TSXV:DLS

Stock Analysis Report

Executive Summary

Dealnet Capital Corp. operates in consumer finance and engagement businesses in Canada and the United States.

Snowflake

Fundamentals

Excellent balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DLS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.7%

DLS

0.8%

CA IT

0.8%

CA Market


1 Year Return

-17.6%

DLS

26.6%

CA IT

7.2%

CA Market

Return vs Industry: DLS underperformed the Canadian IT industry which returned 26.6% over the past year.

Return vs Market: DLS underperformed the Canadian Market which returned 7.2% over the past year.


Shareholder returns

DLSIndustryMarket
7 Day7.7%0.8%0.8%
30 Day0%2.1%2.8%
90 Day-26.3%2.9%4.6%
1 Year-17.6%-17.6%26.7%26.6%10.8%7.2%
3 Year-86.3%-86.3%63.5%63.3%18.7%8.1%
5 Yearn/a150.1%149.2%26.9%8.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Dealnet Capital undervalued compared to its fair value and its price relative to the market?

0.57x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: DLS is good value based on its PB Ratio (0.6x) compared to the CA IT industry average (2.4x).


Next Steps

Future Growth

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

6.3%

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 Dealnet Capital 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 Dealnet Capital performed over the past 5 years?

-24.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLS has high quality earnings.

Growing Profit Margin: DLS's current net profit margins (-17.1%) are higher than last year (-221.5%).


Past Earnings Growth Analysis

Earnings Trend: DLS is unprofitable, and losses have increased over the past 5 years at a rate of -24.8% per year.

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

Earnings vs Industry: DLS is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (16.1%).


Return on Equity

High ROE: DLS has a negative Return on Equity (-5.75%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dealnet Capital's financial position?


Financial Position Analysis

Short Term Liabilities: DLS's short term assets (CA$217.1M) exceeds its short term liabilities (CA$3.7M)

Long Term Liabilities: DLS's short term assets (217.1M) exceeds its long term liabilities (186.0M)


Debt to Equity History and Analysis

Debt Level: DLS's debt to equity ratio (533.4%) is considered high

Reducing Debt: DLS had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: DLS's debt is covered by short term assets (assets are 1.2x 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: DLS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: DLS has sufficient cash runway for 2.214395 years if free cash flow continues to grow at historical rates of 2.9% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if DLS'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 DLS's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Brent Houlden 0

2.1yrs

Tenure

CA$953,242

Compensation

Mr. Brent Houlden, MBA, CA, CPA serves as Director of Gravitas Financial Inc. since July 10, 2019. Mr. Houlden is President and CEO of DealNet Capital Corp. since April 7, 2018. Mr. Houlden is an Interim C ...


CEO Compensation Analysis

Compensation vs Market: Brent's total compensation ($USD719.73K) is above average for companies of similar size in the Canadian market ($USD135.91K).

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


Management Age and Tenure

1.0yrs

Average Tenure

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


Board Age and Tenure

2.5yrs

Average Tenure

Experienced Board: DLS's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: DLS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$7,68029 Sep 19
Joanne De Laurentiis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares96,000
Max PriceCA$0.08
BuyCA$60028 Sep 19
Michael Koshan
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares8,000
Max PriceCA$0.075
BuyCA$15,00026 Sep 19
Richard Carl
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares200,000
Max PriceCA$0.075
BuyCA$37,45324 Sep 19
Harold Bridge
EntityIndividual
Role
Chairman of the Board
Chairman
Shares500,000
Max PriceCA$0.075
BuyCA$19,87524 Sep 19
Michael Koshan
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares265,000
Max PriceCA$0.075
BuyCA$1,66422 Sep 19
Kathryn Houlden
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares20,800
Max PriceCA$0.08
BuyCA$4,32614 Sep 19
Kathryn Houlden
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares54,000
Max PriceCA$0.08
BuyCA$4,96009 Sep 19
Brent Houlden
EntityIndividual
Role
Chief Executive Officer
President
Shares62,000
Max PriceCA$0.08
BuyCA$3,73520 Aug 19
Brent Houlden
EntityIndividual
Role
Chief Executive Officer
President
Shares41,500
Max PriceCA$0.09
BuyCA$10,71024 Jun 19
Harold Bridge
EntityIndividual
Role
Chairman of the Board
Chairman
Shares153,000
Max PriceCA$0.07
BuyCA$15,27516 Jun 19
Brent Houlden
EntityIndividual
Role
Chief Executive Officer
President
Shares235,000
Max PriceCA$0.065
BuyCA$6,63303 Jun 19
Michael Koshan
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares102,000
Max PriceCA$0.065
BuyCA$3,18001 Apr 19
Harold Bridge
EntityIndividual
Role
Chairman of the Board
Chairman
Shares53,000
Max PriceCA$0.06
BuyCA$5,78530 Mar 19
Brent Houlden
EntityIndividual
Role
Chief Executive Officer
President
Shares89,000
Max PriceCA$0.065
BuyCA$1,57511 Dec 18
Kathryn Houlden
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares21,000
Max PriceCA$0.075
BuyCA$8,31403 Dec 18
Kathryn Houlden
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares105,000
Max PriceCA$0.079

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Seung Lim

    President of Eiger Net Inc.

    • Tenure: 0yrs
  • Brent Houlden

    President

    • Tenure: 2.1yrs
    • Compensation: CA$953.24k
  • John Sadler

    Senior Director of Corporate Communications

    • Tenure: 2.5yrs
  • Barclay Morton

    Senior Vice President of Sales & Marketing

    • Tenure: 2yrs
  • Kathryn Houlden

    Senior VP

    • Tenure: 1.8yrs
    • Compensation: CA$382.55k
  • Mike Koshan

    CFO & Treasurer

    • Tenure: 1yrs
    • Compensation: CA$254.48k
  • Peter Soon

    Senior Vice President of Operations

    • Tenure: 0.8yrs
  • Sanjeev Motwani

    Senior VP of Finance & Chief Privacy Officer

    • Tenure: 0.8yrs
  • Siddharth Kakkar

    Senior Vice President of Credit Risk

    • Tenure: 0.8yrs
  • Matthew Lewis

    Chief Technology Officer

    • Tenure: 0.7yrs

Board Members

  • Richard Carl

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: CA$112.85k
  • Joanne De Laurentiis

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: CA$110.23k
  • Harold Bridge (75yo)

    Chairman

    • Tenure: 1.8yrs
    • Compensation: CA$193.89k
  • Brent Houlden

    President

    • Tenure: 2.1yrs
    • Compensation: CA$953.24k

Company Information

Dealnet Capital Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dealnet Capital Corp.
  • Ticker: DLS
  • Exchange: TSXV
  • Founded: 1986
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: CA$19.777m
  • Shares outstanding: 282.53m
  • Website: https://www.dealnetcapital.com

Number of Employees


Location

  • Dealnet Capital Corp.
  • 4 King Street West
  • Suite 1700
  • Toronto
  • Ontario
  • M5H 1B6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DLSTSXV (TSX Venture Exchange)YesCommon SharesCACADJul 2004
5DCDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2004

Biography

Dealnet Capital Corp. operates in consumer finance and engagement businesses in Canada and the United States. It operates through Consumer Finance and Live Engagement segments. The Consumer Finance segment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 00:23
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
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.