TSX:PAT

Stock Analysis Report

Patriot One Technologies

Executive Summary

Patriot One Technologies Inc. engages in the research, development, and commercialization threat detection solutions worldwide.

Rewards

Trading at 82.3% below its fair value

Revenue is forecast to grow 51.11% per year

Risk Analysis

Earnings have declined by -46.17% per year over past 5 years

Makes less than USD$1m in revenue (CA$117K)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

United Technologies

NYSE:UTX

Share Price & News

How has Patriot One Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PAT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.0%

PAT

1.6%

CA Aerospace & Defense

-0.9%

CA Market


1 Year Return

-36.7%

PAT

33.7%

CA Aerospace & Defense

8.3%

CA Market

Return vs Industry: PAT underperformed the Canadian Aerospace & Defense industry which returned 38.2% over the past year.

Return vs Market: PAT underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

PATIndustryMarket
7 Day3.0%1.6%-0.9%
30 Day2.3%12.2%1.1%
90 Day-15.5%15.2%5.3%
1 Year-36.7%-36.7%35.4%33.7%11.7%8.3%
3 Year-1.4%-1.4%85.7%78.5%17.3%6.7%
5 Yearn/a134.0%117.6%33.3%13.9%

Price Volatility Vs. Market

How volatile is Patriot One Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Patriot One Technologies undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PAT (CA$1.29) is trading below our estimate of fair value (CA$7.29)

Significantly Below Fair Value: PAT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PAT is unprofitable, so we can't compare its PE Ratio to the Aerospace & Defense industry average.

PE vs Market: PAT is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PAT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PAT is good value based on its PB Ratio (2.5x) compared to the CA Aerospace & Defense industry average (3.5x).


Next Steps

Future Growth

How is Patriot One Technologies forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

51.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PAT's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if PAT's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PAT's revenue (51.1% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: PAT's revenue (51.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PAT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Patriot One Technologies performed over the past 5 years?

-46.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PAT is currently unprofitable.

Growing Profit Margin: PAT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PAT is unprofitable, and losses have increased over the past 5 years at a rate of -46.2% per year.

Accelerating Growth: Unable to compare PAT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PAT is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (11.6%).


Return on Equity

High ROE: PAT has a negative Return on Equity (-25.79%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Patriot One Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: PAT's short term assets (CA$41.5M) exceed its short term liabilities (CA$4.3M).

Long Term Liabilities: PAT's short term assets (CA$41.5M) exceed its long term liabilities (CA$703.3K).


Debt to Equity History and Analysis

Debt Level: PAT is debt free.

Reducing Debt: PAT has not had any debt for past 5 years.


Balance Sheet

Inventory Level: PAT has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if PAT's debt is covered by short term assets.


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.

Stable Cash Runway: PAT has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PAT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Patriot One Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.5%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PAT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PAT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PAT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PAT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PAT's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Patriot One Technologies's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Martin Cronin (53yo)

3.2yrs

Tenure

CA$240,000

Compensation

Mr. Martin Cronin has been the Chief Executive Officer at Patriot One Technologies Inc. since November 09, 2016 and serves as its President. Mr. Cronin serves as Regional Director of the Canadian Forces Li ...


CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD183.59K) is below average for companies of similar size in the Canadian market ($USD685.00K).

Compensation vs Earnings: Martin's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.6yrs

Average Tenure

53yo

Average Age

Experienced Management: PAT's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

2.7yrs

Average Tenure

61yo

Average Age

Experienced Board: PAT's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: PAT insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyCA$63,99617 Jan 20
Martin Cronin
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares50,000
Max PriceCA$1.28
BuyCA$97,71610 Jan 20
Peter van der Gracht
EntityIndividual
Shares77,000
Max PriceCA$1.30
SellCA$211,04606 Nov 19
James Stewart
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Video Analytics
Shares131,493
Max PriceCA$1.61
SellCA$86,34708 Aug 19
James Stewart
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Video Analytics
Shares43,831
Max PriceCA$1.97
SellCA$270,00922 Mar 19
Dinesh Kandanchatha
EntityIndividual
Shares100,000
Max PriceCA$2.72
SellCA$215,30001 Mar 19
Dinesh Kandanchatha
EntityIndividual
Shares100,000
Max PriceCA$2.15

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 37.6%.


