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Superloop

ASX:SLC
Snowflake Description

Imperfect balance sheet and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SLC
ASX
A$205M
Market Cap
  1. Home
  2. AU
  3. Telecom
Company description

Superloop Limited engages in the design, development, construction, and operation of independent telecommunications infrastructure in the Asia Pacific region. The last earnings update was 46 days ago. More info.


Add to Portfolio Compare Print
  • Superloop has significant price volatility in the past 3 months.
SLC Share Price and Events
7 Day Returns
24%
ASX:SLC
1.3%
AU Telecom
1.1%
AU Market
1 Year Returns
-54.7%
ASX:SLC
-3.8%
AU Telecom
-18.9%
AU Market
SLC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Superloop (SLC) 24% -17.3% -32.1% -54.7% -72% -
AU Telecom 1.3% -9.7% -10.1% -3.8% -27.5% -46.7%
AU Market 1.1% -20.8% -25% -18.9% -16% -16.4%
1 Year Return vs Industry and Market
  • SLC underperformed the Telecom industry which returned -3.8% over the past year.
  • SLC underperformed the Market in Australia which returned -18.9% over the past year.
Price Volatility
SLC
Industry
5yr Volatility vs Market

Value

 Is Superloop 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 Superloop 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 Superloop.

ASX:SLC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.4%
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:SLC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 1.1%
Equity Risk Premium S&P Global 5.4%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.36
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.356 (1 + (1- 30%) (24.89%))
0.61
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)
= 1.08% + (0.8 * 5.44%)
5.43%

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

The calculations below outline how an intrinsic value for Superloop 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:SLC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 5.43%)
2020 -61.95 Analyst x2 -58.76
2021 -1.40 Analyst x2 -1.26
2022 1.80 Analyst x2 1.54
2023 2.98 Est @ 65.33% 2.41
2024 4.35 Est @ 46.06% 3.34
2025 5.76 Est @ 32.56% 4.20
2026 7.09 Est @ 23.12% 4.90
2027 8.27 Est @ 16.51% 5.41
2028 9.25 Est @ 11.88% 5.74
2029 10.05 Est @ 8.64% 5.92
Present value of next 10 years cash flows A$-26.00
ASX:SLC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$10.05 × (1 + 1.08%) ÷ (5.43% – 1.08%)
A$233.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$233.33 ÷ (1 + 5.43%)10
A$137.48
ASX:SLC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$-26.00 + A$137.48
A$111.48
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$111.48 / 365.87
A$0.3
ASX:SLC Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$0.30
Current discount Discount to share price of A$0.65
= -1 x (A$0.65 - A$0.30) / A$0.30
-111.7%

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

  • The current share price of Superloop 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 Superloop's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Superloop's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:SLC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in AUD A$-0.31
ASX:SLC Share Price ** ASX (2020-04-03) in AUD A$0.65
Australia Telecom Industry PE Ratio Median Figure of 6 Publicly-Listed Telecom Companies 26.88x
Australia Market PE Ratio Median Figure of 515 Publicly-Listed Companies 13.28x

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

** Primary Listing of Superloop.

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

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

= 0.65 ÷ -0.31

-2.08x

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

  • Superloop is loss making, we can't compare its value to the AU Telecom industry average.
  • Superloop is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Superloop's expected growth come at a high price?
Raw Data
ASX:SLC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -2.08x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
33.3%per year
Australia Telecom Industry PEG Ratio Median Figure of 6 Publicly-Listed Telecom Companies 1.28x
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 Superloop, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Superloop's assets?
Raw Data
ASX:SLC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in AUD A$1.13
ASX:SLC Share Price * ASX (2020-04-03) in AUD A$0.65
Australia Telecom Industry PB Ratio Median Figure of 14 Publicly-Listed Telecom Companies 2.02x
Australia Market PB Ratio Median Figure of 1,614 Publicly-Listed Companies 1.23x
ASX:SLC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 0.65 ÷ 1.13

0.57x

* Primary Listing of Superloop.

