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Converge Technology Solutions

TSXV:CTS
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CTS
TSXV
CA$70M
Market Cap
  1. Home
  2. CA
  3. Tech
Company description

Converge Technology Solutions Corp., through its subsidiaries, distributes storage devices and systems, computer products, software, and peripherals. The last earnings update was 26 days ago. More info.


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  • Converge Technology Solutions has significant price volatility in the past 3 months.
CTS Share Price and Events
7 Day Returns
-3.2%
TSXV:CTS
1.2%
CA Electronic
0.1%
CA Market
1 Year Returns
-
TSXV:CTS
-25.9%
CA Electronic
-2.9%
CA Market
CTS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Converge Technology Solutions (CTS) -3.2% -8.9% 7% - - -
CA Electronic 1.2% -3.3% -12.7% -25.9% -13.7% -16.2%
CA Market 0.1% -1.4% -0.6% -2.9% 11.5% 0.9%
1 Year Return vs Industry and Market
  • No trading data on CTS.
  • No trading data on CTS.
Price Volatility
Industry
5yr Volatility vs Market

CTS Value

 Is Converge Technology Solutions 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.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Converge Technology Solutions to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Converge Technology Solutions.

TSXV:CTS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.9%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSXV:CTS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.094 (1 + (1- 26.5%) (198.61%))
2.133
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (2 * 5.96%)
13.87%

Discounted Cash Flow Calculation for TSXV:CTS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Converge Technology Solutions is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSXV:CTS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 13.87%)
2019 11.30 Analyst x1 9.92
2020 15.10 Analyst x1 11.65
2021 16.80 Analyst x1 11.38
2022 19.40 Analyst x1 11.54
2023 21.47 Est @ 10.65% 11.21
2024 23.19 Est @ 8.04% 10.64
2025 24.63 Est @ 6.21% 9.92
2026 25.84 Est @ 4.93% 9.15
2027 26.89 Est @ 4.04% 8.36
2028 27.80 Est @ 3.41% 7.59
Present value of next 10 years cash flows CA$101.36
TSXV:CTS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$27.80 × (1 + 1.95%) ÷ (13.87% – 1.95%)
CA$237.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$237.80 ÷ (1 + 13.87%)10
CA$64.90
TSXV:CTS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$101.36 + CA$64.90
CA$166.25
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$166.25 / 76.02
CA$2.19
TSXV:CTS Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$2.19
Current discount Discount to share price of CA$0.92
= -1 x (CA$0.92 - CA$2.19) / CA$2.19
57.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Converge Technology Solutions is available for.
Intrinsic value
>50%
Share price is CA$0.92 vs Future cash flow value of CA$2.19
Current Discount Checks
For Converge Technology Solutions to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Converge Technology Solutions's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Converge Technology Solutions's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Converge Technology Solutions's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Converge Technology Solutions's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSXV:CTS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$-0.28
TSXV:CTS Share Price ** TSXV (2019-06-14) in CAD CA$0.92
Canada Electronic Industry PE Ratio Median Figure of 7 Publicly-Listed Electronic Companies 17.11x
Canada Market PE Ratio Median Figure of 545 Publicly-Listed Companies 15.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Converge Technology Solutions.

TSXV:CTS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSXV:CTS Share Price ÷ EPS (both in CAD)

= 0.92 ÷ -0.28

-3.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Converge Technology Solutions is loss making, we can't compare its value to the CA Electronic industry average.
  • Converge Technology Solutions is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Converge Technology Solutions's expected growth come at a high price?
Raw Data
TSXV:CTS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -3.24x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
78.6%per year
North America Electronic Industry PEG Ratio Median Figure of 62 Publicly-Listed Electronic Companies 1.22x
Canada Market PEG Ratio Median Figure of 247 Publicly-Listed Companies 1.15x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Converge Technology Solutions, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Converge Technology Solutions's assets?
Raw Data
TSXV:CTS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$-0.03
TSXV:CTS Share Price * TSXV (2019-06-14) in CAD CA$0.92
Canada Electronic Industry PB Ratio Median Figure of 21 Publicly-Listed Electronic Companies 2.69x
Canada Market PB Ratio Median Figure of 2,417 Publicly-Listed Companies 1.4x
TSXV:CTS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSXV:CTS Share Price ÷ Book Value per Share (both in CAD)

