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Afterpay

ASX:APT
Snowflake Description

High growth potential with mediocre balance sheet.

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

Afterpay Limited operates as a payments company in Australia. The last earnings update was 43 days ago. More info.


Add to Portfolio Compare Print
  • Afterpay has significant price volatility in the past 3 months.
APT Share Price and Events
7 Day Returns
9.2%
ASX:APT
0.2%
AU IT
-0.3%
AU Market
1 Year Returns
-13.9%
ASX:APT
-22.1%
AU IT
-17.5%
AU Market
APT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Afterpay (APT) 9.2% -25.6% -29.3% -13.9% - -
AU IT 0.2% -10.8% -28.9% -22.1% 6.3% 35.8%
AU Market -0.3% -9.4% -24.9% -17.5% -15.5% -14.7%
1 Year Return vs Industry and Market
  • APT outperformed the IT industry which returned -22.1% over the past year.
  • APT outperformed the Market in Australia which returned -17.5% over the past year.
Price Volatility
APT
Industry
5yr Volatility vs Market

APT Value

 Is Afterpay 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 Afterpay 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 Afterpay.

ASX:APT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in AUD A$ 0.03144
Payout Ratio Company Filings (2019-12-31) 0%
Discount Rate (Cost of Equity) See below 6.7%
Perpetual Growth Rate 10-Year AU Government Bond Rate 1.1%

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:APT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 1.1%
Equity Risk Premium S&P Global 5.4%
IT Unlevered Beta Simply Wall St/ S&P Global 0.94
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.937 (1 + (1- 30%) (7.88%))
1.033
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.08% + (1.033 * 5.44%)
6.7%

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

The calculations below outline how an intrinsic value for Afterpay 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:APT Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= A$0.03 / (6.7% - 1.08%)
A$0.56
ASX:APT Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$0.56
Current discount Discount to share price of A$22.00
= -1 x (A$22.00 - A$0.56) / A$0.56
-3831.5%

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

  • The current share price of Afterpay 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 Afterpay's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Afterpay's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:APT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in AUD A$-0.20
ASX:APT Share Price ** ASX (2020-04-09) in AUD A$22
Australia IT Industry PE Ratio Median Figure of 14 Publicly-Listed IT Companies 21.95x
Australia Market PE Ratio Median Figure of 515 Publicly-Listed Companies 13.52x

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

** Primary Listing of Afterpay.

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

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

= 22 ÷ -0.20

-108.73x

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

  • Afterpay is loss making, we can't compare its value to the AU IT industry average.
  • Afterpay is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Afterpay's expected growth come at a high price?
Raw Data
ASX:APT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -108.73x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
76%per year
Australia IT Industry PEG Ratio Median Figure of 11 Publicly-Listed IT Companies 1.18x
Australia Market PEG Ratio Median Figure of 337 Publicly-Listed Companies 1.04x

*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 Afterpay, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Afterpay's assets?
Raw Data
ASX:APT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in AUD A$3.31
ASX:APT Share Price * ASX (2020-04-09) in AUD A$22
Australia IT Industry PB Ratio Median Figure of 33 Publicly-Listed IT Companies 1.73x
Australia Market PB Ratio Median Figure of 1,614 Publicly-Listed Companies 1.32x
ASX:APT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 22 ÷ 3.31

6.65x

* Primary Listing of Afterpay.

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

  • Afterpay is overvalued based on assets compared to the AU IT industry average.
X
Value checks
We assess Afterpay'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 IT 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 IT industry average (and greater than 0)? (1 check)
  5. Afterpay has a total score of 0/6, 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.

APT Future Performance

 How is Afterpay expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

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
76%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Afterpay expected to grow at an attractive rate?
  • Afterpay's earnings growth is expected to exceed the low risk savings rate of 1.1%.
Growth vs Market Checks
  • Afterpay's earnings growth is expected to exceed the Australia market average.
  • Afterpay's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:APT Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:APT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 76%
ASX:APT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 39.2%
Australia IT Industry Earnings Growth Rate Market Cap Weighted Average 42.8%
Australia IT Industry Revenue Growth Rate Market Cap Weighted Average 18.5%
Australia Market Earnings Growth Rate Market Cap Weighted Average 10.5%
Australia Market Revenue Growth Rate Market Cap Weighted Average 4%

