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Alterra

ASX:1AG
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1AG
ASX
A$5M
Market Cap
  1. Home
  2. AU
  3. Commercial Services
Company description

Alterra Limited engages in the agri-forestry and dairy operations in Australia. The last earnings update was 169 days ago. More info.


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1AG Share Price and Events
7 Day Returns
12.9%
ASX:1AG
2.2%
AU Commercial Services
0%
AU Market
1 Year Returns
-23.9%
ASX:1AG
15%
AU Commercial Services
15.3%
AU Market
1AG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Alterra (1AG) 12.9% -5.4% 0% -23.9% -18.6% 16.7%
AU Commercial Services 2.2% 3.1% -1.5% 15% 15.8% 38.7%
AU Market 0% 0.5% 4.7% 15.3% 21.6% 20.7%
1 Year Return vs Industry and Market
  • 1AG underperformed the Commercial Services industry which returned 15% over the past year.
  • 1AG underperformed the Market in Australia which returned 15.3% over the past year.
Price Volatility
1AG
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Alterra to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Alterra.

ASX:1AG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:1AG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.66
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.659 (1 + (1- 30%) (33.61%))
0.875
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.88
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.875 * 5.96%)
7.53%

Discounted Cash Flow Calculation for ASX:1AG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Alterra is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

ASX:1AG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.53%)
2020 0.26 Est @ 63.01% 0.24
2021 0.37 Est @ 44.8% 0.32
2022 0.49 Est @ 32.06% 0.40
2023 0.61 Est @ 23.13% 0.45
2024 0.71 Est @ 16.89% 0.49
2025 0.80 Est @ 12.51% 0.52
2026 0.87 Est @ 9.45% 0.53
2027 0.94 Est @ 7.31% 0.53
2028 0.99 Est @ 5.81% 0.52
2029 1.04 Est @ 4.76% 0.50
Present value of next 10 years cash flows A$4.00
ASX:1AG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$1.04 × (1 + 2.31%) ÷ (7.53% – 2.31%)
A$20.40
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$20.40 ÷ (1 + 7.53%)10
A$9.87
ASX:1AG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$4.00 + A$9.87
A$13.87
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$13.87 / 148.78
A$0.09
ASX:1AG Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$0.09
Current discount Discount to share price of A$0.04
= -1 x (A$0.04 - A$0.09) / A$0.09
62.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Alterra is available for.
Intrinsic value
>50%
Share price is A$0.035 vs Future cash flow value of A$0.09323
Current Discount Checks
For Alterra to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Alterra's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Alterra's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Alterra's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Alterra's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:1AG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in AUD A$0.00
ASX:1AG Share Price ** ASX (2019-11-12) in AUD A$0.04
Australia Commercial Services Industry PE Ratio Median Figure of 12 Publicly-Listed Commercial Services Companies 18.07x
Australia Market PE Ratio Median Figure of 519 Publicly-Listed Companies 18.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Alterra.

ASX:1AG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:1AG Share Price ÷ EPS (both in AUD)

= 0.04 ÷ 0.00

-32.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alterra is loss making, we can't compare its value to the AU Commercial Services industry average.
  • Alterra is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Alterra's expected growth come at a high price?
Raw Data
ASX:1AG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -32.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Australia Commercial Services Industry PEG Ratio Median Figure of 9 Publicly-Listed Commercial Services Companies 2.36x
Australia Market PEG Ratio Median Figure of 346 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Alterra, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Alterra's assets?
Raw Data
ASX:1AG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in AUD A$0.05
ASX:1AG Share Price * ASX (2019-11-12) in AUD A$0.04
Australia Commercial Services Industry PB Ratio Median Figure of 27 Publicly-Listed Commercial Services Companies 2.46x
Australia Market PB Ratio Median Figure of 1,585 Publicly-Listed Companies 1.71x
ASX:1AG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:1AG Share Price ÷ Book Value per Share (both in AUD)

