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HiTech Group Australia

ASX:HIT
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HIT
ASX
A$43M
Market Cap
  1. Home
  2. AU
  3. Commercial Services
Company description

HiTech Group Australia Limited provides recruitment services for permanent and contract staff to the information and communications technology (ICT) industry in public and private sectors in Australia. The last earnings update was 71 days ago. More info.


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HIT Share Price and Events
7 Day Returns
2.2%
ASX:HIT
0.4%
AU Professional Services
-0.1%
AU Market
1 Year Returns
27.8%
ASX:HIT
20.6%
AU Professional Services
16.5%
AU Market
HIT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HiTech Group Australia (HIT) 2.2% 7.5% -1.7% 27.8% 93.3% 1816.7%
AU Professional Services 0.4% 3% 7.6% 20.6% 37.9% 39.2%
AU Market -0.1% 1.5% 3.5% 16.5% 21.9% 20.6%
1 Year Return vs Industry and Market
  • HIT outperformed the Professional Services industry which returned 20.6% over the past year.
  • HIT outperformed the Market in Australia which returned 16.5% over the past year.
Price Volatility
HIT
Industry
5yr Volatility vs Market
Related Companies

Value

 Is HiTech Group Australia 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 HiTech Group Australia 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 HiTech Group Australia.

ASX:HIT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-06-30) in AUD A$ .080000
Payout Ratio Company Filings (2019-06-30) 8541.7%
Discount Rate (Cost of Equity) See below 7.8%
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:HIT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.828 (1 + (1- 30%) (0%))
0.919
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.919 * 5.96%)
7.79%

Discounted Cash Flow Calculation for ASX:HIT using Dividend Discount Model Model

The calculations below outline how an intrinsic value for HiTech Group Australia is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

ASX:HIT Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= A$0.08 / (7.79% - 2.31%)
A$1.46
ASX:HIT Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$1.46
Current discount Discount to share price of A$1.15
= -1 x (A$1.15 - A$1.46) / A$1.46
21.2%

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

Current Discount
Amount off the current price HiTech Group Australia is available for.
Intrinsic value
21%
Share price is A$1.15 vs Future cash flow value of A$1.46
Current Discount Checks
For HiTech Group Australia to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • HiTech Group Australia's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • HiTech Group Australia's share price is below the future cash flow value, but not 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 HiTech Group Australia's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HiTech Group Australia's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:HIT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.08
ASX:HIT Share Price ** ASX (2019-11-18) in AUD A$1.15
Australia Professional Services Industry PE Ratio Median Figure of 10 Publicly-Listed Professional Services Companies 21.51x
Australia Market PE Ratio Median Figure of 519 Publicly-Listed Companies 18.7x

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

** Primary Listing of HiTech Group Australia.

ASX:HIT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 1.15 ÷ 0.08

15.1x

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

  • HiTech Group Australia is good value based on earnings compared to the AU Professional Services industry average.
  • HiTech Group Australia is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does HiTech Group Australia's expected growth come at a high price?
Raw Data
ASX:HIT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Australia Professional Services Industry PEG Ratio Median Figure of 7 Publicly-Listed Professional Services Companies 1.94x
Australia Market PEG Ratio Median Figure of 347 Publicly-Listed Companies 1.6x

*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 HiTech Group Australia, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on HiTech Group Australia's assets?
Raw Data
ASX:HIT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$0.19
ASX:HIT Share Price * ASX (2019-11-18) in AUD A$1.15
Australia Professional Services Industry PB Ratio Median Figure of 21 Publicly-Listed Professional Services Companies 2.08x
Australia Market PB Ratio Median Figure of 1,584 Publicly-Listed Companies 1.75x
ASX:HIT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 1.15 ÷ 0.19

6.02x

* Primary Listing of HiTech Group Australia.