*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:APT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:APT Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 1,907 8 306 1
2022-06-30 1,150 -244 75 10
2021-06-30 760 -309 -2 12
2020-06-30 487 -394 -45 12
2020-04-09
ASX:APT Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-12-31 312 -324 -50
2019-09-30 265 -233 -46
2019-06-30 218 -142 -43
2019-03-31 188 -161 -37
2018-12-31 158 -177 -30
2018-09-30 136 -138 -20
2018-06-30 114 -98 -9
2018-03-31 90 -114 -9
2017-12-31 67 -129 -9
2017-09-30 45 -104 -9
2017-06-30 23 -79 -10
2017-03-31 15 -58 -7

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Afterpay's earnings are expected to grow significantly at over 20% yearly.
  • Afterpay's revenue is expected to grow significantly at over 20% yearly.
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:APT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Afterpay Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:APT Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 1.17 1.17 1.17 1.00
2022-06-30 0.32 0.58 0.17 7.00
2021-06-30 -0.10 0.15 -0.55 11.00
2020-06-30 -0.21 -0.08 -0.51 10.00
2020-04-09
ASX:APT Past Financials Data
Date (Data in AUD Millions) EPS *
2019-12-31 -0.20
2019-09-30 -0.19
2019-06-30 -0.18
2019-03-31 -0.16
2018-12-31 -0.14
2018-09-30 -0.09
2018-06-30 -0.04
2018-03-31 -0.04
2017-12-31 -0.05
2017-09-30 -0.05
2017-06-30 -0.05
2017-03-31 -0.04

*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.
  • Afterpay is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Afterpay'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.
Afterpay has a total score of 5/6, 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.

APT Past Performance

  How has Afterpay 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 Afterpay's growth in the last year to its industry (IT).
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.
  • Afterpay does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Afterpay's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Afterpay's 1-year growth to the AU IT industry average as it is not currently profitable.
Earnings and Revenue History
Afterpay'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 Afterpay Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:APT Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 311.58 -49.74 294.22
2019-09-30 264.77 -46.30 253.06
2019-06-30 217.96 -42.86 211.90
2019-03-31 188.01 -36.56 177.79
2018-12-31 158.05 -30.26 146.08
2018-09-30 135.98 -19.62 121.35
2018-06-30 113.90 -8.98 96.62
2018-03-31 90.37 -8.97 81.81
2017-12-31 66.84 -8.97 67.00
2017-09-30 44.87 -9.30 50.24
2017-06-30 22.91 -9.62 33.49
2017-03-31 15.04 -6.65 21.21
2016-12-31 7.17 -3.68 8.92
2016-09-30 4.28 -3.62 6.01
2016-06-30 1.38 -3.55 3.10
2015-06-30 0.02 -0.04 0.05

*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 Afterpay has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Afterpay has efficiently used its assets last year compared to the AU IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Afterpay 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 Afterpay'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 IT 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.
Afterpay 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.

APT Health

 How is Afterpay'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 Afterpay's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Afterpay is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Afterpay's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Afterpay'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 3x 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 Afterpay Company Filings, last reported 3 months ago.

ASX:APT Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 840.59 407.62 405.35
2019-09-30 840.59 407.62 405.35
2019-06-30 648.52 49.88 232.46
2019-03-31 648.52 49.88 232.46
2018-12-31 340.83 181.84 44.49
2018-09-30 340.83 181.84 44.49
2018-06-30 183.56 161.21 32.79
2018-03-31 183.56 161.21 32.79
2017-12-31 165.01 136.46 24.96
2017-09-30 165.01 136.46 24.96
2017-06-30 160.08 46.75 29.60
2017-03-31 160.08 46.75 29.60
2016-12-31 72.10 8.09 27.74
2016-09-30 72.10 8.09 27.74
2016-06-30 38.06 0.00 19.72
2015-06-30 -0.05 0.05 0.00
  • Afterpay's level of debt (48.5%) compared to net worth is high (greater than 40%).
  • Unable to establish if Afterpay's debt level has increased without past 5-year debt data.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Afterpay has sufficient cash runway for 1.1 years based on current free cash flow.
  • Afterpay has less than a year of cash runway if free cash flow continues to grow at historical rates of 55.1% each year.
X
Financial health checks
We assess Afterpay'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. Afterpay has a total score of 3/6, 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.