= 0.04 ÷ 0.05

0.69x

* Primary Listing of Alterra.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alterra is good value based on assets compared to the AU Commercial Services industry average.
X
Value checks
We assess Alterra's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Alterra has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Alterra expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 Alterra 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11%
Expected Commercial Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Alterra expected to grow at an attractive rate?
  • Unable to compare Alterra's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Alterra's earnings growth to the Australia market average as no estimate data is available.
  • Unable to compare Alterra's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:1AG Future Growth Rates Data Sources
Data Point Source Value (per year)
Australia Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 11%
Australia Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 5.5%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.8%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:1AG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:1AG Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-03-31 3 2 0
2018-12-31 3 1 0
2018-09-30 3 1 0
2018-06-30 3 1 -1
2018-03-31 3 1 -3
2017-12-31 3 1 -2
2017-09-30 3 1 -2
2017-06-30 3 1 -1
2017-03-31 3 1 0
2016-12-31 3 0 0
2016-09-30 3 0 0
2016-06-30 3 0 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Alterra is high growth as no earnings estimate data is available.
  • Unable to determine if Alterra is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:1AG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Alterra Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:1AG Past Financials Data
Date (Data in AUD Millions) EPS *
2019-03-31 0.00
2018-12-31 0.00
2018-09-30 0.00
2018-06-30 -0.01
2018-03-31 -0.02
2017-12-31 -0.02
2017-09-30 -0.02
2017-06-30 -0.01
2017-03-31 0.00
2016-12-31 0.00
2016-09-30 0.00
2016-06-30 0.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Alterra will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Alterra is trading at Alterra'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Alterra's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Commercial Services companies here
  3. Alterra's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Alterra's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Alterra has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Alterra performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Alterra's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Alterra does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Alterra's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Alterra's 1-year growth to the AU Commercial Services industry average as it is not currently profitable.
Earnings and Revenue History
Alterra's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Alterra Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:1AG Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2.55 -0.16 0.80
2018-12-31 2.76 -0.04 0.74
2018-09-30 2.97 0.07 0.67
2018-06-30 2.86 -1.24 0.60
2018-03-31 2.75 -2.54 0.53
2017-12-31 2.74 -2.34 0.51
2017-09-30 2.72 -2.14 0.49
2017-06-30 2.70 -0.84 0.60
2017-03-31 2.67 0.46 0.71
2016-12-31 2.78 0.14 0.70
2016-09-30 2.90 -0.18 0.68
2016-06-30 2.88 -0.26 0.56
2016-03-31 2.86 -0.34 0.45
2015-12-31 2.78 -0.17 0.50
2015-09-30 2.70 0.00 0.56
2015-06-30 2.76 -0.87 0.74
2015-03-31 2.83 -1.74 0.91
2014-12-31 2.74 -1.79 0.87
2014-09-30 2.66 -1.85 0.82
2013-09-30 2.91 -0.29 0.51
2013-06-30 6.61 -2.09 1.41
2013-03-31 11.32 0.97 1.67
2012-12-31 16.03 4.03 1.94

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Alterra has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Alterra has efficiently used its assets last year compared to the AU Commercial Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Alterra improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Alterra's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Alterra has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Alterra's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Alterra's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Alterra is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Alterra's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Alterra's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Alterra Company Filings, last reported 7 months ago.

ASX:1AG Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 7.50 1.75 2.26
2018-12-31 7.50 1.75 2.26
2018-09-30 11.17 1.75 2.50
2018-06-30 11.17 1.75 2.50
2018-03-31 11.16 1.75 1.65
2017-12-31 11.16 1.75 1.65
2017-09-30 11.01 1.75 1.03
2017-06-30 11.01 1.75 1.03
2017-03-31 13.53 2.10 0.62
2016-12-31 13.53 2.10 0.62
2016-09-30 12.55 0.01 1.92
2016-06-30 12.55 0.01 1.92
2016-03-31 12.56 1.33 0.13
2015-12-31 12.56 1.33 0.13
2015-09-30 12.19 1.97 0.40
2015-06-30 12.19 1.97 0.40
2015-03-31 12.96 2.77 0.25
2014-12-31 12.96 2.77 0.25
2014-09-30 11.44 3.81 0.33
2013-09-30 14.28 5.15 0.32
2013-06-30 14.24 5.37 0.56
2013-03-31 14.24 5.37 0.56
2012-12-31 16.26 5.55 0.35
  • Alterra's level of debt (23.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (34.7% vs 23.3% today).
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.

