DB:MEU2

Stock Analysis Report

Enablence Technologies

Executive Summary

Enablence Technologies Inc. designs, manufactures, and sells optical components and subsystems for access, metro, and long-haul markets worldwide.


Snowflake Analysis

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MEU2's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-31.8%

MEU2

-13.8%

DE Communications

-5.7%

DE Market


1 Year Return

-42.3%

MEU2

-12.1%

DE Communications

6.1%

DE Market

Return vs Industry: MEU2 underperformed the German Communications industry which returned -12.1% over the past year.

Return vs Market: MEU2 underperformed the German Market which returned 6.1% over the past year.


Shareholder returns

MEU2IndustryMarket
7 Day-31.8%-13.8%-5.7%
30 Day114.3%-13.6%-5.7%
90 Day1400.0%-17.7%-3.6%
1 Year-42.3%-42.3%-11.6%-12.1%9.3%6.1%
3 Year-79.2%-79.2%-18.7%-18.9%8.9%-0.7%
5 Year-64.3%-64.3%72.4%72.1%13.6%-2.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


In this section, we usually try to help investors determine whether Enablence Technologies is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Enablence Technologies 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 MEU2’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 Enablence Technologies regulatory filings.
  • Explore potentially undervalued companies in the Tech industry.

Future Growth

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

32.2%

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 Enablence 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 Enablence Technologies performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MEU2 is currently unprofitable.

Growing Profit Margin: MEU2 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MEU2 is unprofitable, but has reduced losses over the past 5 years at a rate of 7% per year.

Accelerating Growth: Unable to compare MEU2's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MEU2 is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (31.6%).


Return on Equity

High ROE: MEU2's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Enablence Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: MEU2 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MEU2 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: MEU2 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MEU2's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: MEU2 has a high level of physical assets or inventory.

Debt Coverage by Assets: MEU2 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: MEU2 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MEU2 has less than a year of cash runway if free cash flow continues to grow at historical rates of 2.5% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MEU2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MEU2'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 MEU2's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MEU2'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 MEU2'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?

1.7yrs

Average board tenure


CEO

Steve Wang 0

1yrs

Tenure

Mr. Steve Wang has been the Chief Executive Officer of Enablence Technologies Inc. since February 06, 2019. He served as Chief Technology Officer of Alien Technology Corporation since October 16, 2015. Mr. ...


Board Members

NamePositionTenureCompensationOwnership
Jozef Straus
Member of Advisory Board0yrsno datano data
Derek Burney
Chairman1yrsno datano data
Louis De Jong
Director7.2yrsno datano data
Dan Shmitt
Director2.4yrsno datano data
Yongxing Zhu
Director1yrsno datano data

1.7yrs

Average Tenure

Experienced Board: MEU2'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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Enablence Technologies Inc.
  • Ticker: MEU2
  • Exchange: DB
  • Founded:
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: CA$9.629m
  • Listing Market Cap: CA$6.654m
  • Shares outstanding: 641.93m
  • Website: https://www.enablence.com

Location

  • Enablence Technologies Inc.
  • 390 March Road
  • Suite 119
  • Ottawa
  • Ontario
  • K2K 0G7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MEU2DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2002
ENATSXV (TSX Venture Exchange)YesCommon SharesCACADAug 2002
ENAF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2002

Biography

Enablence Technologies Inc. designs, manufactures, and sells optical components and subsystems for access, metro, and long-haul markets worldwide. The company offers a line of transmit optical sub-assembly (TOSA) and receive optical sub-assembly (ROSA) products; a range of arrayed waveguide gratings; multicast switches and iROAD solutions for multi-channel reconfigurable optical add/drop multiplexer; and PLC-based VOA/Multiplexer modules. It also provides optical component design, custom wafer fabrication, hybrid integration, and packaging and testing services for telecommunications, aerospace, defense, and bio/chemical-sensor markets. In addition, the company offers optical splitters, such as splitter chips, splitter modules, and polarization maintaining splitter modules; and optical channel monitors for optical power detection of individual channels on a multiplex of DWDM wavelengths. Enablence Technologies Inc. is headquartered in Ottawa, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 20:35
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.