= 0.92 ÷ -0.03

-35.52x

* Primary Listing of Converge Technology Solutions.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Converge Technology Solutions has negative assets, we can't compare the value of its assets to the CA Electronic industry average.
X
Value checks
We assess Converge Technology Solutions'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 Electronic 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 Electronic industry average (and greater than 0)? (1 check)
  5. Converge Technology Solutions has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

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

CTS Future Performance

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

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
78.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Converge Technology Solutions expected to grow at an attractive rate?
  • Converge Technology Solutions's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Converge Technology Solutions's earnings growth is expected to exceed the Canada market average.
  • Converge Technology Solutions's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSXV:CTS Future Growth Rates Data Sources
Data Point Source Value (per year)
TSXV:CTS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 78.6%
TSXV:CTS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 12.7%
Canada Electronic Industry Earnings Growth Rate Market Cap Weighted Average 6.4%
Canada Electronic Industry Revenue Growth Rate Market Cap Weighted Average 6%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.6%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSXV:CTS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSXV:CTS Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 912 1
2021-12-31 859 23 16 1
2020-12-31 800 20 12 1
2019-12-31 736 15 10 1
TSXV:CTS Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-31 504 4 -20
2018-12-31 459 1 -18
2018-09-30 376 14 -18
2018-06-30 276 21 -11
2018-03-31 173 3 -5
2017-12-31 53 6 -4
2016-12-31 0 -3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Converge Technology Solutions's earnings are expected to grow significantly at over 20% yearly.
  • Converge Technology Solutions's revenue is expected to grow by 12.7% yearly, however this is not considered high growth (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.
Raw Data
TSXV:CTS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Converge Technology Solutions Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSXV:CTS Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 0.16 0.16 0.16 1.00
2019-12-31 0.12 0.12 0.12 1.00
TSXV:CTS Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-31 -0.28
2018-12-31 -0.28
2018-09-30 -0.29
2018-06-30 -0.24
2018-03-31 -0.17
2017-12-31 -0.21
2016-12-31

*GAAP earnings excluding extraordinary items.

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 Converge Technology Solutions will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Converge Technology Solutions'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 Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada 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.
Converge Technology Solutions has a total score of 4/6, 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.

CTS Past Performance

  How has Converge Technology Solutions performed over the past 5 years?

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 Converge Technology Solutions's growth in the last year to its industry (Electronic).
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.
  • Converge Technology Solutions does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.
  • Unable to compare Converge Technology Solutions's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Converge Technology Solutions's 1-year growth to the CA Electronic industry average as it is not currently profitable.
Earnings and Revenue History
Converge Technology Solutions'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.
Raw Data

All data from Converge Technology Solutions Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSXV:CTS Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 504.17 -19.66 93.55
2018-12-31 459.19 -18.24 75.66
2018-09-30 375.89 -17.94 66.01
2018-06-30 275.85 -11.18 46.10
2018-03-31 172.57 -5.39 22.59
2017-12-31 52.79 -3.92 10.86
2016-12-31 -3.26 3.26

*GAAP earnings excluding extraordinary items.

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 Converge Technology Solutions 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 Converge Technology Solutions has efficiently used its assets last year compared to the CA Electronic industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Converge Technology Solutions improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Converge Technology Solutions'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 Electronic 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.
Converge Technology Solutions 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.

CTS Health

 How is Converge Technology Solutions'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 Converge Technology Solutions's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Converge Technology Solutions's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Converge Technology Solutions's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Converge Technology Solutions'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.
  • Converge Technology Solutions 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.
Raw Data

All data from Converge Technology Solutions Company Filings, last reported 2 months ago.

