NasdaqCM:OPTT

Stock Analysis Report

Executive Summary

Ocean Power Technologies, Inc. develops and commercializes proprietary systems that generate electricity by harnessing the renewable energy of ocean waves in North America, Europe, Australia, and Asia.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.

Share Price & News

How has Ocean Power Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

OPTT

6.0%

US Electrical

3.4%

US Market


1 Year Return

-85.5%

OPTT

-1.0%

US Electrical

5.4%

US Market

Return vs Industry: OPTT underperformed the US Electrical industry which returned -1% over the past year.

Return vs Market: OPTT underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

OPTTIndustryMarket
7 Day0.6%6.0%3.4%
30 Day-18.7%-2.1%-1.0%
90 Day-15.4%2.0%-0.4%
1 Year-85.5%-85.5%1.2%-1.0%7.7%5.4%
3 Year-97.5%-97.5%40.8%32.5%46.2%36.8%
5 Year-99.2%-99.2%35.1%21.6%65.6%47.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ocean Power Technologies 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

Undervalued: Insufficient data to calculate OPTT's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate OPTT's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OPTT is good value based on its PB Ratio (0.7x) compared to the US Electrical industry average (1.5x).


Next Steps

  • Explore potentially undervalued companies in the Capital Goods industry.

Future Growth

How is Ocean Power Technologies forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.4%

Forecasted Capital Goods 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 Ocean Power Technologies 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

Past Performance

How has Ocean Power Technologies performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OPTT is unprofitable, but has reduced losses over the past 5 years at a rate of 2.3% per year.

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

Earnings vs Industry: OPTT is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (24%).


Return on Equity

High ROE: OPTT has a negative Return on Equity (-93.79%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Ocean Power Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: OPTT's short term assets ($14.1M) exceeds its short term liabilities ($2.1M)

Long Term Liabilities: OPTT's short term assets (14.1M) exceeds its long term liabilities (1.3M)


Debt to Equity History and Analysis

Debt Level: OPTT is debt free.

Reducing Debt: OPTT has no debt compared to 5 years ago when its debt to equity ratio was 0.9%.


Balance Sheet

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

Debt Coverage by Assets: OPTT's debt is covered by short term assets (assets are 63532279943315961.346370x 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: OPTT has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: OPTT has sufficient cash runway for 1.084919 years if free cash flow continues to reduce at historical rates of -6.3% each year.


Next Steps

Dividend

What is Ocean Power Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

3.4yrs

Average board tenure


CEO

George Kirby (49yo)

4.8yrs

Tenure

US$719,862

Compensation

Mr. George H. Kirby III has served as President, Chief Executive Officer and a Member of the Board of Directors of Ocean Power Technologies Incorporated since January 2015. Prior to this, he joined AECOM T ...


CEO Compensation Analysis

Compensation vs. Market: George's total compensation ($USD719.86K) is about average for companies of similar size in the US market ($USD493.02K).

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


Board Age and Tenure

3.4yrs

Average Tenure

55yo

Average Age

Experienced Board: OPTT's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$45,90019 Aug 19
Kevin Stein
EntityIndividual
Shares30,000
Max PriceUS$1.53
BuyUS$15,84306 Nov 18
George Kirby
EntityIndividual
Role
Chief Executive Officer
President
Shares1,492.4
Max PriceUS$10.98

Ownership Breakdown


Management Team

  • George Kirby (49yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$719.86k
  • John Lawrence

    General Counsel & Secretary

    • Tenure: 0yrs
  • Matthew Shafer (48yo)

    CFO, VP of Finance & Treasurer

    • Tenure: 3.1yrs
    • Compensation: US$377.07k

Board Members

  • Kristine Moore (58yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$42.82k
  • Robert Winters (51yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$62.87k
  • Steven Fludder (59yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$70.87k
  • Terry Cryan (57yo)

    Independent Chairman of the Board

    • Tenure: 5.3yrs
    • Compensation: US$102.87k
  • Dean Glover (53yo)

    Independent Vice Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: US$72.47k
  • George Kirby (49yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$719.86k

Company Information

Ocean Power Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ocean Power Technologies, Inc.
  • Ticker: OPTT
  • Exchange: NasdaqCM
  • Founded: 1984
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: US$9.522m
  • Shares outstanding: 5.77m
  • Website: https://www.oceanpowertechnologies.com

Number of Employees


Location

  • Ocean Power Technologies, Inc.
  • 28 Engelhard Drive
  • Suite B
  • Monroe Township
  • New Jersey
  • 8831
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OPTTNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJan 2005
RUOCDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2005

Biography

Ocean Power Technologies, Inc. develops and commercializes proprietary systems that generate electricity by harnessing the renewable energy of ocean waves in North America, Europe, Australia, and Asia. It  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:07
End of Day Share Price2019/10/15 00:00
Earnings2019/07/31
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.