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Hotcopper Holdings

ASX:HOT
Snowflake Description

Flawless balance sheet and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HOT
ASX
A$27M
Market Cap
  1. Home
  2. AU
  3. Media
Company description

Hotcopper Holdings Limited operates as a stock trading and investment Internet discussion forum in Australia. The last earnings update was 55 days ago. More info.


Add to Portfolio Compare Print
  • Hotcopper Holdings has significant price volatility in the past 3 months.
HOT Share Price and Events
7 Day Returns
3.4%
ASX:HOT
1.8%
AU Interactive Media and Services
-0.1%
AU Market
1 Year Returns
-23.1%
ASX:HOT
38.2%
AU Interactive Media and Services
16.5%
AU Market
HOT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hotcopper Holdings (HOT) 3.4% 3.4% -25% -23.1% -30.2% -
AU Interactive Media and Services 1.8% -3.9% 2.5% 38.2% 76.9% 102.9%
AU Market -0.1% 1.5% 3.5% 16.5% 21.9% 20.6%
1 Year Return vs Industry and Market
  • HOT underperformed the Interactive Media and Services industry which returned 38.2% over the past year.
  • HOT underperformed the Market in Australia which returned 16.5% over the past year.
Price Volatility
HOT
Industry
5yr Volatility vs Market

Value

 Is Hotcopper Holdings 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 Hotcopper Holdings 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 Hotcopper Holdings.

ASX:HOT 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 8.4%
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:HOT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Interactive Media and Services Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.037 (1 + (1- 30%) (0%))
1.025
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.025 * 5.96%)
8.42%

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

The calculations below outline how an intrinsic value for Hotcopper Holdings 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:HOT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.42%)
2020 0.68 Est @ -24.2% 0.63
2021 0.57 Est @ -16.24% 0.49
2022 0.51 Est @ -10.68% 0.40
2023 0.48 Est @ -6.78% 0.34
2024 0.46 Est @ -4.05% 0.31
2025 0.45 Est @ -2.14% 0.28
2026 0.44 Est @ -0.81% 0.25
2027 0.44 Est @ 0.13% 0.23
2028 0.45 Est @ 0.78% 0.22
2029 0.45 Est @ 1.24% 0.20
Present value of next 10 years cash flows A$3.00
ASX:HOT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$0.45 × (1 + 2.31%) ÷ (8.42% – 2.31%)
A$7.59
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$7.59 ÷ (1 + 8.42%)10
A$3.38
ASX:HOT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$3.00 + A$3.38
A$6.38
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$6.38 / 177.43
A$0.04
ASX:HOT Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$0.04
Current discount Discount to share price of A$0.15
= -1 x (A$0.15 - A$0.04) / A$0.04
-317%

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

  • The current share price of Hotcopper Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Hotcopper Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hotcopper Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:HOT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.00
ASX:HOT Share Price ** ASX (2019-11-15) in AUD A$0.15
Global Interactive Media and Services Industry PE Ratio Median Figure of 118 Publicly-Listed Interactive Media and Services Companies 29.44x
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 Hotcopper Holdings.

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

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

= 0.15 ÷ 0.00

-454.55x

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

  • Hotcopper Holdings is loss making, we can't compare its value to the Global Interactive Media and Services industry average.
  • Hotcopper Holdings is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Hotcopper Holdings's expected growth come at a high price?
Raw Data
ASX:HOT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -454.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Global Interactive Media and Services Industry PEG Ratio Median Figure of 74 Publicly-Listed Interactive Media and Services Companies 1.49x
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 Hotcopper Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Hotcopper Holdings's assets?
Raw Data
ASX:HOT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$0.03
ASX:HOT Share Price * ASX (2019-11-15) in AUD A$0.15
Australia Interactive Media and Services Industry PB Ratio Median Figure of 20 Publicly-Listed Interactive Media and Services Companies 7.33x
Australia Market PB Ratio Median Figure of 1,584 Publicly-Listed Companies 1.75x
ASX:HOT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 0.15 ÷ 0.03

4.72x

* Primary Listing of Hotcopper Holdings.