TSXV:CTS Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 -1.97 138.91 9.05
2018-12-31 -4.50 89.88 10.48
2018-09-30 -7.47 60.57 10.29
2018-06-30 -7.59 60.60 7.07
2018-03-31 -4.21 41.03 7.79
2017-12-31 -4.21 41.03 7.79
2016-12-31 -0.27 0.00 0.00
  • Converge Technology Solutions has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Converge Technology Solutions's debt level has increased considering it has negative shareholder equity.
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.

  • Whilst loss making Converge Technology Solutions has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Converge Technology Solutions has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -16.8% per year.
X
Financial health checks
We assess Converge Technology Solutions'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 operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Converge Technology Solutions has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


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

CTS Dividends

 What is Converge Technology Solutions'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 Converge Technology Solutions dividends.
If you bought CA$2,000 of Converge Technology Solutions 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 Converge Technology Solutions's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Converge Technology Solutions's dividend against the top 25% 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.
Raw Data
TSXV:CTS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
North America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.6%
Canada Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSXV:CTS Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Converge Technology Solutions has not reported any payouts.
  • Unable to verify if Converge Technology Solutions's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Converge Technology Solutions's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Converge Technology Solutions 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.
X
Income/ dividend checks
We assess Converge Technology Solutions's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Converge Technology Solutions afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Converge Technology Solutions 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.

CTS Management

 What is the CEO of Converge Technology Solutions'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
Shaun Maine
COMPENSATION CA$370,000
CEO Bio

Mr. Shaun Peter Maine serves as President and Chief Executive Officer of Converge Technology Solutions Corp and also serves as Director since 2016. Mr. Maine is a Co-Founder of InflexionPoint Technologies Pte. Limited and serves as its Managing Partner. Mr. Maine has been the President of New Prosys Corp. since January 30, 2015. He served as Consultant of Pivot Technology Solutions, Inc. since January 1, 2017. He is a Co-Founder of Pivot Technology Solutions, Inc. (formerly, Pivot Acquisition Corp.) and served as its Chief Operating Officer since January 12, 2016 until January 1, 2017. In 2014, he was named Chief Operating Officer of Prosys. Mr. Maine served as Chief Technology Officer of Pivot Technology Solutions, Inc since September 2010 until December 2014. He served as Partner, Managing Partner and Chief Executive Officer of Pivot Technology Solutions, Inc. Prior to Pivot, from 1998 to 2005, Mr. Maine was the Chairman and Management Consultant at Ventures North International Inc. and PSA International Inc. He served as Managing Partner for London of SCF Capital Inc. He served as Chief Executive Officer of ONE Signature Financial Corp. Mr. Maine’s projects include the successful launches of financial services companies at Mr. McMillan (Vengrowth and Triax), B2B hosted application for the Canadian Mortgage Industry (Basis100), and advanced materials (PSA Composites). As part of launching these companies, Mr. Maine gained extensive experience in establishing and developing Partnerships with large corporations, growing companies, both organically and through acquisition and accessing financing through both venture capital and public markets. Mr. Maine is involved in the acquisition of over 20 private companies in Canada, the U.S., the UK and Europe. He served as a Director of Acme Capital Corporation from October 2012. Mr. Maine holds a Bachelor of Arts degree in Economics from Queen’s University.

