TSXV:SCT

Stock Analysis Report

Skychain Technologies

Executive Summary

Skychain Technologies Inc. provides blockchain infrastructure services to cryptominers.

Risk Analysis

Earnings have declined by -79.99% per year over past 5 years

Has less than 1 year of cash runway

Shares are highly illiquid

Shareholders have been substantially diluted in the past year

+ 3 more risks


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SCT

1.4%

CA Tech

0.6%

CA Market


1 Year Return

-69.1%

SCT

81.9%

CA Tech

5.8%

CA Market

Return vs Industry: SCT underperformed the Canadian Tech industry which returned 81.9% over the past year.

Return vs Market: SCT underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

SCTIndustryMarket
7 Day0%1.4%0.6%
30 Day13.3%1.5%0.5%
90 Day-10.5%19.9%3.6%
1 Year-69.1%-69.1%84.6%81.9%9.1%5.8%
3 Year-92.4%-92.4%132.4%116.2%15.4%5.0%
5 Year-24.4%-24.4%149.3%124.7%33.6%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.16x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SCT is good value based on its PB Ratio (1.2x) compared to the XN Tech industry average (1.7x).


Next Steps

Future Growth

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

7.8%

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 Skychain 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 Skychain Technologies performed over the past 5 years?

-80.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCT is currently unprofitable.

Growing Profit Margin: SCT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SCT is unprofitable, and losses have increased over the past 5 years at a rate of -80% per year.

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

Earnings vs Industry: SCT is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (0.4%).


Return on Equity

High ROE: SCT has a negative Return on Equity (-759.14%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Skychain Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: SCT's short term assets (CA$236.6K) do not cover its short term liabilities (CA$905.3K).

Long Term Liabilities: SCT's short term assets (CA$236.6K) do not cover its long term liabilities (CA$902.3K).


Debt to Equity History and Analysis

Debt Level: SCT's debt to equity ratio (10.9%) is considered satisfactory.

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


Balance Sheet

Inventory Level: SCT has a high level of physical assets or inventory.

Debt Coverage by Assets: SCT's debt is covered by short term assets (assets are 4.6x 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: SCT has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SCT has less than a year of cash runway if free cash flow continues to reduce at historical rates of -55.5% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if SCT'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 SCT'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?

1.3yrs

Average management tenure


CEO

Bill Zhang 0

1.9yrs

Tenure

CA$51,000

Compensation

Mr. Ningtao Zhang also known as Bill, has been President and CEO at Vling E-Business Ltd. since 2015. He served as IT Manager at SCS Steel Containers System Inc. from 2009 to 2014. He has been Director at  ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD38.48K) is below average for companies of similar size in the Canadian market ($USD155.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ningtao Zhang
President1.9yrsCA$51.00kno data
Robert Ferguson
Consultant1.3yrsCA$19.75k0.21% CA$1.5k
Donald Gordon
Chief Financial Officer0.5yrsno datano data

1.3yrs

Average Tenure

Experienced Management: SCT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ningtao Zhang
President1.9yrsCA$51.00kno data
Edward Posey
Member of Non-Executive Advisory Board3.3yrsno datano data
Xi Wang
Director1.9yrsno data4.35% CA$31.0k
Chris Chen
Independent Director0.8yrsno datano data
Tang Tang
Independent Director0.5yrsno datano data

1.9yrs

Average Tenure

Experienced Board: SCT's board of directors are not considered experienced ( 1.9 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 66.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Skychain Technologies Inc.
  • Ticker: SCT
  • Exchange: TSXV
  • Founded: 1977
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: CA$712.486k
  • Shares outstanding: 8.38m
  • Website: https://www.skychaintechnologiesinc.com

Location

  • Skychain Technologies Inc.
  • 1112 West Pender Street
  • Suite 415
  • Vancouver
  • British Columbia
  • V6E 2S1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCTTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1988

Biography

Skychain Technologies Inc. provides blockchain infrastructure services to cryptominers. The company offers warehouse space, low-cost electricity, and maintenance and hosting services. It also markets and sells MiningSky 8-GPU Mining Rig, a GPU-based miner to mine Ethereum and other cryptocurrencies. The company was formerly known as Green Valley Mine Incorporated and changed its name to Skychain Technologies Inc. in September 2018. Skychain Technologies Inc. was incorporated in 1977 and 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 Analysis2020/02/16 23:36
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.