OTCPK:COTE

Stock Analysis Report

Executive Summary

Coates International, Ltd. develops and sells Coates Spherical Rotary Valve (CSRV) system technology for use in various piston-driven internal combustion engines in the United States and internationally.

Snowflake

Fundamentals

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

COTE

5.2%

US Auto Components

1.8%

US Market


1 Year Return

-75.0%

COTE

-2.6%

US Auto Components

7.3%

US Market

Return vs Industry: COTE underperformed the US Auto Components industry which returned -2.6% over the past year.

Return vs Market: COTE underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

COTEIndustryMarket
7 Day0%5.2%1.8%
30 Day0%0.3%-0.7%
90 Day0%2.5%0.06%
1 Year-75.0%-75.0%-1.1%-2.6%9.7%7.3%
3 Year-99.9%-99.9%10.7%-0.8%46.3%36.9%
5 Year-100.0%-100.0%19.0%2.6%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


In this section, we usually try to help investors determine whether Coates International is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Coates International has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of COTE’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Coates International regulatory filings here.
  • Explore potentially undervalued companies in the Automobiles industry.

Future Growth

How is Coates International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.7%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Coates International has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of COTE’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Coates International's filings and announcements here.
  • Explore growth companies in the Automobiles industry.

Past Performance

How has Coates International performed over the past 5 years?

29.9%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: COTE is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

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

Earnings vs Industry: COTE is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (8.1%).


Return on Equity

High ROE: COTE's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Coates International's financial position?


Financial Position Analysis

Short Term Liabilities: COTE has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: COTE has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: COTE has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: COTE's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: COTE has a high level of physical assets or inventory.

Debt Coverage by Assets: COTE has negative shareholder equity (liabilities exceed assets) therefore debt is not 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: Insufficient data to determine if COTE has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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


Next Steps

Management

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

12.6yrs

Average management tenure


CEO

George Coates (79yo)

12.6yrs

Tenure

US$5,471,089

Compensation

Mr. George J. Coates is the Founder of Coates International Ltd. and has been its President and Chief Executive Officer since March 2007. Mr. Coates served as Chief Financial Officer, Treasurer and Princip ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether George's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

12.6yrs

Average Tenure

66yo

Average Age

Experienced Management: COTE's management team is seasoned and experienced (12.6 years average tenure).


Board Age and Tenure

13.0yrs

Average Tenure

68yo

Average Age

Experienced Board: COTE's board of directors are seasoned and experienced ( 13 years average tenure).


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


Management Team

  • Gregory Coates (48yo)

    President of Technology Division

    • Tenure: 13yrs
    • Compensation: US$589.99k
  • George Coates (79yo)

    Founder

    • Tenure: 12.6yrs
    • Compensation: US$5.47m
  • Richard Evans (87yo)

    Consultant

    • Tenure: 0yrs
    • Compensation: US$6.13k
  • Michael Suchar (64yo)

    Consultant

    • Tenure: 0yrs
    • Compensation: US$6.13k
  • Barry Kaye (66yo)

    Treasurer

    • Tenure: 13yrs
    • Compensation: US$206.17k
  • William Wolf

    Outside General Counsel

    • Tenure: 0yrs
  • Ronald Jones

    Vice President of New Business Development

    • Tenure: 10.4yrs
  • Nick Kontonicolas

    Chief Operating Officer

    • Tenure: 3.3yrs

Board Members

  • Glenn Crocker (70yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$6.13k
  • Gregory Coates (48yo)

    President of Technology Division

    • Tenure: 13yrs
    • Compensation: US$589.99k
  • George Coates (79yo)

    Founder

    • Tenure: 12.6yrs
    • Compensation: US$5.47m
  • Frank Adipietro (61yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$6.13k
  • Barry Kaye (66yo)

    Treasurer

    • Tenure: 13yrs
    • Compensation: US$206.17k
  • Rick Whitworth (70yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$6.13k

Company Information

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


Key Information

  • Name: Coates International, Ltd.
  • Ticker: COTE
  • Exchange: OTCPK
  • Founded: 1988
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$289.273k
  • Shares outstanding: 2.89b
  • Website: https://www.coatesengine.com

Number of Employees


Location

  • Coates International, Ltd.
  • 2100 Highway 34 & Ridgewood Road
  • Wall Township
  • New Jersey
  • 7719
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COTEOTCPK (Pink Sheets LLC)YesCommon StockUSUSDFeb 2007

Biography

Coates International, Ltd. develops and sells Coates Spherical Rotary Valve (CSRV) system technology for use in various piston-driven internal combustion engines in the United States and internationally. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:02
End of Day Share Price2019/10/17 00:00
Earnings2018/09/30
Annual Earnings2017/12/31


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.