OTCPK:TEAR

Stock Analysis Report

Executive Summary

TearLab Corporation operates as an in-vitro diagnostic company in the United States and internationally.

Snowflake

Fundamentals

Slightly overvalued with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

55.6%

TEAR

2.0%

US Medical Equipment

1.8%

US Market


1 Year Return

-31.4%

TEAR

13.3%

US Medical Equipment

7.3%

US Market

Return vs Industry: TEAR underperformed the US Medical Equipment industry which returned 13.3% over the past year.

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


Shareholder returns

TEARIndustryMarket
7 Day55.6%2.0%1.8%
30 Day16.4%-1.8%-0.7%
90 Day-6.7%-0.5%0.06%
1 Year-31.4%-31.4%14.2%13.3%9.7%7.3%
3 Year-98.9%-98.9%70.5%65.3%46.3%36.9%
5 Year-99.8%-99.8%127.0%101.8%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TEAR ($0.07) is trading below our estimate of fair value ($8.68)

Significantly Undervalued: TEAR is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: TEAR 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 TEAR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TEAR has negative assets, so we can't compare its PB Ratio to the US Medical Equipment industry average.


Next Steps

Future Growth

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

23.5%

Forecasted Healthcare 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 TearLab 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 TEAR’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 TearLab's filings and announcements here.
  • Explore growth companies in the Healthcare industry.

Past Performance

How has TearLab performed over the past 5 years?

27.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TEAR is unprofitable, but has reduced losses over the past 5 years at a rate of 27.9% per year.

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

Earnings vs Industry: TEAR is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (28.2%).


Return on Equity

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


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is TearLab's financial position?


Financial Position Analysis

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

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

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


Balance Sheet

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

Debt Coverage by Assets: TEAR 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: Whilst unprofitable TEAR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TEAR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 86.9% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

3.8yrs

Average management tenure


CEO

Seph Jensen (47yo)

3.8yrs

Tenure

US$738,096

Compensation

Mr. Joseph S. Jensen, also known as Seph, has been the Chief Executive Officer of TearLab Corporation since January 1, 2016 and served as its President since October 1, 2013. Mr. Jensen served as the Chief ...


CEO Compensation Analysis

Compensation vs. Market: Seph's total compensation ($USD738.10K) is about average for companies of similar size in the US market ($USD491.38K).

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


Management Age and Tenure

3.8yrs

Average Tenure

53yo

Average Age

Experienced Management: TEAR's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

60yo

Average Age

Experienced Board: TEAR's board of directors are seasoned and experienced ( 10.8 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.


Recent Insider Transactions

BuyUS$10,47530 Nov 18
Paul Karpecki
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100,000
Max PriceUS$0.11

Ownership Breakdown


Management Team

  • Elias Vamvakas (60yo)

    Executive Chairman & Secretary

    • Tenure: 16.3yrs
    • Compensation: US$230.43k
  • Stephen Kilmer (53yo)

    President of Kilmer Lucas Inc

    • Tenure: 0yrs
  • Mike Berg (66yo)

    Vice President of Regulatory

    • Tenure: 0yrs
    • Compensation: US$383.61k
  • Michael Lemp

    Chairman of Scientific Board & Chief Medical Officer

    • Tenure: 0yrs
  • Ben Sullivan (43yo)

    Chief Scientific Officer

    • Tenure: 11yrs
    • Compensation: US$465.01k
  • Steve Zmina (65yo)

    Vice President of Manufacturing & Engineering

    • Tenure: 0yrs
    • Compensation: US$217.60k
  • Leonard Zehr

    Managing Director of Kilmer Lucas Inc

    • Tenure: 0yrs
  • Seph Jensen (47yo)

    CEO & Director

    • Tenure: 3.8yrs
    • Compensation: US$738.10k
  • Sam Fakhoury

    Vice President of Quality

    • Tenure: 3.1yrs
  • Michael Marquez (37yo)

    Chief Financial Officer

    • Tenure: 1.5yrs
    • Compensation: US$386.43k

Board Members

  • Richard Lindstrom (71yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$36.00k
  • Elias Vamvakas (60yo)

    Executive Chairman & Secretary

    • Tenure: 16.3yrs
    • Compensation: US$230.43k
  • Tony Altig (63yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$36.00k
  • Michael Lemp

    Chairman of Scientific Board & Chief Medical Officer

    • Tenure: 0yrs
  • Paul Karpecki (52yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$36.00k
  • Marc Bloomenstein

    Member of Clinical Advisory Board

    • Tenure: 0yrs
  • Chuck Aldridge

    Member of Clinical Advisory Board

    • Tenure: 0yrs
  • Jim Owen

    Member of Clinical Advisory Board

    • Tenure: 0yrs
  • William Townsend

    Member of Clinical Advisory Board

    • Tenure: 0yrs
  • Seph Jensen (47yo)

    CEO & Director

    • Tenure: 3.8yrs
    • Compensation: US$738.10k

Company Information

TearLab Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TearLab Corporation
  • Ticker: TEAR
  • Exchange: OTCPK
  • Founded: 1996
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: US$879.244k
  • Shares outstanding: 12.56m
  • Website: https://www.tearlab.com

Number of Employees


Location

  • TearLab Corporation
  • 150 LaTerraza Boulevard
  • Suite 101
  • Escondido
  • California
  • 92025
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TEAROTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2004

Biography

TearLab Corporation operates as an in-vitro diagnostic company in the United States and internationally. It offers TearLab Osmolority System, a proprietary in vitro diagnostic tear testing platform that me ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:57
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.