OTCPK:NVTZ.F

Stock Analysis Report

Executive Summary

Navitas Limited provides educational services for students and professionals in Australia, the United Kingdom, Europe, Asia, Canada, the United States, and internationally.

Snowflake

Fundamentals

Reasonable growth potential second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:NVTZ.F

3.2%

US Consumer Services

0.2%

US Market


1 Year Return

n/a

OTCPK:NVTZ.F

9.9%

US Consumer Services

-0.7%

US Market


Share holder returns

NVTZ.FIndustryMarket
7 Day0%3.2%0.2%
30 Day0%2.4%-2.7%
90 Day-3.1%10.3%1.6%
1 Yearn/a13.7%9.9%1.6%-0.7%
3 Year14.7%14.7%111.6%99.6%40.0%30.9%
5 Yearn/a140.1%115.4%53.8%36.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

63.88x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Navitas's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Navitas's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Navitas is loss making, we can't compare its value to the US Consumer Services industry average.

Navitas is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Navitas is loss making, we can't assess if its growth is good value.


Price Based on Value of Assets

Navitas is overvalued based on assets compared to the US Consumer Services industry average.


Next Steps

Future Growth

How is Navitas expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

68.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Navitas's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).

Navitas's earnings are expected to grow significantly at over 20% yearly.

Navitas's revenue growth is positive but not above the United States of America market average.

Navitas's earnings growth is expected to exceed the United States of America market average.

Navitas's earnings growth is expected to exceed the low risk savings rate of 3%.


Earnings per Share Growth Estimates


Future Return on Equity

Navitas is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Navitas performed over the past 5 years?

-10.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Navitas does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Navitas's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Navitas's 1-year growth to the US Consumer Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Navitas has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Navitas has efficiently used its assets last year compared to the US Consumer Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

Navitas's use of capital has not improved over the past 3 years (Return on Capital Employed).


Next Steps

Financial Health

How is Navitas's financial position?


Financial Position Analysis

Navitas's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Navitas's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Navitas's level of debt (985%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (64.3% vs 985% today).

Debt is well covered by operating cash flow (32.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.6x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

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

4.00%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Navitas's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).

Navitas's dividend is below the markets top 25% of dividend payers in United States of America (3.58%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

David Buckingham 0

0.6yrs

Tenure

AU$761,339

Compensation

Mr. David Buckingham, BTech (Hons), CA UK, UK ACT, GAICD, is Managing Director at Navitas Ltd since July 1, 2018 and is its Group Chief Executive Officer since March 1, 2018. Mr. Buckingham was the Chief F ...


CEO Compensation Analysis

David's remuneration is lower than average for companies of similar size in United States of America.

David's compensation has increased whilst company is loss making.


Management Age and Tenure

2.5yrs

Average Tenure

The tenure for the Navitas management team is about average.


Board Age and Tenure

4.3yrs

Average Tenure

63yo

Average Age

The tenure for the Navitas board of directors is about average.


Insider Trading

No 3 month insider trading information.


Recent Insider Transactions

SellAU$9,457,61625 Jun 19
Orbis Investment Management Limited
EntityCompany
Shares2,342,420
Max PriceAU$4.06
SellAU$25,71522 Mar 19
AustralianSuper Pty Ltd
EntityCompany
Shares6,851
Max PriceAU$4.05
BuyAU$3,456,99309 Oct 18
AustralianSuper Pty Ltd
EntityCompany
Shares894,647
Max PriceAU$3.86
SellAU$1,203,89109 Oct 18
AustralianSuper Pty Ltd
EntityCompany
Shares305,472
Max PriceAU$3.94
BuyAU$10,364,58229 Aug 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares3,364,302
Max PriceAU$3.16
BuyAU$4,204,80029 Aug 18
Realindex Investments Pty Limited
EntityCompany
Shares1,283,919
Max PriceAU$3.27
SellAU$19,919,58429 Aug 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares5,919,478
Max PriceAU$3.39

Ownership Breakdown


Management Team

  • Rob Lourey (59yo)

    Head of Human Resources

    • Tenure: 5.1yrs
    • Compensation: AU$451.63k
  • Hugh Hangchi

    Company Secretary & Group General Counsel

    • Tenure: 0.0yrs
    • Compensation: AU$148.89k
  • David Buckingham

    Group CEO

    • Tenure: 0.6yrs
    • Compensation: AU$761.34k
  • Phil Mirams

    Chief Financial Officer

    • Tenure: 0.3yrs
    • Compensation: AU$759.50k
  • Scott Jones

    Chief Executive Officer of Careers & Industry

    • Tenure: 4.3yrs
    • Compensation: AU$572.34k
  • Iain Rothwell

    Chief Commercial Officer

    • Tenure: 2.3yrs
    • Compensation: AU$422.99k
  • James Fuller

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Mick Campbell

    Chief Information Officer

    • Tenure: 2.4yrs
    • Compensation: AU$391.03k
  • Bev Hudson

    Chief Executive Officer of & President of University Partnerships North America

    • Tenure: 2.7yrs
    • Compensation: AU$590.33k
  • Paul Lovegrove

    Chief Executive Officer of University Partnerships - Europe

    • Tenure: 2.7yrs
    • Compensation: AU$389.33k

Board Members

  • Tracey Horton (54yo)

    Non-Executive Chairman

    • Tenure: 1.9yrs
    • Compensation: AU$270.40k
  • Tony Cipa (63yo)

    Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: AU$140.00k
  • Diana Eilert (58yo)

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$140.00k
  • David Robb (64yo)

    Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: AU$126.00k
  • Harvey Collins (68yo)

    Non-Executive Director

    • Tenure: 13.9yrs
    • Compensation: AU$126.00k
  • Rod Jones

    Non-Executive Director

    • Tenure: 14.3yrs
    • Compensation: AU$1.72m
  • Lisa Paul

    Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$126.00k
  • David Buckingham

    Group CEO

    • Tenure: 0.6yrs
    • Compensation: AU$761.34k

Company Information

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


Key Information

  • Name: Navitas Limited
  • Ticker: NVTZ.F
  • Exchange: OTCPK
  • Founded: 1994
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: AU$1.784b
  • Listing Market Cap: AU$1.263b
  • Shares outstanding: 358.22m
  • Website: https://www.navitas.com

Number of Employees


Location

  • Navitas Limited
  • Brookfield Place
  • Level 8
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2004
NVTZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2004
IE8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2004
NVTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2004

Biography

Navitas Limited provides educational services for students and professionals in Australia, the United Kingdom, Europe, Asia, Canada, the United States, and internationally. It operates through University P ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2018/10/28 21:24
End of Day Share Price2018/07/31 00:00
Earnings2018/06/30
Annual Earnings2018/06/30


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.