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Wellcom Group

ASX:WLL
Snowflake Description

Solid track record with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WLL
ASX
A$263M
Market Cap
  1. Home
  2. AU
  3. Commercial Services
Company description

Wellcom Group Limited provides advertising and marketing content production and content management services in Australia, the United Kingdom, New Zealand, Asia, and the United States. The last earnings update was 87 days ago. More info.


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WLL Share Price and Events
7 Day Returns
0.6%
ASX:WLL
2.2%
AU Commercial Services
0%
AU Market
1 Year Returns
38.1%
ASX:WLL
15%
AU Commercial Services
15.3%
AU Market
WLL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Wellcom Group (WLL) 0.6% -2% -1.6% 38.1% 24.1% 106.8%
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
  • WLL outperformed the Commercial Services industry which returned 15% over the past year.
  • WLL outperformed the Market in Australia which returned 15.3% over the past year.
Price Volatility
WLL
Industry
5yr Volatility vs Market

WLL Value

 Is Wellcom Group 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 Wellcom Group 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 Wellcom Group.

ASX:WLL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
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:WLL
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%) (4.94%))
0.787
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

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

The calculations below outline how an intrinsic value for Wellcom Group 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:WLL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.08%)
2020 14.60 Analyst x1 13.63
2021 16.60 Analyst x1 14.48
2022 17.40 Analyst x1 14.17
2023 18.05 Est @ 3.73% 13.73
2024 18.64 Est @ 3.3% 13.24
2025 19.20 Est @ 3% 12.74
2026 19.74 Est @ 2.8% 12.23
2027 20.27 Est @ 2.65% 11.72
2028 20.78 Est @ 2.55% 11.23
2029 21.30 Est @ 2.48% 10.75
Present value of next 10 years cash flows A$127.00
ASX:WLL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$21.30 × (1 + 2.31%) ÷ (7.08% – 2.31%)
A$456.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$456.99 ÷ (1 + 7.08%)10
A$230.58
ASX:WLL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$127.00 + A$230.58
A$357.58
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$357.58 / 39.23
A$9.12
ASX:WLL Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$9.12
Current discount Discount to share price of A$6.70
= -1 x (A$6.70 - A$9.12) / A$9.12
26.5%

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

Current Discount
Amount off the current price Wellcom Group is available for.
Intrinsic value
26%
Share price is A$6.7 vs Future cash flow value of A$9.12
Current Discount Checks
For Wellcom Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Wellcom Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Wellcom Group'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 Wellcom Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Wellcom Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:WLL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.40
ASX:WLL Share Price ** ASX (2019-11-14) in AUD A$6.7
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 Wellcom Group.

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

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

= 6.7 ÷ 0.40

16.85x

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

  • Wellcom Group is good value based on earnings compared to the AU Commercial Services industry average.
  • Wellcom Group is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Wellcom Group's expected growth come at a high price?
Raw Data
ASX:WLL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
0.2%per year
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 .

ASX:WLL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.85x ÷ 0.2%

107.75x

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

  • Wellcom Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Wellcom Group's assets?
Raw Data
ASX:WLL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$1.77
ASX:WLL Share Price * ASX (2019-11-14) in AUD A$6.7
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:WLL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 6.7 ÷ 1.77

3.78x

* Primary Listing of Wellcom Group.

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

  • Wellcom Group is overvalued based on assets compared to the AU Commercial Services industry average.
X
Value checks
We assess Wellcom Group'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. Wellcom Group 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.

