DB:RAM

Stock Analysis Report

Executive Summary

RADCOM Ltd. provides service assurance and customer experience management solutions for communication service providers (CSPs).


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

13.4%

RAM

-0.2%

DE Communications

0.5%

DE Market


1 Year Return

26.9%

RAM

15.2%

DE Communications

15.5%

DE Market

Return vs Industry: RAM exceeded the German Communications industry which returned 18.2% over the past year.

Return vs Market: RAM exceeded the German Market which returned 15.6% over the past year.


Shareholder returns

RAMIndustryMarket
7 Day13.4%-0.2%0.5%
30 Day11.2%0.7%1.4%
90 Day-1.7%16.3%5.3%
1 Year26.9%26.9%15.9%15.2%19.2%15.5%
3 Year-50.0%-50.0%12.4%12.0%15.7%5.5%
5 Year-5.0%-5.0%106.1%105.7%27.3%10.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.76x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RAM is good value based on its PB Ratio (1.6x) compared to the DE Communications industry average (3.1x).


Next Steps

Future Growth

How is RADCOM forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

37.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: RAM's revenue (11.2% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: RAM's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has RADCOM performed over the past 5 years?

-42.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAM is currently unprofitable.

Growing Profit Margin: RAM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RAM is unprofitable, and losses have increased over the past 5 years at a rate of -42% per year.

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

Earnings vs Industry: RAM is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (49.1%).


Return on Equity

High ROE: RAM has a negative Return on Equity (-13.27%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is RADCOM's financial position?


Financial Position Analysis

Short Term Liabilities: RAM's short term assets ($84.4M) exceed its short term liabilities ($13.1M).

Long Term Liabilities: RAM's short term assets ($84.4M) exceed its long term liabilities ($10.0M).


Debt to Equity History and Analysis

Debt Level: RAM is debt free.

Reducing Debt: RAM had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: RAM's debt is covered by short term assets (assets are 9.4988797440591E+16x 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: RAM has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: RAM has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -43.4% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.5%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if RAM'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 RAM's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of RADCOM's salary, the management and board of directors tenure and is there insider trading?

0.5yrs

Average board tenure


CEO

Eyal Harari (43yo)

0yrs

Tenure

US$493,394

Compensation

Mr. Eyal David Harari has been Chief Executive Officer of Radcom Ltd. since January 1, 2020. He served as Chief Executive Officer of RADCOM US at Radcom Ltd. since December 14, 2016. Mr. Harari served as t ...


CEO Compensation Analysis

Compensation vs Market: Eyal's total compensation ($USD493.39K) is about average for companies of similar size in the German market ($USD425.50K).

Compensation vs Earnings: Eyal's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

0.5yrs

Average Tenure

67yo

Average Age

Experienced Board: RAM's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


Insider Trading

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 2.2%.


Management Team

  • Zohar Zisapel (70yo)

    Co-Founder & Director

    • Yehuda Zisapel (77yo)

      Co-Founder

      • Amir Hai (52yo)

        Chief Financial Officer

        • Tenure: 1.3yrs
      • Tamir Ben-Yoseph

        General Counsel & Corporate Secretary

        • Heli Bennun (66yo)

          Executive Chairman of Board of Directors

          • Tenure: 4.3yrs
          • Compensation: US$228.96k
        • Rami Amit (53yo)

          CTO & Head of Product

          • Tenure: 2.9yrs
          • Compensation: US$506.50k
        • Eyal Harari (43yo)

          Chief Executive Officer

          • Compensation: US$493.39k
        • Ronen Hovav (47yo)

          Director of Sales

          • Compensation: US$323.98k
        • Ruti Lavi

          Vice President of Global Human Resources

          • Hilik Itman (46yo)

            Chief Operating Officer

            • Compensation: US$498.86k

          Board Members

          • Zohar Zisapel (70yo)

            Co-Founder & Director

            • Matty Karp (70yo)

              Independent Director

              • Tenure: 10.1yrs
            • Oren Most (68yo)

              Director

              • Tenure: 0.5yrs
            • Rami Schwartz (61yo)

              Director

              • Tenure: 0.5yrs
            • Heli Bennun (66yo)

              Executive Chairman of Board of Directors

              • Tenure: 4.3yrs
              • Compensation: US$228.96k
            • Yaron Ravkaie (50yo)

              Director

              • Compensation: US$556.57k
            • Mirella Kuvent

              Director

              • Tenure: 0.5yrs

            Company Information

            RADCOM Ltd.'s company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: RADCOM Ltd.
            • Ticker: RAM
            • Exchange: DB
            • Founded: 1985
            • Industry: Communications Equipment
            • Sector: Tech
            • Market Cap: US$130.643m
            • Listing Market Cap: US$117.827m
            • Shares outstanding: 13.74m
            • Website: https://www.radcom.com

            Number of Employees


            Location

            • RADCOM Ltd.
            • 24 Raoul Wallenberg Street
            • Tel Aviv
            • 69719
            • Israel

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            RDCMNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDSep 1997
            RAMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1997

            Biography

            RADCOM Ltd. provides service assurance and customer experience management solutions for communication service providers (CSPs). Its carrier-grade solutions support mobile and fixed networks, and scale to terabit data bandwidths to enable data analytics. The company offers solutions for virtualized infrastructure and next-generation networks. Its product line includes the RADCOM Service Assurance, a next-generation probe-based customer and service assurance solution that enables CSPs to carry out end-to-end data and voice quality monitoring, manage their networks and services, and monitor their roaming and interconnect traffic. The company’s RADCOM Service Assurance solution also provides service assurance monitoring applications, including network troubleshooting and quality monitoring, service quality monitoring, customer quality of service monitoring, and customer service level agreements monitoring. In addition, it offers RADCOM Network Visibility, an automated network function virtualization orchestration solution for onboarding and configuration that enables traffic distribution, load balancing, and end-to-end visibility across virtual networks, as well as provides packet broker capabilities, like packet de-duplication, secure socket layer decryption, and packet slicing. Further, it provides RADCOM Network Insights, which offers CSPs with real-time actionable business and marketing insights. The company sells its products directly, as well as through a network of independent distributors and resellers worldwide. The company was formerly known as Big Blue Catalogue Ltd. and changed its name to RADCOM Ltd. in 1989. RADCOM Ltd. was founded in 1985 and is headquartered in Tel Aviv, Israel. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/22 20:59
            End of Day Share Price2020/01/22 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.