Why Is Cardno’s Stock On A Nosedive?

  • Oct 12, 2018 AEDT
  • Team Kalkine
Why Is Cardno’s Stock On A Nosedive?

Cardno Limited (ASX: CDD) witnessed its stock price plunging by 3% on October 12, 2018 (3:30 PM AEST) while the group had given a daily buy-back notice. The group lately revealed about its presentation given at the conference organized by Morgans, Queensland. CDD has discussed four topics which included company information, performance overview, detailed overview of the financial reports and its outlook.

Cardno Limited (ASX: CDD), a global provider of combined professional services to the community, reported a strong EBITDA growth to A$ 56.2 million (28%) as compared to the prior corresponding period. EBITDA/CFO ratio comes around 95%. This proves beneficial to the investors as it helps in evaluating companies and performance and checks operating performance of the company regardless of the capital structure of the company. Company shows a strong balance sheet with its net debt/EBITDA of 0.3x indicating the company’s ability to lower down its debt. In H2, the restructuring of APAC division was done to increase opportunities in revenues and collaboration across regions. It was noted in Q4 that the PPI (public private partnership) had made profits and is expected to continue this trend. The LATAM projects which were brought nearly to close are showing consistent performance as per the expectations of the management. There was a growth of 9.7% in backlogs. Company is now looking forward with the key focus where all divisions return to organic growth, the EBITDA margin increases at all divisions, and the group makes considerable business development investment. For the better client service company is planning to make considerable IT/divisional investment and this might also increase the productivity. 

Company also presents the 2018 highlights of the financial performance. Gross revenue was reported as A$ 1,117 million which is down by 5.5% as compared to prior year. EBITDA is reported to go up 27.7% as compared to the prior year. Net operating profit after cash tax paid has gone up by 66.3%.Net cash flow from operations has gone up by 1302.6%. The net operating profit after cash is paid from its continuing operations is A$ 33.4 million. Net loss made after tax was A$ 14 million. The company has total assets worth A$ 837.046 million with total liabilities worth A$ 303.838 million showing company’s capacity to clear its long-term obligations. The current asset of the company is A$372.124 million corresponding to current liabilities with A$ 203.791 million which states the company is in position to pay its short-term obligations. The interest coverage ratio is 16.3x. Company has used A$ 45.702 million primarily to reduce debts, and manage buy back of shares, and it acquired 2 small bolt acquisitions. Company’s outlook for year 2019 will remain to be business improvement with the focus to have control on cash, invest in people, and grow organically.

Throughout the journey of the company the stock performance remains negative showing result of -39.56%. The first year reported a movement of -15.11% in price, and 5 years and 10 years in terms of stock price movement showed a drop of 66.73% and 41.55%, respectively.

The company’s share price traded at A$ 1.135 with market capitalization of A$ 534.65 million. The price movement of the share states that the moving average convergence and divergence (MACD) line is below the signal line.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.




All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK