Converge Technology Solutions Corp., through its subsidiaries, distributes storage devices and systems, computer products, software, and peripherals. More Details
Reasonable growth potential with mediocre balance sheet.
Share Price & News
How has Converge Technology Solutions's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CTS is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: CTS's weekly volatility (8%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: CTS exceeded the Canadian IT industry which returned -5.5% over the past year.
Return vs Market: CTS exceeded the Canadian Market which returned 1.7% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Converge Technology Solutions's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StBullish: Analysts Just Made A Neat Upgrade To Their Converge Technology Solutions Corp. (CVE:CTS) Forecasts
2 weeks ago | Simply Wall StIf You Had Bought Converge Technology Solutions (CVE:CTS) Shares A Year Ago You'd Have Earned 229% Returns
3 months ago | Simply Wall StConverge Technology Solutions Corp.'s (CVE:CTS) About To Shift From Loss To Profit
Is Converge Technology Solutions undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CTS (CA$6.31) is trading below our estimate of fair value (CA$13.31)
Significantly Below Fair Value: CTS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CTS is unprofitable, so we can't compare its PE Ratio to the CA IT industry average.
PE vs Market: CTS 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 CTS's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CTS is overvalued based on its PB Ratio (16x) compared to the CA IT industry average (6.1x).
How is Converge Technology Solutions forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CTS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).
Earnings vs Market: CTS is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: CTS's is expected to become profitable in the next 3 years.
Revenue vs Market: CTS's revenue (19.8% per year) is forecast to grow faster than the Canadian market (7.9% per year).
High Growth Revenue: CTS's revenue (19.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CTS's Return on Equity is forecast to be low in 3 years time (12.1%).
How has Converge Technology Solutions performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CTS is currently unprofitable.
Growing Profit Margin: CTS is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CTS is unprofitable, and losses have increased over the past 5 years at a rate of 11.4% per year.
Accelerating Growth: Unable to compare CTS's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CTS is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (2.4%).
Return on Equity
High ROE: CTS has a negative Return on Equity (-7.31%), as it is currently unprofitable.
How is Converge Technology Solutions's financial position?
Financial Position Analysis
Short Term Liabilities: CTS's short term assets (CA$290.7M) do not cover its short term liabilities (CA$396.5M).
Long Term Liabilities: CTS's short term assets (CA$290.7M) exceed its long term liabilities (CA$48.3M).
Debt to Equity History and Analysis
Debt Level: CTS's debt to equity ratio (239.4%) is considered high.
Reducing Debt: Insufficient data to determine if CTS's debt to equity ratio has reduced over the past 5 years.
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: Whilst unprofitable CTS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: CTS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 94% per year.
What is Converge Technology Solutions's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CTS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CTS'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 CTS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CTS'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 CTS's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Shaun Peter Maine serves as Chief Executive Officer of Converge Technology Solutions Corp and serves as its Director since 2016. Mr. Maine is a Co-Founder of InflexionPoint Technologies Pte. Limited an...
CEO Compensation Analysis
Compensation vs Market: Shaun's total compensation ($USD813.24K) is about average for companies of similar size in the Canadian market ($USD1.16M).
Compensation vs Earnings: Shaun's compensation has increased whilst the company is unprofitable.
|CEO & Director||no data||CA$627.00k||8.13% |
|Chief Operations Officer||1.5yrs||CA$450.32k||0.28% |
|CTO & President of Converge Technology Solutions||1.5yrs||CA$421.92k||0.56% |
|Chief Financial Officer||0.83yr||no data||0.16% |
|Vice President of Marketing||1yr||no data||no data|
|Vice President of Human Resources||1yr||no data||no data|
|Executive Vice President of Services & Vendor Alliances||1yr||no data||no data|
|Senior Vice President of Enterprise Sales||1yr||no data||no data|
|President of Northeast Region||1yr||no data||no data|
Experienced Management: CTS's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
|CEO & Director||no data||CA$627.00k||8.13% |
|Independent Chairman of the Board||no data||no data||2.61% |
|Independent Director||1.58yrs||CA$32.80k||0.035% |
|Independent Director||2.17yrs||CA$70.00k||0.061% |
|Independent Director||2.17yrs||CA$70.00k||0.14% |
Experienced Board: CTS's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CTS insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 99%.
Converge Technology Solutions Corp.'s company bio, employee growth, exchange listings and data sources
- Name: Converge Technology Solutions Corp.
- Ticker: CTS
- Exchange: TSXV
- Founded: 2016
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: CA$1.018b
- Shares outstanding: 161.39m
- Website: https://www.convergetp.com
Number of Employees
- Converge Technology Solutions Corp.
- 161 Bay Street
- Suite 2325
- M5J 2S1
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CTS||TSXV (TSX Venture Exchange)||Yes||Common Shares||CA||CAD||Nov 2018|
|0ZB||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Nov 2018|
|CTSD.F||OTCPK (Pink Sheets LLC)||Yes||Common Shares||US||USD||Nov 2018|
Converge Technology Solutions Corp., through its subsidiaries, distributes storage devices and systems, computer products, software, and peripherals. The company also provides analytics, hybrid cloud, infr...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/01/17 00:02|
|End of Day Share Price||2021/01/15 00:00|
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.