DB:2EK

Stock Analysis Report

Executive Summary

Resonant Inc., a late-stage development company, designs and develops filter designs for radio frequency (RF) front-ends used in the mobile device industry in the United States.


Snowflake Analysis

Adequate balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2EK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-14.0%

2EK

-12.8%

DE Communications

-9.1%

DE Market


1 Year Return

-44.1%

2EK

-18.5%

DE Communications

2.9%

DE Market

Return vs Industry: 2EK underperformed the German Communications industry which returned -18.5% over the past year.

Return vs Market: 2EK underperformed the German Market which returned 2.9% over the past year.


Shareholder returns

2EKIndustryMarket
7 Day-14.0%-12.8%-9.1%
30 Day-38.8%-17.9%-7.2%
90 Day-24.2%-24.1%-6.5%
1 Year-44.1%-44.1%-18.1%-18.5%6.1%2.9%
3 Yearn/a-23.8%-24.0%3.5%-5.6%
5 Yearn/a55.7%55.4%8.0%-6.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

3.29x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 2EK's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 2EK's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 2EK is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: 2EK 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 2EK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2EK is overvalued based on its PB Ratio (3.3x) compared to the DE Communications industry average (2.8x).


Next Steps

Future Growth

How is Resonant forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2EK is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 2EK is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 2EK is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 2EK's revenue (216.3% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: 2EK's revenue (216.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 2EK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Resonant performed over the past 5 years?

-25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2EK is currently unprofitable.

Growing Profit Margin: 2EK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2EK is unprofitable, and losses have increased over the past 5 years at a rate of -25.3% per year.

Accelerating Growth: Unable to compare 2EK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2EK is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (31.6%).


Return on Equity

High ROE: 2EK has a negative Return on Equity (-181.15%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Resonant's financial position?


Financial Position Analysis

Short Term Liabilities: 2EK's short term assets ($16.9M) exceed its short term liabilities ($5.7M).

Long Term Liabilities: 2EK's short term assets ($16.9M) exceed its long term liabilities ($2.2M).


Debt to Equity History and Analysis

Debt Level: 2EK is debt free.

Reducing Debt: 2EK had no debt 5 years ago.


Balance Sheet

Inventory Level: 2EK has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 2EK's debt is 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: 2EK has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 2EK has less than a year of cash runway if free cash flow continues to reduce at historical rates of -29.5% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.9%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 2EK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2EK'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 2EK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2EK'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 2EK'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

George Holmes (56yo)

3.1yrs

Tenure

US$815,752

Compensation

Mr. George B. Holmes has been the Chief Executive Officer of Resonant Inc. since January 10, 2017 and also serves as its Chairman of the Board since June 11, 2019. Mr. Holmes has been Chief Commercial Offi ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD815.75K) is above average for companies of similar size in the German market ($USD419.45K).

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


Leadership Team

NamePositionTenureCompensationOwnership
George Holmes
Chairman & CEO3.1yrsUS$815.75k0.69% $542.0k
Robert Hammond
Co-Founder & CTO0yrsUS$504.40k0.94% $738.7k
Neal Fenzi
Co-Founder & Executive VP of Engineering0yrsUS$487.55k0.95% $748.8k
Martin McDermut
CFO & Secretary1.3yrsno data0.18% $145.6k
Dylan Kelly
Chief Operating Officer0.2yrsno datano data
Michael Eddy
Vice President of Corporate Business Development & Marketing2.9yrsno datano data

2.1yrs

Average Tenure

57.5yo

Average Age

Experienced Management: 2EK's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Holmes
Chairman & CEO3.1yrsUS$815.75k0.69% $542.0k
Jean Rankin
Independent Director2.6yrsUS$100.00k0.055% $43.1k
Jack Jacobs
Independent Director1.7yrsUS$156.25k0.023% $18.0k
Alan Howe
Independent Director1.7yrsUS$156.25k0.023% $18.0k
Michael Fox
Lead Independent Director0.7yrsUS$100.00k0.12% $94.6k
Chris Conlin
Member of Advisory Board4.5yrsno datano data
Joshua Jacobs
Independent Director1.7yrsUS$156.25k0.030% $23.3k
Sean Curry
Member of Advisory Board4.5yrsno datano data
Robert Tirva
Independent Director1.3yrsUS$85.37kno data
Ruben Caballero
Director0.5yrsno data0.085% $66.8k

1.7yrs

Average Tenure

56yo

Average Age

Experienced Board: 2EK's board of directors are not considered experienced ( 1.7 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Resonant Inc.
  • Ticker: 2EK
  • Exchange: DB
  • Founded: 2012
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$86.497m
  • Listing Market Cap: US$78.807m
  • Shares outstanding: 52.42m
  • Website: https://www.resonant.com

Number of Employees


Location

  • Resonant Inc.
  • 175 Cremona Drive
  • Suite 200
  • Goleta
  • California
  • 93117
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RESNNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMay 2014
2EKDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2014

Biography

Resonant Inc., a late-stage development company, designs and develops filter designs for radio frequency (RF) front-ends used in the mobile device industry in the United States. It uses Infinite Synthesized Networks technology, a software platform that is used to configure and connect resonators, the building blocks of RF filters. The company develops a series of single-band designs for frequency bands; and multiplexer filter designs for two or more bands to address the carrier aggregation, as well as filter designs to replace various filters and associated componentry for various bands. Resonant Inc. was founded in 2012 and is headquartered in Goleta, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 23:26
End of Day Share Price2020/02/27 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.