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NAOS Small Cap Opportunities Company Limited
Financial Services · Asset Management
Updated 20 hours ago
$0.33
MARKET CAP
$42.90M
P/E RATIO
—
DIV. YIELD
15.4%
FRANKING
88%
Contango MicroCap Limited is a closed-ended equity mutual fund launched and managed by Contango Asset Management Limited. The fund invests in the public equity markets of Australia.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
$0.73
For 6% dividend yield
Business quality and balance-sheet durability.
Real cash left after running the business
Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.
Current Snapshot
Current FCF
$27M
Pass Rule
> $0
Status
Positive
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $27M in free cash flow — cash left after operating costs and capital expenditure. Positive FCF means dividends are funded by real cash generation.
How to Interpret
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Positive cash flow means dividends are funded by actual money, not accounting profits. As Buffett says, "Cash is fact, profit is opinion." Your income is backed by real cash generation.
Sources
Profit generated per $1 of shareholder investment
Price versus estimated intrinsic value and required return thresholds.
What percentage of the stock price comes back as earnings each year
Consistency of profits over time
Annual dividends as percentage of stock price
13.27% yield significantly exceeds Barsi's 6% minimum. Based on 6-year average, not one-time spikes.
Current Snapshot
6Y Avg Yield
13.3%
6% Requirement
6.0%
Gross Yield
18.2%
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
With a 6-year average annual dividend of $0.04 and a share price of $0.33, the Barsi yield is 13.3%. The minimum requirement is 6%. Including franking credits, the gross yield is 18.2%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
Very high yields can signal trouble — the stock price may have dropped because the market expects a dividend cut. Verify the payout ratio is sustainable and the company can maintain this level of distributions before relying on this income.
Sources
Track record of consistent dividend payments
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 11 Mar 2026Interim | 10 Apr 2026 | $0.02 | 50% | $0.01 | $0.00 |
| ~3 June 2026Est | ~16 June 2026 | ~$0.02 | 98% | ~$0.01 | $0.00 |
Highest price to lock in 6% yield
Industry category of the business
Financial Services is not a BESST sector. Non-BESST stocks receive a lower base score but can still qualify with exceptional dividend metrics.
Current Snapshot
Industry
Asset Management
BESST Match
No
Score Impact
No bonus
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Asset Management (Financial Services sector). It does not match a BESST sector, so it receives the standard base score. Non-BESST stocks can still qualify with strong dividend metrics.
How to Interpret
Sources
How much of a company's earnings are paid out as dividends
The company is paying out more in dividends than it earns (1000%). This is unsustainable long-term and often signals a dividend cut ahead. An inflated payout also distorts the price ceiling calculation used in our analysis.
Current Snapshot
Latest Ratio
1000.0%
Healthy Range
30%-75%
Zone
Unsustainable
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$0.05 dividend / $0.02 EPS equals 268.8% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
The company is paying out more in dividends than it earns (1000%). This is unsustainable long-term and often signals a dividend cut ahead. An inflated payout also distorts the price ceiling calculation used in our analysis.
Sources
Contango MicroCap Limited is a closed-ended equity mutual fund launched and managed by Contango Asset Management Limited. The fund invests in the public equity markets of Australia. It seeks to invest in stocks of companies operating across diversified sectors. The fund primarily invests in stocks of micro-cap companies having market capitalization between AUD$30 million and $350 million.
It employs fundamental analysis with a focus on top-down and bottom-up investment approach to make its investments. The fund benchmarks the performance of its portfolio against the ASX All Ordinaries Accumulation Index. Contango MicroCap Limited was formed on January 14, 2004 and is domiciled in Australia.
Who owns the company's shares and how much leadership has at stake
Management's wealth moves with yours
Few fund managers own this — expect less research and analyst coverage
Shares freely traded on the ASX by individual investors like you
Leadership owns a solid 12.8% of the company, which is encouraging. However, professional fund managers aren’t heavily involved (7.2%), so there may be less analyst coverage and research available. This can mean the stock is overlooked — a potential opportunity if the fundamentals are strong.
Current Snapshot
Insider %
12.8%
Institutional %
7.2%
Float %
80.0%
Why It Matters
Ownership mix affects governance incentives, liquidity, and share-price behaviour under large portfolio rebalancing flows.
Formula
Public Float (%) = 100 - Insider Ownership (%) - Institutional Ownership (%)Method
Use reported ownership percentages, convert to percentage terms, and compute remaining public float as the residual.
Worked Example
If insiders own 12.8% and institutions own 7.2%, public float is 80.0%.
How to Interpret
Higher insider ownership can improve alignment of incentives, while dominant institutional concentration can amplify short-term price moves.
Leadership owns a solid 12.8% of the company, which is encouraging. However, professional fund managers aren’t heavily involved (7.2%), so there may be less analyst coverage and research available. This can mean the stock is overlooked — a potential opportunity if the fundamentals are strong.