  • Whilst loss making Alterra has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Alterra has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -43.9% per year.
X
Financial health checks
We assess Alterra's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Alterra has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Alterra dividends.
If you bought A$2,000 of Alterra shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Alterra's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Alterra's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:1AG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Australia Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 2.6%
Australia Market Average Dividend Yield Market Cap Weighted Average of 391 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.4%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Alterra has not reported any payouts.
  • Unable to verify if Alterra's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Alterra's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Alterra has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Alterra's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Alterra afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Alterra has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrew McBain
COMPENSATION A$250,259
AGE 45
CEO Bio

Mr. Andrew Lawson McBain served as the Managing Director of Alterra Ltd (formerly known as Carbon Conscious Ltd) until March 19, 2019 and serves as its Executive Director since July 2012. He serves as the Managing Director of Australian Agricultural Contracts Ltd. He was a Founder of Applabs Technologies Limited and served as its Managing Director until June 2010. He served as an Executive Chairman, Managing Director and Executive Director of Rumble Resources Limited until July 12, 2013. He has significant corporate and business management experience having successfully developed a number of start-up businesses over the past 10 years. Mr. McBain successfully founded and developed the largest grain production business in Australia, AACL Holdings Ltd and also founded and being a key developer of the most successful carbon sequestration business in Australia, Carbon Conscious Ltd. Mr. McBain served as a Non-Executive Director at Rumble Resources Limited from July 12, 2013 to November 24, 2016. He has been an Executive Director of Carbon Conscious Limited since July 20, 2012 and previously served as its Non-Executive Director from February 2011 to July 20, 2012. Prior to that, he served as Non-Executive Director at Carbon Conscious Limited from September 2009 to July 21, 2010. He served as a Director of Applabs Technologies Limited from October 13, 2009 to June 18, 2010. He served as an Executive Officer of Trafford Resources Limited until December 2005. He serves as a Director of a number of other private-companies involved in various industries. He served as a Non-Executive Director of Cauldron Energy Limited from November 21, 2002 to June 4, 2009.

CEO Compensation
  • Andrew's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Andrew's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Alterra management team in years:

0.7
Average Tenure
  • The average tenure for the Alterra management team is less than 2 years, this suggests a new team.
Management Team

Andrew McBain

TITLE
Executive Director
COMPENSATION
A$250K
AGE
45

Anthony Fitzgerald

TITLE
Commercial Manager & Company Secretary
COMPENSATION
A$209K
AGE
59
TENURE
4.7 yrs

Oliver William Barnes

TITLE
MD & Executive Director
TENURE
0.7 yrs

Brett Heather

TITLE
Chief Operating and Technical Officer
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Alterra board of directors in years:

0.7
Average Tenure
67
Average Age
  • The average tenure for the Alterra board of directors is less than 3 years, this suggests a new board.
Board of Directors

Trevor Stoney

TITLE
Non-Executive Chairman of the Board
COMPENSATION
A$102K
AGE
74

Andrew McBain

TITLE
Executive Director
COMPENSATION
A$250K
AGE
45
TENURE
8.8 yrs

Oliver William Barnes

TITLE
MD & Executive Director
TENURE
0.8 yrs

John Poynton

TITLE
Founding Member & Chair of Advisory Board
AGE
67
TENURE
0.6 yrs

John Palermo

TITLE
Non-Executive Director
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
30. Jul 19 Buy Oliver William Barnes Individual 30. Jul 19 30. Jul 19 52,000 A$0.04 A$2,080
26. Jun 19 Buy John Palermo Individual 20. Jun 19 24. Jun 19 200,000 A$0.05 A$9,600
15. Feb 19 Buy Andrew McBain Individual 21. Jan 19 21. Jan 19 100,000 A$0.03 A$2,900
18. Jan 19 Buy Andrew McBain Individual 15. Jan 19 15. Jan 19 100,000 A$0.03 A$3,000
15. Jan 19 Buy Andrew McBain Individual 10. Jan 19 11. Jan 19 200,000 A$0.03 A$6,400
18. Dec 18 Buy Sandon Capital Pty Ltd. Company 30. Nov 18 17. Dec 18 1,057,912 A$0.05 A$48,172
18. Dec 18 Buy Sandon Capital Investments Limited Company 30. Nov 18 17. Dec 18 1,568,867 A$0.05 A$72,259
X
Management checks
We assess Alterra's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Alterra has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Alterra Limited (ASX:1AG): Time For A Financial Health Check

Investors are always looking for growth in small-cap stocks like Alterra Limited (ASX:1AG), with a market cap of AU$6m. … However, an important fact which most ignore is: how financially healthy is the business? … the current state of its operations and pathway to profitability.

