TSX:PATH

Stock Analysis Report

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.


Snowflake Analysis

Weak fundamentals or lack of information.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.9%

PATH

-2.9%

CA Software

0.1%

CA Market


1 Year Return

49.8%

PATH

16.5%

CA Software

4.7%

CA Market

Return vs Industry: PATH exceeded the Canadian Software industry which returned 16.3% over the past year.

Return vs Market: PATH exceeded the Canadian Market which returned 4.6% over the past year.


Shareholder returns

PATHIndustryMarket
7 Day-3.9%-2.9%0.1%
30 Day17.9%-0.06%0.8%
90 Day122.1%5.6%3.7%
1 Year49.8%49.8%18.6%16.5%7.9%4.7%
3 Year-2.4%-2.4%88.4%83.8%17.9%7.3%
5 Year-43.5%-43.5%129.8%122.4%33.8%14.4%

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?

7.55x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PATH is overvalued based on its PB Ratio (7.6x) compared to the CA Software industry average (3.1x).


Next Steps

Future Growth

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

18.3%

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?

-4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PATH is currently unprofitable.

Growing Profit Margin: PATH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PATH is unprofitable, and losses have increased over the past 5 years at a rate of -4.2% per year.

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

Earnings vs Industry: PATH is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (12.3%).


Return on Equity

High ROE: PATH has a negative Return on Equity (-190.86%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CounterPath's financial position?


Financial Position Analysis

Short Term Liabilities: PATH's short term assets ($3.7M) do not cover its short term liabilities ($5.1M).

Long Term Liabilities: PATH's short term assets ($3.7M) do not cover its long term liabilities ($5.3M).


Debt to Equity History and Analysis

Debt Level: PATH's debt to equity ratio (208%) is considered high.

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


Balance Sheet

Inventory Level: PATH has a low level of unsold assets or inventory.

Debt Coverage by Assets: PATH's debt is not covered by short term assets (assets are 0.9x debt).


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: PATH has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: PATH has less than a year of cash runway if free cash flow continues to grow at historical rates of 2.2% each year.


Next Steps

Dividend

What is CounterPath's 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 payouts.

High Dividend: Unable to evaluate PATH's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?

0.4yrs

Average management tenure


CEO

David Karp (54yo)

1.4yrs

Tenure

US$376,690

Compensation

Mr. David L. Karp, CFA, MBA, P.Eng. has been President and Chief Executive Officer at CounterPath Corporation since September 19, 2019. Mr. Karp served as an Interim Chief Executive Officer of CounterPath  ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD376.69K) is above average for companies of similar size in the Canadian market ($USD154.65K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Karp
President & CEO1.4yrsUS$376.69k0.53% $103.4k
Todd Carothers
Chief Revenue Officer0.4yrsUS$655.43k0.24% $47.5k
Karen Luk
Vice President of Finance0.4yrsno datano data
Michael Doyle
Vice President of Technology0yrsno datano data
Steven Hards
Vice President of Investor Relations0yrsno datano data
Nemer Abourizk
General Counsel0yrsno datano data
John Wigboldus
Senior Vice President of Sales0yrsno datano data
Hanna Miller
Vice President of Marketing0.4yrsno datano data
Bruce Ford
Senior Vice President of Strategic Business Development0.08yrsno datano data
Steven Kinsey
Senior Consultant & Member of Advisory Board0yrsno datano data

0.4yrs

Average Tenure

49yo

Average Age

Experienced Management: PATH's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Steven Kinsey
Senior Consultant & Member of Advisory Board0yrsno datano data
Terence Matthews
Independent Chairman of the Board0yrsUS$43.88k24.71% $4.9m
Owen Matthews
Independent Vice Chairman of the Board0yrsUS$36.24k3.73% $733.3k
Alan Duric
Member of Advisory Board0yrsno datano data
Christopher Cooper
Independent Director14.5yrsUS$38.15kno data
Larry Timlick
Independent Director14.7yrsUS$38.15kno data
Rohan Mahy
Member of Advisory Board0yrsno datano data
Robert Sparks
Member of Advisory Board0yrsno datano data
Stephen Cho
Member of Advisory Board0yrsno datano data
Bruce Joyce
Independent Director6.4yrsUS$38.15k0.016% $3.2k

14.5yrs

Average Tenure

62yo

Average Age

Experienced Board: PATH's board of directors are seasoned and experienced ( 14.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PATH insiders have only sold shares 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 2%.


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$19.636m
  • Shares outstanding: 6.10m
  • 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 based networks in North America and internationally. Its products include Bria softphone suite, which enables consumers and business users to make voice over Internet protocol (VoIP) audio and video calls, send instant messages, manage their presence, share their screen, and collaborate with other users using desktop computers and laptops, smartphones, and tablets; and X-Lite, a standards-based VoIP softphone application that runs on desktop computers. The company also offers software development kits that deliver voice, video, and messaging capabilities for desktop, tablet, and mobile devices; Stretto Platform, a carrier-grade software platform for enterprises and service providers; Bria Teams, which delivers centralized provisioning, messaging, and screen sharing from the cloud; and Brio Stretto for enterprises, operators, and telecommunication channel partners to leverage the Stretto Platform to procure, distribute, provide, and manage Bria Stretto clients from the cloud, as well as to offer hosted messaging and collaboration solutions. In addition, it provides subscription, support, and maintenance services; and professional and other services, such as product configuration and customization, implementation, engineering, and training. The company sells its products and services through its own and third-party online stores; and directly using its in-house sales team, as well as through its channel partners. It serves small, medium, and large sized businesses; telecommunications service providers and Internet telephony service providers; original equipment manufacturers, value added distributors, and value added resellers serving the telecommunication market; and end users. CounterPath Corporation was founded in 2002 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 02:29
End of Day Share Price2020/02/21 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


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.