DB:6SS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

ServiceSource International

Executive Summary

ServiceSource International, Inc. operates as a digital customer journey experience company.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6SS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.3%

6SS

4.2%

DE IT

2.2%

DE Market


1 Year Return

73.4%

6SS

-18.4%

DE IT

-3.9%

DE Market

Return vs Industry: 6SS exceeded the German IT industry which returned -19.7% over the past year.

Return vs Market: 6SS exceeded the German Market which returned -4.6% over the past year.


Shareholder returns

6SSIndustryMarket
7 Day3.3%4.2%2.2%
30 Day55.0%-12.4%8.0%
90 Day16.5%-13.7%-9.6%
1 Year73.4%73.4%-18.0%-18.4%-2.3%-3.9%
3 Year-49.7%-49.7%68.9%64.6%-7.6%-14.8%
5 Yearn/a191.6%179.1%-0.3%-12.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.88x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 6SS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 6SS's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 6SS is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: 6SS 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 6SS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6SS is good value based on its PB Ratio (1.9x) compared to the DE IT industry average (3.6x).


Next Steps

Future Growth

How is ServiceSource International forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6SS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 6SS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 6SS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 6SS's revenue is expected to decline over the next 3 years (-2.7% per year).

High Growth Revenue: 6SS's revenue is forecast to decline over the next 3 years (-2.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 6SS's Return on Equity is forecast to be high in 3 years time


Next Steps

  • Explore growth companies in the Software industry.

Past Performance

How has ServiceSource International performed over the past 5 years?

28.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6SS is currently unprofitable.

Growing Profit Margin: 6SS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 6SS is unprofitable, but has reduced losses over the past 5 years at a rate of 28.1% per year.

Accelerating Growth: Unable to compare 6SS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 6SS is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (4.8%).


Return on Equity

High ROE: 6SS has a negative Return on Equity (-22.47%), as it is currently unprofitable.


Next Steps

Financial Health

How is ServiceSource International's financial position?


Financial Position Analysis

Short Term Liabilities: 6SS's short term assets ($96.5M) exceed its short term liabilities ($59.1M).

Long Term Liabilities: 6SS's short term assets ($96.5M) exceed its long term liabilities ($33.3M).


Debt to Equity History and Analysis

Debt Level: 6SS's debt to equity ratio (32.1%) is considered satisfactory.

Reducing Debt: 6SS's debt to equity ratio has reduced from 73.7% to 32.1% over the past 5 years.


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: 6SS has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 6SS has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 22.6% each year


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6SS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 6SS'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 6SS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6SS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 6SS is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6SS'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?

1.5yrs

Average management tenure


CEO

Gary Moore (70yo)

1.42yrs

Tenure

US$1,003,860

Compensation

Mr. Gary B. Moore has been Chief Executive Officer of ServiceSource International, Inc. since December 4, 2018. He has been Executive Chairman of ServiceSource International, Inc. since November 7, 2018 an ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD1.00M) is above average for companies of similar size in the German market ($USD765.80K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gary Moore
Executive Chairman & CEO1.42yrsUS$1.00m0.68% $981.0k
Richard Walker
CFO & Director2.58yrsUS$642.43k0.27% $390.4k
Deborah Dunnam
Chief Operating Officer1.5yrsUS$696.53k0.059% $85.5k
James Boyce
Senior VP & Chief Information Officer1.25yrsno datano data
Patricia Elias
Executive VP3.67yrsno datano data
Chad Lyne
Executive Vice President of Strategy & Corporate Development4.08yrsno datano data
Denzil Samuels
Chief Marketing & Growth Officer1.83yrsno datano data
Tim Fleming
Senior Vice President of Engineering7.17yrsno datano data
Mike Naughton
President of Global Service Delivery1.33yrsno datano data
Grant Clarke
Senior Vice President of Sales Operations1.33yrsno datano data

1.5yrs

Average Tenure

59yo

Average Age

Experienced Management: 6SS's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gary Moore
Executive Chairman & CEO1.42yrsUS$1.00m0.68% $981.0k
Richard Walker
CFO & Director2.58yrsUS$642.43k0.27% $390.4k
John Harris
Lead Independent Director0.42yrUS$99.03kno data
John Ferron
Independent Director1.33yrsUS$179.92k0.17% $247.6k
John Meyer
Independent Director0.25yrno datano data
Jane Bomba
Independent Director0.25yrno datano data
Alan Grady
Member of The Service Executive Industry Board10.42yrsno datano data
Rafael Brugnini
Member of The Service Executive Industry Board10.42yrsno datano data
Rick Legleiter
Member of The Service Executive Industry Board10.42yrsno datano data
Bret Barczak
Member of The Service Executive Industry Board10.42yrsno datano data

2.0yrs

Average Tenure

60yo

Average Age

Experienced Board: 6SS's board of directors are not considered experienced ( 2 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: 6SS 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

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


Key Information

  • Name: ServiceSource International, Inc.
  • Ticker: 6SS
  • Exchange: DB
  • Founded: 2002
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$157.923m
  • Listing Market Cap: US$144.973m
  • Shares outstanding: 95.13m
  • Website: https://www.servicesource.com

Number of Employees


Location

  • ServiceSource International, Inc.
  • 707, 17th Street
  • Suite 2500
  • Denver
  • Colorado
  • 80202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SREVNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2011
6SSDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2011

Biography

ServiceSource International, Inc. operates as a digital customer journey experience company. The company provides digital solutions, including demand qualification, demand conversion, and account management; customer success solutions, such as onboarding, adoption, and renewals management; and channel management services. It also offers sales performance analysis, business case, pricing and contract structuring, data integration, implementation, launch, performance and execution, and client benchmarking and continuous improvement solutions. The company sells its solutions through sales organization worldwide. ServiceSource International, Inc. was founded in 2002 and is headquartered in Denver, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 23:12
End of Day Share Price2020/05/25 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.