APT Dividends

 What is Afterpay'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 Afterpay dividends. Estimated to be 0.14% next year.
If you bought A$2,000 of Afterpay 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 Afterpay's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Afterpay'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:APT 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 12 Analyst Estimates (S&P Global) See Below
Australia IT Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 3.5%
Australia Market Average Dividend Yield Market Cap Weighted Average of 365 Stocks 5.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 3%
Australia Top 25% Dividend Yield 75th Percentile 7.8%

Industry and Market average data is calculated daily.

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

ASX:APT Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30 0.10 8.00
2021-06-30 0.00 9.00
2020-06-30 0.00 9.00
2020-04-09

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

  • Unable to perform a dividend volatility check as Afterpay has not reported any payouts.
  • Unable to verify if Afterpay's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Afterpay's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Afterpay has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Afterpay's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess Afterpay's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - 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 Afterpay afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Afterpay 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.

APT Management

 What is the CEO of Afterpay'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
Ant Eisen
COMPENSATION A$651,355
AGE 47
TENURE AS CEO 0.8 years
CEO Bio

Mr. Anthony Mathew Eisen, also known as Ant, B.Comm., CA, is a Co-Founder of Afterpay Touch Group Limited and serves as its CEO & Managing Director since July 1, 2019. Mr. Mathew served as its Executive Chairman until July 2, 2019 and has been its executive Director since July 5, 2017. Mr. Eisen served as an Investment Manager of Coats Group plc (alternate name Guinness Peat Group plc). Mr. Eisen served as an Executive of Guinness Peat Group (Australia) Pty Ltd (GPG) since November 2005. Prior to 2014, Mr. Eisen served as the Chief Investment Officer at Guinness Peat Group (GPG) and was responsible for maximising shareholder value in a large, diversified portfolio of mainly publicly listed companies in Australasia and the United Kingdom. He was actively involved in a number of software and technology companies in which GPG was a shareholder, including eServGlobal, Touchcorp and MYOB. He has over 20 years’ experience in investing, maintaining public company directorships and providing corporate advice across a variety of sectors with a special focus in financial services and technology. He was involved in investment banking, specialising in mergers and acquisitions and providing corporate advice, having practiced extensively in Australia and the United States. He was an Investment Banker in Australia with Caliburn Partnership and in the United States with Credit Suisse. He commenced his professional career as an Accountant with Price Waterhouse. He serves as a Director of Tower Life (N.Z) Limited Group. He serves as Executive Director of Guinness Peat Group (Australia) Pty Limited. He served as a Director of Onthehouse Holdings Limited from October 21, 2014 to April 28, 2015. He served as a Non-Executive & Non-Independent Director of Capral Limited from September 28, 2008 to November 27, 2014. He served as a Director of MMC Contrarian Limited and Tower Australia Limited. He served as a Non Executive Director of ClearView Wealth Limited from 12, 2007 to October 11, 2012 and eServGlobal Ltd. from March 2009 to October 24, 2011. He is a Director of Foundation Life (N.Z) Limited. Mr. Eisen served as a Director at T&G Global Limited (alternate name Turners & Growers Ltd) from February 24, 2011 to August 01, 2011. Mr. Eisen holds a Bachelor of Commerce (double major Accounting and Finance) and is a member of the Institute of Chartered Accountants in Australia.

CEO Compensation
  • Ant's compensation has increased whilst company is loss making.
  • Ant's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Afterpay management team in years:

1.5
Average Tenure
  • The average tenure for the Afterpay management team is less than 2 years, this suggests a new team.
Management Team

Ant Eisen

TITLE
Co-Founder
COMPENSATION
A$651K
AGE
47
TENURE
0.8 yrs

Nick Molnar

TITLE
Co-Founder
COMPENSATION
A$732K

Luke Bortoli

TITLE
Chief Financial Officer
COMPENSATION
A$3M
TENURE
1.9 yrs

David Hancock

TITLE
Consultant
COMPENSATION
A$15M
TENURE
2.8 yrs

Frerk-Malte Feller

TITLE
Global Chief Operating Officer
TENURE
0.8 yrs

Jon Donoghue

TITLE
Chief Technology Officer
TENURE
2.8 yrs

Christopher Stevens

TITLE
General Counsel & Company Secretary
TENURE
1.5 yrs

Geoff Seeley

TITLE
Global Chief Marketing Officer
TENURE
0.2 yrs

Barry Odes

TITLE
Chief of Staff
COMPENSATION
A$686K
TENURE
0.8 yrs

Richard Harris

TITLE
Head of Business Expansion
COMPENSATION
A$507K
TENURE
2.8 yrs
Board of Directors Tenure