WLL Future Performance

 How is Wellcom Group expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

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
0.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Wellcom Group expected to grow at an attractive rate?
  • Wellcom Group's earnings growth is positive but not above the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Wellcom Group's earnings growth is positive but not above the Australia market average.
  • Wellcom Group's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:WLL Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:WLL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 0.2%
ASX:WLL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts -7.3%
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:WLL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:WLL Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 133 19 16 1
2021-06-30 131 19 15 1
2020-06-30 128 18 15 1
2019-11-15
ASX:WLL Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 161 16 16
2019-03-31 160 15 14
2018-12-31 159 15 12
2018-09-30 157 15 12
2018-06-30 155 15 12
2018-03-31 151 15 11
2017-12-31 147 14 11
2017-09-30 146 12 11
2017-06-30 145 10 11
2017-03-31 148 11 11
2016-12-31 150 11 11
2016-09-30 153 12 11

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Wellcom Group's earnings are expected to grow by 0.2% yearly, however this is not considered high growth (20% yearly).
  • Wellcom Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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:WLL 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 1 Analyst Estimates (S&P Global) See Below

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

ASX:WLL Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.40 0.40 0.40 1.00
2021-06-30 0.39 0.39 0.39 1.00
2020-06-30 0.38 0.38 0.38 1.00
2019-11-15
ASX:WLL Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.40
2019-03-31 0.36
2018-12-31 0.32
2018-09-30 0.31
2018-06-30 0.30
2018-03-31 0.29
2017-12-31 0.28
2017-09-30 0.27
2017-06-30 0.27
2017-03-31 0.28
2016-12-31 0.29
2016-09-30 0.29

*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.
  • Wellcom Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Wellcom Group'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.
Wellcom Group has a total score of 1/6, 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.

WLL Past Performance

  How has Wellcom Group 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 Wellcom Group'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.
  • Wellcom Group's year on year earnings growth rate has been positive over the past 5 years.
  • Wellcom Group's 1-year earnings growth exceeds its 5-year average (33.1% vs 8.4%)
  • Wellcom Group's earnings growth has exceeded the AU Commercial Services industry average in the past year (33.1% vs 18.9%).
Earnings and Revenue History
Wellcom Group'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 Wellcom Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:WLL Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 160.95 15.60 10.06
2019-03-31 160.10 13.98 11.33
2018-12-31 159.25 12.36 12.60
2018-09-30 157.21 12.04 10.51
2018-06-30 155.17 11.72 8.43
2018-03-31 151.14 11.31 8.66
2017-12-31 147.11 10.89 8.89
2017-09-30 146.14 10.76 8.04
2017-06-30 145.17 10.63 7.18
2017-03-31 147.50 11.02 6.01
2016-12-31 149.84 11.41 4.84
2016-09-30 153.04 11.26 5.92
2016-06-30 156.24 11.10 7.00
2016-03-31 148.57 10.81 9.53
2015-12-31 140.89 10.52 12.07
2015-09-30 128.12 10.14 9.29
2015-06-30 115.35 9.76 6.51
2015-03-31 108.22 9.41 9.85
2014-12-31 101.08 9.06 13.20
2014-09-30 95.75 8.83 9.13
2014-06-30 90.42 8.60 5.05
2014-03-31 87.15 8.52 4.99
2013-12-31 83.89 8.45 4.92
2013-09-30 81.18 8.15 4.51
2013-06-30 78.46 7.85 4.09
2013-03-31 78.87 7.87 4.10
2012-12-31 79.28 7.89 4.12

*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.
  • Wellcom Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Wellcom Group used its assets more efficiently than the AU Commercial Services industry average last year based on Return on Assets.
  • Wellcom Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Wellcom Group'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.
Wellcom Group has a total score of 5/6, 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.

WLL Health

 How is Wellcom Group'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 Wellcom Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Wellcom Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Wellcom Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Wellcom Group'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 3.9x 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 Wellcom Group Company Filings, last reported 4 months ago.

