AIM:CLSU

Stock Analysis Report

Executive Summary

ClearStar, Inc. provides technology and services to the background check and medical screening industries in the United States.

Snowflake

Fundamentals

Imperfect balance sheet with concerning outlook.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

CLSU

-1.3%

GB Professional Services

2.0%

GB Market


1 Year Return

0%

CLSU

22.1%

GB Professional Services

3.3%

GB Market

Return vs Industry: CLSU underperformed the UK Professional Services industry which returned 22.1% over the past year.

Return vs Market: CLSU underperformed the UK Market which returned 3.3% over the past year.


Share holder returns

CLSUIndustryMarket
7 Day0%-1.3%2.0%
30 Day-0.8%-1.8%-1.0%
90 Day13.5%-2.7%-1.7%
1 Year0%0%25.0%22.1%8.3%3.3%
3 Year57.5%57.5%43.4%33.1%19.0%4.5%
5 Yearn/a126.4%99.7%38.4%8.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is ClearStar undervalued based on future cash flows and its price relative to the stock market?

6.84x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: CLSU (£0.63) is trading above our estimate of fair value (£0.23)

Significantly Undervalued: CLSU is trading above our estimate of fair value.


Price Based on Earnings

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

PE vs Market: CLSU is unprofitable, so we can't compare its PE Ratio to the UK market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate CLSU's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: CLSU is overvalued based on its PB Ratio (6.8x) compared to the GB Professional Services industry average (2.3x).


Next Steps

Future Growth

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

82.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

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

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

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

Revenue vs Market: CLSU's revenue (13.6% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: CLSU's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has ClearStar performed over the past 5 years?

0.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CLSU is unprofitable, but has reduced losses over the past 5 years at a rate of 0.5% per year.

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

Earnings vs Industry: CLSU is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (12.3%).


Return on Equity

High ROE: CLSU has a negative Return on Equity (-37.68%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CLSU is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CLSU is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is ClearStar's financial position?


Financial Position Analysis

Short Term Liabilities: CLSU's short term assets ($5.1M) exceeds its short term liabilities ($3.4M)

Long Term Liabilities: CLSU's short term assets (5.1M) exceeds its long term liabilities (2.3M)


Debt to Equity History and Analysis

Debt Level: CLSU's debt to equity ratio (49%) is considered high

Reducing Debt: CLSU's debt to equity ratio has increased from 11.9% to 49% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CLSU's debt is covered by short term assets (assets are 2.441400x 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: CLSU has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CLSU has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

2.06%

Expected Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage3.2%forecastin3Years2.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

Stable Dividend: Insufficient data to determine if CLSU's dividends per share have been stable in the past.

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


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Bob Vale (56yo)

5.3yrs

Tenure

US$509,375

Compensation

Mr. Robert J. Vale, Jr., also known as Bob, is Chief Executive Officer of ClearStar, Inc. since July 7, 2014. Mr. Vale cofounded ClearStar in 1995. Mr. Vale served as President of ClearStar, Inc. until Sep ...


CEO Compensation Analysis

Compensation vs. Market: Bob's total compensation ($USD509.38K) is about average for companies of similar size in the UK market ($USD317.09K).

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


Management Age and Tenure

3.0yrs

Average Tenure

56yo

Average Age

Experienced Management: CLSU's management team is considered experienced (3 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

61yo

Average Age

Experienced Board: CLSU's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: CLSU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$19,73809 Aug 19
Bernard Quinn
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares31,110
Max PriceUS$0.65
BuyUS$21,23019 Jun 19
Samuel Schnabl
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares29,000
Max PriceUS$0.75
BuyUS$4,55805 Jun 19
Todd Shoulberg
EntityIndividual
Role
Senior Key Executive
President of Medical Information Services
Shares8,600
Max PriceUS$0.53
SellUS$6,10012 Mar 19
Kenneth Dawson
EntityIndividual
Role
Member of the Board of Directors
Co-Founder
Shares10,000
Max PriceUS$0.61

Ownership Breakdown


Management Team

  • Ken Dawson (49yo)

    Co-Founder

    • Tenure: 5.4yrs
    • Compensation: US$296.87k
  • Bob Vale (56yo)

    Co-Founder

    • Tenure: 5.3yrs
    • Compensation: US$509.38k
  • David Pattillo (59yo)

    Executive Officer

    • Tenure: 0yrs
    • Compensation: US$287.13k
  • Brad Carlson

    Chief Risk Officer

    • Tenure: 1.2yrs
  • Nicolas Dufour

    Executive VP

    • Tenure: 0yrs
  • Todd Shoulberg

    President of Medical Information Services

    • Tenure: 4yrs
  • Traci Ivester

    • Tenure: 3.8yrs
  • Jennifer Balleza

    Chief Financial Officer

    • Tenure: 0.8yrs

Board Members

  • Barney Quinn (66yo)

    Non-Executive Chairman

    • Tenure: 5.4yrs
    • Compensation: US$59.48k
  • Andre Schnabl (71yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: US$45.00k
  • Ken Dawson (49yo)

    Co-Founder

    • Tenure: 5.4yrs
    • Compensation: US$296.87k
  • Bob Vale (56yo)

    Co-Founder

    • Tenure: 5.3yrs
    • Compensation: US$509.38k

Company Information

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


Key Information

  • Name: ClearStar, Inc.
  • Ticker: CLSU
  • Exchange: AIM
  • Founded: 1995
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: UK£22.909m
  • Shares outstanding: 36.36m
  • Website: https://www.clearstar.net

Number of Employees


Location

  • ClearStar, Inc.
  • 6250 Shiloh Road
  • Suite 300
  • Alpharetta
  • Georgia
  • 30005
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLSUAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2015
1CDBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJul 2015

Biography

ClearStar, Inc. provides technology and services to the background check and medical screening industries in the United States. It primarily supports background screening companies, employers, and employee ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 23:41
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)