Simply Wall St -

What You Must Know About Alterra Limited's (ASX:1AG) Major Investors

I am going to take a deep dive into Alterra Limited’s (ASX:1AG) most recent ownership structure, not a frequent subject of discussion among individual investors. … The impact of a company's ownership structure affects both its short- and long-term performance. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.

Simply Wall St -

Is Alterra Limited's (ASX:1AG) Balance Sheet A Threat To Its Future?

Alterra Limited (ASX:1AG) is a small-cap stock with a market capitalization of AU$6.17m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health.

Simply Wall St -

Is Alterra Limited's (ASX:1AG) Balance Sheet A Threat To Its Future?

How does 1AG’s operating cash flow stack up against its debt? … On top of this, 1AG has produced AU$816.80K in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 44.61%, meaning that 1AG’s debt is appropriately covered by operating cash. … Risk around debt is very low for 1AG, and the company also has the ability and headroom to increase debt if needed going forward.Next Steps: 1AG has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at a safe level.

Simply Wall St -

How Should You Think About Alterra Limited's (ASX:1AG) Risks?

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … 1AG's beta implies it may be a stock that investors with high-beta portfolios might find relevant if they wanted to reduce their exposure to market risk, especially during times of downturns. … How 1AG's assets could affect its beta An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.

Simply Wall St -

Who Owns Alterra Limited (ASX:1AG)?

In this article, I'm going to take a look at Alterra Limited’s (ASX:1AG) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … See our latest analysis for Alterra ASX:1AG Ownership_summary Apr 11th 18 Institutional Ownership In 1AG's case, institutional ownership stands at 14.02%, significant enough to cause considerable price moves in the case of large institutional transactions, especially when there is a low level of public shares available on the market to trade. … Insider Ownership Insiders form another group of important ownership types as they manage the company's operations and decide the best use of capital.

Simply Wall St -

Alterra Limited (ASX:1AG): Is Service An Attractive Sector Play?

Commercial services analysts are forecasting for the entire industry, a strong double-digit growth of 14.26% in the upcoming year , and an enormous growth of 59.74% over the next couple of years. … As the company trails the rest of the industry in terms of growth, Alterra may also be a cheaper stock relative to its peers. … Although it delivered lower growth relative to its services peers in the near term, the market may be pessimistic on the stock, leading to a potential undervaluation.

Simply Wall St -

What Investors Should Know About Alterra Limited's (ASX:1AG) Financial Strength

On top of this, 1AG has generated cash from operations of A$0.8M during the same period of time, leading to an operating cash to total debt ratio of 44.61%, meaning that 1AG’s operating cash is sufficient to cover its debt. … 1AG’s level of debt is appropriate relative to its total equity, at 16.64%. … Risk around debt is very low for 1AG, and the company also has the ability and headroom to increase debt if needed going forward.Next Steps: 1AG has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at a safe level.

Simply Wall St -

Who Are The Major Shareholders Of Alterra Limited (ASX:1AG)?

Today, I will be analyzing Alterra Limited’s (ASX:1AG) recent ownership structure, an important but not-so-popular subject among individual investors. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment. … Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.What this means for you: Institutional ownership level and composition in 1AG is not high nor active enough to significantly impact its investment thesis.

Simply Wall St -

How Should You Think About Alterra Limited's (ASX:1AG) Risks?

1AG’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … This is an interesting conclusion, since both 1AG’s size and industry indicates the stock should have a higher beta than it currently has. … How 1AG's assets could affect its beta An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.

Simply Wall St -

Company Info

Description

Alterra Limited engages in the agri-forestry and dairy operations in Australia. The company was formerly known as Carbon Conscious Limited and changed its name to Alterra Limited in March 2016. Alterra Limited is based in West Leederville, Australia.

Details
Name: Alterra Limited
1AG
Exchange: ASX
Founded:
A$5,207,219
148,777,688
Website: http://alterra.com.au
Address: Alterra Limited
144 Northwood Street,
West Leederville,
Western Australia, 6007,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX 1AG Ordinary Shares Australian Securities Exchange AU AUD 16. May 2008
CHIA 1AG Ordinary Shares Chi-X Australia AU AUD 16. May 2008
Number of employees
Current staff
Staff numbers
0
Alterra employees.
Industry
Environmental and Facilities Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 10:35
End of day share price update: 2019/11/12 00:00
Last earnings filing: 2019/05/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.