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

  • Hotcopper Holdings is good value based on assets compared to the AU Interactive Media and Services industry average.
X
Value checks
We assess Hotcopper Holdings'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 Interactive Media and 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 Interactive Media and Services industry average (and greater than 0)? (1 check)
  5. Hotcopper Holdings has a total score of 1/6, 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 Hotcopper Holdings 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 Hotcopper Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by 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
28.8%
Expected Interactive Media and Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hotcopper Holdings expected to grow at an attractive rate?
  • Unable to compare Hotcopper Holdings's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Hotcopper Holdings's earnings growth to the Australia market average as no estimate data is available.
  • Unable to compare Hotcopper Holdings's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:HOT Future Growth Rates Data Sources
Data Point Source Value (per year)
Australia Interactive Media and Services Industry Earnings Growth Rate Market Cap Weighted Average 28.8%
Australia Interactive Media and Services Industry Revenue Growth Rate Market Cap Weighted Average 7.3%
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:HOT 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:HOT Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 4 1 0
2019-03-31 4 0
2018-12-31 5 2 1
2018-09-30 5 2 1
2018-06-30 5 1 1
2018-03-31 5 1
2017-12-31 4 1 1
2017-09-30 4 1 1
2017-06-30 4 1 0
2017-03-31 4 1 0
2016-12-31 3 1 0
2016-09-30 3 1 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Hotcopper Holdings is high growth as no earnings estimate data is available.
  • Unable to determine if Hotcopper Holdings 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:HOT 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 Hotcopper Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:HOT Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.00
2019-03-31 0.00
2018-12-31 0.01
2018-09-30 0.01
2018-06-30 0.01
2018-03-31 0.01
2017-12-31 0.01
2017-09-30 0.01
2017-06-30 0.00
2017-03-31 0.00
2016-12-31 0.00
2016-09-30 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 Hotcopper Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine Hotcopper Holdings's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  2. Hotcopper Holdings'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 Media companies here
  3. Hotcopper Holdings'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 Hotcopper Holdings'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.
Hotcopper Holdings 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 Hotcopper Holdings 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 Hotcopper Holdings's growth in the last year to its industry (Interactive Media and 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.
  • Hotcopper Holdings does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Hotcopper Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Hotcopper Holdings's 1-year growth to the Global Interactive Media and Services industry average as it is not currently profitable.
Earnings and Revenue History
Hotcopper Holdings'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 Hotcopper Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:HOT 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 4.25 -0.04 0.97
2019-03-31 4.46 0.42 0.80
2018-12-31 4.67 0.87 0.51
2018-09-30 4.79 1.03 0.44
2018-06-30 4.92 1.18 0.50
2018-03-31 4.69 1.20 0.46
2017-12-31 4.46 1.23 0.43
2017-09-30 4.16 0.84 0.66
2017-06-30 3.85 0.45 0.90
2017-03-31 3.64 0.24 0.87
2016-12-31 3.42 0.03 0.84
2016-09-30 3.08 0.26 0.57
2016-06-30 2.75 0.50 0.31
2015-06-30 2.15 0.59 0.18
2014-06-30 1.42 0.24 0.10
2013-06-30 1.61 0.25 0.14

*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 Hotcopper Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Hotcopper Holdings has efficiently used its assets last year compared to the Global Interactive Media and Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Hotcopper Holdings 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 Hotcopper Holdings'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 Interactive Media and 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.
Hotcopper Holdings 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 Hotcopper Holdings'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 Hotcopper Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hotcopper Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hotcopper Holdings has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hotcopper Holdings'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.
  • Hotcopper Holdings 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 Hotcopper Holdings Company Filings, last reported 4 months ago.

ASX:HOT Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 3.40 0.00 1.49
2019-03-31 3.40 0.00 1.49
2018-12-31 3.42 0.00 2.83
2018-09-30 3.42 0.00 2.83
2018-06-30 3.83 0.00 3.01
2018-03-31 3.83 0.00 3.01
2017-12-31 3.64 0.00 3.26
2017-09-30 3.64 0.00 3.26
2017-06-30 3.23 0.00 2.59
2017-03-31 3.23 0.00 2.59
2016-12-31 2.79 0.00 2.10
2016-09-30 2.79 0.00 2.10
2016-06-30 1.19 0.00 0.63
2015-06-30 1.27 0.00 0.91
2014-06-30 0.95 0.00 0.32
2013-06-30 0.43 0.00 0.20
  • Hotcopper Holdings has no debt.
  • Hotcopper Holdings has not taken on any debt in the past 5 years.
  • Hotcopper Holdings has no debt, it does not need to be covered by operating cash flow.
  • Hotcopper Holdings has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Hotcopper Holdings'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. Hotcopper Holdings 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 Hotcopper Holdings'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 Hotcopper Holdings dividends.
If you bought A$2,000 of Hotcopper Holdings 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 Hotcopper Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Hotcopper Holdings'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:HOT 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
Global Interactive Media and Services Industry Average Dividend Yield Market Cap Weighted Average of 42 Stocks 0.5%
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:HOT Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-09-26 0.000 0.000
2019-09-02 0.000 0.000
2019-03-05 0.000 0.000
2018-09-03 0.010 5.154
2018-02-27 0.010 4.547

