OTCPK:STWC

Stock Analysis Report

Executive Summary

STWC Holdings, Inc. provides fulfillment services to medical and retail stores, and cultivation facilities in the regulated cannabis industry in the United States.


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-55.0%

STWC

0.06%

US Professional Services

0.06%

US Market


1 Year Return

-99.9%

STWC

29.6%

US Professional Services

19.3%

US Market

Return vs Industry: STWC underperformed the US Professional Services industry which returned 29.6% over the past year.

Return vs Market: STWC underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

STWCIndustryMarket
7 Day-55.0%0.06%0.06%
30 Day-89.4%2.8%1.7%
90 Day-98.2%13.6%9.0%
1 Year-99.9%-99.9%30.8%29.6%21.8%19.3%
3 Year-99.8%-99.8%62.8%57.6%49.5%39.9%
5 Year-99.9%-99.9%82.9%73.0%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


In this section, we usually try to help investors determine whether STWC Holdings is trading at an attractive price based on the cash flow it is expected to produce in the future. But as STWC Holdings 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 STWC’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 STWC Holdings regulatory filings here.
  • Explore potentially undervalued companies in the Commercial Services industry.

Future Growth

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

28.4%

Forecasted Commercial Services 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 STWC Holdings 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 STWC’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 STWC Holdings's filings and announcements here.
  • Explore growth companies in the Commercial Services industry.

Past Performance

How has STWC Holdings performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STWC is currently unprofitable.

Growing Profit Margin: STWC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: STWC is unprofitable, but has reduced losses over the past 5 years at a rate of 5.6% per year.

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

Earnings vs Industry: STWC is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (10.6%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is STWC Holdings's financial position?


Financial Position Analysis

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

Long Term Liabilities: STWC 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: STWC has negative shareholder equity, which is a more serious situation than a high debt level.

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


Balance Sheet

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

Debt Coverage by Assets: STWC 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: STWC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: STWC has less than a year of cash runway if free cash flow continues to grow at historical rates of 20.2% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Erin Phillips (42yo)

5.5yrs

Tenure

US$205,000

Compensation

Ms. Erin E. Phillips serves as Chairman, President and Chief Executive Officer at Strainwise, Inc. and STWC Holdings, Inc. and also serves as its Treasurer. Ms. Phillips serves as Chief Financial & Account ...


CEO Compensation Analysis

Compensation vs Market: Erin's total compensation ($USD205.00K) is below average for companies of similar size in the US market ($USD521.37K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Erin Phillips
Chairman5.5yrsUS$205.00k22.16% $7.3k
Jean Gonnell
General Counsel0.8yrsno datano data
David Modica
Manager of Quality Control7.1yrsUS$131.50kno data

5.5yrs

Average Tenure

Experienced Management: STWC's management team is seasoned and experienced (5.5 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 12.9%.


Top Shareholders

Company Information

STWC Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: STWC Holdings, Inc.
  • Ticker: STWC
  • Exchange: OTCPK
  • Founded: 2012
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$33.031k
  • Shares outstanding: 36.70m
  • Website: https://www.strainwiseconsulting.com

Number of Employees


Location

  • STWC Holdings, Inc.
  • 1350 Independence Street
  • Suite 300
  • Lakewood
  • Colorado
  • 80215
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STWCOTCPK (Pink Sheets LLC)YesNew Common StockUSUSDApr 2009

Biography

STWC Holdings, Inc. provides fulfillment services to medical and retail stores, and cultivation facilities in the regulated cannabis industry in the United States. Its services include opportunity assessment; application filing assistance; branding, marketing, and administrative consulting; accounting and financial services; compliance services; and providing loans to individuals and businesses. The company was founded in 2012 and is based in Lakewood, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:18
End of Day Share Price2020/02/20 00:00
Earnings2019/10/31
Annual Earnings2019/01/31


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.