ASX:WLL Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 69.45 12.80 12.27
2019-03-31 69.45 12.80 12.27
2018-12-31 63.85 12.92 7.87
2018-09-30 63.85 12.92 7.87
2018-06-30 60.43 10.00 8.03
2018-03-31 60.43 10.00 8.03
2017-12-31 66.55 0.00 6.37
2017-09-30 66.55 0.00 6.37
2017-06-30 65.96 0.00 6.82
2017-03-31 65.96 0.00 6.82
2016-12-31 65.73 0.00 4.01
2016-09-30 65.73 0.00 4.01
2016-06-30 65.43 0.00 7.76
2016-03-31 65.43 0.00 7.76
2015-12-31 64.63 2.82 6.23
2015-09-30 64.63 2.82 6.23
2015-06-30 63.37 2.61 11.68
2015-03-31 63.37 2.61 11.68
2014-12-31 60.27 0.00 6.04
2014-09-30 60.27 0.00 6.04
2014-06-30 58.38 0.00 6.14
2014-03-31 58.38 0.00 6.14
2013-12-31 57.73 0.00 15.14
2013-09-30 57.73 0.00 15.14
2013-06-30 56.67 0.00 15.45
2013-03-31 56.67 0.00 15.45
2012-12-31 55.11 0.00 15.16
  • Wellcom Group's level of debt (18.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 18.4% today).
  • Debt is well covered by operating cash flow (125.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 31.7x coverage).
X
Financial health checks
We assess Wellcom Group'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. Wellcom Group has a total score of 5/6, 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.

WLL Dividends

 What is Wellcom Group'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
4.78%
Current annual income from Wellcom Group dividends. Estimated to be 3.88% next year.
If you bought A$2,000 of Wellcom Group shares you are expected to receive A$96 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?
  • Wellcom Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.36%).
  • Wellcom Group's dividend is below the markets top 25% of dividend payers in Australia (5.58%).
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:WLL 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 1 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.

ASX:WLL Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.24 1.00
2021-06-30 0.28 1.00
2020-06-30 0.27 1.00
2019-11-15
ASX:WLL Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-08-20 0.320 4.694
2019-02-19 0.220 4.073
2018-08-21 0.210 4.204
2018-02-20 0.235 5.296
2017-08-22 0.230 5.217
2017-02-21 0.230 5.077
2016-08-17 0.225 4.235
2015-08-19 0.205 4.312
2015-02-18 0.195 5.173
2014-08-20 0.190 5.802
2013-08-21 0.180 6.610
2013-02-18 0.180 7.032
2012-08-23 0.180 6.183
2012-02-22 0.170 6.991
2011-08-17 0.165 7.224
2011-02-16 0.155 6.790
2010-08-19 0.160 7.532
2010-02-18 0.120 6.320
2009-08-20 0.120 5.776

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Wellcom Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Wellcom Group'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 Wellcom Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Wellcom Group has a total score of 4/6, see the detailed checks below.


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

WLL Management

 What is the CEO of Wellcom Group'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 Sidwell
COMPENSATION A$509,073
CEO Bio

Mr. Andrew William Sidwell has been Chief Executive Officer of Wellcom - Australia & New Zealand at Wellcom Group Limited since March 1, 2017. Mr. Sidwell served as Managing Director of Wellcom - Melbourne & London at Wellcom Group Limited since July 1, 2014. Mr. Sidwell served as Victorian General Manager of Wellcom Group Limited. since October 1, 2010. Mr. Sidwell served account management roles at QBE insurance, inprint and welcome group, where he has been responsible for managing some of the groups largest blue-chip clients including Australia post and pacific brands. Mr. Sidwell served as General Manager of Digital House in 2009 and led it transition to a modern variable data-centric digital printing business. Mr. Sidwell graduated in Business (Marketing) from La Trobe University in 2002.

