OTCPK:RDBB.F

Stock Analysis Report

Executive Summary

Redbubble Limited operates as an online marketplace that facilitates the sale and purchase of art and designs on a range of products between independent creatives and consumers.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RDBB.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

RDBB.F

1.2%

US Online Retail

0.9%

US Market


1 Year Return

4.5%

RDBB.F

28.0%

US Online Retail

20.0%

US Market

Return vs Industry: RDBB.F underperformed the US Online Retail industry which returned 29.2% over the past year.

Return vs Market: RDBB.F underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

RDBB.FIndustryMarket
7 Day0%1.2%0.9%
30 Day4.5%5.9%1.4%
90 Day-39.6%20.5%8.8%
1 Year4.5%4.5%28.1%28.0%22.5%20.0%
3 Yearn/a110.4%110.1%49.9%40.3%
5 Yearn/a220.6%206.3%73.2%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

34.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RDBB.F ($0.82) is trading below our estimate of fair value ($1.25)

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


Price To Earnings Ratio

PE vs Industry: RDBB.F is unprofitable, so we can't compare its PE Ratio to the Online Retail industry average.

PE vs Market: RDBB.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RDBB.F is overvalued based on its PB Ratio (5x) compared to the US Online Retail industry average (3x).


Next Steps

Future Growth

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

65.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDBB.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

Revenue vs Market: RDBB.F's revenue (16% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: RDBB.F's revenue (16% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RDBB.F's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

How has Redbubble performed over the past 5 years?

-15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDBB.F is currently unprofitable.

Growing Profit Margin: RDBB.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RDBB.F is unprofitable, and losses have increased over the past 5 years at a rate of -15.1% per year.

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

Earnings vs Industry: RDBB.F is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (15%).


Return on Equity

High ROE: RDBB.F has a negative Return on Equity (-43.74%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Redbubble's financial position?


Financial Position Analysis

Short Term Liabilities: RDBB.F's short term assets (A$36.7M) do not cover its short term liabilities (A$47.3M).

Long Term Liabilities: RDBB.F's short term assets (A$36.7M) exceed its long term liabilities (A$2.2M).


Debt to Equity History and Analysis

Debt Level: RDBB.F is debt free.

Reducing Debt: RDBB.F has no debt compared to 5 years ago when its debt to equity ratio was 0.9%.


Balance Sheet

Inventory Level: RDBB.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if RDBB.F's debt is covered by short term assets.


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: RDBB.F has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RDBB.F has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate RDBB.F's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RDBB.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RDBB.F'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 RDBB.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Barry Newstead 0

1.5yrs

Tenure

AU$1,765,297

Compensation

Mr. Barry Newstead has been the Chief Executive Officer, Managing Director and Director of Redbubble Limited since August 1, 2018. He served as the Chief Operating Officer of Redbubble Limited until August ...


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD1.19M) is about average for companies of similar size in the US market ($USD1.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Barry Newstead
MD, CEO & Director1.5yrsAU$1.77m0.22% A$464.7k
Emma Clark
Chief Financial Officer0.7yrsAU$465.76kno data
Daniel Vydra
Chief Technology Officer0yrsno datano data
Louise Lambeth
Head of Investor Relations0yrsno datano data
Corina Davis
Executive VP of Business Development0yrsno datano data
Jorie Waterman
Chief Marketing Officer2.4yrsno datano data
Vanessa Freeman
Chief People & Culture Officer4.5yrsno datano data
Nicholas Kenn
Chief Product Officer0yrsno datano data
Arnaud Deshais
Chief Supply Chain Officer0yrsno datano data
Eric Morse
Senior VP of Content Partnerships & GM of Global Licensing2.3yrsno datano data

2.3yrs

Average Tenure

Experienced Management: RDBB.F's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Barry Newstead
MD, CEO & Director1.5yrsAU$1.77m0.22% A$464.7k
Martin Hosking
Non-Executive Director0yrsAU$1.23m19.49% A$41.6m
Gregory Lockwood
Independent Non-Executive Director4.7yrsno datano data
Richard Cawsey
Chair of the Board0yrsAU$197.66k5.22% A$11.2m
Jennifer Mitchell MacDonald
Independent Non-Executive Director2yrsAU$99.57k0.022% A$46.7k
Anne Ward
Independent Non-Executive Director1.9yrsAU$114.09k0.039% A$82.6k

2.0yrs

Average Tenure

Experienced Board: RDBB.F's board of directors are not considered experienced ( 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 been diluted in the past year, with total shares outstanding growing by 13.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Redbubble Limited
  • Ticker: RDBB.F
  • Exchange: OTCPK
  • Founded: 2006
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: AU$318.040m
  • Listing Market Cap: AU$213.665m
  • Shares outstanding: 258.57m
  • Website: https://www.redbubble.com

Number of Employees


Location

  • Redbubble Limited
  • 271 Collins Street
  • Level 3
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RBLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2016
RBLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2016
RDBB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2016

Biography

Redbubble Limited operates as an online marketplace that facilitates the sale and purchase of art and designs on a range of products between independent creatives and consumers. The company provides sale, marketing, and distribution services to facilitate the sale of goods from artists to those who want to purchase goods bearing the artists’ designs. It enables 700,000 independent artists to sell their designs, including apparel, stationery, housewares, bags, wall art, and others. The company offers its services through its Website at Redbubble.com, TeePublic.com, and three foreign language sites in Australia, the United States, the United Kingdom, and internationally. Redbubble Limited was founded in 2006 and is based in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 01:00
End of Day Share Price2020/02/11 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.