AIM:TUNG

Stock Analysis Report

Executive Summary

Tungsten Corporation plc operates an e-invoicing network that also provides supply chain financing and spend analytics.


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.1%

TUNG

-0.09%

GB IT

-0.5%

GB Market


1 Year Return

-13.3%

TUNG

40.9%

GB IT

6.0%

GB Market

Return vs Industry: TUNG underperformed the UK IT industry which returned 40.9% over the past year.

Return vs Market: TUNG underperformed the UK Market which returned 6% over the past year.


Shareholder returns

TUNGIndustryMarket
7 Day-2.1%-0.09%-0.5%
30 Day-10.7%1.2%-1.8%
90 Day-14.7%6.4%2.4%
1 Year-13.3%-13.3%44.1%40.9%11.5%6.0%
3 Year-41.3%-41.3%120.6%105.6%18.2%3.5%
5 Year-77.0%-77.0%124.3%106.1%34.3%3.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.39x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TUNG is good value based on its PB Ratio (0.4x) compared to the GB IT industry average (2.7x).


Next Steps

Future Growth

How is Tungsten forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

6.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TUNG's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if TUNG's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TUNG's revenue (6.7% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: TUNG's revenue (6.7% 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 TUNG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tungsten performed over the past 5 years?

32.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TUNG is currently unprofitable.

Growing Profit Margin: TUNG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TUNG is unprofitable, but has reduced losses over the past 5 years at a rate of 32.3% per year.

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

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


Return on Equity

High ROE: TUNG has a negative Return on Equity (-4.95%), as it is currently unprofitable.


Next Steps

Financial Health

How is Tungsten's financial position?


Financial Position Analysis

Short Term Liabilities: TUNG's short term assets (£9.2M) do not cover its short term liabilities (£14.8M).

Long Term Liabilities: TUNG's short term assets (£9.2M) exceed its long term liabilities (£8.4M).


Debt to Equity History and Analysis

Debt Level: TUNG's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if TUNG's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: TUNG's debt is covered by short term assets (assets are 8.9x 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: TUNG has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: TUNG has less than a year of cash runway if free cash flow continues to grow at historical rates of 16.5% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Andrew Lemonofides (53yo)

0.4yrs

Tenure

Mr. Andrew John Lemonofides serves as Director at Tungsten Corporation plc since September 19, 2019 and serves as its Chief Executive Officer since September 2019. Mr. Lemonofides serves as the Chief Strat ...


Leadership Team

NamePositionTenureCompensationOwnership
David Williams
CFO & Executive Director4.9yrsUK£287.00k0.20% £91.5k
Andrew Lemonofides
CEO & Director0.4yrsno datano data
Martyn Arbon
Chief Technology Officer1.8yrsno datano data
Cynthia Alers
Head of Investor Relations0yrsno datano data
Patrick Clark
General Counsel & Company Secretary3.9yrsno datano data
Ashley Infantino
Head of Marketing0.3yrsno datano data
John Hall
Head of Major Accounts - EMEA6yrsno datano data
Alec Holmes
Senior Vice President of Service Delivery6.3yrsno datano data
Steven Standring
Chief Revenue Officer0.8yrsno datano data

2.9yrs

Average Tenure

Experienced Management: TUNG's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Williams
CFO & Executive Director4.9yrsUK£287.00k0.20% £91.5k
Andrew Lemonofides
CEO & Director0.4yrsno datano data
Duncan Goldie-Morrison
Senior Independent Non-Executive Director0yrsUK£42.00k0.17% £80.2k
Anthony Bromovsky
Non-Executive Chairman1.3yrsUK£100.00k0.55% £253.8k
Andrew Doman
Non-Executive Director1.2yrsUK£27.00k0.20% £92.0k
Vivienne Maclachlan
Non-Executive Director1yrsUK£9.00kno data

1.2yrs

Average Tenure

63yo

Average Age

Experienced Board: TUNG's board of directors are not considered experienced ( 1.2 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tungsten Corporation plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tungsten Corporation plc
  • Ticker: TUNG
  • Exchange: AIM
  • Founded: 2000
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Implied Market Cap: UK£46.096m
  • Market Cap: UK£44.761m
  • Shares outstanding: 129.85m
  • Website: https://www.tungsten-network.com

Number of Employees


Location

  • Tungsten Corporation plc
  • Pountney Hill House
  • 6 Laurence Pountney Hill
  • London
  • Greater London
  • EC4R 0BL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TUNGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 2013
TUNDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2013
TGTN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2013

Biography

Tungsten Corporation plc operates an e-invoicing network that also provides supply chain financing and spend analytics. The company operates through Tungsten Network and Tungsten Network Finance segments. It offers solutions for buyers, such as e-invoicing solutions to streamline and digitize accounts payable processes; analytics solutions to transform invoice data; workflow solutions for streamlining accounts payable processes; PO services that streamlines PO processing, as well as saves time and money; and invoice data capture solutions. The company also provides solutions for suppliers, including e-invoicing, early payment, global payments, and analytics. In addition, it offers trustee; investment management; and software services, as well as trade finance solutions. The company was founded in 2000 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:25
End of Day Share Price2020/02/25 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


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.