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

  • Superloop is good value based on assets compared to the AU Telecom industry average.
X
Value checks
We assess Superloop'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 Telecom 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 Telecom industry average (and greater than 0)? (1 check)
  5. Superloop 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 Superloop expected to perform in the next 1 to 3 years based on estimates from 5 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
33.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Superloop expected to grow at an attractive rate?
  • Unable to compare Superloop's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Superloop's earnings growth to the Australia market average as it is expected to be loss making during the next 1-3 years.
  • Superloop's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:SLC Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:SLC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 33.3%
ASX:SLC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 10.8%
Australia Telecom Industry Earnings Growth Rate Market Cap Weighted Average -0.1%
Australia Telecom Industry Revenue Growth Rate Market Cap Weighted Average 0.8%
Australia Market Earnings Growth Rate Market Cap Weighted Average 10.1%
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:SLC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:SLC Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 139 20 -21 2
2021-06-30 123 17 -26 2
2020-06-30 109 3 -37 2
2020-04-03
ASX:SLC Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-12-31 110 9 -85
2019-09-30 114 7 -78
2019-06-30 119 5 -72
2019-03-31 123 19 -39
2018-12-31 127 34 -6
2018-09-30 123 36 -2
2018-06-30 118 38 1
2018-03-31 110 27 0
2017-12-31 103 16 -1
2017-09-30 81 10 -1
2017-06-30 60 5 -1
2017-03-31 36 -1 -3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Superloop is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Superloop's revenue is expected to grow by 10.8% yearly, however this is not considered high growth (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:SLC 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 5 Analyst Estimates (S&P Global) See Below

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

ASX:SLC Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 -0.06 -0.04 -0.09 4.00
2021-06-30 -0.07 -0.06 -0.07 3.00
2020-06-30 -0.11 -0.10 -0.12 3.00
2020-04-03
ASX:SLC Past Financials Data
Date (Data in AUD Millions) EPS *
2019-12-31 -0.31
2019-09-30 -0.31
2019-06-30 -0.31
2019-03-31 -0.17
2018-12-31 -0.02
2018-09-30 -0.01
2018-06-30 0.01
2018-03-31 0.00
2017-12-31 0.00
2017-09-30 -0.01
2017-06-30 -0.01
2017-03-31 -0.02

*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 Superloop will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Superloop'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.
Superloop 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.

Past Performance

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

ASX:SLC Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 110.00 -84.71 47.15
2019-09-30 114.49 -78.38 48.57
2019-06-30 118.99 -72.06 49.98
2019-03-31 123.11 -38.85 50.04
2018-12-31 127.22 -5.63 50.10
2018-09-30 122.67 -2.16 47.51
2018-06-30 118.13 1.32 44.93
2018-03-31 110.45 0.14 41.02
2017-12-31 102.78 -1.04 37.12
2017-09-30 81.29 -1.14 32.16
2017-06-30 59.81 -1.24 27.21
2017-03-31 36.20 -3.20 20.47
2016-12-31 12.59 -5.15 13.74
2016-09-30 9.42 -6.16 10.66
2016-06-30 6.25 -7.16 7.57
2015-12-31 1.93 -4.92 6.37
2015-09-30 0.97 -2.97 4.58
2015-06-30 0.01 -1.02 2.80

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

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Superloop is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Superloop's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Superloop'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.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x 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 Superloop Company Filings, last reported 3 months ago.

ASX:SLC Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 414.10 42.36 15.78
2019-09-30 414.10 42.36 15.78
2019-06-30 346.16 89.15 18.94
2019-03-31 346.16 89.15 18.94
2018-12-31 379.64 90.18 7.95
2018-09-30 379.64 90.18 7.95
2018-06-30 381.81 62.78 15.53
2018-03-31 381.81 62.78 15.53
2017-12-31 378.03 27.67 6.41
2017-09-30 378.03 27.67 6.41
2017-06-30 333.47 29.63 7.32
2017-03-31 333.47 29.63 7.32
2016-12-31 337.28 11.60 14.72
2016-09-30 337.28 11.60 14.72
2016-06-30 119.74 0.00 45.85
2015-12-31 100.91 0.00 35.05
2015-09-30 100.91 0.00 35.05
2015-06-30 53.77 0.00 18.01
  • Superloop's level of debt (10.2%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Superloop'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.