CEO Compensation
  • Shaun's compensation has increased whilst company is loss making.
  • Shaun's remuneration is higher than average for companies of similar size in Canada.
Management Team

Shaun Maine

TITLE
President
COMPENSATION
CA$370K

Mary Palangio

TITLE
Chief Financial Officer
COMPENSATION
CA$282K
TENURE
0.8 yrs

Don Cuthbertson

TITLE
COO & Executive VP of Blockchain
COMPENSATION
CA$310K

Cory Reid

TITLE
Chief Information Officer
COMPENSATION
CA$222K
Board of Directors Tenure

Average tenure and age of the Converge Technology Solutions board of directors in years:

0.6
Average Tenure
50
Average Age
  • The average tenure for the Converge Technology Solutions board of directors is less than 3 years, this suggests a new board.
Board of Directors

Gord McMillan

TITLE
Chairman of the Board
AGE
50

Shaun Maine

TITLE
President
COMPENSATION
CA$370K
TENURE
3.4 yrs

Nathan Chan

TITLE
Independent Director
COMPENSATION
CA$10K
AGE
47
TENURE
0.6 yrs

Brian Phillips

TITLE
Independent Director
COMPENSATION
CA$10K
AGE
68
TENURE
0.6 yrs

Ralph Garcea

TITLE
Independent Director
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Converge Technology Solutions insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
12. Apr 19 Buy Don Cuthbertson Individual 08. Apr 19 08. Apr 19 21,067 CA$0.93 CA$19,656
12. Apr 19 Buy Cory Reid Individual 08. Apr 19 08. Apr 19 23,858 CA$0.93 CA$22,260
12. Apr 19 Buy Shane Maine Individual 05. Apr 19 08. Apr 19 3,000 CA$0.89 CA$2,646
12. Apr 19 Buy Mary Palangio Individual 08. Apr 19 08. Apr 19 10,753 CA$0.93 CA$10,033
01. Mar 19 Buy Shane Maine Individual 20. Feb 19 22. Feb 19 74,000 CA$0.54 CA$39,691
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Management checks
We assess Converge Technology Solutions's management by checking for:
  1. Is the CEO's compensation unreasonable compared to 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. Converge Technology Solutions 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.

CTS News

Simply Wall St News

How Much Of Converge Technology Solutions Corp. (CVE:CTS) Do Insiders Own?

A look at the shareholders of Converge Technology Solutions Corp. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … With a market capitalization of CA$93m, Converge Technology Solutions is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

What Kind Of Shareholder Appears On The Converge Technology Solutions Corp's (CVE:CTS) Shareholder Register?

Converge Technology Solutions is a smaller company with a market capitalization of CA$42m, so it may still be flying under the radar of many institutional investors. … institutional investors have not yet purchased much of the company … View our latest analysis for Converge Technology Solutions

Simply Wall St -

CTS Company Info

Description

Converge Technology Solutions Corp., through its subsidiaries, distributes storage devices and systems, computer products, software, and peripherals. The company also provides infrastructure solutions, information technology (IT) management consulting services, data center technologies, disaster recovery services, managed services, and enterprise applications; and hybrid cloud and blockchain solutions. It also offers artificial intelligence, cybersecurity, and data analytics solutions; and IT professional services, such as data center infrastructure integration, cloud optimization, and data center infrastructure. In addition, the company provides design, integration, installation, maintenance, and other consulting services. Further, it is involved in the development, resale, and installation of computer products. It serves corporate and government institutions. The company has operations in the United States and Canada. Converge Technology Solutions Corp. is headquartered in Toronto, Canada.

Details
Name: Converge Technology Solutions Corp.
CTS
Exchange: TSXV
Founded:
CA$69,937,957
76,019,519
Website: http://www.convergetp.com
Address: Converge Technology Solutions Corp.
161 Bay Street,
Suite 2325,
Toronto,
Ontario, M5J 2S1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSXV CTS Common Shares TSX Venture Exchange CA CAD 13. Nov 2018
OTCPK CTSD.F Common Shares Pink Sheets LLC US USD 13. Nov 2018
DB 0ZB Common Shares Deutsche Boerse AG DE EUR 13. Nov 2018
Number of employees
Current staff
Staff numbers
340
Converge Technology Solutions employees.
Industry
Technology Distributors
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 01:31
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/04/05
Last earnings filing: 2019/05/22
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times 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.