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

  • HiTech Group Australia is overvalued based on assets compared to the AU Professional Services industry average.
X
Value checks
We assess HiTech Group Australia'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 Professional 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 Professional Services industry average (and greater than 0)? (1 check)
  5. HiTech Group Australia 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 HiTech Group Australia 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 HiTech Group Australia 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
15.5%
Expected Professional Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HiTech Group Australia expected to grow at an attractive rate?
  • Unable to compare HiTech Group Australia's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare HiTech Group Australia's earnings growth to the Australia market average as no estimate data is available.
  • Unable to compare HiTech Group Australia's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:HIT Future Growth Rates Data Sources
Data Point Source Value (per year)
Australia Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 15.5%
Australia Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 9.8%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.7%
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:HIT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 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:HIT Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
ASX:HIT Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 30 3 3
2019-03-31 29 3 3
2018-12-31 28 3 3
2018-09-30 27 3 3
2018-06-30 26 3 3
2018-03-31 26 3 3
2017-12-31 25 3 2
2017-09-30 24 2 2
2017-06-30 23 2 2
2017-03-31 22 1 2
2016-12-31 21 1 2
2016-09-30 20 2 2

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if HiTech Group Australia is high growth as no earnings estimate data is available.
  • Unable to determine if HiTech Group Australia 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:HIT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from HiTech Group Australia Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:HIT Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
ASX:HIT Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.08
2019-03-31 0.07
2018-12-31 0.07
2018-09-30 0.07
2018-06-30 0.07
2018-03-31 0.07
2017-12-31 0.07
2017-09-30 0.07
2017-06-30 0.07
2017-03-31 0.07
2016-12-31 0.08
2016-09-30 0.07

*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 HiTech Group Australia will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether HiTech Group Australia is trading at HiTech Group Australia'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. HiTech Group Australia'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. HiTech Group Australia'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 HiTech Group Australia'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.
HiTech Group Australia 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 HiTech Group Australia 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 HiTech Group Australia's growth in the last year to its industry (Professional 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.
  • HiTech Group Australia has delivered over 20% year on year earnings growth in the past 5 years.
  • HiTech Group Australia's 1-year earnings growth is less than its 5-year average (12.8% vs 34.1%)
  • HiTech Group Australia's earnings growth has not exceeded the AU Professional Services industry average in the past year (12.8% vs 26.7%).
Earnings and Revenue History
HiTech Group Australia'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 HiTech Group Australia Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:HIT Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 30.26 2.90 1.71
2019-03-31 28.89 2.81 1.58
2018-12-31 27.52 2.73 1.44
2018-09-30 26.94 2.65 1.47
2018-06-30 26.36 2.57 1.50
2018-03-31 25.79 2.51 1.57
2017-12-31 25.23 2.45 1.64
2017-09-30 24.27 2.38 1.55
2017-06-30 23.32 2.31 1.47
2017-03-31 22.22 2.36 1.48
2016-12-31 21.12 2.40 1.50
2016-09-30 19.70 2.29 1.43
2016-06-30 18.28 2.17 1.36
2016-03-31 17.53 1.75 1.29
2015-12-31 16.78 1.33 1.23
2015-09-30 15.91 1.07 1.18
2015-06-30 15.04 0.81 1.13
2015-03-31 13.12 0.39 1.10
2014-12-31 11.20 -0.03 1.08
2014-09-30 9.59 -0.09 1.09
2014-06-30 7.98 -0.15 1.10
2014-03-31 7.14 -0.03 1.12
2013-12-31 6.30 0.09 1.15
2013-09-30 6.80 0.13 1.24
2013-06-30 7.31 0.16 1.33
2013-03-31 8.30 0.33 1.38
2012-12-31 9.29 0.49 1.42

*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.
  • HiTech Group Australia has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • HiTech Group Australia used its assets more efficiently than the AU Professional Services industry average last year based on Return on Assets.
  • HiTech Group Australia has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess HiTech Group Australia'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 Professional 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.
HiTech Group Australia has a total score of 4/6, 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 HiTech Group Australia'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 HiTech Group Australia's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HiTech Group Australia is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HiTech Group Australia's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of HiTech Group Australia'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.
  • HiTech Group Australia has no debt, it does not need to be covered by short term assets.
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 HiTech Group Australia Company Filings, last reported 4 months ago.