  • Superloop has less than a year of cash runway based on current free cash flow.
  • Superloop has less than a year of cash runway if free cash flow continues to grow at historical rates of 5.2% each year.
X
Financial health checks
We assess Superloop'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. Superloop has a total score of 2/6, 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 Superloop'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 Superloop dividends. Estimated to be 0% next year.
If you bought A$2,000 of Superloop 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 Superloop's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Superloop'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:SLC 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 5 Analyst Estimates (S&P Global) See Below
Australia Telecom Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 4.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 370 Stocks 5.5%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.7%
Australia Bottom 25% Dividend Yield 25th Percentile 3.2%
Australia Top 25% Dividend Yield 75th Percentile 8%

Industry and Market average data is calculated daily.

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

ASX:SLC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.00 4.00
2021-06-30 0.00 4.00
2020-06-30 0.00 4.00
2020-04-03
ASX:SLC Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-27 0.000 0.000
2018-08-20 0.000 0.000
2017-08-28 0.005 0.220

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

  • Unable to perform a dividend volatility check as Superloop has not reported any payouts.
  • Unable to verify if Superloop's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Superloop's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Superloop has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Superloop's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess Superloop's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - 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 Superloop afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Superloop 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 Superloop'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
Drew Kelton
COMPENSATION A$500,000
TENURE AS CEO 1.8 years
CEO Bio

Mr. Alexander Andrew Kelton, also known as Drew, served as Non-Executive Director of Megaport Limited until June 1, 2019. Mr. Kelton has been the Chief Executive Officer of Superloop Ltd since July 1, 2018 and serves as its Director since 23 November 2018 and serves as its Managing Director. Mr. Kelton served as the Chief Executive Officer at Megaport Limited since August 2018 until August 2018. He was Managing Director of APAC and Vice President at DocuSign, Inc. Mr. Kelton has hands-on experience leading B2B companies with e-commerce, cloud and IT infrastructure, platforms and applications, that provided customised solutions for clients and created value for stakeholders. Mr. Kelton has been an Operating Partner of RunTide Capital since September 2016. He served as an Executive Vice President of Business Markets/Business-to-Business at T-Mobile US Inc. (alternate name T-Mobile USA Inc.) since April 2013. He served as the President of Enterprise Services at Bharti Airtel Limited from July 2010 to April 2013 and also served as its Member of Management Board. He has experience in telecommunications and IT solutions and worked in Europe, Australia, India, Asia and the US. He served as a Managing Director of International at Telstra Corporation Limited from 2002 to 2010. Mr. Kelton served as Vice President of Telstra Europe Limited. He served as the Chairman of Impelus Ltd. and served as its Director until June 29, 2018. He spent eight years as Managing Director of Global Business Unit of Telstra Corporation Limited, where he was responsible for driving business growth in its offshore operations and establishing a multinational customer division to oversee its biggest global customers. From 1992 to 1998, he was founding Chief Executive Officer at Saturn Global Network, one of the first extranet providers for private global financial markets. After five consecutive years of growth, he shepherded Saturn Global Network's successful merger with IXnet, Inc. and remained on IXNET's executive management team through its IPO in 1999 and its acquisition in 2000 by Global Crossing. Mr. Kelton served as Managing Director of Telstra International. He served as the Non-Executive Chairman and Director of Firstwave Cloud Technology Limited since March 8, 2016 until October 16, 2018, and served as its Director since March 8, 2016 until November 6, 2018. He has been the Non-Executive Chairman and Director of Longreach Oil Ltd. since March 1, 2016. He served as Chairman at Starlogik. Mr. Kelton served as Non Executive chairman at Mobile Embrace Limited since November 6, 2014 until November 29, 2017 and has been its Non-Executive Independent Director since July 1, 2010. He was a Non-Executive Director of Megaport Limited since October 26, 2015 until August 2018. He served as a Non-Executive Director of Enice Holding Company Limited from June 12, 2015 to August 22, 2017. He served as a Director at Crestal Petroleum Limited since March 2016. He served as Independent Commissioner of PT Limas Indonesia Makmur Tbk from July 2001 to 2013. He is a Chartered Engineer and member of the Institute of Electrical & Electronic Engineers. Mr. Kelton holds a Bachelor of Science with commendation/Electrical and Electronic Engineering (Hons) from Glasgow's Paisley College of Technology/University of Western Scotland in 1981.

