DB:TE5

Stock Analysis Report

TerraNet Holding

Executive Summary

TerraNet Holding AB (publ) develops awareness connectivity software for the communication between devices and connectivity in offline environments in the United States and internationally.


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TE5's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.7%

TE5

-0.8%

DE Software

-0.9%

DE Market


1 Year Return

-80.2%

TE5

33.2%

DE Software

12.8%

DE Market

Return vs Industry: TE5 underperformed the German Software industry which returned 33.2% over the past year.

Return vs Market: TE5 underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

TE5IndustryMarket
7 Day7.7%-0.8%-0.9%
30 Day-6.5%-0.1%-0.4%
90 Day-17.0%3.7%2.3%
1 Year-76.8%-80.2%35.0%33.2%16.3%12.8%
3 Yearn/a55.2%49.0%15.8%5.7%
5 Yearn/a124.2%108.3%19.7%3.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


In this section, we usually try to help investors determine whether TerraNet Holding is trading at an attractive price based on the cash flow it is expected to produce in the future. But as TerraNet Holding has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of TE5’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through TerraNet Holding regulatory filings.
  • Explore potentially undervalued companies in the Software industry.

Future Growth

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

18.2%

Forecasted Software 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 TerraNet Holding 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 TerraNet Holding performed over the past 5 years?

-16.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TE5 is currently unprofitable.

Growing Profit Margin: TE5 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TE5 is unprofitable, and losses have increased over the past 5 years at a rate of -16.4% per year.

Accelerating Growth: Unable to compare TE5's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TE5 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (14.6%).


Return on Equity

High ROE: TE5's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TerraNet Holding's financial position?


Financial Position Analysis

Short Term Liabilities: TE5 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: TE5 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: TE5 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: TE5's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: TE5 has a low level of unsold assets or inventory.

Debt Coverage by Assets: TE5 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: TE5 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: TE5 has less than a year of cash runway if free cash flow continues to reduce at historical rates of -11.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TE5's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TE5'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 TE5's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TE5'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 TE5'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?

2.1yrs

Average management tenure


CEO

Pär-Olof Johannesson 0

11.1yrs

Tenure

kr1,633,000

Compensation

Mr. Pär-Olof Johannesson serves as Chief Executive Officer since 2009 and Director of TerraNet Holding AB (publ) since 2018. Mr. Johannesson serves as the Chief Executive Officer of TerraNet AB. He is a Se ...


CEO Compensation Analysis

Compensation vs Market: Pär-Olof's total compensation ($USD167.95K) is below average for companies of similar size in the German market ($USD413.13K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Pär-Olof Johannesson
CEO & Director11.1yrskr1.63m0.014% SEK305.5
Mattias Larsson
Chief Financial Officer2.1yrsno datano data
Andrew Jue
Chief Technology Officer2.1yrsno datano data
Christina Björnström
Senior Vice President of Marketing & Sales0yrsno datano data

2.1yrs

Average Tenure

Experienced Management: TE5's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pär-Olof Johannesson
CEO & Director11.1yrskr1.63m0.014% SEK305.5
Dan Olofsson
Director0yrskr50.00kno data
Stefan Persson
Director2.8yrskr50.00kno data
Conny Larsson
Chairman of the Board1.1yrskr50.00k0.51% SEK11.1k
Anders Rantén
Director0yrskr100.00k0.60% SEK13.3k
Lars Novak
Board Member1.1yrsno datano data
Michel Roig
Board Member1.1yrsno datano data
Peter Janevik
Director1.1yrsno datano data

1.1yrs

Average Tenure

69yo

Average Age

Experienced Board: TE5's board of directors are not considered experienced ( 1.1 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TerraNet Holding AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TerraNet Holding AB (publ)
  • Ticker: TE5
  • Exchange: DB
  • Founded:
  • Industry: Application Software
  • Sector: Software
  • Market Cap: kr23.166m
  • Listing Market Cap: kr2.193m
  • Shares outstanding: 24.44m
  • Website: https://www.terranet.se

Location

  • TerraNet Holding AB (publ)
  • IDEON Science Park
  • Beta 6
  • Lund
  • Skåne County
  • 223 70
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TERRNT BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKMay 2017
TE5DB (Deutsche Boerse AG)YesClass B SharesDEEURMay 2017
0GH9LSE (London Stock Exchange)YesClass B SharesGBSEKMay 2017

Biography

TerraNet Holding AB (publ) develops awareness connectivity software for the communication between devices and connectivity in offline environments in the United States and internationally. The company offers software algorithms that allow machine-to-machine communication and streaming of data, including bandwidth-high-definition media independent of mobile networks or other hotspot-dependent networks. It provides vehicle to vehicle, phone to phone, and machine to machine software solutions. TerraNet Holding AB (publ) has a strategic cooperation agreement with Waysure. The company is headquartered in Lund, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 23:58
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
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.