TSXV:JTC

Stock Analysis Report

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Executive Summary

JEMTEC Inc. provides integrated technology systems for community-based corrections in Canada.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.7%

JTC

5.0%

CA Electronic

2.0%

CA Market


1 Year Return

-49.0%

JTC

-7.9%

CA Electronic

-11.4%

CA Market

Return vs Industry: JTC underperformed the Canadian Electronic industry which returned -8.4% over the past year.

Return vs Market: JTC underperformed the Canadian Market which returned -11.7% over the past year.


Shareholder returns

JTCIndustryMarket
7 Day-3.7%5.0%2.0%
30 Day-5.8%15.5%4.1%
90 Day-12.8%3.6%-8.8%
1 Year-42.1%-49.0%-7.9%-7.9%-8.3%-11.4%
3 Year123.6%97.0%-46.3%-46.3%-0.2%-9.5%
5 Year376.0%319.4%-29.7%-29.7%15.9%-0.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is JEMTEC 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: JTC (CA$1.3) is trading below our estimate of fair value (CA$25.36)

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


Price To Earnings Ratio

PE vs Industry: JTC is good value based on its PE Ratio (9.6x) compared to the Electronic industry average (18.9x).

PE vs Market: JTC is good value based on its PE Ratio (9.6x) compared to the Canadian market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate JTC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: JTC is good value based on its PB Ratio (2.1x) compared to the CA Electronic industry average (2.1x).


Next Steps

Future Growth

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

100.4%

Forecasted Tech 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 JEMTEC 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 JEMTEC performed over the past 5 years?

74.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JTC has high quality earnings.

Growing Profit Margin: JTC's current net profit margins (15.7%) are lower than last year (23.2%).


Past Earnings Growth Analysis

Earnings Trend: JTC has become profitable over the past 5 years, growing earnings by 74.4% per year.

Accelerating Growth: JTC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JTC had negative earnings growth (-32.1%) over the past year, making it difficult to compare to the Electronic industry average (-9.5%).


Return on Equity

High ROE: JTC's Return on Equity (21.4%) is considered high.


Next Steps

Financial Health

How is JEMTEC's financial position?


Financial Position Analysis

Short Term Liabilities: JTC's short term assets (CA$2.7M) exceed its short term liabilities (CA$1.1M).

Long Term Liabilities: JTC's short term assets (CA$2.7M) exceed its long term liabilities (CA$12.3K).


Debt to Equity History and Analysis

Debt Level: JTC is debt free.

Reducing Debt: JTC has not had any debt for past 5 years.

Debt Coverage: JTC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: JTC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

27.8yrs

Average board tenure


CEO

Eric Caton

no data

Tenure

CA$351,512

Compensation

Mr. Eric Caton serves as the Chief Executive Officer and President of Jemtec Inc. and has been its Executive Director since February 1991. Mr. Caton joined JEMTEC in 1987 as Vice President of Sales and als ...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD254.62K) is above average for companies of similar size in the Canadian market ($USD162.98K).

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


Board Members

NamePositionTenureCompensationOwnership
Eric Caton
CEO, President & Executive Directorno dataCA$351.51k21.68% CA$765.6k
Leslie Markow
Corporate Secretary & Independent Director26.33yrsCA$21.00k1.68% CA$59.4k
Jeremy Kendall
Independent Chairman of the Board34.42yrsCA$18.50k4.67% CA$164.9k
Gordon Baker
Independent Director26.33yrsCA$18.00kno data

27.8yrs

Average Tenure

Experienced Board: JTC's board of directors are seasoned and experienced ( 27.8 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: JEMTEC Inc.
  • Ticker: JTC
  • Exchange: TSXV
  • Founded: 1981
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: CA$3.532m
  • Shares outstanding: 2.72m
  • Website: https://www.jemtec.ca

Location

  • JEMTEC Inc.
  • 38 Fell Avenue
  • Suite 200
  • North Vancouver
  • British Columbia
  • V7P 3S2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JTCTSXV (TSX Venture Exchange)YesCommon SharesCACADJun 1991

Biography

JEMTEC Inc. provides integrated technology systems for community-based corrections in Canada. The company offers services and technologies for offender monitoring in Canadian federal and provincial correctional departments. It offers various levels of technology that allows corrections, courts, and police to select from various options ensuring the correct level of offender control. The company’s offender location detection/verification technologies include offender reporting through telephone contact, offender reporting kiosks with integrated database, global positioning system active and passive tracking, voice verification, electronic monitoring house arrest systems, remote alcohol in-home monitoring, and private monitoring services. JEMTEC Inc. was incorporated in 1981 and is headquartered in North Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 04:03
End of Day Share Price2020/05/25 00:00
Earnings2020/01/31
Annual Earnings2019/07/31


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.