Management Team

  • Mike Barnsley (59yo)

    CFO, Corporate Secretary & Director

    • Compensation: CA$223.64k
  • Jeff Tindale (48yo)

    Senior VP of Capital Markets

    • Compensation: CA$395.00k
  • Martin Cronin (53yo)

    CEO, President & Director

    • Tenure: 3.2yrs
    • Compensation: CA$240.00k
  • Robert Lex

    Senior Vice President of Operations

    • Tenure: 2yrs
  • Paul Rice

    Senior Vice President of Engineering & Radar Systems

    • Tenure: 1yrs
  • Phil Lancaster

    Senior Vice President of Business Development & Government Relations

    • Tenure: 1.2yrs
  • James Stewart

    Senior Vice President of Video Analytics

    • Tenure: 1yrs
  • Paul Borselli

    Vice President of Marketing & Corporate Communications


    Board Members

    • Mike Barnsley (59yo)

      CFO, Corporate Secretary & Director

      • Compensation: CA$223.64k
    • Tom Ridge (74yo)

      Member of Executive Advisory Board

      • Tenure: 2.8yrs
    • Victoria Calvert (63yo)

      Independent Director

      • Tenure: 0.7yrs
    • Martin Cronin (53yo)

      CEO, President & Director

      • Tenure: 3.2yrs
      • Compensation: CA$240.00k
    • Andrew Brear

      Member of Executive Advisory Board

      • Tenure: 2.8yrs
    • John Gillies

      Independent Director

      • Tenure: 2.7yrs
      • Compensation: CA$15.00k
    • Peter van der Gracht

      Independent Interim Chairman

      • Tenure: 0.2yrs
      • Compensation: CA$213.11k
    • Karl Wagner

      Member of Executive Advisory Board

      • Tenure: 1yrs
    • Natalia Nikolova

      Member of Executive Advisory Board

      • Jamie Graham

        Member of Executive Advisory Board

        Company Information

        Patriot One Technologies Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Patriot One Technologies Inc.
        • Ticker: PAT
        • Exchange: TSX
        • Founded:
        • Industry: Aerospace and Defense
        • Sector: Capital Goods
        • Market Cap: CA$201.293m
        • Shares outstanding: 150.22m
        • Website: https://www.patriot1tech.com

        Number of Employees


        Location

        • Patriot One Technologies Inc.
        • 750-1095 West Pender Street
        • Vancouver
        • British Columbia
        • V6E 2M6
        • Canada

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        PATTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 2016
        0PLDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2016
        PTOT.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2016
        0VC5LSE (London Stock Exchange)YesCommon SharesGBCADNov 2016

        Biography

        Patriot One Technologies Inc. engages in the research, development, and commercialization threat detection solutions worldwide. The company’s products include PATSCAN Video Recognition Software, a threat detection video surveillance solution, which helps security personnel to detect weapons, public disturbances, and suspicious behavior; and PATSCAN Targeted Magnetic Signature identification system, a unique passive sensor array to detect concealed weapons on people and in bags. It also develops PATSCAN CMR, a cognitive microwave radar concealed weapons detection system, which is used in traffic areas, such as entryways, hallways, and stairwells, as well as other public spaces in airports, stadiums, schools, and other spaces; and PATSCAN STS, a technology for the detection of explosives and other threats, such as chemical and biological agents, as well as illicit narcotics. The company is headquartered in Vancouver, Canada. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/29 01:12
        End of Day Share Price2020/01/28 00:00
        Earnings2019/10/31
        Annual Earnings2019/07/31


        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.