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

0.6
Average Tenure
55
Average Age
  • The average tenure for the Afterpay board of directors is less than 3 years, this suggests a new board.
Board of Directors

Elana Rubin

TITLE
Independent Interim Chair
COMPENSATION
A$120K
AGE
60
TENURE
0.8 yrs

Ant Eisen

TITLE
Co-Founder
COMPENSATION
A$651K
AGE
47
TENURE
2.8 yrs

Nick Molnar

TITLE
Co-Founder
COMPENSATION
A$732K
TENURE
2.8 yrs

Cliff Rosenberg

TITLE
Independent Non-Executive Director
COMPENSATION
A$107K
AGE
55
TENURE
3.1 yrs

Dana Stalder

TITLE
Independent Non-Executive Director
COMPENSATION
A$90K
AGE
51
TENURE
2.3 yrs

Larry Summers

TITLE
Member of U.S. Advisory Board
AGE
64
TENURE
0.5 yrs

Matt Kaness

TITLE
Member of U.S. Advisory Board
AGE
46
TENURE
0.5 yrs

Uli Becker

TITLE
Member of U.S. Advisory Board
AGE
56
TENURE
0.5 yrs

Gary Briggs

TITLE
Independent Director
AGE
56
TENURE
0.3 yrs

Pat O'Sullivan

TITLE
Independent Non-Executive Director
AGE
55
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Afterpay individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
06. Apr 20 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 26. Mar 20 01. Apr 20 -9,323,400 A$16.93 A$-157,852,305
06. Apr 20 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 26. Mar 20 01. Apr 20 6,204,711 A$19.73 A$122,397,340
06. Apr 20 Sell Mitsubishi UFJ Kokusai Asset Management Co., Ltd. Company 26. Mar 20 01. Apr 20 -118,595 A$18.12 A$-2,149,254
06. Apr 20 Buy Mitsubishi UFJ Kokusai Asset Management Co., Ltd. Company 26. Mar 20 01. Apr 20 100,807 A$20.35 A$2,051,675
30. Mar 20 Buy Mitsubishi UFJ Trust and Banking Corporation, Asset Management Arm Company 23. Mar 20 25. Mar 20 1,027 A$11.75 A$12,062
30. Mar 20 Sell Mitsubishi UFJ Kokusai Asset Management Co., Ltd. Company 23. Mar 20 25. Mar 20 -115,000 A$10.54 A$-1,211,960
30. Mar 20 Buy Mitsubishi UFJ Kokusai Asset Management Co., Ltd. Company 23. Mar 20 25. Mar 20 320,384 A$13.11 A$4,201,020
29. Mar 20 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 23. Mar 20 25. Mar 20 -5,070,944 A$11.22 A$-55,599,162
29. Mar 20 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 23. Mar 20 25. Mar 20 8,511,779 A$12.56 A$103,041,163
24. Mar 20 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 13. Mar 20 18. Mar 20 -3,413,082 A$23.85 A$-81,415,100
24. Mar 20 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 13. Mar 20 18. Mar 20 7,824,347 A$18.58 A$145,405,752
24. Mar 20 Sell Mitsubishi UFJ Trust and Banking Corporation, Asset Management Arm Company 17. Mar 20 17. Mar 20 -1,093 A$20.86 A$-22,800
25. Mar 20 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 19. Mar 20 20. Mar 20 -4,457,722 A$19.09 A$-79,150,564
25. Mar 20 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 19. Mar 20 20. Mar 20 11,746,037 A$11.93 A$139,168,672
24. Mar 20 Buy Elana Rubin Individual 20. Mar 20 20. Mar 20 7,621 A$13.10 A$99,843
24. Mar 20 Buy Patrick Redmond O'Sullivan Individual 20. Mar 20 20. Mar 20 7,169 A$13.96 A$100,115
24. Mar 20 Buy Dana Stalder Individual 23. Mar 20 23. Mar 20 19,300 A$8.94 A$172,501
05. Mar 20 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 27. Feb 20 02. Mar 20 -1,657,089 A$34.23 A$-56,714,477
05. Mar 20 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 27. Feb 20 02. Mar 20 3,594,955 A$33.17 A$119,226,763
05. Mar 20 Sell Mitsubishi UFJ Trust and Banking Corporation, Asset Management Arm Company 27. Feb 20 27. Feb 20 -3,638 A$35.90 A$-130,604
05. Mar 20 Sell Mitsubishi UFJ Kokusai Asset Management Co., Ltd. Company 27. Feb 20 02. Mar 20 -896 A$35.98 A$-32,241
05. Mar 20 Buy Mitsubishi UFJ Kokusai Asset Management Co., Ltd. Company 27. Feb 20 02. Mar 20 522,918 A$33.74 A$17,645,393
30. Jan 20 Buy Nicholas Molnar Individual 29. Jan 20 29. Jan 20 85 A$23.00 A$1,955
30. Jan 20 Buy Clifford Rosenberg Individual 29. Jan 20 29. Jan 20 85 A$23.00 A$1,955
30. Jan 20 Buy Anthony Eisen Individual 29. Jan 20 29. Jan 20 85 A$23.00 A$1,955
30. Jan 20 Buy Elana Rubin Individual 29. Jan 20 29. Jan 20 85 A$23.00 A$1,955
30. Jul 19 Sell Goldman Sachs Group, Investment Banking and Securities Investments Company 24. Jul 19 26. Jul 19 -440,671 A$25.55 A$-11,256,381
30. Jul 19 Buy Goldman Sachs Group, Investment Banking and Securities Investments Company 24. Jul 19 26. Jul 19 139,848 A$25.56 A$3,574,009
30. Jul 19 Buy Goldman Sachs Asset Management, L.P. Company 24. Jul 19 24. Jul 19 232 A$24.94 A$5,786
25. Jul 19 Buy Goldman Sachs Asset Management, L.P. Company 27. Mar 19 18. Jul 19 5,319 A$23.31 A$123,964
25. Jul 19 Buy Goldman Sachs Group, Investment Banking and Securities Investments Company 25. Mar 19 23. Jul 19 5,987,946 A$23.03 A$137,882,361
17. Jun 19 Sell Nicholas Molnar Individual 14. Jun 19 14. Jun 19 -2,050,000 A$23.00 A$-47,150,000
17. Jun 19 Sell Anthony Eisen Individual 14. Jun 19 14. Jun 19 -2,050,000 A$23.00 A$-47,150,000
17. Jun 19 Sell David Hancock Individual 14. Jun 19 14. Jun 19 -400,000 A$23.00 A$-9,200,000
X
Management checks
We assess Afterpay'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. Afterpay 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.