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

Average tenure of the Wellcom Group management team in years:

6.8
Average Tenure
  • The average tenure for the Wellcom Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Wayne Sidwell

TITLE
Founder & Chairman
COMPENSATION
A$120K
TENURE
14.5 yrs

Andrew Sidwell

TITLE
Chief Executive Officer of Australia & New Zealand
COMPENSATION
A$509K

Andrew Lumsden

TITLE
Company Secretary
COMPENSATION
A$625K
TENURE
6.8 yrs

Mick Bettridge

TITLE
MD of Asia & Global Business Development Officer
COMPENSATION
A$597K
TENURE
7.8 yrs

David Bridges

TITLE
Managing Director of US
COMPENSATION
A$1M
TENURE
5.7 yrs

Duncan Stokes

TITLE
Managing Director of UK
COMPENSATION
A$369K
TENURE
2.7 yrs

Mark Sweetnam

TITLE
Chief Technology Officer

Max Oshman

TITLE
Chief Digital Officer - Wellcom US

Jared Domow

TITLE
President of DIPPIN Sauce - Wellcom US
Board of Directors Tenure

Average tenure of the Wellcom Group board of directors in years:

13.7
Average Tenure
  • The average tenure for the Wellcom Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Wayne Sidwell

TITLE
Founder & Chairman
COMPENSATION
A$120K

Kerry Smith

TITLE
Independent Non-Executive Director
COMPENSATION
A$95K
AGE
66
TENURE
13.7 yrs

Charles Anzarut

TITLE
Independent Non-Executive Director
COMPENSATION
A$95K
TENURE
14.5 yrs

Janette Kendall

TITLE
Non-Executive Director
COMPENSATION
A$95K
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
25. Sep 19 Sell First Sentier Investors (Australia) IM Ltd Company 20. Aug 19 23. Sep 19 -550,000 A$6.83 A$-3,754,521
28. Aug 19 Buy Milford Asset Management Limited Company 23. Aug 16 09. Aug 19 1,064,599 A$5.36 A$5,706,406
22. Aug 19 Buy Mitsubishi UFJ Kokusai Asset Management Co., Ltd. Company 15. Apr 19 19. Aug 19 255,478 A$6.84 A$1,611,054
20. Aug 19 Sell First Sentier Investors (Australia) IM Ltd Company 16. Aug 19 16. Aug 19 -162,307 A$6.82 A$-1,106,934
06. Aug 19 Buy First Sentier Investors (Australia) IM Ltd Company 15. Apr 19 15. Apr 19 87,000 A$5.00 A$435,000
X
Management checks
We assess Wellcom Group'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. Wellcom Group 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.

WLL News

Simply Wall St News

Is Wellcom Group Limited (ASX:WLL) A High Quality Stock To Own?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Wellcom Group: 19% = AU$12m ÷ AU$64m (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Wellcom Group's Debt And Its 19% ROE Wellcom Group has a debt to equity ratio of 0.20, which is far from excessive. … Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises.

Simply Wall St -

Wellcom Group (ASX:WLL) Seems To Use Debt Quite Sensibly

We can see that Wellcom Group Limited (ASX:WLL) does use debt in its business. … ASX:WLL Historical Debt, July 15th 2019 How Strong Is Wellcom Group's Balance Sheet? … Either way, since Wellcom Group does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

Does Wellcom Group Limited's (ASX:WLL) P/E Ratio Signal A Buying Opportunity?

We'll look at Wellcom Group Limited's (ASX:WLL) P/E ratio and reflect on what it tells us about the company's share price. … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Wellcom Group: P/E of 16.64 = A$5.25 ÷ A$0.32 (Based on the year to December 2018.) Is A High P/E Ratio Good? … Most would be impressed by Wellcom Group earnings growth of 13% in the last year.

Simply Wall St -

Does Wellcom Group Limited's (ASX:WLL) Recent Track Record Look Strong?

See our latest analysis for Wellcom Group Did WLL's recent earnings growth beat the long-term trend and the industry? … While Wellcom Group has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. … You should continue to research Wellcom Group to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for WLL’s future growth?

