TSX:PATH

Stock Analysis Report

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Executive Summary

CounterPath Corporation designs, develops, and sells software and services that enable enterprises and telecommunication service providers to deliver unified communications services over Internet protocol based networks in North America and internationally. More Details


Snowflake Analysis

Good value with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PATH is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: PATH's weekly volatility (13%) has been stable over the past year.


Market Performance


7 Day Return

-0.5%

PATH

2.3%

CA Software

-3.3%

CA Market


1 Year Return

64.6%

PATH

51.5%

CA Software

-0.4%

CA Market

Return vs Industry: PATH exceeded the Canadian Software industry which returned 50.5% over the past year.

Return vs Market: PATH exceeded the Canadian Market which returned 1.6% over the past year.


Shareholder returns

PATHIndustryMarket
7 Day-0.5%2.3%-3.3%
30 Day2.4%8.6%0.2%
90 Day22.0%38.2%14.2%
1 Year64.6%64.6%52.1%51.5%3.3%-0.4%
3 Year-22.0%-22.0%94.7%90.4%13.7%2.8%
5 Year44.3%44.3%229.1%217.6%59.6%35.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CounterPath 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: PATH (CA$4.33) is trading below our estimate of fair value (CA$43.17)

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


Price To Earnings Ratio

PE vs Industry: PATH is good value based on its PE Ratio (28.6x) compared to the CA Software industry average (39.2x).

PE vs Market: PATH is poor value based on its PE Ratio (28.6x) compared to the Canadian market (16.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PATH is good value based on its PB Ratio (5.4x) compared to the CA Software industry average (7.4x).


Next Steps

Future Growth

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

30.8%

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 CounterPath 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 CounterPath performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PATH has high quality earnings.

Growing Profit Margin: PATH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PATH has become profitable over the past 5 years, growing earnings by 5.3% per year.

Accelerating Growth: PATH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PATH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (25.3%).


Return on Equity

High ROE: PATH's Return on Equity (18.3%) is considered low.


Next Steps

Financial Health

How is CounterPath's financial position?


Financial Position Analysis

Short Term Liabilities: PATH's short term assets ($5.1M) do not cover its short term liabilities ($8.4M).

Long Term Liabilities: PATH's short term assets ($5.1M) exceed its long term liabilities ($1.1M).


Debt to Equity History and Analysis

Debt Level: PATH's debt to equity ratio (30%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if PATH's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PATH's debt is well covered by operating cash flow (200.7%).

Interest Coverage: PATH's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

1.0yrs

Average management tenure


CEO

David Karp (55 yo)

2.33yrs

Tenure

US$383,968

Compensation

Mr. David L. Karp, CFA, MBA, P.Eng. has been President and Chief Executive Officer of CounterPath Corporation since September 19, 2019. He was Chief Financial Officer of CounterPath Corporation from Septem...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD383.97K) is above average for companies of similar size in the Canadian market ($USD152.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Karp
President & CEO2.33yrsUS$383.97k0.51%
$ 142.5k
Todd Carothers
Chief Revenue Officer1.33yrsUS$358.55k0.28%
$ 79.3k
Karen Luk
VP of Finance0.33yrUS$103.78kno data
Srinivasa Janaswamy
Interim VP of Finance0.33yrno datano data
Michael Doyle
Vice President of Technologyno datano datano data
Steven Hards
Vice President of Investor Relationsno datano datano data
Nemer Abourizk
General Counselno datano datano data
John Wigboldus
Senior Vice President of Salesno datano datano data
Hanna Miller
Vice President of Marketing1.33yrsno datano data
Bruce Ford
Senior Vice President of Strategic Business Development1yrno datano data
Damian Wallace
Senior Vice President of Product & Customer Success0.58yrno datano data
Steven Kinsey
Senior Consultant & Member of Advisory Boardno datano datano data

1.0yrs

Average Tenure

50yo

Average Age

Experienced Management: PATH's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Steven Kinsey
Senior Consultant & Member of Advisory Boardno datano datano data
Terence Matthews
Chairman of the Boardno dataUS$14.26k0%
$ 0
Owen Matthews
Vice Chairman of the Boardno dataUS$18.06k3.53%
$ 986.5k
Alan Duric
Member of Advisory Boardno datano datano data
Christopher Cooper
Independent Director15.42yrsUS$19.01k0%
$ 0
Klaus Schulz
Member of Advisory Boardno datano datano data
Larry Timlick
Independent Director15.58yrsUS$19.01kno data
Rohan Mahy
Member of Advisory Boardno datano datano data
Ronald Gruia
Member of Advisory Boardno datano datano data
Robert Sparks
Member of Advisory Boardno datano datano data
Stephen Cho
Member of Advisory Boardno datano datano data
Bruce Joyce
Independent Director7.33yrsUS$19.01k0.015%
$ 4.3k

15.4yrs

Average Tenure

63yo

Average Age

Experienced Board: PATH's board of directors are seasoned and experienced ( 15.4 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.8%.


Top Shareholders

Company Information

CounterPath Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CounterPath Corporation
  • Ticker: PATH
  • Exchange: TSX
  • Founded: 2002
  • Industry: Application Software
  • Sector: Software
  • Market Cap: CA$27.951m
  • Shares outstanding: 6.46m
  • Website: https://www.counterpath.com

Number of Employees


Location

  • CounterPath Corporation
  • One Bentall Centre
  • Suite 300
  • Vancouver
  • British Columbia
  • V7X 1M3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPAHNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDFeb 2006
PATHTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 2006

Biography

CounterPath Corporation designs, develops, and sells software and services that enable enterprises and telecommunication service providers to deliver unified communications services over Internet protocol ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/27 23:56
End of Day Share Price2021/01/27 00:00
Earnings2020/10/31
Annual Earnings2020/04/30


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.