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

  • Unable to perform a dividend volatility check as Hotcopper Holdings has not reported any payouts.
  • Unable to verify if Hotcopper Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Hotcopper Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Hotcopper Holdings 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 Hotcopper Holdings'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 Hotcopper Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hotcopper Holdings 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 Hotcopper Holdings'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
Jag Sanger
COMPENSATION A$872,105
TENURE AS CEO 1 years
CEO Bio

Mr. Jag Sanger has been Managing Director and Director at HotCopper Holdings Limited since November 15, 2018. Mr. Sanger has years of global media, publishing and digital financial services experience and leadership, taking responsibility for HotCopper’s digital news and corporate strategy and providing HotCopper the executive leadership appointment it has sought from ASX admission in September 2016. Mr. Sanger most recently worked as Chief Marketing and Strategy Officer for Automotive Holdings Group Limited (“AHG”), a diversified automotive retailing, financial services and logistics group. An ASX 200 business with over $6bn in sales and over 7,000 employees, Mr. Sanger was a member of the executive leadership group reporting to the CEO and held responsibility for marketing, group strategy and enterprise wide digital initiatives. Mr. Sanger also acted as a director or alternate director of AHG digital media investments including Carsguide, an auto industry publishing joint venture with NewsCorp, and Matchacar, a digital auto publisher and fintech platform. Prior to joining AHG Mr. Sanger worked as an executive or strategic advisor to many of the world’s leading digital media and financial services businesses. Mr. Sanger held executive roles in Australia with Fairfax Media as GM Strategy and M&A, and similar roles with NTL/Virgin Media and Vivendi Media in Europe. Mr. Sanger’s Australian advisory experience includes roles with PricewaterhouseCoopers as a Principal in their national digital practice with responsibility for digital media, payments and wealth management strategy, and with McKinsey & Co, serving technology, media and communications clients and financial sponsors across Europe and North America. Mr. Sanger holds a Marketing Masters (MA) from Kingston University Business School in London, UK, with a research focus on online media tracking, and is a Fellow of the Sulzberger news media program at the Columbia University Graduate School of Journalism in New York, USA.

CEO Compensation
  • Insufficient data for Jag to compare compensation growth.
  • Jag's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Hotcopper Holdings management team in years:

1
Average Tenure
  • The average tenure for the Hotcopper Holdings management team is less than 2 years, this suggests a new team.
Management Team

Jag Sanger

TITLE
MD & Director
COMPENSATION
A$872K
TENURE
1 yrs

Ben Donovan

TITLE
Company Secretary
AGE
40
TENURE
0.1 yrs

Michael Fennell

TITLE
General Manager
COMPENSATION
A$148K
TENURE
3.1 yrs
Board of Directors Tenure

Average tenure and age of the Hotcopper Holdings board of directors in years:

2.7
Average Tenure
56
Average Age
  • The average tenure for the Hotcopper Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Alec Pismiris

