TSXV:IOT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Innovotech Inc. provides solutions to medical, agricultural, and industrial problems caused by microbial biofilms in Canada, the United States, and internationally.


Snowflake Analysis

Excellent balance sheet and slightly overvalued.

Share Price & News

How has Innovotech's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

17.1%

IOT

-4.0%

CA Life Sciences

1.0%

CA Market


1 Year Return

310.0%

IOT

34.9%

CA Life Sciences

-2.7%

CA Market

Return vs Industry: IOT exceeded the Canadian Life Sciences industry which returned 34.9% over the past year.

Return vs Market: IOT exceeded the Canadian Market which returned -2.7% over the past year.


Shareholder returns

IOTIndustryMarket
7 Day17.1%-4.0%1.0%
30 Day24.2%6.0%6.4%
90 Day10.8%18.5%15.5%
1 Year310.0%310.0%35.2%34.9%0.6%-2.7%
3 Year36.7%36.7%98.4%97.1%12.4%1.7%
5 Year412.5%412.5%148.8%145.6%36.3%15.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Innovotech 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: IOT (CA$0.21) is trading below our estimate of fair value (CA$0.43)

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


Price To Earnings Ratio

PE vs Industry: IOT is unprofitable, so we can't compare its PE Ratio to the XN Life Sciences industry average.

PE vs Market: IOT 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 IOT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IOT is overvalued based on its PB Ratio (66x) compared to the XN Life Sciences industry average (6.4x).


Next Steps

Future Growth

How is Innovotech forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.2%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Innovotech has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Innovotech performed over the past 5 years?

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IOT is currently unprofitable.

Growing Profit Margin: IOT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IOT is unprofitable, but has reduced losses over the past 5 years at a rate of 16.1% per year.

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

Earnings vs Industry: IOT is unprofitable, making it difficult to compare its past year earnings growth to the Life Sciences industry (10.7%).


Return on Equity

High ROE: IOT has a negative Return on Equity (-20.03%), as it is currently unprofitable.


Next Steps

Financial Health

How is Innovotech's financial position?


Financial Position Analysis

Short Term Liabilities: IOT's short term assets (CA$307.9K) exceed its short term liabilities (CA$126.6K).

Long Term Liabilities: IOT's short term assets (CA$307.9K) exceed its long term liabilities (CA$140.0K).


Debt to Equity History and Analysis

Debt Level: IOT's debt to equity ratio (124.4%) is considered high.

Reducing Debt: IOT had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


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: Whilst unprofitable IOT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: IOT is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 4.2% per year.


Next Steps

Dividend

What is Innovotech current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate IOT'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 IOT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IOT'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 IOT's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

3.3yrs

Average board tenure


CEO

James Timourian

no data

Tenure

CA$18,000

Compensation

Dr. James Timourian, Ph.D. has been the President of Innovotech Inc. since January 01, 2014 and serves as its Chief Executive Officer and Secretary. Dr. Timourian has been Mathematician President of Integr ...


Board Members

NamePositionTenureCompensationOwnership
James Timourian
Chairmanno dataCA$18.00k5.21%
CA$ 386.8k
Alan Savage
CFO & Director3.25yrsno data32.47%
CA$ 2.4m
Karen Farkas
Director0.67yrno data0.041%
CA$ 3.1k
Gerard Tertzakian
Independent Director19.58yrsno data2.53%
CA$ 188.1k
Bernard Grobbelaar
Independent Director7.33yrsCA$68.29k0.18%
CA$ 13.3k
David Tam
Independent Director2yrsCA$21.28k1.63%
CA$ 121.4k
Craig Milne
Independent Director1.08yrsno datano data

3.3yrs

Average Tenure

Experienced Board: IOT's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Innovotech Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Innovotech Inc.
  • Ticker: IOT
  • Exchange: TSXV
  • Founded: 2001
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$7.429m
  • Shares outstanding: 36.24m
  • Website: https://www.innovotech.ca

Location

  • Innovotech Inc.
  • 2011-94 Street
  • Suite L131
  • Edmonton
  • Alberta
  • T6N 1H1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IOTTSXV (TSX Venture Exchange)YesClass A Common SharesCACADJul 2004

Biography

Innovotech Inc. provides solutions to medical, agricultural, and industrial problems caused by microbial biofilms in Canada, the United States, and internationally. The company offers InnovoSIL, an antimic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 23:58
End of Day Share Price2020/08/12 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.