ASX:HIT Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 7.27 0.00 5.93
2019-03-31 7.27 0.00 5.93
2018-12-31 7.12 0.00 6.10
2018-09-30 7.12 0.00 6.10
2018-06-30 7.41 0.00 5.86
2018-03-31 7.41 0.00 5.86
2017-12-31 6.68 0.00 5.94
2017-09-30 6.68 0.00 5.94
2017-06-30 6.66 0.00 5.21
2017-03-31 6.66 0.00 5.21
2016-12-31 6.28 0.00 5.11
2016-09-30 6.28 0.00 5.11
2016-06-30 5.95 0.00 4.97
2016-03-31 5.95 0.00 4.97
2015-12-31 4.44 0.00 4.00
2015-09-30 4.44 0.00 4.00
2015-06-30 3.75 0.00 2.49
2015-03-31 3.75 0.00 2.49
2014-12-31 3.12 0.00 1.97
2014-09-30 3.12 0.00 1.97
2014-06-30 2.94 0.90 2.99
2014-03-31 2.94 0.90 2.99
2013-12-31 3.15 0.00 2.30
2013-09-30 3.15 0.00 2.30
2013-06-30 3.24 0.00 2.79
2013-03-31 3.24 0.00 2.79
2012-12-31 3.21 0.00 2.47
  • HiTech Group Australia has no debt.
  • HiTech Group Australia has no debt compared to 5 years ago when it was 30.3%.
  • HiTech Group Australia has no debt, it does not need to be covered by operating cash flow.
  • HiTech Group Australia has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess HiTech Group Australia'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. HiTech Group Australia 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 HiTech Group Australia'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
6.96%
Current annual income from HiTech Group Australia dividends.
If you bought A$2,000 of HiTech Group Australia shares you are expected to receive A$139 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?
  • HiTech Group Australia's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.37%).
  • HiTech Group Australia's dividend is above the markets top 25% of dividend payers in Australia (5.62%).
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:HIT 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 Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.6%
Australia Market Average Dividend Yield Market Cap Weighted Average of 390 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.

ASX:HIT Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
ASX:HIT Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-08-12 0.080 7.211
2019-02-11 0.080 7.840
2018-09-18 0.080 8.574
2018-08-13 0.080 8.039
2018-02-15 0.080 7.915
2017-08-16 0.060 7.882
2017-02-21 0.060 10.037
2016-08-22 0.020 3.564
2015-02-23 0.000 0.000
2014-09-30 0.000 0.000
2014-08-29 0.000 0.000
2013-09-20 0.005 6.787
2013-08-30 0.005 6.475

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

  • HiTech Group Australia has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but HiTech Group Australia only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of HiTech Group Australia's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
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 HiTech Group Australia'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 HiTech Group Australia afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HiTech Group Australia has a total score of 2/6, 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 HiTech Group Australia'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
Elias Hazouri
COMPENSATION A$399,896
AGE 51
TENURE AS CEO 3.3 years
CEO Bio

Mr. Elias Hazouri, B.Sc., MBA has been the Chief Executive Officer of HiTech Group Australia Ltd. since August 2016. Mr. Hazouri serves as the Chief Information Officer and General Manager of HiTech Group Australia Ltd. and has been its Company Secretary since February 13, 2015. Mr. Hazouri has over 16 years experience in IT and banking. His knowledge of HiTech's business is extensive. Throughout his career, he has been integral to the development of many IT systems and IT support departments. He has held roles ranging from programmer to technology support head. He is a key resource and knowledge base to HiTech account managers and is jointly responsible for generating new business by way of tender. He has advised on business strategy, both from a financial and operational perspective, since the inception of HiTech in 1993. He has been Director of HiTech Group Australia Ltd. since July 19, 2013. He served as Director of HiTech from 1993 to March 2000. Mr. Hazouri holds B Sc, MBA.

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

Ray Hazouri

TITLE
Founder
COMPENSATION
A$441K
AGE
57
TENURE
26.8 yrs

Elias Hazouri

TITLE
CEO, Chief Information Officer
COMPENSATION
A$400K
AGE
51
TENURE
3.3 yrs
Board of Directors

Ray Hazouri

TITLE
Founder
COMPENSATION
A$441K
AGE
57

Elias Hazouri

TITLE
CEO, Chief Information Officer
COMPENSATION
A$400K
AGE
51
TENURE
6.3 yrs

George Shad

TITLE
Non-Executive Director
COMPENSATION
A$10K
AGE
67
TENURE
16.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
X
Management checks
We assess HiTech Group Australia'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. HiTech Group Australia 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

How Important Was Sentiment In Driving HiTech Group Australia's (ASX:HIT) Fantastic 1486% Share Price Gain?

To wit, the HiTech Group Australia Limited (ASX:HIT) share price has soared 1486% over five years. … During the five years of share price growth, HiTech Group Australia moved from a loss to profitability. … As it happens, HiTech Group Australia's TSR for the last 5 years was 2000%, which exceeds the share price return mentioned earlier.

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Is HiTech Group Australia Limited's (ASX:HIT) 38% ROE Better Than Average?

