OTCPK:WCRS

Stock Analysis Report

Western Capital Resources

Executive Summary

Western Capital Resources, Inc., through its subsidiaries, engages in the retail business in the United States.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Western Capital Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WCRS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

WCRS

-9.7%

US Specialty Retail

-2.8%

US Market


1 Year Return

-6.2%

WCRS

-33.8%

US Specialty Retail

-15.9%

US Market

Return vs Industry: WCRS exceeded the US Specialty Retail industry which returned -33.8% over the past year.

Return vs Market: WCRS exceeded the US Market which returned -15.9% over the past year.


Shareholder returns

WCRSIndustryMarket
7 Day0%-9.7%-2.8%
30 Day-8.5%-30.2%-18.8%
90 Day-16.8%-38.0%-24.0%
1 Year-1.3%-6.2%-32.8%-33.8%-14.2%-15.9%
3 Year-7.3%-18.7%-8.9%-13.4%9.9%2.8%
5 Year-15.3%-26.8%-9.3%-16.4%27.2%13.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Western Capital Resources undervalued compared to its fair value and its price relative to the market?

44.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WCRS ($3.66) is trading below our estimate of fair value ($6.56)

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


Price To Earnings Ratio

PE vs Industry: WCRS is poor value based on its PE Ratio (14.8x) compared to the Specialty Retail industry average (6.5x).

PE vs Market: WCRS is poor value based on its PE Ratio (14.8x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WCRS is good value based on its PB Ratio (0.5x) compared to the US Specialty Retail industry average (0.7x).


Next Steps

Future Growth

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

6.3%

Forecasted Retail 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 Western Capital Resources 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

  • Examine whether Western Capital Resources 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 Western Capital Resources's filings and announcements here.
  • Explore growth companies in the Retail industry.

Past Performance

How has Western Capital Resources performed over the past 5 years?

-38.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WCRS has high quality earnings.

Growing Profit Margin: WCRS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WCRS's earnings have declined by -38.6% per year over the past 5 years.

Accelerating Growth: WCRS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WCRS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (6.9%).


Return on Equity

High ROE: WCRS's Return on Equity (5.3%) is considered low.


Next Steps

Financial Health

How is Western Capital Resources's financial position?


Financial Position Analysis

Short Term Liabilities: WCRS's short term assets ($57.3M) exceed its short term liabilities ($17.7M).

Long Term Liabilities: WCRS's short term assets ($57.3M) exceed its long term liabilities ($8.8M).


Debt to Equity History and Analysis

Debt Level: WCRS's debt to equity ratio (1.7%) is considered satisfactory.

Reducing Debt: WCRS's debt to equity ratio has reduced from 25.4% to 1.7% over the past 5 years.

Debt Coverage: WCRS's debt is well covered by operating cash flow (444.6%).

Interest Coverage: WCRS earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: WCRS's debt is covered by short term assets (assets are 52.8x debt).


Next Steps

Dividend

What is Western Capital Resources's current dividend yield, its reliability and sustainability?

5.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WCRS's dividend (5.46%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: WCRS's dividend (5.46%) is low compared to the top 25% of dividend payers in the US market (5.82%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WCRS has been paying a dividend for less than 10 years.

Growing Dividend: WCRS's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.8%), WCRS's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

John Quandahl (52yo)

11.25s

Tenure

US$300,000

Compensation

Mr. John Quandahl has been the Chief Executive Officer and President of Western Capital Resources, Inc. since January 1, 2009 and has been its Chief Operating Officer since November 29, 2007. Mr. Quandahl  ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD300.00K) is below average for companies of similar size in the US market ($USD626.05K).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Quandahl
CEO, President11.25yrsUS$300.00k0.32% $109.8k
Angel Donchev
CFO & Chief Investment Officer2.67yrsUS$435.00k0.59% $200.8k
Steve Irlbeck
Former Director of Accounting & Tax2.67yrsUS$265.50k0.11% $36.6k
Rich Horner
Controllerno dataUS$235.50kno data

2.7yrs

Average Tenure

53yo

Average Age

Experienced Management: WCRS's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Quandahl
CEO, President11.25yrsUS$300.00k0.32% $109.8k
Ellery Roberts
Independent Director9.92yrsUS$21.00kno data
Kevin Morgan Kuby
Director4.75yrsno datano data
Richard Miller
Directorno dataUS$100.00k0.99% $337.3k
Jack Myers
Director0.67yrno datano data

7.3yrs

Average Tenure

50yo

Average Age

Experienced Board: WCRS's board of directors are considered experienced (7.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Western Capital Resources, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Western Capital Resources, Inc.
  • Ticker: WCRS
  • Exchange: OTCPK
  • Founded:
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$33.913m
  • Shares outstanding: 9.27m
  • Website: https://www.westerncapitalresources.com

Number of Employees


Location

  • Western Capital Resources, Inc.
  • 11550 I Street
  • Suite 150
  • Omaha
  • Nebraska
  • 68137
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WCRSOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 2008

Biography

Western Capital Resources, Inc., through its subsidiaries, engages in the retail business in the United States. The company operates through Cellular Retail, Direct to Consumer, and Consumer Finance segments. The Cellular Retail segment operates as a Cricket dealer selling cellular phones and accessories; and provides ancillary services, as well as accepts service payments from customers. This segment’s Cricket retail stores offer various products and services, including cricket wireless service plans; cricket wireless plan upgrades, as well as Deezer, an independent music service; and Cricket handsets and accessories. The Direct to Consumer Segment engages in the online and direct marketing distribution retail of live plants, seeds, holiday gifts, and garden accessories under the Park Seed, Jackson & Perkins, and Wayside Gardens brands, as well as wholesale under the Park Wholesale brand. It also provides home improvement and restoration products under the Van Dyke’s Restorers brand through the Vandykes.com site and direct mail catalogs. The Consumer Finance segment offers sub-prime short-term uncollateralized non-recourse cash advance and installment loans, check cashing, and other money services; and owns and operates retail pawn stores. As of March 31, 2019, it owned and operated 222 cellular retail stores; 38 payday stores in Iowa, Kansas, Nebraska, North Dakota, Wisconsin, and Wyoming; and 3 pawn stores in Nebraska and Iowa. The company is headquartered in Omaha, Nebraska. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 01:34
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.