AIM:WAND

Stock Analysis Report

Executive Summary

WANdisco plc engages in the development and provision of collaboration software in North America, Europe, and internationally.

Snowflake

Fundamentals

Adequate balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.1%

WAND

4.1%

GB Software

-0.4%

GB Market


1 Year Return

-17.2%

WAND

6.6%

GB Software

2.9%

GB Market

Return vs Industry: WAND underperformed the UK Software industry which returned 6.6% over the past year.

Return vs Market: WAND underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

WANDIndustryMarket
7 Day3.1%4.1%-0.4%
30 Day-29.6%1.7%-1.4%
90 Day-25.9%-8.4%-2.1%
1 Year-17.2%-17.2%12.7%6.6%7.9%2.9%
3 Year169.4%169.4%6.6%-11.0%18.0%3.6%
5 Year5.3%5.3%69.3%35.6%35.8%6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WAND (£4) is trading below our estimate of fair value (£21.44)

Significantly Undervalued: WAND is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WAND is overvalued based on its PB Ratio (11.3x) compared to the GB Software industry average (3.1x).


Next Steps

Future Growth

How is WANdisco forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

42.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: WAND's revenue (27.1% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: WAND's revenue (27.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has WANdisco performed over the past 5 years?

18.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WAND is unprofitable, but has reduced losses over the past 5 years at a rate of 18.7% per year.

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

Earnings vs Industry: WAND is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (7%).


Return on Equity

High ROE: WAND has a negative Return on Equity (-118.86%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is WANdisco's financial position?


Financial Position Analysis

Short Term Liabilities: WAND's short term assets ($24.0M) exceeds its short term liabilities ($8.9M)

Long Term Liabilities: WAND's short term assets (24.0M) exceeds its long term liabilities (4.9M)


Debt to Equity History and Analysis

Debt Level: WAND's debt to equity ratio (15.1%) is considered satisfactory

Reducing Debt: WAND's debt to equity ratio has increased from 0% to 15.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: WAND's debt is covered by short term assets (assets are 7.838670x 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: WAND has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Growing Dividend: Insufficient data to determine if WAND'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 WAND'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 WANdisco's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

David Richards (48yo)

3yrs

Tenure

US$891,000

Compensation

Mr. David James Richards Co-Founded WANdisco plc in 2005 and has been its Chief Executive Officer since October 6, 2016 and its President since October 13, 2016. Mr. Richards served as Chief Executive Offi ...


CEO Compensation Analysis

Compensation vs. Market: David's total compensation ($USD891.00K) is about average for companies of similar size in the UK market ($USD642.11K).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.8yrs

Average Tenure

59yo

Average Age

Experienced Management: WAND's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

57.5yo

Average Age

Experienced Board: WAND's board of directors are not considered experienced ( 2.8 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.


Recent Insider Transactions

BuyUS$39,25831 Oct 18
Yeturu Aahlad
EntityIndividual
Role
Member of the Board of Directors
Inventor
Shares10,000
Max PriceUS$3.93
BuyUS$39,25831 Oct 18
David Richards
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares10,000
Max PriceUS$3.93
BuyUS$20,83024 Oct 18
Erik Miller
EntityIndividual
Role
Member of the Board of Directors
CFO & Director
Shares5,000
Max PriceUS$4.17

Ownership Breakdown


Management Team

  • Erik Miller (59yo)

    CFO & Director

    • Tenure: 2.8yrs
    • Compensation: US$399.00k
  • David Richards (48yo)

    Co-Founder

    • Tenure: 3yrs
    • Compensation: US$891.00k
  • Anne Lynch (63yo)

    Senior Vice President of Human Resources

    • Tenure: 2.6yrs
  • Yeturu Aahlad (61yo)

    Inventor

    • Tenure: 2.7yrs
    • Compensation: US$168.00k
  • Peter Scott (41yo)

    Senior Vice President of Business Development

    • Tenure: 0yrs
  • Mohammad Akhtar

    Chief Architect

    • Tenure: 0yrs
  • Larry Webster

    General Counsel & Company Secretary

    • Tenure: 2.6yrs
  • Keith Graham

    Senior Vice President of Global Sales

    • Tenure: 3.8yrs
  • Alex Gee

    Vice President of Marketing & Communications

    • Tenure: 2.6yrs
  • Daud Khan

    Vice President of Corporate Development

    • Tenure: 0yrs

Board Members

  • Erik Miller (59yo)

    CFO & Director

    • Tenure: 2.8yrs
    • Compensation: US$399.00k
  • David Richards (48yo)

    Co-Founder

    • Tenure: 3yrs
    • Compensation: US$891.00k
  • Karl Monaghan (56yo)

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: US$40.00k
  • Yeturu Aahlad (61yo)

    Inventor

    • Tenure: 2.7yrs
    • Compensation: US$168.00k
  • William Dollens (40yo)

    Non-Executive Director

    • Tenure: 3yrs
    • Compensation: US$40.00k
  • Bob Corey (67yo)

    Vice Chairman

    • Tenure: 0.9yrs
    • Compensation: US$6.00k

Company Information

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


Key Information

  • Name: WANdisco plc
  • Ticker: WAND
  • Exchange: AIM
  • Founded: 2005
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: UK£180.629m
  • Shares outstanding: 45.16m
  • Website: https://www.wandisco.com

Number of Employees


Location

  • WANdisco plc
  • Electric Works
  • Sheffield Digital Campus
  • Sheffield
  • S1 2BJ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WANDAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2012
WANS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2012
WD4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2012

Biography

WANdisco plc engages in the development and provision of collaboration software in North America, Europe, and internationally. It offers WANdisco Fusion, a general-purpose replication platform transfers da ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:24
End of Day Share Price2019/10/18 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.