DB:OT5

Stock Analysis Report

On Track Innovations

Executive Summary

On Track Innovations Ltd. designs, develops, and markets cashless payment solutions worldwide.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has On Track Innovations's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OT5's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

OT5

6.0%

DE Tech

-2.7%

DE Market


1 Year Return

-63.6%

OT5

-26.8%

DE Tech

-20.4%

DE Market

Return vs Industry: OT5 underperformed the German Tech industry which returned 23.8% over the past year.

Return vs Market: OT5 underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

OT5IndustryMarket
7 Day0%6.0%-2.7%
30 Day0%-13.8%-18.4%
90 Day43.6%-21.7%-26.7%
1 Year-63.6%-63.6%-26.2%-26.8%-18.1%-20.4%
3 Year-84.4%-84.4%59.9%56.6%-19.1%-25.9%
5 Year-84.5%-84.5%77.3%56.7%-19.5%-30.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is On Track Innovations undervalued compared to its fair value and its price relative to the market?

1.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate OT5's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate OT5's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: OT5 is unprofitable, so we can't compare its PE Ratio to the Tech industry average.

PE vs Market: OT5 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 OT5's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OT5 is good value based on its PB Ratio (1.3x) compared to the XE Tech industry average (1.4x).


Next Steps

Future Growth

How is On Track Innovations forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.3%

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 On Track Innovations 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 On Track Innovations performed over the past 5 years?

34.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OT5 is currently unprofitable.

Growing Profit Margin: OT5 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OT5 is unprofitable, but has reduced losses over the past 5 years at a rate of 34.7% per year.

Accelerating Growth: Unable to compare OT5's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OT5 is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (-4.2%).


Return on Equity

High ROE: OT5 has a negative Return on Equity (-54.01%), as it is currently unprofitable.


Next Steps

Financial Health

How is On Track Innovations's financial position?


Financial Position Analysis

Short Term Liabilities: OT5's short term assets ($13.7M) exceed its short term liabilities ($9.7M).

Long Term Liabilities: OT5's short term assets ($13.7M) exceed its long term liabilities ($2.6M).


Debt to Equity History and Analysis

Debt Level: OT5's debt to equity ratio (31.4%) is considered satisfactory.

Reducing Debt: OT5's debt to equity ratio has reduced from 54.4% to 31.4% over the past 5 years.


Balance Sheet

Inventory Level: OT5 has a high level of physical assets or inventory.

Debt Coverage by Assets: OT5's debt is covered by short term assets (assets are 5.3x debt).


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: OT5 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: OT5 has less than a year of cash runway if free cash flow continues to grow at historical rates of 35.9% each year.


Next Steps

Dividend

What is On Track Innovations's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate OT5's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate OT5'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 OT5's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OT5'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 OT5'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?

1.8yrs

Average management tenure


CEO

Yehuda Holtzman (59yo)

0.083

Tenure

Mr. Yehuda Holtzman serves as Chief Executive Officer at On Track Innovations Ltd. since December 1, 2019. Mr. Holtzman has been Chief Executive Officer of Cellebrite Mobile Lifecycle at Cellebrite Mobile  ...


Leadership Team

NamePositionTenureCompensationOwnership
Assaf Cohen
Chief Financial Officer1.83yrsUS$191.65kno data
Nehemia Itay
Chief Scientistno dataUS$227.86kno data
Yehuda Holtzman
Chief Executive Officer0.083yrno datano data
Sagi Nataf
Vice President of Operations & Engineeringno datano datano data
Richard Harris
Director of Marketingno datano datano data
Charlotte Hambly-Nuss
Managing Director of OTI PetroSmartno datano datano data
Agnieszka Swiatly
Managing Director of OTI Europa2.42yrsno datano data

1.8yrs

Average Tenure

59yo

Average Age

Experienced Management: OT5's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Eran Gilad
Independent Director0.25yrno datano data
William Anderson
Independent Director5.67yrsUS$29.88k2.3% $260.0k
Donna Marks
Independent Director4yrsUS$25.46kno data
James Medford
Independent Chairman of the Board3yrsUS$21.79k0.56% $63.8k
Michael Soluri
Independent Director3yrsUS$25.46kno data
Michael Shanahan
Directorno datano datano data

3.0yrs

Average Tenure

57.5yo

Average Age

Experienced Board: OT5's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: OT5 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

On Track Innovations Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: On Track Innovations Ltd.
  • Ticker: OT5
  • Exchange: DB
  • Founded: 1990
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$12.434m
  • Listing Market Cap: US$11.303m
  • Shares outstanding: 47.82m
  • Website: https://www.otiglobal.com

Number of Employees


Location

  • On Track Innovations Ltd.
  • Z.H.R. Industrial Zone
  • PO Box 32
  • Rosh Pina
  • 1210001
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OTIV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 1999
OT5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1999

Biography

On Track Innovations Ltd. designs, develops, and markets cashless payment solutions worldwide. It operates in two segments, Retail and Mass Transit Ticketing; and Petroleum. The company offers OTI UNO, a single interface and contactless reader that support the major card associations’ applications, as well as wallets, such as Apple Pay, Google Pay, and Samsung Pay; OTI TRIO, a near-field communication and contactless reader, which offers three-in-one cashless payment card options comprising magnetic stripe (swipe), contact (chip), and contactless (tap); and OTI Interno, an original equipment manufacturer reader module with integrated antenna used for integration into mass transit validators and terminals. It also provides OTI TeleBox which enables communication between machines primarily for vending machines, kiosks, and meters; OTI GoBox, a machine-to-machine cashless payment and telemetry gateway primarily used to stream Full-HD media and run either Linux or Android; otiMetry, a telemetry solution for smart vending which also enables cashless payments; otiKiosk, a cashless payment acceptance and remote management solution for kiosks and self-service environments; and otiPulse, a cashless payment solution for pulse operated machines. In addition, the company offers ticket vending machines, which are encoding and loading electronic card tickets for the public transport and for selling paper tickets, as well as resells tickets through point of sale terminals. Further, it provides EasyFuel Plus, a fuel management and payment solution used to control and manage refueling operations; and MediSmart, an information management and claims submission system for the medical sector. The company was formerly known as De-Bug Innovations Ltd. and changed its name to On Track Innovations Ltd. in July 1991. On Track Innovations Ltd. was founded in 1990 and is headquartered in Rosh Pina, Israel. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/29 20:41
End of Day Share Price2019/11/01 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.