TSXV:WOW

Stock Analysis Report

Wow Unlimited Media

Executive Summary

Wow Unlimited Media Inc., an animation-focused entertainment company, produces and distributes animated content for film, television, and online distribution channels in the United States, the United Kingdom, and Canada.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Share Price & News

How has Wow Unlimited Media's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.9%

WOW

-1.9%

CA Entertainment

0.1%

CA Market


1 Year Return

-61.6%

WOW

-27.6%

CA Entertainment

1.6%

CA Market

Return vs Industry: WOW underperformed the Canadian Entertainment industry which returned -27.6% over the past year.

Return vs Market: WOW underperformed the Canadian Market which returned 1.6% over the past year.


Shareholder returns

WOWIndustryMarket
7 Day-1.9%-1.9%0.1%
30 Day-10.2%-7.2%-2.9%
90 Day-23.2%1.6%-1.4%
1 Year-61.6%-61.6%-23.5%-27.6%5.2%1.6%
3 Year6.0%6.0%-41.5%-49.5%13.8%3.7%
5 Year-70.6%-70.6%-28.2%-40.9%25.3%7.2%

Price Volatility Vs. Market

How volatile is Wow Unlimited Media's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Wow Unlimited Media undervalued compared to its fair value and its price relative to the market?

46.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WOW (CA$0.53) is trading below our estimate of fair value (CA$1)

Significantly Undervalued: WOW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WOW is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WOW is good value based on its PB Ratio (0.8x) compared to the CA Entertainment industry average (1.1x).


Next Steps

Future Growth

How is Wow Unlimited Media forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-14.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if WOW's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if WOW'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: WOW's revenue is expected to decline over the next 3 years (-14.8% per year).

High Growth Revenue: WOW's revenue is forecast to decline over the next 3 years (-14.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Wow Unlimited Media performed over the past 5 years?

-19.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WOW is unprofitable, and losses have increased over the past 5 years at a rate of -19.1% per year.

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

Earnings vs Industry: WOW is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (21.5%).


Return on Equity

High ROE: WOW has a negative Return on Equity (-48.04%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: WOW is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: WOW is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Wow Unlimited Media's financial position?


Financial Position Analysis

Short Term Liabilities: WOW's short term assets (CA$36.5M) do not cover its short term liabilities (CA$48.8M)

Long Term Liabilities: WOW's short term assets (36.5M) exceeds its long term liabilities (17.8M)


Debt to Equity History and Analysis

Debt Level: WOW's debt to equity ratio (123.5%) is considered high

Reducing Debt: WOW's debt to equity ratio has reduced from 499.8% to 123.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: WOW's debt is covered by short term assets (assets are 1.388020x debt).


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

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


Next Steps

Dividend

What is Wow Unlimited Media's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%6.0%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: WOW is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WOW'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 Wow Unlimited Media's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Michael Hirsh (71yo)

2.8yrs

Tenure

CA$325,000

Compensation

Mr. Michael Hirsh has been the Executive Chairman and Chief Executive Officer at WOW Unlimited Media Inc. since December 16, 2016. Mr. Hirsh serves as the President of Ezrin Hirsh Entertainment Inc. Mr. Hi ...


CEO Compensation Analysis

Compensation vs. Market: Michael's total compensation ($USD0.00) is too low to compare against companies of similar size in the Canadian market ($USD121.84K).

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


Management Age and Tenure

2.8yrs

Average Tenure

Experienced Management: WOW's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

68yo

Average Age

Experienced Board: WOW's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$21,60011 Jul 19
Neil Chakravarti
EntityIndividual
Role
President
President & COO
Shares30,000
Max PriceCA$0.72
BuyCA$75,00009 Jul 19
Craig Graham
EntityIndividual
Role
Member of the Board of Directors
Director
Shares100,000
Max PriceCA$0.75
BuyCA$75,00008 Jul 19
Michael Hirsh
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Chairman
Shares100,000
Max PriceCA$0.75
BuyCA$242,71405 Apr 19
BCE Inc.
EntityCompany
Shares220,649
Max PriceCA$1.10
BuyCA$250,00005 Apr 19
Michael Hirsh
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Chairman
Shares227,273
Max PriceCA$1.10
BuyCA$100,00005 Apr 19
John Vandervelde
EntityIndividual
Role
Chief Financial Officer
CFO, Executive VP & Corporate Secretary
Shares90,909
Max PriceCA$1.10

Ownership Breakdown


Management Team

  • Michael Hirsh (71yo)

    CEO & Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: CA$325.00k
  • John Vandervelde

    CFO, Executive VP & Corporate Secretary

    • Tenure: 2.2yrs
    • Compensation: CA$222.66k
  • Kim Wilder

    Senior Vice President of Production & Operations

    • Tenure: 10.4yrs
    • Compensation: CA$262.74k
  • Neil Chakravarti

    President & COO

    • Tenure: 2.8yrs
    • Compensation: CA$325.00k
  • Fred Seibert

    Chief Creative Officer & Director

    • Tenure: 2.8yrs
    • Compensation: CA$390.11k
  • Cheryl Nex

    President of EP Canada LP

    • Tenure: 14.2yrs
    • Compensation: CA$216.62k
  • Michael Hefferon

    Executive Vice President

    • Tenure: 0.7yrs
    • Compensation: CA$350.00k
  • Marni Shulman

    Senior VP & GM

    • Tenure: 2.1yrs

Board Members

  • Bob Ezrin (68yo)

    Vice Chairman

    • Tenure: 2.8yrs
    • Compensation: CA$26.09k
  • Marc Bertrand (51yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: CA$37.36k
  • Michael Hirsh (71yo)

    CEO & Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: CA$325.00k
  • Steve Hendry

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: CA$33.26k
  • Craig Graham

    Director

    • Tenure: 9.3yrs
    • Compensation: CA$13.25k
  • Fred Seibert

    Chief Creative Officer & Director

    • Tenure: 2.8yrs
    • Compensation: CA$390.11k
  • Mike Cosentino

    Independent Director

    • Tenure: 0.9yrs

Company Information

Wow Unlimited Media Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wow Unlimited Media Inc.
  • Ticker: WOW
  • Exchange: TSXV
  • Founded: 1993
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: CA$16.973m
  • Shares outstanding: 32.02m
  • Website: https://www.wowunlimited.co

Number of Employees


Location

  • Wow Unlimited Media Inc.
  • 55 Sudbury Street
  • Toronto
  • Ontario
  • M6J 3S7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WOWTSXV (TSX Venture Exchange)YesCommon Voting SharesCACADJun 2002
WOWM.FOTCPK (Pink Sheets LLC)YesCommon Voting SharesUSUSDJun 2002

Biography

Wow Unlimited Media Inc., an animation-focused entertainment company, produces and distributes animated content for film, television, and online distribution channels in the United States, the United Kingd ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:55
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.