) compared to the NZ Software industry average (3.3x).


Future Growth

How is Serko forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

97.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.1%).

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

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

Revenue vs Market: SKO's revenue (75.9% per year) is forecast to grow faster than the NZ market (4.8% per year).

High Growth Revenue: SKO's revenue (75.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SKO's Return on Equity is forecast to be low in 3 years time (8.2%).


Past Performance

How has Serko performed over the past 5 years?

-66.2%

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 66.2% 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 (28.9%).


Return on Equity

High ROE: SKO has a negative Return on Equity (-38.73%), as it is currently unprofitable.


Financial Health

How is Serko's financial position?


Financial Position Analysis

Short Term Liabilities: SKO's short term assets (NZ$68.8M) exceed its short term liabilities (NZ$8.9M).

Long Term Liabilities: SKO's short term assets (NZ$68.8M) exceed its long term liabilities (NZ$832.0K).


Debt to Equity History and Analysis

Debt Level: SKO has more cash than its total debt.

Reducing Debt: SKO's debt to equity ratio has reduced from 7% to 0.07% over the past 5 years.


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 1.9 years if free cash flow continues to reduce at historical rates of 44.7% each year.


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?

4.5yrs

Average management tenure


CEO

Darrin Grafton

no data

Tenure

NZ$690,568

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 experience in the travel t...


CEO Compensation Analysis

Compensation vs Market: Darrin's total compensation ($USD470.45K) is about average for companies of similar size in the NZ market ($USD477.89K).

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


Leadership Team

Experienced Management: SKO's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: SKO's board of directors are considered experienced (7.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SKO insiders have only sold shares 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 11.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Serko Limited
  • Ticker: SKO
  • Exchange: NZSE
  • Founded: 1994
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: NZ$728.246m
  • Shares outstanding: 118.41m
  • Website: https://www.serko.com

Number of Employees


Location

  • Serko Limited
  • Saatchi Building
  • Unit 14D, Level 1
  • Auckland
  • 1010
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 12:14
End of Day Share Price2022/01/17 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.