TSX:TC

Stock Analysis Report

Executive Summary

Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in Canada, the United States, and Germany.

Snowflake

Fundamentals

Limited growth with imperfect balance sheet.

Risks

  • Tucows has significant price volatility in the past 3 months.
  • Tucows is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.9%

TSX:TC

2.0%

CA IT

-1.2%

CA Market


1 Year Return

-8.5%

TSX:TC

17.7%

CA IT

-4.6%

CA Market

TC underperformed the IT industry which returned 17.7% over the past year.

TC underperformed the Market in Canada which returned -4.4% over the past year.


Share holder returns

TCIndustryMarket
7 Day3.9%2.0%-1.2%
30 Day-1.1%0.09%-3.0%
90 Day-22.6%5.3%-3.3%
1 Year-8.5%-8.5%17.7%17.7%-1.2%-4.6%
3 Year87.2%87.2%62.2%62.0%13.5%3.5%
5 Year267.2%267.2%168.6%167.5%12.2%-3.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tucows undervalued based on future cash flows and its price relative to the stock market?

34.55x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Tucows's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Tucows's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Tucows is overvalued based on earnings compared to the North America IT industry average.

Tucows is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Tucows, we can't assess if its growth is good value.


Price Based on Value of Assets

Tucows is overvalued based on assets compared to the CA IT industry average.


Next Steps

Future Growth

How is Tucows expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Tucows's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

Tucows's earnings are expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).

Tucows's revenue growth is expected to exceed the Canada market average.

Tucows's earnings growth is positive but not above the Canada market average.

Tucows's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Tucows will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Tucows performed over the past 5 years?

20.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Tucows has delivered over 20% year on year earnings growth in the past 5 years.

Tucows's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Tucows's 1-year earnings growth is negative, it can't be compared to the North America IT industry average.


Return on Equity

Tucows has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Tucows used its assets less efficiently than the North America IT industry average last year based on Return on Assets.


Return on Capital Employed

Tucows's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Tucows's financial position?


Financial Position Analysis

Tucows's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Tucows's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Tucows's level of debt (114.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (17% vs 114.8% today).

Debt is well covered by operating cash flow (37.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Tucows's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Tucows's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Tucows has not reported any payouts.

Unable to verify if Tucows's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Tucows has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Tucows's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Elliot Noss (56yo)

20.3yrs

Tenure

US$575,987

Compensation

Mr. Elliot Noss has been the Chief Executive Officer and President of Tucows Inc. since May 1999. Mr. Noss has been a leader in the Internet industry for ten years. From May 1999 to August 2001, he served  ...


CEO Compensation Analysis

Elliot's remuneration is lower than average for companies of similar size in Canada.

Elliot's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.3yrs

Average Tenure

51yo

Average Age

The tenure for the Tucows management team is about average.


Board Age and Tenure

10.3yrs

Average Tenure

60yo

Average Age

The average tenure for the Tucows board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Tucows individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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Jeffrey Schwartz
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Jeffrey Schwartz
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Rawleigh Ralls
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David Woroch
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Ownership Breakdown


Management Team

  • Mike Cooperman (68yo)

    Senior Advisor

    • Tenure: 2.3yrs
    • Compensation: US$320.01k
  • Elliot Noss (56yo)

    President

    • Tenure: 20.3yrs
    • Compensation: US$575.99k
  • David Woroch (56yo)

    Executive Vice President of Domains

    • Tenure: 5.6yrs
    • Compensation: US$374.43k
  • Thorsten Einig

    Managing Director of Europe

    • Tenure: 8.8yrs
  • Dave Singh (44yo)

    CFO, Executive VP

    • Tenure: 2.3yrs
    • Compensation: US$324.09k
  • Michael Goldstein (47yo)

    Chief Revenue Officer of Ting

    • Tenure: 0.1yrs
    • Compensation: US$419.22k
  • Jess Johannson (46yo)

    Chief People Officer

    • Tenure: 2.6yrs
  • Bret Fausett (55yo)

    Chief Legal Officer & General Counsel

    • Tenure: 1.9yrs
    • Compensation: US$328.14k
  • Hanno Liem (45yo)

    Chief Technology Officer

    • Tenure: 1.6yrs

Board Members

  • Brad Burnham (64yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: US$90.30k
  • Jeffrey Schwartz (56yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$121.80k
  • Allen Karp (79yo)

    Chairman & Lead Director of the Board

    • Tenure: 7.3yrs
    • Compensation: US$136.80k
  • Erez Gissin (60yo)

    Independent Director

    • Tenure: 18.0yrs
    • Compensation: US$102.30k
  • Elliot Noss (56yo)

    President

    • Tenure: 20.3yrs
    • Compensation: US$575.99k
  • Robin Chase (60yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$102.30k
  • Rawleigh Ralls (57yo)

    Director

    • Tenure: 10.3yrs
    • Compensation: US$113.55k

Company Information

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


Key Information

  • Name: Tucows Inc.
  • Ticker: TC
  • Exchange: TSX
  • Founded: 1992
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: US$526.670m
  • Listing Market Cap: US$699.949m
  • Shares outstanding: 10.66m
  • Website: https://www.tucows.com

Number of Employees


Location

  • Tucows Inc.
  • 96 Mowat Avenue
  • Toronto
  • Ontario
  • M6K 3M1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCXNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDAug 2001
TUQ1DB (Deutsche Boerse AG)YesCommon StockDEEURAug 2001
TCTSX (The Toronto Stock Exchange)YesCommon StockCACADAug 2001
0LH4LSE (London Stock Exchange)YesCommon StockGBUSDAug 2001

Biography

Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in Canada, the United States, and Germany. It operates in two segments, Network Access Se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 00:03
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.