APT News

Simply Wall St News

If You Had Bought Afterpay Touch Group (ASX:APT) Shares A Year Ago You'd Have Made 71%

To wit, the Afterpay Touch Group Limited (ASX:APT) share price is 71% higher than it was a year ago, much better than the market return of around 0.6% (not including dividends) in the same period. … View our latest analysis for Afterpay Touch Group Because Afterpay Touch Group is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. … Afterpay Touch Group grew its revenue by 132% last year.

Simply Wall St -

Afterpay Touch Group Limited (ASX:APT): When Will It Breakeven?

Afterpay Touch Group Limited's (ASX:APT): Afterpay Touch Group Limited operates as a payments company in Australia. … See our latest analysis for Afterpay Touch Group APT is bordering on breakeven, according to the 6 IT analysts. … They expect the company to post a final loss in 2019, before turning a profit of AU$17m in 2020.

Simply Wall St -

Who Has Been Selling Afterpay Touch Group Limited (ASX:APT) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Afterpay Touch Group Limited (ASX:APT). … ASX:APT Recent Insider Trading, July 10th 2019 Afterpay Touch Group Insiders Are Selling The Stock The last three months saw significant insider selling at Afterpay Touch Group. … Insider Ownership of Afterpay Touch Group Many investors like to check how much of a company is owned by insiders.

Simply Wall St -

Is Afterpay Touch Group Limited's (ASX:APT) Balance Sheet A Threat To Its Future?

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Afterpay Touch Group Limited (ASX:APT), with a market cap of AU$3.13b, are often out of the spotlight. … Let’s take a look at APT’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … View our latest analysis for Afterpay Touch Group

Simply Wall St -

Why Afterpay Touch Group Limited's (ASX:APT) Investor Composition Impacts Your Returns

Today, I will be analyzing Afterpay Touch Group Limited’s (ASX:APT) recent ownership structure, an important but not-so-popular subject among individual investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.