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

Average tenure of the Superloop management team in years:

1.6
Average Tenure
  • The average tenure for the Superloop management team is less than 2 years, this suggests a new team.
Management Team

Bevan Slattery

TITLE
Founder & Non-Executive Chairman
COMPENSATION
A$60K
AGE
48
TENURE
6.3 yrs

Drew Kelton

TITLE
CEO, MD & Director
COMPENSATION
A$500K
TENURE
1.8 yrs

Louise Bolger

TITLE
General Counsel & Company Secretary
COMPENSATION
A$29K

Jason Ashton

TITLE
Consultant
COMPENSATION
A$240K
AGE
47
TENURE
1.6 yrs

Lidia Valenzuela

TITLE
Group Chief Financial Officer
TENURE
0.3 yrs

Adrian Martin

TITLE
Group Head of Global Sales
TENURE
0.3 yrs

Ashleigh Loughnan

TITLE
Group Head of People & Culture

Matt Whitlock

TITLE
Chief Operations Officer of Infrastructure
COMPENSATION
A$355K

Ryan Crouch

TITLE
Chief Operating Officer of Networks
COMPENSATION
A$489K

Julian Breen

TITLE
Head of Customer Experience
Board of Directors Tenure

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

2.4
Average Tenure
48
Average Age
  • The average tenure for the Superloop board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bevan Slattery

TITLE
Founder & Non-Executive Chairman
COMPENSATION
A$60K
AGE
48
TENURE
0.1 yrs

Drew Kelton

TITLE
CEO, MD & Director
COMPENSATION
A$500K
TENURE
1.4 yrs

Tony Clark

TITLE
Independent Non Executive Director
COMPENSATION
A$60K
TENURE
4.3 yrs

Vivian Stewart

TITLE
Independent Non-Executive Director
COMPENSATION
A$90K
AGE
47
TENURE
3.3 yrs

Stephanie Lai

TITLE
Independent Director
TENURE
0.1 yrs

Greg Baynton

TITLE
Independent Non Executive Director
COMPENSATION
A$90K
AGE
50
TENURE
6 yrs
Who owns this company?
Recent Insider Trading
  • Superloop individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
10. Mar 20 Buy Michael Malone Individual 09. Mar 20 09. Mar 20 28,300 A$0.70 A$19,810
23. Feb 20 Buy Alexander Kelton Individual 20. Feb 20 20. Feb 20 100,000 A$0.88 A$87,700
21. Feb 20 Buy Renaissance Smaller Companies Pty Ltd Company 19. Oct 19 19. Feb 20 11,541,235 A$0.90 A$10,335,194
20. Feb 20 Sell Perennial Value Management Limited Company 13. Feb 20 13. Feb 20 -253,371 A$0.87 A$-220,914
20. Feb 20 Buy Perennial Value Management Limited Company 11. Feb 20 19. Feb 20 6,174,598 A$0.88 A$4,656,729
12. Feb 20 Sell Perennial Value Management Limited Company 04. Dec 19 04. Feb 20 -287,213 A$0.89 A$-255,397
12. Feb 20 Buy Perennial Value Management Limited Company 03. Dec 19 10. Feb 20 4,056,828 A$0.90 A$3,668,929
07. Jan 20 Sell Bevan Slattery Individual 07. Jan 20 07. Jan 20 -544,000 A$0.92 A$-500,480
03. Dec 19 Sell Perennial Value Management Limited Company 13. Nov 19 13. Nov 19 -1,416,818 A$1.00 A$-1,416,817
03. Dec 19 Buy Perennial Value Management Limited Company 06. Nov 19 29. Nov 19 3,873,257 A$1.07 A$3,865,264
06. Nov 19 Buy Perennial Value Management Limited Company 30. Sep 19 04. Nov 19 22,354,469 A$1.16 A$24,086,846
05. Nov 19 Buy Norges Bank Investment Management Company 04. Nov 19 04. Nov 19 466,250 A$1.06 A$492,919
04. Nov 19 Buy Norges Bank Investment Management Company 18. Oct 19 01. Nov 19 6,345,556 A$1.17 A$7,453,493
01. Oct 19 Buy Gregory Baynton Individual 01. Oct 19 01. Oct 19 115,131 A$0.82 A$94,407
08. Jul 19 Sell BlackRock, Inc. Company 10. Sep 18 05. Jul 19 -3,229,211 A$2.22 A$0
08. Jul 19 Buy BlackRock, Inc. Company 24. Sep 18 01. Jul 19 82,134 A$2.25 A$0
X
Management checks
We assess Superloop'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. Superloop 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

Should Superloop Limited (ASX:SLC) Focus On Improving This Fundamental Metric?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each A$1 of shareholders' equity it has, the company made A$0.018 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Kind Of Investor Owns Most Of Superloop Limited (ASX:SLC)?

