company background image
ADI

Adapt IT HoldingsJSE:ADI Stock Report

Market Cap

R960.8m

7D

2.9%

1Y

138.1%

Updated

21 Oct, 2021

Data

Company Financials
ADI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance1/6
Financial Health5/6
Dividends0/6

ADI Overview

Adapt IT Holdings Limited provides information and communications technology services in South Africa and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Adapt IT Holdings
Historical stock prices
Current Share PriceR7.00
52 Week HighR2.24
52 Week LowR8.17
Beta1.09
1 Month Change0.57%
3 Month Change3.70%
1 Year Change138.10%
3 Year Change6.87%
5 Year Change-56.22%
Change since IPO1,066.67%

Recent News & Updates

Shareholder Returns

ADIZA SoftwareZA Market
7D2.9%4.3%-0.7%
1Y138.1%51.9%19.0%

Return vs Industry: ADI exceeded the ZA Software industry which returned 48.9% over the past year.

Return vs Market: ADI exceeded the ZA Market which returned 19.9% over the past year.

Price Volatility

Is ADI's price volatile compared to industry and market?
ADI volatility
ADI Beta1.09
Industry Beta0.48
Market Beta1

Stable Share Price: ADI is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ADI's weekly volatility has decreased from 9% to 2% over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a1,117Tiffany Dunsdonhttps://www.adaptit.com

Adapt IT Holdings Limited provides information and communications technology services in South Africa and internationally. Its Education segment provides enterprise resource planning solutions for use in educational institutions; and ITS integrator support, automated exam and class timetabling, training and consulting, and learning relationship management system services, as well as implementation, customization, development, and integration services. The company’s Manufacturing segment offers integrated workforce management system solutions for the manufacturing, agri-processing, security resource, and utilities sectors; and business advisory, software development, implementation, systems integration, sustainability reporting, and ERP support services.

Adapt IT Holdings Fundamentals Summary

How do Adapt IT Holdings's earnings and revenue compare to its market cap?
ADI fundamental statistics
Market CapR960.83m
Earnings (TTM)R69.10m
Revenue (TTM)R1.50b

13.9x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADI income statement (TTM)
RevenueR1.50b
Cost of RevenueR631.40m
Gross ProfitR871.98m
ExpensesR802.87m
EarningsR69.10m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.50
Gross Margin58.00%
Net Profit Margin4.60%
Debt/Equity Ratio28.1%

How did ADI perform over the long term?

See historical performance and comparison

Valuation

Is Adapt IT Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADI (ZAR7) is trading below our estimate of fair value (ZAR54.39)

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


Price To Earnings Ratio

PE vs Industry: ADI is poor value based on its PE Ratio (13.9x) compared to the African Software industry average (12.1x).

PE vs Market: ADI is poor value based on its PE Ratio (13.9x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ADI's PB Ratio (1.2x) is in line with the XF Software industry average.


Future Growth

How is Adapt IT Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.0%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Adapt IT Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Adapt IT Holdings performed over the past 5 years?

-5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADI has high quality earnings.

Growing Profit Margin: ADI's current net profit margins (4.6%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: ADI's earnings have declined by 5.7% per year over the past 5 years.

Accelerating Growth: ADI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ADI had negative earnings growth (-2.2%) over the past year, making it difficult to compare to the Software industry average (13.7%).


Return on Equity

High ROE: ADI's Return on Equity (8.6%) is considered low.


Financial Health

How is Adapt IT Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ADI's short term assets (ZAR442.6M) exceed its short term liabilities (ZAR440.2M).

Long Term Liabilities: ADI's short term assets (ZAR442.6M) do not cover its long term liabilities (ZAR471.2M).


Debt to Equity History and Analysis

Debt Level: ADI's debt to equity ratio (28.1%) is considered satisfactory.

Reducing Debt: ADI's debt to equity ratio has reduced from 34.9% to 28.1% over the past 5 years.

Debt Coverage: ADI's debt is well covered by operating cash flow (114.1%).

Interest Coverage: ADI's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

What is Adapt IT Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: ADI is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

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


Next Steps

Management

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

0.4yrs

Average management tenure


CEO

Tiffany Dunsdon (50 yo)

0.42

Tenure

R3,319,782

Compensation

Ms. Tiffany Dunsdon, CA(SA), serves as its Chief Executive Officer at of AdaptIT Holdings Limited since September 6, 2021 and served as Chief Commercial Officer since October 01, 2018 until 2021 and also s...


CEO Compensation Analysis

Compensation vs Market: Tiffany's total compensation ($USD227.72K) is about average for companies of similar size in the ZA market ($USD283.52K).

Compensation vs Earnings: Tiffany's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ADI's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: ADI's board of directors are considered experienced (5.2 years average tenure).


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 5.9%.


Top Shareholders

Company Information

Adapt IT Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Adapt IT Holdings Limited
  • Ticker: ADI
  • Exchange: JSE
  • Founded: NaN
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: R960.833m
  • Shares outstanding: 137.26m
  • Website: https://www.adaptit.com

Number of Employees


Location

  • Adapt IT Holdings Limited
  • 152, 14th Road
  • Noordwyk
  • Johannesburg
  • Gauteng
  • 1687
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 20:58
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.