TITLE
Non-Executive Chairman
COMPENSATION
A$70K
AGE
56
TENURE
2.4 yrs

Jag Sanger

TITLE
MD & Director
COMPENSATION
A$872K
TENURE
1 yrs

Colin Chenu

TITLE
Non-Executive Director
COMPENSATION
A$68K
AGE
56
TENURE
3 yrs

Gavin Argyle

TITLE
Non-Executive Director
COMPENSATION
A$36K
AGE
56
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Hotcopper Holdings individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
11. Nov 19 Buy Marcus New Individual 03. Oct 19 03. Oct 19 350,000 A$0.15 A$52,500
11. Nov 19 Buy David Argyle Individual 11. Nov 19 11. Nov 19 22,991,713 A$0.13 A$3,016,647
08. Nov 19 Buy BCB Asset Management Limited Company 17. Jun 19 14. Aug 19 866,000 A$0.18 A$155,857
31. Oct 19 Buy Gavin Argyle Individual 28. Oct 19 28. Oct 19 2,800,000 A$0.13 A$364,000
31. Oct 19 Buy Colin Chenu Individual 28. Oct 19 28. Oct 19 75,000 A$0.13 A$9,750
30. Oct 19 Buy Alec Pismiris Individual 28. Oct 19 28. Oct 19 150,000 A$0.13 A$19,500
21. Oct 19 Buy David Argyle Individual 04. May 18 15. Oct 19 1,244,034 A$0.23 A$284,165
14. Jun 19 Buy BCB Asset Management Limited Company 03. May 19 11. Jun 19 1,310,624 A$0.18 A$236,905
02. May 19 Buy BCB Asset Management Limited Company 30. Nov 18 02. May 19 1,128,857 A$0.18 A$201,332
30. Nov 18 Buy BCB Asset Management Limited Company 22. Oct 18 29. Nov 18 1,063,712 A$0.20 A$212,202
X
Management checks
We assess Hotcopper Holdings'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. Hotcopper Holdings 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

What Investors Should Know About Hotcopper Holdings Limited's (ASX:HOT) Financial Strength

However, it also faces higher cost of capital given interest cost is generally lower than equity. … Is financial flexibility worth the lower cost of capital. … There are well-known benefits of including debt in capital structure, primarily a lower cost of capital

Simply Wall St -

How Hotcopper Holdings Limited (ASX:HOT) Can Impact Your Portfolio Volatility

If you're interested in Hotcopper Holdings Limited (ASX:HOT), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider.

Simply Wall St -

Hotcopper Holdings Limited (ASX:HOT)'s Return on Capital

and looking to gauge the potential return on investment in Hotcopper Holdings Limited (ASX:HOT). … Therefore, looking at how efficiently Hotcopper Holdings is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

Why Hotcopper Holdings Limited (ASX:HOT) Should Have A Place In Your Portfolio

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company with great financial health as well as a.

Simply Wall St -

Who Really Owns Hotcopper Holdings Limited (ASX:HOT)?

In this article, I'm going to take a look at Hotcopper Holdings Limited’s (ASX:HOT) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Private Company Ownership Potential investors in HOT should also look at another important group of investors: private companies, with a stake of 17.70%, who are primarily invested because of strategic and capital gain interests. … Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.

Simply Wall St -

Should You Be Tempted To Buy Hotcopper Holdings Limited (ASX:HOT) At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for HOT Price per share = A$0.24 Earnings per share = A$0.009 ∴ Price-Earnings Ratio = A$0.24 ÷ A$0.009 = 26.4x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … HOT’s P/E of 26.4x is lower than its industry peers (29x), which implies that each dollar of HOT’s earnings is being undervalued by investors. … For example, if you inadvertently compared lower risk firms with HOT, then investors would naturally value HOT at a lower price since it is a riskier investment.

Simply Wall St -

How Hotcopper Holdings Limited (ASX:HOT) Delivered A Better ROE Than Its Industry

Check out our latest analysis for Hotcopper Holdings Breaking down ROE — the mother of all ratios Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity ASX:HOT Last Perf Mar 6th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

Company Info

Description

Hotcopper Holdings Limited operates as a stock trading and investment Internet discussion forum in Australia. It provides a forum for investors to comment on a range of topics, including listed companies and IPOs, stocks to buy and sell, share market trading, ASX stock markets, foreign stock markets, politics, sports, betting, etc., as well as futures, derivatives, managed funds, and foreign currency trading. The company also offers Australian finance news, market caps, ASX listed company announcements, and prices. It serves substantial user base of retail and sophisticated investors, as well as self-managed superannuation funds. The company was incorporated in 2016 and is based in Perth, Australia.

Details
Name: Hotcopper Holdings Limited
HOT
Exchange: ASX
Founded: 2016
A$26,614,256
177,428,378
Website: http://www.hotcopper.com.au
Address: Hotcopper Holdings Limited
BGC Centre,
Level 11,
Perth,
Western Australia, 6000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX HOT Ordinary Shares Australian Securities Exchange AU AUD 15. Sep 2016
CHIA HOT Ordinary Shares Chi-X Australia AU AUD 15. Sep 2016
Number of employees
Current staff
Staff numbers
0
Hotcopper Holdings employees.
Industry
Interactive Media and Services
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/19 10:38
End of day share price update: 2019/11/15 00:00
Last earnings filing: 2019/09/25
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.