OTCPK:AELT.F

Stock Analysis Report

Executive Summary

Adacel Technologies Limited develops and sells simulation and software applications and services for the civil and military aerospace sectors in the United States, Canada, and Australia.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.3%

AELT.F

0.8%

US Software

0.6%

US Market


1 Year Return

n/a

AELT.F

40.0%

US Software

24.6%

US Market

Return vs Industry: Insufficient data to determine how AELT.F performed against the US Software industry.

Return vs Market: Insufficient data to determine how AELT.F performed against the US Market.


Shareholder returns

AELT.FIndustryMarket
7 Day4.3%0.8%0.6%
30 Day16.7%6.0%3.0%
90 Dayn/a17.3%10.6%
1 Yearn/a41.3%40.0%27.3%24.6%
3 Year-69.2%-69.2%139.7%130.2%50.5%40.8%
5 Year81.5%81.5%220.7%198.4%78.9%59.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

4.44x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AELT.F ($0.47) is trading above our estimate of fair value ($0.26)

Significantly Below Fair Value: AELT.F is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AELT.F is good value based on its PB Ratio (4.5x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is Adacel Technologies forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

4.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if AELT.F's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if AELT.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AELT.F's revenue (4% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: AELT.F's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AELT.F's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

How has Adacel Technologies performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AELT.F is currently unprofitable.

Growing Profit Margin: AELT.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AELT.F is unprofitable, but has reduced losses over the past 5 years at a rate of 14.7% per year.

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

Earnings vs Industry: AELT.F is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.8%).


Return on Equity

High ROE: AELT.F has a negative Return on Equity (-21.37%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Adacel Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: AELT.F's short term assets (A$19.5M) exceed its short term liabilities (A$13.1M).

Long Term Liabilities: AELT.F's short term assets (A$19.5M) exceed its long term liabilities (A$584.0K).


Debt to Equity History and Analysis

Debt Level: AELT.F is debt free.

Reducing Debt: AELT.F has no debt compared to 5 years ago when its debt to equity ratio was 0.01%.

Debt Coverage: AELT.F has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AELT.F has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

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


Next Steps

Dividend

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

3.63%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years3.6%

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

Dividend Coverage: AELT.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Daniel Verret 0

0.5yrs

Tenure

AU$200,294

Compensation

Mr. Daniel Verret is Chief Financial Officer of Adacel Technologies Limited since October 2018 and has been its Acting Chief Executive Officer since July 1, 2019. Mr. Verret served as the Chief Financial O ...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD138.23K) is below average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Insufficient data to compare Daniel's compensation with company performance.


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: AELT.F's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

8.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: AELT.F's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$35,96321 Aug 19
Michael McConnell
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares112,158
Max PriceUS$0.33

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Sophie Karzis

    Company Secretary

    • Tenure: 11.6yrs
    • Compensation: AU$57.60k
  • Daniel Verret

    Acting CEO & CFO

    • Tenure: 0.5yrs
    • Compensation: AU$200.29k
  • Tom Evers

    Director of Marketing & Communications

    • Kevin Pickett

      Vice President of Operations

      • Tenure: 1.8yrs
      • Compensation: AU$274.22k

    Board Members

    • Mike McConnell (53yo)

      Non-Executive Chairman

      • Tenure: 0.8yrs
      • Compensation: AU$62.88k
    • Marvin Sambur (73yo)

      Outside Director of North American Board

      • Tenure: 8.8yrs
    • Silvio Salom (60yo)

      Independent Non-Executive Director

      • Tenure: 13.6yrs
      • Compensation: AU$54.75k
    • Tony Tether (77yo)

      Outside Director of North American Board

      • Tenure: 8.8yrs
    • Peter D. Landos

      Non-Executive Director

      • Tenure: 10.9yrs
      • Compensation: AU$95.81k
    • Bill Bond

      Outside Director of North American Board

      • Tenure: 8.8yrs
    • Natalya Jurcheshin

      Independent Non-Executive Director

      • Tenure: 3.3yrs
      • Compensation: AU$54.75k

    Company Information

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


    Key Information

    • Name: Adacel Technologies Limited
    • Ticker: AELT.F
    • Exchange: OTCPK
    • Founded: 1987
    • Industry: Application Software
    • Sector: Software
    • Market Cap: AU$56.043m
    • Listing Market Cap: AU$38.420m
    • Shares outstanding: 76.25m
    • Website: https://www.adacel.com

    Location

    • Adacel Technologies Limited
    • 29/3 Westside Avenue
    • Port Melbourne
    • Victoria
    • 3207
    • Australia

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    AELT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 1998
    ADAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 1998
    ADACHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 1998
    QD2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 1998

    Biography

    Adacel Technologies Limited develops and sells simulation and software applications and services for the civil and military aerospace sectors in the United States, Canada, and Australia. The company offers MaxSim Tower for supporting local tower, and ground and ramp control; MaxSim Radar for radar and non-radar procedural training; MaxSim Mobile Systems that facilitates transport to alternative training locations; MaxSim Ultra 3D-Tabletop, an interpretation of standing ATC training tool; MaxSim in a Pod, an enclosed tower setup with a 2-screen front projection visual system; MaxSim Virtual Reality simulator; InSight Visual Systems, a 3D scene-renderer that provides enhancements to realistic visual scene performance and visual acuity; and Aviation Phraseology Training ICE, an application to master proper terminology and communications procedures in a non-intimidating environment. It also provides Aurora ATM automation systems, which manage airspace and domains to control tower units; and Aurora Coverage Map for air navigation services. In addition, the company offers voice activated cockpit system that enables the pilot and the aircraft to talk to each other; and speech recognition products and services for simulation and command and control applications, as well as speech development kits. Further, it provides Air Traffic Control in a Box (ATCiB), a simulated ATC environment for flight simulation training devices that completes the flight simulation experience by adding realistic virtual traffic and synthetic air traffic controllers to create a training environment, as well as ATCiB’s simulated controllers to manage the virtual air traffic; airport driving solutions; and VAST-security systems simulator to create a fidelity environment mimicking a security control room operations center to train security personnel, and simulator training services, as well as support services. The company was founded in 1987 and is headquartered in Port Melbourne, Australia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 00:06
    End of Day Share Price2020/01/22 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.