CNSX:NERD

Stock Analysis Report

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Executive Summary

Nerds on Site Inc. provides information technology (IT), hardware, software, and related support services to small to medium-sized enterprises in Canada and the United States.


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has Nerds on Site's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-15.4%

NERD

1.1%

CA IT

2.4%

CA Market


1 Year Return

-72.5%

NERD

-15.2%

CA IT

-12.4%

CA Market

Return vs Industry: NERD underperformed the Canadian IT industry which returned -15.1% over the past year.

Return vs Market: NERD underperformed the Canadian Market which returned -12.4% over the past year.


Shareholder returns

NERDIndustryMarket
7 Day-15.4%1.1%2.4%
30 Day-8.3%-4.4%-0.9%
90 Day83.3%14.0%17.3%
1 Year-72.5%-72.5%-15.1%-15.2%-9.4%-12.4%
3 Yearn/a30.3%30.1%4.2%-5.7%
5 Yearn/a75.0%74.6%22.1%3.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Nerds on Site undervalued compared to its fair value and its price relative to the market?

2.89x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NERD is good value based on its PB Ratio (2.9x) compared to the CA IT industry average (3x).


Next Steps

Future Growth

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

24.0%

Forecasted Software 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 Nerds on Site 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 Nerds on Site performed over the past 5 years?

-57.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NERD is currently unprofitable.

Growing Profit Margin: NERD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NERD is unprofitable, and losses have increased over the past 5 years at a rate of -57.5% per year.

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

Earnings vs Industry: NERD is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (12%).


Return on Equity

High ROE: NERD has a negative Return on Equity (-217.47%), as it is currently unprofitable.


Next Steps

Financial Health

How is Nerds on Site's financial position?


Financial Position Analysis

Short Term Liabilities: NERD's short term assets (CA$859.4K) do not cover its short term liabilities (CA$1.5M).

Long Term Liabilities: NERD's short term assets (CA$859.4K) exceed its long term liabilities (CA$370.7K).


Debt to Equity History and Analysis

Debt Level: NERD's debt to equity ratio (18.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if NERD'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: NERD has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: NERD has less than a year of cash runway if free cash flow continues to reduce at historical rates of 66.5% each year


Next Steps

Dividend

What is Nerds on Site current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

2.7yrs

Average board tenure


CEO

Charlie Regan

no data

Tenure

CA$126,214

Compensation

Mr. Charles Donald Regan also known as Charlie, serves as 50% co-owner at Nos Holdings Ltd. Mr. Regan serves as Chief Executive Officer at Nerds On Site Inc. and also serves as its Director since March 15, ...


CEO Compensation Analysis

Compensation vs Market: Charlie's total compensation ($USD92.99K) is below average for companies of similar size in the Canadian market ($USD173.28K).

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


Board Members

NamePositionTenureCompensationOwnership
Charles Regan
CEO & Directorno dataCA$126.21k0.81% CA$38.3k
John Harbarenko
President & Director23.08yrsno datano data
David Redekop
Secretary & Director23.08yrsno datano data
Kevin Ernst
Independent Director2.58yrsno data1.16% CA$55.0k
Jacques Smit
Independent Director2.58yrsno data0.58% CA$27.5k
Eugene Konaryev
Independent Director2.67yrsno data1.45% CA$68.6k
Nicole Holden
Independent Director2.58yrsno datano data

2.7yrs

Average Tenure

Experienced Board: NERD's board of directors are not considered experienced ( 2.7 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: NERD 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

Nerds on Site Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nerds on Site Inc.
  • Ticker: NERD
  • Exchange: CNSX
  • Founded: 1995
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: CA$4.742m
  • Shares outstanding: 86.21m
  • Website: https://www.nerdsonsite.com

Number of Employees


Location

  • Nerds on Site Inc.
  • 131 Wharncliffe Road South
  • 3rd Floor
  • London
  • Ontario
  • N6J 2K4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NERDCNSX (Canadian National Stock Exchange)YesCommon SharesCACADNov 2018
3NSDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2018
NOSU.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2018

Biography

Nerds on Site Inc. provides information technology (IT), hardware, software, and related support services to small to medium-sized enterprises in Canada and the United States. The company offers printers and system network tech-support, managed security service protocol, VOiP phone systems, remote and on-site support, physical and cloud platforms back-up systems, mobile app development, cyber security threat protection, and cyber crime response services. It also provides virtual real estate and e-commerce creative, development, management, and support services; full office, plant/store premises, and mobile online security packages Dash services; and full Google cloud and Microsoft online products and support services. In addition, the company is involved in the sale of hardware and software products; hardware as a service; and development and sale of software as a service. Further, it offers proactive monitoring, disaster recovery and business continuity, managed IT, network security, onsite SMB IT support, Web hosting, and wireless networking services; IT assessment and consulting, help desk, and outsourcing services; Web, application, and database development services; computer, laptop, and PC repair services; and mobility, hosted email, hybrid IP phone solutions. Nerds on Site Inc. was founded in 1995 and is headquartered in London, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 00:10
End of Day Share Price2020/07/03 00:00
Earnings2020/02/29
Annual Earnings2019/05/31


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.