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Clarocity

TSXV:CLY
Snowflake Description

Limited growth with worrying balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CLY
TSXV
CA$15M
Market Cap
  1. Home
  2. CA
  3. Software
Last updated 2018/04/23 00:16
Company description

Clarocity Corporation develops real estate valuation products and technology in the United States mortgage industry. More info.


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  • Clarocity has significant price volatility in the past 3 months.
SHARE PRICE
3 Month History
CLY
Industry
5yr Volatility vs Market
Related Companies

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

In this section, we usually try to help investors determine whether Clarocity is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Clarocity has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis. You can see them here.

Show me the analysis anyway

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Clarocity. This is due to cash flow or dividend data being unavailable. The share price is CA$0.055.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Clarocity's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Clarocity's earnings available for a low price, and how does this compare to other companies in the same industry?
  • Clarocity is loss making, we can't compare it's value to the CA Internet industry average.
  • Clarocity is loss making, we can't compare the value of its earnings to the CA market.
Price based on expected Growth
Does Clarocity's expected growth come at a high price?
  • Clarocity is loss making, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Clarocity's assets?
  • Clarocity has negative assets, we can't compare the value of its assets to the CA Internet industry average.

Next steps:

  1. Take a look at our analysis of CLY’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  2. When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Clarocity's regulatory filings and announcements.
  3. Show me more potentially undervalued companies in the Internet industry
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
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Value checks
We assess Clarocity's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Internet industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Internet industry average (and greater than 0)? (1 check)
  5. Clarocity has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (38.35%).

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • Clarocity is covered by less than 3 analysts.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
36.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Clarocity expected to grow at an attractive rate?
  • Unable to compare Clarocity's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Clarocity's earnings growth to the CA market average as it is expected to be loss making during the next 1-3 years.
  • Clarocity's revenue growth is expected to exceed the CA market average.
Annual Growth Rates Comparison
Analysts growth expectations
Super high growth metrics
High Growth Checks
  • Clarocity is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Clarocity's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Clarocity will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
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Future performance checks
We assess Clarocity's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the CA market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the CA market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Clarocity has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Clarocity performed over the past 5 years?

  • Clarocity's last earnings update was 205 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Clarocity's growth in the last year to its industry (Internet).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Clarocity does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Clarocity's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Clarocity's 1-year growth to the CA Internet industry average as it is not currently profitable.
Earnings and Revenue History
Clarocity's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Clarocity has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • It is difficult to establish if Clarocity has efficiently used its assets last year compared to the CA Internet industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Clarocity improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to its liabilities exceeding its assets.
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Past performance checks
We assess Clarocity's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Internet industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Clarocity has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Clarocity's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Clarocity's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Clarocity's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Clarocity has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Clarocity's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Clarocity has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
  • Clarocity has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Clarocity's debt level has increased considering it has negative shareholder equity.
  • Operating cash flow is negative therefore debt is not well covered.
  • Clarocity is making a loss, therefore interest payments are not well covered by earnings.
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Financial health checks
We assess Clarocity's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by short term assets? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Clarocity has a total score of 1/6, see the detailed checks below.


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Clarocity dividends.
If you bought CA$2,000 of Clarocity shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Clarocity's dividend against the low risk savings benchmark as the company has not reported any payouts.
  • Unable to evaluate Clarocity's dividend against the market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
  • Unable to perform a dividend volatility check as Clarocity has not reported any payouts.
  • Unable to verify if Clarocity's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Clarocity's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Clarocity 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.
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Income/ dividend checks
We assess Clarocity's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Current dividend yield, is there one at all, is it higher than the low risk savings rate, and is it above the top 25% of dividend payers? (2 checks)
  3. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  4. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  5. How sustainable is the dividend, can Clarocity afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  6. Clarocity has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Shane Copeland, image provided by Google.
Shane Copeland
COMPENSATION CA$302,837
TENURE AS CEO 2.4 years
CEO Bio

Mr. Shane Copeland has been the Chief Executive Officer of Clarocity Corporation since November 4, 2015. Mr. Copeland served as Vice President of National Sales at Kirchmeyer & Associates, Inc. until September 1, 2011. He joined the Kirchmeyer & Associates, Inc. in 2008. He served as a Interim Chief Executive Officer of AppraiserLoft since August 2011. He joined AppraiserLoft in 2008 and served as its Senior Vice President of national sales. He was responsible for sales, product development and consulting for appraisal, automated valuations and broker price opinions for lenders, realtors, servicers and real estate companies through integrations as well as developing and managing a national sales team. He was the Founder and Chief Executive Officer of the Valuation Vision business unit at Zaio Corporation, where Mr. Copeland has consistently demonstrated an ability to drive adoption of revenue from new disruptive products and solutions to top financial institutions such as Fannie Mae. Mr. Copeland held Executive Sales positions at Stewart Lender Services, ServiceLink/National Lender Solutions. He gained extensive knowledge while working with DataQuick Information Systems, Yavapai-Coconino Title Insurance Agency of Stewart Title and First American Title Insurance. Mr. Copeland has more than 24 years of experience in the mortgage and valuation disciplines in the real estate industry. Throughout his career, he has achieved success in executive management, sales, product innovation, operations and building. His experience has touched nearly every facet of the mortgage banking industry including title, data and analytics, appraisal management and valuation and advanced the utilization of advanced technology. Mr. Copeland has developed a reputation for delivering results and disrupting conventional wisdom with his constant focus on profitability, execution and sustained revenue growth. He has been Director of Clarocity Corporation since April 25, 2016.

