TSX:NXJ

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

NexJ Systems Inc. develops intelligent customer management solutions for the financial services industry in the United States, Canada, the Asia Pacific, Europe, the Middle East, and Africa. More Details


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: Insufficient data to determine NXJ's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine NXJ's volatility change over the past year.


Market Performance


7 Day Return

5.6%

NXJ

6.2%

CA Software

0.7%

CA Market


1 Year Return

n/a

NXJ

46.9%

CA Software

2.1%

CA Market

Return vs Industry: Insufficient data to determine how NXJ performed against the Canadian Software industry.

Return vs Market: Insufficient data to determine how NXJ performed against the Canadian Market.


Shareholder returns

NXJIndustryMarket
7 Day5.6%6.2%0.7%
30 Day10.3%8.9%4.6%
90 Day19.0%30.9%13.5%
1 Yearn/a47.5%46.9%5.8%2.1%
3 Year-75.8%-75.8%76.1%72.4%13.9%3.1%
5 Year-57.1%-57.1%182.3%173.3%67.3%41.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is NexJ Systems undervalued compared to its fair value and its price relative to the market?

3.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NXJ is good value based on its PB Ratio (3.2x) compared to the CA Software industry average (7.8x).


Next Steps

Future Growth

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

27.0%

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 NexJ Systems 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 NexJ Systems performed over the past 5 years?

-38.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NXJ is currently unprofitable.

Growing Profit Margin: NXJ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NXJ is unprofitable, and losses have increased over the past 5 years at a rate of 38.5% per year.

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

Earnings vs Industry: NXJ is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (31.8%).


Return on Equity

High ROE: NXJ has a negative Return on Equity (-53.77%), as it is currently unprofitable.


Next Steps

Financial Health

How is NexJ Systems's financial position?


Financial Position Analysis

Short Term Liabilities: NXJ's short term assets (CA$10.2M) exceed its short term liabilities (CA$8.6M).

Long Term Liabilities: NXJ's short term assets (CA$10.2M) exceed its long term liabilities (CA$1.7M).


Debt to Equity History and Analysis

Debt Level: NXJ is debt free.

Reducing Debt: NXJ has not had any debt for 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: NXJ has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: NXJ has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 24.6% each year


Next Steps

Dividend

What is NexJ Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if NXJ'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 NXJ'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 management tenure


CEO

J. O'Donnell

2.58yrs

Tenure

CA$391,258

Compensation

Mr. J. Paul O'Donnell has been President of NexJ Systems Inc. since January 15, 2018 and its Chief Executive Officer since June 1, 2018. Mr. O'Donnell has the responsibility for NexJ's strategic operations...


CEO Compensation Analysis

Compensation vs Market: J.'s total compensation ($USD309.47K) is above average for companies of similar size in the Canadian market ($USD153.63K).

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


Leadership Team

NamePositionTenureCompensationOwnership
J. O'Donnell
President & CEO2.58yrsCA$391.26k0.059%
CA$ 9.4k
Rajneesh Sapra
CFO & Senior VP of Finance2.58yrsCA$204.00k0.080%
CA$ 12.7k
Richard Broley
Chief Operating Officerno dataCA$204.00kno data
Paul DeVriendt
Senior Vice President of Productsno dataCA$204.00kno data
Frank Cianciotta
Senior Vice President of Salesno datano datano data
Matthew Bogart
Vice President of Marketingno datano datano data
Karen Blakey
Director of Human Resources2.83yrsno datano data
Gary Baksi
Executive VP & GM of NexJ Health Inc.10yrsno datano data
James Cappelli
Senior Vice President of Customer Experience2.75yrsno datano data
Errol Singer
Advisor & Observer to the Board2.58yrsCA$335.00kno data

2.7yrs

Average Tenure

Experienced Management: NXJ's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Errol Singer
Advisor & Observer to the Board2.58yrsCA$335.00kno data
E. Beattie
Independent Chairman0.58yrno data3.41%
CA$ 539.6k
David Yach
Lead Independent Director2.58yrsCA$50.00k0.47%
CA$ 75.0k
William Tatham
Founder & Director19.08yrsCA$200.00k26.18%
CA$ 4.1m
Richard Alvarez
Chair of Healthcare Advisory Board6.17yrsno datano data
Tom Closson
Member of Healthcare Advisory Board6.17yrsno datano data
William Morris
Director0.58yrno datano data

2.6yrs

Average Tenure

59.5yo

Average Age

Experienced Board: NXJ's board of directors are not considered experienced ( 2.6 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

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


Key Information

  • Name: NexJ Systems Inc.
  • Ticker: NXJ
  • Exchange: TSX
  • Founded: 2001
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: CA$15.830m
  • Shares outstanding: 21.11m
  • Website: https://www.nexj.com

Number of Employees


Location

  • NexJ Systems Inc.
  • 10 York Mills Road
  • Suite 700
  • Toronto
  • Ontario
  • M2P 2G4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NXJTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 2011
NEXJ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2011

Biography

NexJ Systems Inc. develops intelligent customer management solutions for the financial services industry in the United States, Canada, the Asia Pacific, Europe, the Middle East, and Africa. The company off...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 00:22
End of Day Share Price2021/01/19 00:00
Earnings2020/09/30
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.