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FORA

VerticalScope Holdings TSX:FORA Stock Report

Last Price

CA$13.31

Market Cap

CA$295.5m

7D

8.5%

1Y

-50.3%

Updated

17 Aug, 2022

Data

Company Financials +
FORA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance0/6
Financial Health1/6
Dividends0/6

FORA Stock Overview

VerticalScope Holdings Inc., a technology company, operates a cloud-based digital community platform in Canada.

VerticalScope Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for VerticalScope Holdings
Historical stock prices
Current Share PriceCA$13.31
52 Week HighCA$34.00
52 Week LowCA$7.30
Beta0
1 Month Change40.85%
3 Month Change-29.50%
1 Year Change-50.34%
3 Year Changen/a
5 Year Changen/a
Change since IPO-42.00%

Recent News & Updates

Shareholder Returns

FORACA Interactive Media and ServicesCA Market
7D8.5%11.7%3.2%
1Y-50.3%-56.3%2.1%

Return vs Industry: FORA exceeded the Canadian Interactive Media and Services industry which returned -56.3% over the past year.

Return vs Market: FORA underperformed the Canadian Market which returned 2.1% over the past year.

Price Volatility

Is FORA's price volatile compared to industry and market?
FORA volatility
FORA Average Weekly Movement20.7%
Interactive Media and Services Industry Average Movement14.4%
Market Average Movement10.6%
10% most volatile stocks in CA Market18.9%
10% least volatile stocks in CA Market4.3%

Stable Share Price: FORA is more volatile than 90% of Canadian stocks over the past 3 months, typically moving +/- 21% a week.

Volatility Over Time: FORA's weekly volatility has increased from 13% to 21% over the past year.

About the Company

FoundedEmployeesCEOWebsite
1999303Rob Laidlawhttps://www.verticalscope.com

VerticalScope Holdings Inc., a technology company, operates a cloud-based digital community platform in Canada. It provides digital advertising services, including direct advertising campaigns, custom content solutions, and programmatic advertising; and e-commerce solutions. The company also focus on hyper-specific subjects that engender strong affinity from online communities of enthusiasts, super fans, experts, pros, hobbyists, and armchair analysts.

VerticalScope Holdings Fundamentals Summary

How do VerticalScope Holdings's earnings and revenue compare to its market cap?
FORA fundamental statistics
Market CapCA$295.50m
Earnings (TTM)-CA$35.70m
Revenue (TTM)CA$99.81m

2.8x

P/S Ratio

-7.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FORA income statement (TTM)
RevenueUS$77.24m
Cost of RevenueUS$32.91m
Gross ProfitUS$44.33m
Other ExpensesUS$71.96m
Earnings-US$27.63m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.30
Gross Margin57.40%
Net Profit Margin-35.77%
Debt/Equity Ratio77.9%

How did FORA perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is FORA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FORA?

Other financial metrics that can be useful for relative valuation.

FORA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.7x
Enterprise Value/EBITDA-60.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does FORA's PS Ratio compare to its peers?

FORA PS Ratio vs Peers
The above table shows the PS ratio for FORA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.3x
Y Yellow Pages
1.2x-8.5%CA$339.5m
EGLX Enthusiast Gaming Holdings
1.6x22.0%CA$323.0m
AT AcuityAds Holdings
1.8x13.5%CA$203.8m
MDF mdf commerce
0.7x9.0%CA$85.3m
FORA VerticalScope Holdings
2.8x12.8%CA$283.8m

Price-To-Sales vs Peers: FORA is expensive based on its Price-To-Sales Ratio (2.8x) compared to the peer average (1.3x).


Price to Earnings Ratio vs Industry

How does FORA's PE Ratio compare vs other companies in the CA Interactive Media and Services Industry?

Price-To-Sales vs Industry: FORA is good value based on its Price-To-Sales Ratio (2.8x) compared to the Canadian Interactive Media and Services industry average (6.1x)


Price to Sales Ratio vs Fair Ratio

What is FORA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FORA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.8x
Fair PS Ratio2.3x

Price-To-Sales vs Fair Ratio: FORA is expensive based on its Price-To-Sales Ratio (2.8x) compared to the estimated Fair Price-To-Sales Ratio (2.3x).


Share Price vs Fair Value

What is the Fair Price of FORA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FORA (CA$13.31) is trading below our estimate of fair value (CA$70.69)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is VerticalScope Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


113.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FORA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: FORA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FORA is expected to become profitable in the next 3 years.

Revenue vs Market: FORA's revenue (12.8% per year) is forecast to grow faster than the Canadian market (6.5% per year).

High Growth Revenue: FORA's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


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Past Performance

How has VerticalScope Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-36.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FORA is currently unprofitable.

Growing Profit Margin: FORA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FORA is unprofitable, and losses have increased over the past 5 years at a rate of 36.4% per year.

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

Earnings vs Industry: FORA is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (2.5%).


Return on Equity

High ROE: FORA has a negative Return on Equity (-33.11%), as it is currently unprofitable.


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Financial Health

How is VerticalScope Holdings's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: FORA's short term assets ($28.2M) do not cover its short term liabilities ($29.9M).

Long Term Liabilities: FORA's short term assets ($28.2M) do not cover its long term liabilities ($82.5M).


Debt to Equity History and Analysis

Debt Level: FORA's net debt to equity ratio (65.3%) is considered high.

Reducing Debt: Insufficient data to determine if FORA's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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: FORA has sufficient cash runway for more than a year based on its current free cash flow.

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


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Dividend

What is VerticalScope Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FORA has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Rob Laidlaw (39 yo)

no data

Tenure

US$859,472

Compensation

Mr. Robert Laidlaw, also known as Rob, Co-founded VerticalScope, Inc. in 1999 and serves as its Chief Executive Officer and was its Chairman until 2021. Mr. Laidlaw is Founder of VerticalScope Holdings Inc...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD859.47K) is about average for companies of similar size in the Canadian market ($USD747.35K).

Compensation vs Earnings: Insufficient data to compare Rob's compensation with company performance.


Leadership Team

Experienced Management: FORA's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: FORA's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.


Top Shareholders

Company Information

VerticalScope Holdings Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: VerticalScope Holdings Inc.
  • Ticker: FORA
  • Exchange: TSX
  • Founded: 1999
  • Industry: Interactive Media and Services
  • Sector: Media
  • Implied Market Cap: CA$295.497m
  • Shares outstanding: 21.32m
  • Website: https://www.verticalscope.com

Number of Employees


Location

  • VerticalScope Holdings Inc.
  • 111 Peter Street
  • Suite 600
  • Toronto
  • Ontario
  • M5V 2H1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/17 00:00
End of Day Share Price2022/08/17 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.