TSXV:FORT

Stock Analysis Report

Fortress Technologies

Executive Summary

Fortress Technologies Inc. does not have significant operations.

Rewards

Trading at 68.6% below its fair value

Risk Analysis

Does not have a meaningful market cap (CA$9M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

Does not have meaningful revenue (CA$1M)



Snowflake Analysis

Flawless balance sheet and fair value.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: FORT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

15.4%

FORT

0.4%

CA Software

1.5%

CA Market


1 Year Return

20.0%

FORT

32.5%

CA Software

9.8%

CA Market

Return vs Industry: FORT underperformed the Canadian Software industry which returned 35.9% over the past year.

Return vs Market: FORT exceeded the Canadian Market which returned 9.6% over the past year.


Shareholder returns

FORTIndustryMarket
7 Day15.4%0.4%1.5%
30 Day30.4%4.2%2.4%
90 Day20.0%12.2%6.2%
1 Year20.0%20.0%34.9%32.5%13.4%9.8%
3 Yearn/a87.5%82.9%17.7%7.0%
5 Yearn/a143.7%136.2%36.5%16.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Fortress Technologies undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FORT (CA$0.13) is trading below our estimate of fair value (CA$0.41)

Significantly Below Fair Value: FORT is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: FORT is good value based on its PB Ratio (0.8x) compared to the CA Software industry average (2.8x).


Next Steps

Future Growth

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

19.0%

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 Fortress Technologies 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 Fortress Technologies performed over the past 5 years?

-16.7%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: FORT is currently unprofitable.

Growing Profit Margin: FORT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if FORT's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: FORT is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (23.2%).


Return on Equity

High ROE: FORT has a negative Return on Equity (-88.12%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fortress Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: FORT's short term assets (CA$10.9M) exceed its short term liabilities (CA$208.6K).

Long Term Liabilities: FORT has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: FORT is debt free.

Reducing Debt: FORT had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if FORT's debt is covered by short term assets.


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 FORT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FORT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 4.5% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.4%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if FORT'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 FORT'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 Fortress Technologies's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average board tenure


CEO

Aydin Kilic 0

1.4yrs

Tenure

CA$257,825

Compensation

Mr. Aydin Kilic has been President, Chief Executive Officer since August 2018 and Director since August 16, 2018 at Fortress Technologies Inc. 


CEO Compensation Analysis

Compensation vs Market: Aydin's total compensation ($USD197.34K) is about average for companies of similar size in the Canadian market ($USD165.67K).

Compensation vs Earnings: Insufficient data to compare Aydin's compensation with company performance.


Board Age and Tenure

1.4yrs

Average Tenure

39yo

Average Age

Experienced Board: FORT's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCA$54,00022 Oct 19
Joshua Crumb
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares400,000
Max PriceCA$0.14

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 38.2%.


Management Team

  • Aydin Kilic

    President

    • Tenure: 1.4yrs
    • Compensation: CA$257.83k
  • Sean Ty

    Corporate Secretary & CFO

    • Tenure: 1.2yrs
    • Compensation: CA$15.75k

Board Members

  • David Jaques (63yo)

    Independent Director

    • Tenure: 1.4yrs
  • Josh Crumb (39yo)

    Independent Director

    • Tenure: 1.4yrs
  • Roy Sebag (34yo)

    Chairman

    • Tenure: 1.4yrs
  • Michael Costa

    Independent Director

    • Tenure: 1.4yrs
  • Aydin Kilic

    President

    • Tenure: 1.4yrs
    • Compensation: CA$257.83k

Company Information

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


Key Information

  • Name: Fortress Technologies Inc.
  • Ticker: FORT
  • Exchange: TSXV
  • Founded:
  • Industry: Application Software
  • Sector: Software
  • Market Cap: CA$10.677m
  • Shares outstanding: 71.18m
  • Website: https://www.fortresstechnologies.io

Location

  • Fortress Technologies Inc.
  • 638 Broughton Street
  • Suite 320
  • Vancouver
  • British Columbia
  • V6G 3K3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FORTTSXV (TSX Venture Exchange)YesCommon SharesCACADAug 2018
FB0DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2018

Biography

Fortress Technologies Inc. does not have significant operations. The company is evaluating opportunities in technology sectors. Previously, it was involved in the cryptocurrency mining operations in the North American green-energy regions. Fortress Technologies Inc. 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 Analysis2020/01/20 00:45
End of Day Share Price2020/01/17 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.