Simply Wall St -

Afterpay Touch Group Limited's (ASX:APT) Path To Profitability

Afterpay Touch Group Limited's (ASX:APT):. … The AU$1.84b market-cap company’s loss lessens since it announced a -AU$9.62m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -AU$8.97m, as it approaches breakeven. … View out our latest analysis for Afterpay Touch Group

Simply Wall St -

Afterpay Touch Group Limited (ASX:APT): Should The Recent Earnings Drop Worry You?

Check out our latest analysis for Afterpay Touch Group Commentary On APT's Past Performance For the purpose of this commentary, I like to use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … ASX:APT Income Statement Jun 1st 18 We can further assess Afterpay Touch Group's loss by looking at what the industry has been experiencing over the past few years. … Each year, for the past five years Afterpay Touch Group's top-line more than doubled on average, indicating that the business is in a high-growth phase with expenses shooting ahead of revenues, leading to annual losses.

Simply Wall St -

When Can We Expect A Profit From Afterpay Touch Group Limited (ASX:APT)?

Afterpay Touch Group Limited's (ASX:APT): Afterpay Holdings Limited operates as a payments company in Australia. … ASX:APT Past Future Earnings May 10th 18 Given this is a high-level overview, I won’t go into detail the detail of APT’s upcoming projects, however, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment. … Next Steps: This article is not intended to be a comprehensive analysis on APT, so if you are interested in understanding the company at a deeper level, take a look at APT’s company page on Simply Wall St.

Simply Wall St -

What Investors Should Know About Afterpay Touch Group Limited's (ASX:APT) Financial Strength

With this ramp up in debt, the current cash and short-term investment levels stands at AU$29.60M for investing into the business. … Moving onto cash from operations, its trivial cash flows from operations make the cash-to-debt ratio less useful to us, though these low levels of cash means that operational efficiency is worth a look. … Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate.Next Steps: APT’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise.

Simply Wall St -

Should You Be Concerned About Afterpay Touch Group Limited's (ASX:APT) -143.50% Earnings Decline?

When Afterpay Touch Group Limited's (ASX:APT) announced its latest earnings (31 December 2017), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Afterpay Touch Group's average earnings over the past couple of years, and its industry performance. … Each year, for the past five years Afterpay Touch Group's top-line more than doubled on average, indicating that the business is in a high-growth phase with expenses shooting ahead of revenues, leading to annual losses.

Simply Wall St -

APT Company Info

Description

Afterpay Limited operates as a payments company in Australia. The company offers Afterpay, an instalment payment service, which enables consumers to buy products on a ‘buy now, receive now, pay later’ basis online or in-store. It also provides Pay Now services, including mobility, health, and e-services that offer payment guarantee services for businesses against fraud using proprietary platforms, as well as enables consumers to purchase products in-store and online through methods, such as mobile apps and interactive voice recognition systems for the telecommunications, health, and convenience retail sectors. In addition, the company offers ATG System platform, which provides various service modules. The company was formerly known as Afterpay Touch Group Limited and changed its name to Afterpay Limited in November 2019. Afterpay Limited was incorporated in 2017 and is based in Melbourne, Australia.

Details
Name: Afterpay Limited
APT
Exchange: ASX
Founded: 2017
A$5,288,553,203
266,023,803
Website: http://www.afterpay.com
Address: Afterpay Limited
406 Collins Street,
Level 5,
Melbourne,
Victoria, 3000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX APT Ordinary Shares Australian Securities Exchange AU AUD 29. Jun 2017
OTCPK AFTP.F Ordinary Shares Pink Sheets LLC US USD 29. Jun 2017
DB 2A6 Ordinary Shares Deutsche Boerse AG DE EUR 29. Jun 2017
CHIA APT Ordinary Shares Chi-X Australia AU AUD 29. Jun 2017
OTCPK AFTP.Y ADS Pink Sheets LLC US USD 23. Mar 2020
Number of employees
Current staff
Staff numbers
400
Afterpay employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 11:00
End of day share price update: 2020/04/09 00:00
Last estimates confirmation: 2020/04/01
Last earnings filing: 2020/02/26
Last earnings reported: 2019/12/31
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.