Bounce Mobile Systems (OTCPK:BNCM) - Share price, News & Analysis

Q: What is the Fair Price of BNCM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BNCM ($0.05) is trading below our estimate of [[fair value]] ($0.48)

BNCM fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

BNCM Stock Overview

Bounce Mobile Systems, Inc. operates as an asset management company.

Rewards

Trading at 90.4% below our estimate of its fair value

Risk Analysis

Highly volatile share price over the past 3 months

Shareholders have been substantially diluted in the past year

Large one-off items impacting financial results

Less than 3 years of financial data is available

+ 1 more risk

Bounce Mobile Systems Competitors

Netcapital

OTCPK:NCPL

US$24.8m

Teton Advisors

OTCPK:TETA.A

US$18.0m

Ceres Acquisition

OTCPK:CERA.F

US$30.0m

Enterprise Diversified

OTCPK:SYTE

US$14.7m

Price History & Performance

Summary of all time highs, changes and price drops for Bounce Mobile Systems
Historical stock prices
Current Share Price	US$0.047
52 Week High	US$1.70
52 Week Low	US$0.036
Beta	3.16
1 Month Change	13.51%
3 Month Change	-57.69%
1 Year Change	-85.46%
3 Year Change	287.83%
5 Year Change	n/a
Change since IPO	-99.98%

Shareholder Returns

	BNCM	US Capital Markets	US Market
7D	3.4%	-2.2%	-2.2%
1Y	-85.5%	-20.6%	-19.1%

Return vs Industry: BNCM underperformed the US Capital Markets industry which returned -20.6% over the past year.

Return vs Market: BNCM underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is BNCM's price volatile compared to industry and market?
BNCM volatility
BNCM Average Weekly Movement	43.1%
Capital Markets Industry Average Movement	0.5%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.3%

Stable Share Price: BNCM is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 43% a week.

Volatility Over Time: BNCM's weekly volatility has decreased from 67% to 43% over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
1990	20	n/a	https://www.bncm.net

Bounce Mobile Systems, Inc. operates as an asset management company. It owns assets and or shares in various companies involved in asset management, blockchain, education, healthcare, and technologies in Asia, Australia, New Zealand, and the United States. Bounce Mobile Systems was incorporated in 1990 and is based in Reno, Nevada.

Bounce Mobile Systems Fundamentals Summary

How do Bounce Mobile Systems's earnings and revenue compare to its market cap?
BNCM fundamental statistics
Market Cap	US$21.39m
Earnings (TTM)	US$10.09m
Revenue (TTM)	US$43.90m

2.1x

P/E Ratio

0.5x

P/S Ratio

Is BNCM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BNCM income statement (TTM)
Revenue	US$43.90m
Cost of Revenue	US$2.94m
Gross Profit	US$40.96m
Other Expenses	US$30.87m
Earnings	US$10.09m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.022
Gross Margin	93.30%
Net Profit Margin	22.98%
Debt/Equity Ratio	0.0%

How did BNCM perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is BNCM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BNCM?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BNCM. This is calculated by dividing BNCM's market cap by their current preferred multiple.
What is BNCM's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$21.39m

BNCM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does BNCM's PE Ratio compare to its peers?

BNCM PE Ratio vs Peers

The above table shows the PE ratio for BNCM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	37.1x
NCPL Netcapital	5.7x	n/a	US$24.8m
TETA.A Teton Advisors	8x	n/a	US$18.0m
CERA.F Ceres Acquisition	1.7x	n/a	US$30.0m
SYTE Enterprise Diversified	133x	n/a	US$14.7m
BNCM Bounce Mobile Systems	2.1x	n/a	US$21.4m

Forward PE

Price-To-Earnings vs Peers: BNCM is good value based on its Price-To-Earnings Ratio (2.1x) compared to the peer average (37.1x).

Price to Earnings Ratio vs Industry

How does BNCM's PE Ratio compare vs other companies in the US Capital Markets Industry?

Price-To-Earnings vs Industry: BNCM is good value based on its Price-To-Earnings Ratio (2.1x) compared to the US Capital Markets industry average (29.4x)

Price to Earnings Ratio vs Fair Ratio

What is BNCM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BNCM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BNCM's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of BNCM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BNCM ($0.05) is trading below our estimate of fair value ($0.48)

Significantly Below Fair Value: BNCM is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

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

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Future Growth

How is Bounce Mobile Systems forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.9%

Forecasted Diversified Financials 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 Bounce Mobile Systems 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.

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Examine whether Bounce Mobile Systems is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
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 Bounce Mobile Systems's filings and announcements here.

Past Performance

How has Bounce Mobile Systems performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

24.0%

Historical Diversified Financials annual earnings growth

Earnings and Revenue History

Quality Earnings: BNCM has a large one-off loss of $30.9M impacting its December 31 2021 financial results.

Growing Profit Margin: Insufficient data to determine if BNCM's profit margins have improved over the past year.

Past Earnings Growth Analysis

Earnings Trend: Unable to establish if BNCM's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare BNCM's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: Insufficient data to determine if BNCM's earnings growth over the past year exceeded the Capital Markets industry average.

Return on Equity

High ROE: BNCM's Return on Equity (10.7%) is considered low.

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Financial Health

How is Bounce Mobile Systems's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BNCM's short term assets ($8.3M) exceed its short term liabilities ($160.5K).

Long Term Liabilities: BNCM has no long term liabilities.

Debt to Equity History and Analysis

Debt Level: BNCM is debt free.

Reducing Debt: BNCM has not had any debt for past 5 years.

Debt Coverage: BNCM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BNCM has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Bounce Mobile Systems's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate BNCM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BNCM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BNCM's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BNCM has not reported any payouts.

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Management

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

31.0yrs

Average board tenure

CEO

Bounce Mobile Systems has no CEO, or we have no data on them.

Board Members

Experienced Board: BNCM's board of directors are seasoned and experienced ( 31 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 substantially diluted in the past year, with total shares outstanding growing by 86145.6%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/04 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31