Simply Wall St -

Here's How We Evaluate Wellcom Group Limited's (ASX:WLL) Dividend

Dividend paying stocks like Wellcom Group Limited (ASX:WLL) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. With Wellcom Group yielding 4.0% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. We'd guess that plenty of investors have purchased it for the income. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … While Wellcom Group's dividends were covered by the company's reported profits, free cash flow is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. Why take the risk of a dividend getting cut, unless there's a good chance of bigger dividends in future? Wellcom Group has grown its earnings per share at 9.5% per annum over the past five years. The rate at which earnings have grown is quite decent, and by paying out more than half of its earnings as dividends, the company is striking a reasonable balance between reinvestment and returns to shareholders. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

How Wellcom Group Limited (ASX:WLL) Could Add Value To Your Portfolio

For those interested in digger a bit deeper into my commentary, read the full report on Wellcom Group here. … ASX:WLL Historical Dividend Yield, May 28th 2019 Next Steps: For Wellcom Group, there are three essential aspects you should look at: Future Outlook: What are well-informed industry analysts predicting for WLL’s future growth? … The intrinsic value infographic in our free research report helps visualize whether WLL is currently mispriced by the market.

Simply Wall St -

An Intrinsic Calculation For Wellcom Group Limited (ASX:WLL) Suggests It's 47% Undervalued

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Wellcom Group Limited (ASX:WLL) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (A$, Millions) A$11.30 A$14.00 A$16.60 A$18.69 A$20.47 A$21.97 A$23.26 A$24.37 A$25.35 A$26.25 Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x2 Est @ 12.6% Est @ 9.51% Est @ 7.35% Est @ 5.84% Est @ 4.78% Est @ 4.04% Est @ 3.52% Present Value (A$, Millions) Discounted @ 7.27% A$10.53 A$12.17 A$13.45 A$14.12 A$14.41 A$14.42 A$14.23 A$13.90 A$13.48 A$13.01 Present Value of 10-year Cash Flow (PVCF)= A$133.71m "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.3%.

Simply Wall St -

Did Wellcom Group's (ASX:WLL) Share Price Deserve to Gain 83%?

For example, the Wellcom Group Limited (ASX:WLL) share price is up 83% in the last 5 years, clearly besting than the market return of around 7.5% (ignoring dividends). … Over half a decade, Wellcom Group managed to grow its earnings per share at 7.9% a year. … This EPS growth is slower than the share price growth of 13% per year, over the same period.

Simply Wall St -

Wellcom Group Limited (ASX:WLL) Earns A Nice Return On Capital Employed

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)

Simply Wall St -

Our Take On Wellcom Group Limited's (ASX:WLL) CEO Salary

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Andrew Sidwell's Compensation Compare With Similar Sized Companies. … Our data indicates that Wellcom Group Limited is worth AU$196m, and total annual CEO compensation is AU$431k.

Simply Wall St -

WLL Company Info

Description

Wellcom Group Limited provides advertising and marketing content production and content management services in Australia, the United Kingdom, New Zealand, Asia, and the United States. The company offers creative production, studio creative, photography, and retouching services; digital marketing services; adaptation services for print, digital, and video content; and Knowledgewell, a marketing software for marketing resource, campaign, digital asset, workflow, and print management. It also provides design and artwork services; and television and video production, digital print, and computer to plate production services. The company was founded in 2000 and is based in Port Melbourne, Australia.

Details
Name: Wellcom Group Limited
WLL
Exchange: ASX
Founded: 2000
A$262,836,685
39,229,356
Website: http://www.wellcomww.com
Address: Wellcom Group Limited
870 Lorimer Street,
Port Melbourne,
Victoria, 3207,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX WLL Ordinary Shares Australian Securities Exchange AU AUD 22. Jul 2005
CHIA WLL Ordinary Shares Chi-X Australia AU AUD 22. Jul 2005
Number of employees
Current staff
Staff numbers
0
Wellcom Group employees.
Industry
Commercial Printing
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 10:33
End of day share price update: 2019/11/14 00:00
Last estimates confirmation: 2019/11/13
Last earnings filing: 2019/08/20
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.