Sources
| Date | Insider | Type | Shares | Value |
|---|---|---|---|---|
| 28 Nov 2025 | Evans (Sebastian) Non Independent Director | Unknown | 945 | — |
| 28 Nov 2025 | Evans (Warwick William) Non Independent Director | Acquisition at price 0.26 per share. | 27K | $7K |
| 28 Nov 2025 | Williams (Sarah) Director (Independent) | Acquisition at price 0.26 per share. | 3K | $672 |
| 30 Sept 2025 | Evans (Warwick William) Non Independent Director | Acquisition at price 0.24 per share. | 29K | $7K |
| 30 Sept 2025 | Rickards (David) Independent Chairman Of The Board | Acquisition at price 0.24 per share. | 16K | $4K |
Company insiders have been net buyers of shares over the past 12 months. This may indicate management confidence in future prospects.
Value analysis may be affected by missing data.
Market data sourced from third-party financial data providers. Analysis generated using Warsi Criteria — proprietary scoring algorithms for value investing and dividend income analysis. Not financial advice. Learn how we analyse stocks →
-2.8% average is below the 12% threshold. This suggests the business may lack a durable competitive advantage.
Current Snapshot
10Y Avg
-2.8%
Threshold
12.0%
Worst Year
-25.3%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is -2.8%, meaning each $1 of shareholder equity generates $-0.03 in annual profit. The threshold is 12%, and the worst single year was -25.3%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
Lower ROE means your investment compounds more slowly. At -2.8%, this business needs more capital to generate the same returns as competitors. Consider whether other strengths (yield, stability) compensate for weaker profitability.
Sources
-20.7% earnings yield is below the 7.5% threshold. You'd earn nearly as much from safer government bonds, which means the extra risk of owning shares isn't being compensated.
Current Snapshot
Current Yield
-20.7%
Required Yield
7.5%
Spread
-28.2pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $-0.07 and a share price of $0.33, earnings yield is -20.7%. The required yield for this industry is 7.5% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Returns don't justify the added risk compared to safe bonds. Consider whether the dividend yield alone compensates, or wait for a better price.
Sources
5 loss years detected (max 2 allowed). Unpredictable earnings make valuation difficult.
Current Snapshot
Positive Years
5/10
Allowed Losses
2
EPS CAGR
-35.4%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 5 of the last 10 years, with 5 loss years. The allowed loss tolerance for this industry is 2 years. EPS growth rate (CAGR) is -35.4%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
Volatile earnings create dividend uncertainty. When profits disappear, dividends often follow. Forecasting your future income becomes difficult.
Sources
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 5 Nov 2025Special | 28 Nov 2025 | $0.02 | 50% | $0.01 | $0.00 |
| 10 Sept 2025Final | 30 Sept 2025 | $0.01 | 0% | $0.01 | $0.00 |
| 12 May 2025Special | 16 June 2025 | $0.01 | 0% | $0.01 | $0.00 |
| 10 Mar 2025Interim | 4 Apr 2025 | $0.02 | 100% | $0.01 | $0.01 |
| 11 Nov 2024Special | 29 Nov 2024 | $0.02 | 100% | $0.01 | $0.01 |
| 10 Sept 2024Final | 15 Oct 2024 | $0.02 | 100% | $0.01 | $0.01 |
| 13 May 2024Special | 5 June 2024 | $0.02 | 100% | $0.01 | $0.01 |
| 11 Mar 2024Interim | 5 Apr 2024 | $0.02 | 100% | $0.01 | $0.01 |
| 9 Nov 2023Special | 30 Nov 2023 | $0.02 | 100% | $0.01 | $0.01 |
| 6 Sept 2023Final | 27 Sept 2023 | $0.02 | 100% | $0.01 | $0.01 |
Excellent track record. 11 years of consistent dividends through multiple market cycles.
Current Snapshot
History
11yr
Predictability
Variable
Payout Health
N/A
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 11 years of dividend history (2016–2026). No suspensions detected — 11 consecutive years of payments. Predictability: Variable. Payout health: N/A. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
A 11-year track record through multiple economic cycles gives confidence your income will continue. This company has proven it prioritises shareholder returns.
Sources
Priced well below ceiling. 55% below means you're locking in well over 6% yield.
Current Snapshot
Current Price
$0.33
Max Buy Price
$0.73
Delta
+54.8%
Why It Matters
The price ceiling links valuation discipline to income targets by defining the price that aligns with a 6% yield target.
Formula
6-Year Average Annual Dividend / 0.06Method
Use the 6-year average dividend (not one year) and divide by 0.06 to estimate the maximum entry price for target yield.
Worked Example
With a current price of $0.33 and a ceiling of $0.73, the entry is 54.8% below the ceiling.
How to Interpret
Prices below the ceiling imply a historical yield above 6%; prices above it imply a lower historical yield at entry.
Buying this far below the ceiling locks in a yield well above 6% based on proven historical dividends. Your income starts strong from day one.
Sources
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Non-essential businesses face demand drops during recessions — discretionary spending is first to be cut. This increases cyclical risk for dividends, but companies with decades of consistent payments can still demonstrate durability.
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