DB:6LK

Stock Analysis Report

Network-1 Technologies

Executive Summary

Network-1 Technologies, Inc. develops, licenses, and protects intellectual property assets.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has Network-1 Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6LK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.1%

6LK

-0.8%

DE Communications

2.1%

DE Market


1 Year Return

-11.4%

6LK

-40.6%

DE Communications

-16.6%

DE Market

Return vs Industry: 6LK exceeded the German Communications industry which returned -42.4% over the past year.

Return vs Market: 6LK exceeded the German Market which returned -20.9% over the past year.


Shareholder returns

6LKIndustryMarket
7 Day4.1%-0.8%2.1%
30 Day-1.0%-10.7%-12.6%
90 Day4.1%-32.8%-22.9%
1 Year-7.3%-11.4%-40.3%-40.6%-14.2%-16.6%
3 Year-47.9%-53.8%-37.8%-38.0%-14.8%-21.9%
5 Yearn/a6.3%6.1%-16.6%-27.8%

Price Volatility Vs. Market

How volatile is Network-1 Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Network-1 Technologies undervalued compared to its fair value and its price relative to the market?

1.01x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 6LK (€2.02) is trading above our estimate of fair value (€1.56)

Significantly Below Fair Value: 6LK is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: 6LK is good value based on its PB Ratio (1x) compared to the DE Communications industry average (2.3x).


Next Steps

Future Growth

How is Network-1 Technologies forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

31.4%

Forecasted Tech 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 Network-1 Technologies 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 Network-1 Technologies performed over the past 5 years?

-12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6LK is currently unprofitable.

Growing Profit Margin: 6LK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 6LK is unprofitable, and losses have increased over the past 5 years at a rate of -12% per year.

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

Earnings vs Industry: 6LK is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (21.9%).


Return on Equity

High ROE: 6LK has a negative Return on Equity (-3.35%), as it is currently unprofitable.


Next Steps

Financial Health

How is Network-1 Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: 6LK's short term assets ($48.8M) exceed its short term liabilities ($1.6M).

Long Term Liabilities: 6LK has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 6LK is debt free.

Reducing Debt: 6LK has not had any debt for past 5 years.

Debt Coverage: 6LK has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6LK has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Network-1 Technologies's current dividend yield, its reliability and sustainability?

4.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6LK's dividend (4.44%) is higher than the bottom 25% of dividend payers in the German market (1.69%).

High Dividend: 6LK's dividend (4.44%) is low compared to the top 25% of dividend payers in the German market (4.85%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 6LK has been paying a dividend for less than 10 years.

Growing Dividend: 6LK has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: 6LK is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

16.3yrs

Average management tenure


CEO

Corey Horowitz (64yo)

16.33s

Tenure

US$831,250

Compensation

Mr. Corey M. Horowitz, J.D. serves as Member of Executive Board at ILiAD Biotechnologies, LLC. He has been the Chairman of the Board and Chief Executive Officer of Network-1 Technologies, Inc. since Janua ...


CEO Compensation Analysis

Compensation vs Market: Corey's total compensation ($USD831.25K) is above average for companies of similar size in the German market ($USD428.66K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Corey Horowitz
Chairman & CEO16.33yrsUS$831.25k26.48% $12.7m
David Kahn
CFO, Secretary & Director8yrsUS$236.53k0.39% $187.6k
Jonathan Greene
Executive Vice President6.5yrsUS$283.90k0.28% $134.5k
Robert Olsen
Executive Officerno datano datano data

16.3yrs

Average Tenure

60.5yo

Average Age

Experienced Management: 6LK's management team is seasoned and experienced (16.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Corey Horowitz
Chairman & CEO16.33yrsUS$831.25k26.48% $12.7m
David Kahn
CFO, Secretary & Director8yrsUS$236.53k0.39% $187.6k
George Conant
Member of the Technical Advisory Board15.42yrsno datano data
Ron Keenan
Member of the Technical Advisory Board15.42yrsno datano data
Niv Harizman
Independent Director7.33yrsUS$86.00k1.01% $482.7k
Emanuel Pearlman
Independent Director8.25yrsUS$89.75k0.45% $215.8k
Allison Hoffman
Independent Director7.33yrsUS$88.64k0.30% $143.6k
Andrew Maslow
Member of the Technical Advisory Board15.42yrsno datano data
Boris Katzenberg
Member of the Technical Advisory Boardno datano datano data

11.8yrs

Average Tenure

58yo

Average Age

Experienced Board: 6LK's board of directors are seasoned and experienced ( 11.8 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

Network-1 Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Network-1 Technologies, Inc.
  • Ticker: 6LK
  • Exchange: DB
  • Founded: 1990
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$51.671m
  • Listing Market Cap: US$47.894m
  • Shares outstanding: 24.03m
  • Website: https://www.network-1.com

Number of Employees


Location

  • Network-1 Technologies, Inc.
  • 445 Park Avenue
  • Suite 912
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTIPAMEX (NYSE MKT LLC)YesCommon StockUSUSDNov 1998
6LKDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1998
0K6PLSE (London Stock Exchange)YesCommon StockGBUSDNov 1998

Biography

Network-1 Technologies, Inc. develops, licenses, and protects intellectual property assets. As of May 28, 2019, the company owned 69 patents, including the remote power patent covering the delivery of power over Ethernet cables for the purpose of remotely powering network devices, such as wireless access ports, IP phones, and network based cameras; and the Mirror Worlds patent portfolio relating to foundational technologies that enable unified search and indexing, displaying, and archiving of documents in a computer system. Its patents also comprise the Cox patent portfolio relating to enabling technology for identifying media content on the Internet; M2M/IoT patent portfolio related to enabling technology for authenticating and using embedded sim cards in next generation IoT, Machine-to-Machine, and other mobile devices, including smartphones, tablets, and computers; and the quality of service (QoS) patents covering systems and methods for the transmission of audio, video, and data in order to achieve high QoS over computer and telephony networks. The company was formerly known as Network-1 Security Solutions, Inc. and changed its name to Network-1 Technologies, Inc. in October 2013 to reflect the nature of its business. Network-1 Technologies, Inc. was founded in 1990 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 23:48
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
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.