OM:EDGE

Stock Analysis Report

Executive Summary

Edgeware AB (publ) develops, markets, and sells streaming solutions for distributing TV and video content to viewers over Internet.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.6%

EDGE

-1.6%

SE Communications

0.09%

SE Market


1 Year Return

-57.9%

EDGE

-1.2%

SE Communications

22.0%

SE Market

Return vs Industry: EDGE underperformed the Swedish Communications industry which returned -1.2% over the past year.

Return vs Market: EDGE underperformed the Swedish Market which returned 22% over the past year.


Shareholder returns

EDGEIndustryMarket
7 Day-0.6%-1.6%0.09%
30 Day-7.3%2.0%4.7%
90 Day-9.0%0.5%11.1%
1 Year-57.9%-57.9%-0.01%-1.2%26.9%22.0%
3 Year-85.8%-85.8%52.8%45.7%40.1%18.9%
5 Yearn/a-7.7%-18.4%46.5%15.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.74x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EDGE is good value based on its PB Ratio (0.7x) compared to the SE Communications industry average (1.8x).


Next Steps

Future Growth

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

138.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EDGE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: EDGE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EDGE's is expected to become profitable in the next 3 years.

Revenue vs Market: EDGE's revenue (9.5% per year) is forecast to grow faster than the Swedish market (4.7% per year).

High Growth Revenue: EDGE's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EDGE's Return on Equity is forecast to be low in 3 years time (2.3%).


Next Steps

Past Performance

How has Edgeware performed over the past 5 years?

-59.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EDGE is currently unprofitable.

Growing Profit Margin: EDGE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EDGE is unprofitable, and losses have increased over the past 5 years at a rate of -59.8% per year.

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

Earnings vs Industry: EDGE is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (31.6%).


Return on Equity

High ROE: EDGE has a negative Return on Equity (-11.52%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Edgeware's financial position?


Financial Position Analysis

Short Term Liabilities: EDGE's short term assets (SEK232.1M) exceed its short term liabilities (SEK70.8M).

Long Term Liabilities: EDGE's short term assets (SEK232.1M) exceed its long term liabilities (SEK6.0M).


Debt to Equity History and Analysis

Debt Level: EDGE is debt free.

Reducing Debt: EDGE has no debt compared to 5 years ago when its debt to equity ratio was 16.8%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if EDGE's debt is covered by short term assets.


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: EDGE has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: EDGE has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.2%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Karl Thedéen (56yo)

2yrs

Tenure

kr3,400,000

Compensation

Mr. Karl Thedéen has been CEO of Edgeware AB (publ) since February 13, 2018 and had served as its Director until May 4, 2018. Mr. Thedéen served as the Head of Metro Business Group and Senior Vice Presiden ...


CEO Compensation Analysis

Compensation vs Market: Karl's total compensation ($USD349.67K) is above average for companies of similar size in the Swedish market ($USD207.34K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Karl Thedéen
Chief Executive Officer2yrskr3.40m0.14% SEK224.4k
Lukas Holm
Co-Founder & Senior H/W Engineer16.1yrskr1.13m1.15% SEK1.8m
Kalle Henriksson
Co-Founder & Chief Platform Architect16.1yrskr1.20m1.05% SEK1.6m
Annika Norin
Chief Financial Officer1.1yrsno data0.010% SEK15.7k
Johan Bolin
Chief Product & Technology Officer1.1yrsno data0.0034% SEK5.4k
Richard Berg
General Counsel7.1yrsno datano data
Astrid Lengdell
VP of Marketing1.1yrsno datano data

2.0yrs

Average Tenure

52yo

Average Age

Experienced Management: EDGE's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Ruffolo
Chairman of the Board0yrskr1.90m0.081% SEK127.8k
Sigrun Hjelmquist
Independent Director4.1yrskr200.00k0.033% SEK52.3k
Kent Sander
Independent Director4.1yrskr200.00k0.033% SEK52.3k
Tuija Soanjärvi
Independent Director1.8yrskr200.00kno data
Jonas Hasselberg
Independent Director1.8yrskr200.00kno data
Arnd Benninghoff
Independent Director1.8yrskr200.00kno data

1.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: EDGE's board of directors are not considered experienced ( 1.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Edgeware AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Edgeware AB (publ)
  • Ticker: EDGE
  • Exchange: OM
  • Founded: 2004
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: kr157.125m
  • Shares outstanding: 30.04m
  • Website: https://www.edgeware.tv

Number of Employees


Location

  • Edgeware AB (publ)
  • Mäster Samuelsgatan 42
  • 12th Floor
  • Stockholm
  • Stockholm County
  • 111 57
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EDGEOM (OMX Nordic Exchange Stockholm)YesClass C Common SharesSESEKDec 2016
0RKVLSE (London Stock Exchange)YesClass C Common SharesGBSEKDec 2016
EDGESBATS-CHIXE (BATS 'Chi-X Europe')YesClass C Common SharesGBSEKDec 2016
E5DDB (Deutsche Boerse AG)YesClass C Common SharesDEEURDec 2016

Biography

Edgeware AB (publ) develops, markets, and sells streaming solutions for distributing TV and video content to viewers over Internet. The company offers TV subtitling, content capture, repackager, ad insertion, director, delivery, watermaker, system manager, and analytics; content delivery network selector; edge TV repackager; multitenancy; and fast channel change. It also provides deployment, network audit, online monitoring, and system customization services; and maintenance and support services, as well as training services for over-the top (OTT)/Internet protocol TV overview, and edgeware TV system overview and advanced courses. The company operates in Europe, the Middle East, and Africa; North and South America; and the Asia Pacific. It serves telecom and cable operators, as well as OTTs/broadcasters. Edgeware AB (publ) was founded in 2004 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 23:51
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.