View our latest analysis for HiTech Group Australia How Do I Calculate Return On Equity? … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for HiTech Group Australia: 38% = AU$2.7m ÷ AU$7.1m (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … HiTech Group Australia's Debt And Its 38% ROE HiTech Group Australia is free of net debt, which is a positive for shareholders.

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If You Like EPS Growth Then Check Out HiTech Group Australia (ASX:HIT) Before It's Too Late

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like HiTech Group Australia (ASX:HIT). … Although HiTech Group Australia certainly looks good to me, I would like it more if insiders were buying up shares. … If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

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Is HiTech Group Australia Limited's (ASX:HIT) CEO Being Overpaid?

See our latest analysis for HiTech Group Australia How Does Elias Hazouri's Compensation Compare With Similar Sized Companies? … At the time of writing our data says that HiTech Group Australia Limited has a market cap of AU$40m, and is paying total annual CEO compensation of AU$374k. … We examined a group of similar sized companies, with market capitalizations of below AU$287m.

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Do You Know What HiTech Group Australia Limited's (ASX:HIT) P/E Ratio Means?

See our latest analysis for HiTech Group Australia How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for HiTech Group Australia: P/E of 13.55 = A$0.98 ÷ A$0.073 (Based on the trailing twelve months to December 2018.) Is A High Price-to-Earnings Ratio Good? … The Bottom Line On HiTech Group Australia's P/E Ratio HiTech Group Australia trades on a P/E ratio of 13.6, which is below the AU market average of 15.8.

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The HiTech Group Australia (ASX:HIT) Share Price Gained 1523% And Shareholders Are Jubilant

Then look at the HiTech Group Australia Limited (ASX:HIT) share price. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, HiTech Group Australia achieved compound earnings per share (EPS) growth of 93% per year.

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Should You Like HiTech Group Australia Limited’s (ASX:HIT) High Return On Capital Employed?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for HiTech Group Australia: 0.54 = AU$3.8m ÷ (AU$9.0m - AU$1.8m) (Based on the trailing twelve months to December 2018.) So, HiTech Group Australia has an ROCE of 54%. … See our latest analysis for HiTech Group Australia Is HiTech Group Australia's ROCE Good? … What Are Current Liabilities, And How Do They Affect HiTech Group Australia's ROCE?

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Could The HiTech Group Australia Limited (ASX:HIT) Ownership Structure Tell Us Something Useful?

The big shareholder groups in HiTech Group Australia Limited (ASX:HIT) have power over the company. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … HiTech Group Australia is a smaller company with a market capitalization of AU$35m, so it may still be flying under the radar of many institutional investors.

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Is HiTech Group Australia Limited (ASX:HIT) A High Quality Stock To Own?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows HiTech Group Australia has a return on equity of 35% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

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Does HiTech Group Australia Limited's (ASX:HIT) 11% Earnings Growth Make It An Outperformer?

When HiTech Group Australia Limited (ASX:HIT) released its most recent earnings update (30 June 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Did HIT's recent earnings growth beat the long-term trend and the industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 51%, indicating the rate at which HIT is growing has slowed down

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Company Info

Description

HiTech Group Australia Limited provides recruitment services for permanent and contract staff to the information and communications technology (ICT) industry in public and private sectors in Australia. Its permanent recruitment services comprise the search and selection of candidates for full time employment; and ICT contracting services include the provision of ICT professionals for temporary and other non-permanent staffing needs of clients for specific projects in system development, infrastructure support and cloud integration, operation, and other skill sets. The company also offers personnel services to other sectors, such as administration and office support, sales and marketing, finance, and legal. It serves technology companies, banking/financial services companies, and federal and state government departments and agencies. HiTech Group Australia Limited was founded in 1993 and is based in Sydney, Australia.

Details
Name: HiTech Group Australia Limited
HIT
Exchange: ASX
Founded: 1993
A$43,186,750
38,050,000
Website: http://www.hitechaust.com
Address: HiTech Group Australia Limited
189 Kent Street,
Level 9,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX HIT Ordinary Shares Australian Securities Exchange AU AUD 04. May 2000
CHIA HIT Ordinary Shares Chi-X Australia AU AUD 04. May 2000
Number of employees
Current staff
Staff numbers
0
HiTech Group Australia employees.
Industry
Human Resource and Employment Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/19 10:32
End of day share price update: 2019/11/18 00:00
Last estimates confirmation: 2018/08/13
Last earnings filing: 2019/09/09
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


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.