OTCPK:ELMF.F

Stock Analysis Report

Executive Summary

Elmo Software Limited provides software-as-a-service, cloud-based human resource (HR) and payroll solutions for organizations in Australia, New Zealand, and Singapore.


Snowflake Analysis

Excellent balance sheet with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ELMF.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.7%

ELMF.F

2.1%

US Software

1.8%

US Market


1 Year Return

n/a

ELMF.F

42.2%

US Software

20.1%

US Market

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

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


Shareholder returns

ELMF.FIndustryMarket
7 Day6.7%2.1%1.8%
30 Day18.3%7.7%1.4%
90 Day18.1%18.8%8.8%
1 Yearn/a43.8%42.2%22.7%20.1%
3 Yearn/a152.6%142.2%50.1%40.4%
5 Yearn/a223.7%200.5%72.9%53.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

5.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ELMF.F ($5.1) is trading above our estimate of fair value ($0.2)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ELMF.F is good value based on its PB Ratio (5.3x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is Elmo Software forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

39.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

Revenue vs Market: ELMF.F's revenue (27.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: ELMF.F's revenue (27.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ELMF.F's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

How has Elmo Software performed over the past 5 years?

-74.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELMF.F is currently unprofitable.

Growing Profit Margin: ELMF.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ELMF.F is unprofitable, and losses have increased over the past 5 years at a rate of -74.1% per year.

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

Earnings vs Industry: ELMF.F is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (17.1%).


Return on Equity

High ROE: ELMF.F has a negative Return on Equity (-12.48%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Elmo Software's financial position?


Financial Position Analysis

Short Term Liabilities: ELMF.F's short term assets (A$88.0M) exceed its short term liabilities (A$38.2M).

Long Term Liabilities: ELMF.F's short term assets (A$88.0M) exceed its long term liabilities (A$10.4M).


Debt to Equity History and Analysis

Debt Level: ELMF.F is debt free.

Reducing Debt: ELMF.F had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if ELMF.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: ELMF.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 ELMF.F has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

0.19%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0.2%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if ELMF.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 ELMF.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?

1.7yrs

Average management tenure


CEO

Danny Lessem 0

AU$1,101,566

Compensation

Mr. Danny Isaac Lessem serves as the Chief Executive Officer at ELMO Talent Management Software Pty Ltd. Mr. Lessem is a Co-founder of ELMO Software Limited and serves as its Chief Executive Officer and Ex ...


CEO Compensation Analysis

Compensation vs Market: Danny's total compensation ($USD740.15K) is below average for companies of similar size in the US market ($USD1.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Danny Lessem
Co-Founder0yrsAU$1.10m14.44% A$59.9m
James Haslam
CFO & Joint Company Secretary1yrsAU$430.16k0.0067% A$27.7k
Gordon Starkey
Chief Operating Officer0yrsAU$679.74k0.56% A$2.3m
Samuel Sun
Chief Technology Officer0yrsAU$596.67k0.57% A$2.4m
Monica Watt
Chief Human Resources Officer & GM of Human Resources0yrsAU$395.01k0.0017% A$6.9k
Darryl Garber
Chief Commercial Officer0yrsAU$481.02k0.56% A$2.3m
James McKerlie
Consultant1.4yrsAU$190.56kno data
Michael Brown
Head of Investor Relations0yrsno datano data
Michael Smith
Head of Payroll2yrsno datano data
Anna Sandham
Joint Company Secretary2.8yrsno datano data

1.7yrs

Average Tenure

Experienced Management: ELMF.F's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Danny Lessem
Co-Founder0yrsAU$1.10m14.44% A$59.9m
Barry Lewin
Non-Executive Chairman1.3yrsAU$109.23k0.020% A$83.1k
Catherine Hill
Independent Non-Executive Director1.7yrsAU$100.00k0.011% A$43.9k
Leah Graeve
Independent Non-Executive Director0.7yrsAU$5.00kno data

1.3yrs

Average Tenure

Experienced Board: ELMF.F's board of directors are not considered experienced ( 1.3 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 8.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Elmo Software Limited
  • Ticker: ELMF.F
  • Exchange: OTCPK
  • Founded: 2002
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$617.429m
  • Listing Market Cap: AU$414.855m
  • Shares outstanding: 74.93m
  • Website: https://elmosoftware.com.au

Number of Employees


Location

  • Elmo Software Limited
  • 580 George Street
  • Level 27
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELOASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2017
ELOCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2017
ELMF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2017

Biography

Elmo Software Limited provides software-as-a-service, cloud-based human resource (HR) and payroll solutions for organizations in Australia, New Zealand, and Singapore. The company develops, sells, and implements various modular software applications to manage HR and payroll related processes, including recruitment, onboarding, performance management, learning and development, rewards and recognition, remuneration, succession planning, payroll, workplace rostering, and time and attendance. It also provides HR Core, a software module for people management and employee self-service; and HR Survey for internal staff and external customer surveys. The company was founded in 2002 and is headquartered in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 02:06
End of Day Share Price2020/02/13 00:00
Earnings2019/12/31
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.