BST:1CD

Stock Analysis Report

Executive Summary

ClearStar, Inc. provides technology and services to the background check and medical screening industries in the United States.


Snowflake Analysis

Imperfect balance sheet with concerning outlook.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1CD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.1%

1CD

5.6%

DE Professional Services

2.2%

DE Market


1 Year Return

-33.7%

1CD

-6.4%

DE Professional Services

-17.2%

DE Market

Return vs Industry: 1CD underperformed the German Professional Services industry which returned -6.6% over the past year.

Return vs Market: 1CD underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

1CDIndustryMarket
7 Day4.1%5.6%2.2%
30 Day-28.7%-13.6%-15.7%
90 Day-27.4%-17.9%-24.0%
1 Year-33.7%-33.7%-4.2%-6.4%-14.9%-17.2%
3 Yearn/a13.6%5.0%-16.4%-23.3%
5 Yearn/a41.7%23.0%-16.5%-27.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

4.14x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1CD's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1CD's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1CD is unprofitable, so we can't compare its PE Ratio to the Professional Services industry average.

PE vs Market: 1CD is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1CD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1CD is overvalued based on its PB Ratio (4.1x) compared to the XE Professional Services industry average (1.6x).


Next Steps

Future Growth

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

13.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 1CD's forecast earnings growth is above the savings rate (-0.4%).

Earnings vs Market: Insufficient data to determine if 1CD's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1CD's revenue (13.1% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: 1CD's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1CD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ClearStar performed over the past 5 years?

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1CD is currently unprofitable.

Growing Profit Margin: 1CD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1CD is unprofitable, but has reduced losses over the past 5 years at a rate of 0.5% per year.

Accelerating Growth: Unable to compare 1CD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1CD is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (5.4%).


Return on Equity

High ROE: 1CD has a negative Return on Equity (-37.68%), as it is currently unprofitable.


Next Steps

Financial Health

How is ClearStar's financial position?


Financial Position Analysis

Short Term Liabilities: 1CD's short term assets ($5.1M) exceed its short term liabilities ($3.4M).

Long Term Liabilities: 1CD's short term assets ($5.1M) exceed its long term liabilities ($2.3M).


Debt to Equity History and Analysis

Debt Level: 1CD's debt to equity ratio (49.4%) is considered high.

Reducing Debt: 1CD's debt to equity ratio has increased from 11.9% to 49.4% over the past 5 years.


Balance Sheet

Inventory Level: 1CD has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1CD's debt is covered by short term assets (assets are 2.4x 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: Insufficient data to determine if 1CD has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 1CD has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1CD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1CD'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 1CD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1CD'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 1CD's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Bob Vale (56yo)

5.75s

Tenure

US$509,375

Compensation

Mr. Robert J. Vale, Jr., also known as Bob, is Chief Executive Officer of ClearStar, Inc. since July 7, 2014. Mr. Vale cofounded ClearStar in 1995. Mr. Vale served as President of ClearStar, Inc. until Sep ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD509.38K) is about average for companies of similar size in the German market ($USD431.45K).

Compensation vs Earnings: Bob's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Vale
Co-Founder5.75yrsUS$509.38k26.66% $4.3m
Kenneth Dawson
Co-Founder5.92yrsUS$296.87k11.25% $1.8m
Jennifer Balleza
Chief Financial Officer1.25yrsno datano data
Traci Ivester
4.25yrsno datano data
Nicolas Dufour
Executive VPno datano datano data
Todd Shoulberg
President of Medical Information Services4.5yrsno data0.28% $43.9k
Brad Carlson
Chief Risk Officer1.67yrsno data0.065% $10.3k

3.5yrs

Average Tenure

Experienced Management: 1CD's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Vale
Co-Founder5.75yrsUS$509.38k26.66% $4.3m
Kenneth Dawson
Co-Founder5.92yrsUS$296.87k11.25% $1.8m
Bernard Quinn
Non-Executive Chairman5.92yrsUS$59.48k0.85% $135.6k
Samuel Schnabl
Non-Executive Director5.92yrsUS$45.00k0.35% $55.3k

5.9yrs

Average Tenure

61yo

Average Age

Experienced Board: 1CD's board of directors are considered experienced (5.8 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.


Top Shareholders

Company Information

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


Key Information

  • Name: ClearStar, Inc.
  • Ticker: 1CD
  • Exchange: BST
  • Founded: 1995
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: UK£14.182m
  • Listing Market Cap: UK£15.946m
  • Shares outstanding: 36.36m
  • Website: https://www.clearstar.net

Number of Employees


Location

  • ClearStar, Inc.
  • 6250 Shiloh Road
  • Suite 300
  • Alpharetta
  • Georgia
  • 30005
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLSUAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2015
1CDBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJul 2015

Biography

ClearStar, Inc. provides technology and services to the background check and medical screening industries in the United States. It primarily supports background screening companies, employers, and employees with their recruitment and employment application decisions and human capital management. The company provides employment intelligence to its clients through a suite of IT applications for day-to-day use in their business. Its IT suite consists of a collection of applications that utilizes data from approximately 3,000 sources ranging from résumés to records with local authorities. The company was formerly known as Compass Clarity, Inc. and changed its name to ClearStar, Inc. in September 2010. ClearStar, Inc. was founded in 1995 and is headquartered in Alpharetta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 05:55
End of Day Share Price2020/03/31 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.