TeraGo (TSX:TGO) - Share price, News & Analysis

TGO fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

TGO Stock Overview

TeraGo Inc., together with its subsidiaries, provides connectivity, colocation, and cloud services for businesses primarily in Canada.

Risk Analysis

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

Does not have a meaningful market cap (CA$99M)

TeraGo Competitors

Equinix

NasdaqGS:EQIX

US$58.0b

Rogers Communications

TSX:RCI.B

CA$32.9b

Shaw Communications

TSX:SJR.B

CA$17.6b

Lumen Technologies

NYSE:LUMN

US$11.8b

Price History & Performance

Summary of all time highs, changes and price drops for TeraGo
Historical stock prices
Current Share Price	CA$4.95
52 Week High	CA$6.50
52 Week Low	CA$4.50
Beta	0.29
1 Month Change	-14.36%
3 Month Change	-19.90%
1 Year Change	-8.67%
3 Year Change	-58.26%
5 Year Change	5.77%
Change since IPO	-56.96%

Shareholder Returns

	TGO	CA Telecom	CA Market
7D	-7.5%	-1.0%	2.7%
1Y	-8.7%	13.3%	4.6%

Return vs Industry: TGO underperformed the Canadian Telecom industry which returned 16.4% over the past year.

Return vs Market: TGO underperformed the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is TGO's price volatile compared to industry and market?
TGO volatility
TGO Average Weekly Movement	5.7%
Telecom Industry Average Movement	7.5%
Market Average Movement	9.8%
10% most volatile stocks in CA Market	16.8%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: TGO is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TGO's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2000	140	Matt Gerber	https://terago.ca

TeraGo Inc., together with its subsidiaries, provides connectivity, colocation, and cloud services for businesses primarily in Canada. The company owns and operates a carrier-grade multi-protocol label switching enabled wireline and fixed wireless, and Internet protocol communications network that provide Internet access, private interconnection, and data connectivity services. It also offers data connectivity services that allow businesses to connect their various sites within a city or across the company’s geographic footprint through a private virtual local area network; and a range of diverse Ethernet-based services over a wireless connection to customer locations.

TeraGo Fundamentals Summary

How do TeraGo's earnings and revenue compare to its market cap?
TGO fundamental statistics
Market Cap	CA$99.39m
Earnings (TTM)	-CA$16.15m
Revenue (TTM)	CA$40.40m

2.4x

P/S Ratio

-6.0x

P/E Ratio

Is TGO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TGO income statement (TTM)
Revenue	CA$40.40m
Cost of Revenue	CA$24.61m
Gross Profit	CA$15.78m
Other Expenses	CA$31.93m
Earnings	-CA$16.15m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.82
Gross Margin	39.07%
Net Profit Margin	-39.97%
Debt/Equity Ratio	0%

How did TGO perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

2.61x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TGO's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate TGO's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: TGO is unprofitable, so we can't compare its PE Ratio to the North American Telecom industry average.

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

Price to Book Ratio

PB vs Industry: TGO is good value based on its PB Ratio (2.6x) compared to the CA Telecom industry average (3x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

47.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TGO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TGO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TGO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TGO's revenue is expected to decline over the next 3 years (-19.4% per year).

High Growth Revenue: TGO's revenue is forecast to decline over the next 3 years (-19.4% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

How has TeraGo performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-19.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TGO is currently unprofitable.

Growing Profit Margin: TGO is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: TGO is unprofitable, and losses have increased over the past 5 years at a rate of 19.5% per year.

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

Earnings vs Industry: TGO is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-9.5%).

Return on Equity

High ROE: TGO has a negative Return on Equity (-43.29%), as it is currently unprofitable.

Financial Health

How is TeraGo's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: TGO's short term assets (CA$13.7M) exceed its short term liabilities (CA$11.3M).

Long Term Liabilities: TGO's short term assets (CA$13.7M) exceed its long term liabilities (CA$10.2M).

Debt to Equity History and Analysis

Debt Level: TGO is debt free.

Reducing Debt: TGO has no debt compared to 5 years ago when its debt to equity ratio was 83.3%.

Balance Sheet

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: TGO has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: TGO has sufficient cash runway for 1.1 years if free cash flow continues to reduce at historical rates of 11.8% each year.

Dividend

What is TeraGo 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
Future Dividend Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if TGO'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 TGO has not reported any payouts.

Discover strong dividend paying companies

Management

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

1.3yrs

Average management tenure

CEO

Matt Gerber

1.25yrs

Tenure

CA$125,083

Compensation

Mr. Matthew F. Gerber, also known as Matt, served as Independent Chairman of the Board at TeraGo Inc. since June 15, 2017 and serves as Chief Executive Officer since February 19, 2021. Mr. Gerber has been...

Leadership Team

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

Board Members

Experienced Board: TGO's board of directors are considered experienced (5.9 years average tenure).

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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31