CEO Compensation
  • Shane's compensation has increased whilst company is loss making.
  • Shane's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure of the Clarocity management team in years:

3
Average Tenure
  • The tenure for the Clarocity management team is about average.
Management Team

Shane Copeland

TITLE
Chief Executive Officer & Director
COMPENSATION
CA$303K
TENURE
2.4 yrs

Brad Stinson

TITLE
COMPENSATION
CA$90K

Dave Guebert

TITLE
Chief Financial Officer
COMPENSATION
CA$70K
TENURE
1.6 yrs

Ernest Durbin

TITLE
Chief Valuation Officer
COMPENSATION
CA$210K
TENURE
0.1 yrs

Zan James

TITLE
President of Clarocity Valuation Services
COMPENSATION
CA$204K
TENURE
0.7 yrs

William Mohler

TITLE
Executive Vice President of Product & Marketing - Valuation Vision Inc
COMPENSATION
CA$204K

Lisa Lyscio

TITLE
Manager of Investor Relations

Don Kelly

TITLE
Chief Communications Officer
TENURE
10.2 yrs

John Ross

TITLE
Managing Director of Sales and Vice President

Donald Leitch

TITLE
Secretary
Board of Directors Tenure

Average tenure of the Clarocity board of directors in years:

2
Average Tenure
  • The average tenure for the Clarocity board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jim Boyle

TITLE
Chairman
COMPENSATION
CA$176K

Shane Copeland

TITLE
Chief Executive Officer & Director
COMPENSATION
CA$303K
TENURE
3 yrs

Robert Gloer

TITLE
Independent Director
COMPENSATION
CA$168K
TENURE
2.3 yrs

Willem Galle

TITLE
Independent Director
COMPENSATION
CA$160K
TENURE
2.3 yrs

Walter Andri

TITLE
Independent Director
COMPENSATION
CA$170K
TENURE
2.3 yrs

Nick Tillema

TITLE
Director
COMPENSATION
CA$12K
TENURE
1.6 yrs

Tom Signorello

TITLE
Director
TENURE
0.5 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
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Management checks
We assess Clarocity's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Clarocity has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

Company News

External News
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Simply Wall St News

Does Clarocity Corporation's (CVE:CLY) Past Performance Indicate A Weaker Future?

See our latest analysis for Clarocity Despite a decline, did CLY underperform the long-term trend and the industry? … I like to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … Looking at growth from a sector-level, the Canadian internet industry has been enduring some headwinds over the past twelve months, leading to an average earnings drop of -22.72%.

Simply Wall St -

What's The Cash Runway For Clarocity Corporation (TSXV:CLY)?

The single most important question to ask when you’re investing in a loss-making company is – will they need to raise cash again, and if so, when? … TSXV:CLY Income Statement Nov 1st 17 When will CLY need to raise more cash? … Not surprisingly, if CLY continues to ramp up expenditure at this rate for the upcoming year, it’ll likely need to come to market within the next few months, given the its current level of cash reserves.

Simply Wall St -

Company Info

Map
Description

Clarocity Corporation develops real estate valuation products and technology in the United States mortgage industry. Its real estate valuation solutions comprise MarketValue Pro and BPOMerge. The company also provides alternative valuation and appraisal fulfillment services. The company was formerly known as Zaio Corporation and changed its name to Clarocity Corporation in October 2016. Clarocity Corporation is headquartered in Carlsbad, California.

Details
Name: Clarocity Corporation
CLY
Exchange: TSXV
Founded:
CA$14,789,422
268,898,599
Website: http://www.zaio.com
Address: Clarocity Corporation
3115 Melrose Drive,
Suite 130,
Carlsbad,
California, 92010,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSXV CLY Common Voting Shares TSX Venture Exchange CA CAD 01. Apr 2004
OTCPK CLRY.F Common Voting Shares Pink Sheets LLC US USD 01. Apr 2004
DB 4ZA Common Voting Shares Deutsche Boerse AG DE EUR 01. Apr 2004
Number of employees
Current staff
Staff numbers
0
Clarocity employees.
Industry
Internet Software and Services
Software
Company Analysis and Financial Data Status
Area Date
Company Analysis updated: 2018/04/23 00:16
Last estimates confirmation: 2017/11/21
Last earnings update: 2017/09/30
Last annual earnings update: 2016/12/31


All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.