TSXV:PTK

Stock Analysis Report

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Executive Summary

POET Technologies Inc. designs, develops, manufactures, and sells discrete and integrated opto-electronic solutions in Canada, the United States, and Singapore.


Snowflake Analysis

Excellent balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

12.5%

PTK

1.2%

CA Semiconductor

1.3%

CA Market


1 Year Return

44.8%

PTK

32.9%

CA Semiconductor

-12.8%

CA Market

Return vs Industry: PTK exceeded the Canadian Semiconductor industry which returned 32.9% over the past year.

Return vs Market: PTK exceeded the Canadian Market which returned -12.8% over the past year.


Shareholder returns

PTKIndustryMarket
7 Day12.5%1.2%1.3%
30 Day16.7%4.7%0.9%
90 Day27.3%30.6%15.7%
1 Year44.8%44.8%35.5%32.9%-9.8%-12.8%
3 Year121.1%121.1%83.9%73.9%3.1%-6.6%
5 Year-59.4%-59.4%190.3%161.7%21.7%3.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

7.99x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PTK's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PTK's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PTK is overvalued based on its PB Ratio (8x) compared to the XN Semiconductor industry average (3.2x).


Next Steps

Future Growth

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

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PTK is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PTK is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PTK is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PTK's revenue (41% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: PTK's revenue (41% 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 PTK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has POET Technologies performed over the past 5 years?

0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PTK is currently unprofitable.

Growing Profit Margin: PTK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PTK is unprofitable, but has reduced losses over the past 5 years at a rate of 0.3% per year.

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

Earnings vs Industry: PTK is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-10.8%).


Return on Equity

High ROE: PTK has a negative Return on Equity (-77.63%), as it is currently unprofitable.


Next Steps

Financial Health

How is POET Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: PTK's short term assets ($17.6M) exceed its short term liabilities ($4.3M).

Long Term Liabilities: PTK's short term assets ($17.6M) exceed its long term liabilities ($103.5K).


Debt to Equity History and Analysis

Debt Level: PTK's debt to equity ratio (16.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if PTK'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: PTK has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: PTK has sufficient cash runway for 1.1 years if free cash flow continues to reduce at historical rates of 12% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if PTK'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 PTK'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?

2.8yrs

Average management tenure


CEO

Suresh Venkatesan (53yo)

5.08yrs

Tenure

US$1,721,816

Compensation

Dr. Suresh V. Venkatesan, PhD has been the Chief Executive Officer of POET Technologies Inc. since June 11, 2015 and serves as its Chairman Since November, 2019. Dr. Venkatesan serves as Chief Executive Of ...


CEO Compensation Analysis

Compensation vs Market: Suresh's total compensation ($USD1.72M) is above average for companies of similar size in the Canadian market ($USD174.10K).

Compensation vs Earnings: Suresh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Suresh Venkatesan
CEO & Chairman5.08yrsUS$1.72m0.039% $72.5k
Vivek Rajgarhia
President & GM0.67yrUS$876.36kno data
Thomas Mika
Executive VP & CFO3.67yrsUS$584.85k0.034% $63.0k
Kevin Barnes
Corporate Controller7.58yrsUS$266.78k0.0060% $11.0k
John O'Donnell
Chief Legal Counselno dataUS$140.97kno data
William Ring
Senior Vice President1.42yrsno datano data
James Lee
General Manager of POET Technologies Pte Ltd.no datano datano data
Ajit Manocha
Consltant2.83yrsUS$556.99kno data
Todd DeBonis
Strategic Advisor2.5yrsUS$2.50kno data

2.8yrs

Average Tenure

55yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Suresh Venkatesan
CEO & Chairman5.08yrsUS$1.72m0.039% $72.5k
Donald Listwin
Independent Director2.5yrsUS$138.92k0.22% $398.4k
Mohandas Warrior
Independent Director5.08yrsUS$132.70kno data
Peter Charbonneau
Lead Independent Director0.67yrUS$154.11kno data
Jean-Louis Malinge
Director2.83yrsUS$132.70kno data
David Lazovsky
Director5.25yrsUS$423.03k0.062% $114.1k
Chris Tsiofas
Independent Director7.92yrsUS$173.02k0.0086% $15.7k
Tony Blevins
Member of Technology Roadmap Advisory Boardno datano datano data

2.8yrs

Average Tenure

60yo

Average Age

Experienced Board: PTK's board of directors are not considered experienced ( 2.8 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: POET Technologies Inc.
  • Ticker: PTK
  • Exchange: TSXV
  • Founded: 2000
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: CA$183.929m
  • Shares outstanding: 291.95m
  • Website: https://www.poet-technologies.com

Number of Employees


Location

  • POET Technologies Inc.
  • 120 Eglinton Avenue East
  • Suite 1107
  • Toronto
  • Ontario
  • M4P 1E2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RI4DB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2007
PTKTSXV (TSX Venture Exchange)YesCommon SharesCACADJun 2007
POET.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2007

Biography

POET Technologies Inc. designs, develops, manufactures, and sells discrete and integrated opto-electronic solutions in Canada, the United States, and Singapore. It offers integration solutions based on the POET Optical Interposer, a novel platform that allows the seamless integration of electronic and photonic devices into a single multi-chip module using advanced wafer-level semiconductor manufacturing techniques and packaging methods. It also develops photonic integrated circuits. The company serves the data center, telecommunications, Internet of things and industrial sensing, automotive LIDAR, and on-board optics markets. The company was formerly known as Opel Technologies Inc. and changed its name to POET Technologies Inc. in June 2013. POET Technologies Inc. was founded in 2000 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 00:08
End of Day Share Price2020/06/30 00:00
Earnings2020/03/31
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.