company background image
WE

WeCommerce Holdings TSXV:WE Stock Report

Last Price

CA$2.87

Market Cap

CA$118.5m

7D

-1.0%

1Y

-70.2%

Updated

07 Aug, 2022

Data

Company Financials +
WE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance2/6
Financial Health2/6
Dividends0/6

WE Stock Overview

WeCommerce Holdings Ltd. provides a suite of ecommerce enablement software tools for merchants to start online store.

WeCommerce Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for WeCommerce Holdings
Historical stock prices
Current Share PriceCA$2.87
52 Week HighCA$16.18
52 Week LowCA$2.76
Beta0
1 Month Change-16.81%
3 Month Change-42.72%
1 Year Change-70.17%
3 Year Changen/a
5 Year Changen/a
Change since IPO-80.54%

Recent News & Updates

Jun 03
WeCommerce Holdings' (CVE:WE) Promising Earnings May Rest On Soft Foundations

WeCommerce Holdings' (CVE:WE) Promising Earnings May Rest On Soft Foundations

Despite posting some strong earnings, the market for WeCommerce Holdings Ltd.'s ( CVE:WE ) stock hasn't moved much. We...

Shareholder Returns

WECA SoftwareCA Market
7D-1.0%2.2%-0.8%
1Y-70.2%-26.3%-2.0%

Return vs Industry: WE underperformed the Canadian Software industry which returned -26.3% over the past year.

Return vs Market: WE underperformed the Canadian Market which returned -2% over the past year.

Price Volatility

Is WE's price volatile compared to industry and market?
WE volatility
WE Average Weekly Movement8.3%
Software Industry Average Movement13.5%
Market Average Movement10.8%
10% most volatile stocks in CA Market19.4%
10% least volatile stocks in CA Market4.4%

Stable Share Price: WE is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: WE's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a93Alex Perssonhttps://www.wecommerce.co

WeCommerce Holdings Ltd. provides a suite of ecommerce enablement software tools for merchants to start online store. The company operates through three segments: Apps, Themes, and Agency. It focuses on building, acquiring, and investing in technology businesses operating in the Shopify partner ecosystem.

WeCommerce Holdings Fundamentals Summary

How do WeCommerce Holdings's earnings and revenue compare to its market cap?
WE fundamental statistics
Market CapCA$118.53m
Earnings (TTM)CA$1.71m
Revenue (TTM)CA$44.64m

69.5x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WE income statement (TTM)
RevenueCA$44.64m
Cost of RevenueCA$23.83m
Gross ProfitCA$20.81m
Other ExpensesCA$19.10m
EarningsCA$1.71m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 18, 2022

Earnings per share (EPS)0.041
Gross Margin46.61%
Net Profit Margin3.82%
Debt/Equity Ratio48.0%

How did WE perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is WE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WE?

Other financial metrics that can be useful for relative valuation.

WE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.4x
Enterprise Value/EBITDA72.8x
PEG Ratio-1.4x

Price to Earnings Ratio vs Peers

How does WE's PE Ratio compare to its peers?

WE PE Ratio vs Peers
The above table shows the PE ratio for WE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average45.8x
OPT Optiva
31.4xn/aCA$148.2m
DGHI Digihost Technology
125.4xn/aCA$44.8m
ZOMD Zoomd Technologies
8.4xn/aCA$43.4m
NDA Neptune Digital Assets
17.9xn/aCA$35.6m
WE WeCommerce Holdings
69.5x-49.8%CA$118.5m

Price-To-Earnings vs Peers: WE is expensive based on its Price-To-Earnings Ratio (69.5x) compared to the peer average (45.8x).


Price to Earnings Ratio vs Industry

How does WE's PE Ratio compare vs other companies in the CA Software Industry?

Price-To-Earnings vs Industry: WE is expensive based on its Price-To-Earnings Ratio (69.5x) compared to the Canadian Software industry average (51.4x)


Price to Earnings Ratio vs Fair Ratio

What is WE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio69.5x
Fair PE Ratio10.6x

Price-To-Earnings vs Fair Ratio: WE is expensive based on its Price-To-Earnings Ratio (69.5x) compared to the estimated Fair Price-To-Earnings Ratio (10.6x).


Share Price vs Fair Value

What is the Fair Price of WE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WE (CA$2.87) is trading below our estimate of fair value (CA$12.01)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


Discover undervalued companies

Future Growth

How is WeCommerce Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-49.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WE's earnings are forecast to decline over the next 3 years (-49.8% per year).

Earnings vs Market: WE's earnings are forecast to decline over the next 3 years (-49.8% per year).

High Growth Earnings: WE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WE's revenue (20.9% per year) is forecast to grow faster than the Canadian market (6.3% per year).

High Growth Revenue: WE's revenue (20.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WE's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has WeCommerce Holdings performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-57.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WE has a large one-off gain of CA$6.7M impacting its March 31 2022 financial results.

Growing Profit Margin: WE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WE has become profitable over the past 5 years, growing earnings by -57.6% per year.

Accelerating Growth: WE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (26.3%).


Return on Equity

High ROE: WE's Return on Equity (1.4%) is considered low.


Discover strong past performing companies

Financial Health

How is WeCommerce Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WE's short term assets (CA$30.7M) exceed its short term liabilities (CA$17.3M).

Long Term Liabilities: WE's short term assets (CA$30.7M) do not cover its long term liabilities (CA$59.3M).


Debt to Equity History and Analysis

Debt Level: WE's net debt to equity ratio (26.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if WE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: WE's debt is not well covered by operating cash flow (18%).

Interest Coverage: Insufficient data to determine if WE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if WE's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as WE has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Alex Persson

0.67

Tenure

CA$571,500

Compensation

Mr. Alexander Persson also known as Alex, is Chief Executive Officer at WeCommerce Holdings Ltd. since December 2, 2021. He served as the President at WeCommerce Holdings Ltd.since March 26, 2021 until De...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD441.47K) is above average for companies of similar size in the Canadian market ($USD185.39K).

Compensation vs Earnings: Alex's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WE's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: WE's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.8%.


Top Shareholders

Company Information

WeCommerce Holdings Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: WeCommerce Holdings Ltd.
  • Ticker: WE
  • Exchange: TSXV
  • Founded: NaN
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: CA$118.530m
  • Shares outstanding: 41.30m
  • Website: https://www.wecommerce.co

Number of Employees


Location

  • WeCommerce Holdings Ltd.
  • 101-524 Yates Street
  • Victoria
  • British Columbia
  • V8W 1K8
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.