Generally speaking, as a company grows, institutions will increase their ownership. … Superloop is not a large company by global standards. … Our analysis of the ownership of the company, below, shows that.

Simply Wall St -

Superloop Limited (ASX:SLC): Time For A Financial Health Check

Investors are always looking for growth in small-cap stocks like Superloop Limited (ASX:SLC), with a market cap of AU$341m. … However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Is There An Opportunity With Superloop Limited's (ASX:SLC) 40.89% Undervaluation?

How far off is Superloop Limited (ASX:SLC) from its intrinsic value? … by taking the expected future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Is Superloop Limited's (ASX:SLC) 1.8% Worse Than Average?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Superloop has a return on equity of 1.8% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What does Superloop Limited's (ASX:SLC) Balance Sheet Tell Us About Its Future?

Superloop Limited (ASX:SLC) is a small-cap stock with a market capitalization of AU$543.83m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes

Simply Wall St -

What Is Driving Superloop Limited's (ASX:SLC) Margins In The Next Few Years?

remarkably upbeat outlook for net income … growth of 67.22% annualised … but it's necessary to take a moment

Simply Wall St -

ASX Telecom Industry: A Dive Into Superloop Limited (ASX:SLC)

Unsuprisingly, this is below the growth rate of the Australian stock market as a whole. … In the past year, the industry delivered growth of 5.64%, though still underperforming the wider Australian stock market. … If Superloop has been on your watchlist for a while, now may not be the best time to enter into the stock since it is trading at a higher valuation compared to other telco companies.

Simply Wall St -

Is Superloop Limited (ASX:SLC) A Sell At Its Current PE Ratio?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SLC Price per share = A$2.26 Earnings per share = A$0.012 ∴ Price-Earnings Ratio = A$2.26 ÷ A$0.012 = 191x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … In this case, SLC’s P/E would be higher since investors would also reward SLC’s higher growth with a higher price.

Simply Wall St -

Superloop Limited (ASX:SLC): Are Forecast Margins sustainable?

Margin Calculation for SLC Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 2.52 Million ÷ 107.04 Million = 2.35% There has been a contraction in Superloop's margin over the past five years, as a result of triple digit revenue growth exceeding average net income growth of 48.14%, which means that although revenue has increased, a smaller portion falls in to the bottom line. … Using Superloop's margin expectations as a way to understand projections for the future Margins are expected to reverse its previous trend and start to expand, with an expectation of 14.15% in annual revenue growth and annual net income growth forecasted at 67.22%. … Thus, it is essential to run your own analysis on Superloop's future earnings whilst maintaining a watchful eye over the sustainability of their cost management methods and the runway for top line growth.

Simply Wall St -

Company Info

Description

Superloop Limited engages in the design, development, construction, and operation of independent telecommunications infrastructure in the Asia Pacific region. It offers network solutions for wholesale, enterprise, and channel customers. The company is also involved in the operation of a fixed wireless broadband network; and provision of outsourced cloud and managed services, and cyber security and cyber safety services. In addition, it manages and delivers broadband solutions for campus environments, including student accommodations, hotels, and schools; and offers residential and small business broadband services through fixed wireless or fixed line NBN services. The company was founded in 2014 and is headquartered in Brisbane, Australia.

Details
Name: Superloop Limited
SLC
Exchange: ASX
Founded: 2014
A$204,885,192
365,866,416
Website: http://www.superloop.com
Address: Superloop Limited
545 Queen Street,
Level 1,
Brisbane,
Queensland, 4000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX SLC Ordinary Shares Australian Securities Exchange AU AUD 04. Jun 2015
DB 9SL Ordinary Shares Deutsche Boerse AG DE EUR 04. Jun 2015
CHIA SLC Ordinary Shares Chi-X Australia AU AUD 04. Jun 2015
Number of employees
Current staff
Staff numbers
415
Superloop employees.
Industry
Alternative Carriers
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 11:02
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/02/17
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.