NasdaqGM:BSQR

Stock Analysis Report

Executive Summary

BSQUARE Corporation provides software solutions and related engineering services to businesses that develop, market, and sell standalone intelligent systems in North America, Europe, and Asia.

Risk Analysis

Earnings have declined by -66.43% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have a meaningful market cap ($19M)



Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

BSQR

2.7%

US Software

2.0%

US Market


1 Year Return

-32.9%

BSQR

39.3%

US Software

23.6%

US Market

Return vs Industry: BSQR underperformed the US Software industry which returned 39.8% over the past year.

Return vs Market: BSQR underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

BSQRIndustryMarket
7 Day0%2.7%2.0%
30 Day9.8%7.1%3.9%
90 Day29.2%19.6%12.0%
1 Year-32.9%-32.9%40.6%39.3%26.2%23.6%
3 Year-75.0%-75.0%144.7%135.0%53.2%43.3%
5 Year-66.8%-66.8%199.3%178.0%75.7%56.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.74x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate BSQR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate BSQR's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BSQR is good value based on its PB Ratio (1.8x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

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

15.8%

Forecasted Software 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 BSQUARE 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 BSQUARE performed over the past 5 years?

-66.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BSQR is currently unprofitable.

Growing Profit Margin: BSQR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BSQR is unprofitable, and losses have increased over the past 5 years at a rate of -66.4% per year.

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

Earnings vs Industry: BSQR is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.8%).


Return on Equity

High ROE: BSQR has a negative Return on Equity (-122.65%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BSQUARE's financial position?


Financial Position Analysis

Short Term Liabilities: BSQR's short term assets ($21.4M) exceed its short term liabilities ($11.2M).

Long Term Liabilities: BSQR's short term assets ($21.4M) exceed its long term liabilities ($942.0K).


Debt to Equity History and Analysis

Debt Level: BSQR is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if BSQR's debt is 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: BSQR has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: BSQR has sufficient cash runway for 1.8 years if free cash flow continues to reduce at historical rates of -55% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

0.9yrs

Average management tenure


CEO

Ralph Derrickson (60yo)

0.8yrs

Tenure

0

Mr. Ralph C. Derrickson serves as President, Chief Executive Officer and Director at BSQUARE Corporation since March 11, 2019. He has been a Member of the Board of Perficient, Inc. since July 2004. Mr. Der ...


Management Age and Tenure

0.9yrs

Average Tenure

Experienced Management: BSQR's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

54yo

Average Age

Experienced Board: BSQR's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


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$42,54121 Nov 19
Palogic Value Management, LP
EntityCompany
Shares33,132
Max PriceUS$1.28
BuyUS$85,85114 Nov 19
Palogic Value Management, LP
EntityCompany
Shares66,868
Max PriceUS$1.29
BuyUS$13,53516 Sep 19
Palogic Value Management, LP
EntityCompany
Shares10,484
Max PriceUS$1.29
BuyUS$35,45306 Sep 19
Palogic Value Management, LP
EntityCompany
Shares28,362
Max PriceUS$1.25
BuyUS$7,69324 May 19
Ralph Derrickson
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max PriceUS$1.54
BuyUS$150,21320 May 19
Palogic Value Management, LP
EntityCompany
Shares100,000
Max PriceUS$1.51

Ownership Breakdown

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


Management Team

  • Ralph Derrickson (60yo)

    President

    • Tenure: 0.8yrs
  • Chris Wheaton

    Chief Financial Officer

    • Tenure: 0.3yrs
  • Gary Shane

    Senior Director of Finance & Controller

    • Tenure: 1.6yrs
  • Steven Gottlieb

    Vice President of Marketing

    • Tenure: 1yrs

Board Members

  • Bob Chamberlain (65yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$90.00k
  • Ralph Derrickson (60yo)

    President

    • Tenure: 0.8yrs
  • Andrew S. Harries (57yo)

    Independent Chairman of the Board

    • Tenure: 6.5yrs
    • Compensation: US$130.00k
  • Mary Jesse (54yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$85.00k
  • Ryan Vardeman (41yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$133.00k
  • Davin Cushman (45yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$90.01k
  • Rob Peters (41yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$99.69k

Company Information

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


Key Information

  • Name: BSQUARE Corporation
  • Ticker: BSQR
  • Exchange: NasdaqGM
  • Founded: 1994
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$18.954m
  • Shares outstanding: 12.98m
  • Website: https://www.bsquare.com

Number of Employees


Location

  • BSQUARE Corporation
  • 110 110th Avenue NE
  • Suite 300
  • Bellevue
  • Washington
  • 98004
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BSQRNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDOct 1999

Biography

BSQUARE Corporation provides software solutions and related engineering services to businesses that develop, market, and sell standalone intelligent systems in North America, Europe, and Asia. The company offers DataV software solution, which addresses various business use cases specific to Industrial Internet of Things (IIoT) applications, including predictive failure, adaptive diagnostics, and IIoT device management. Its DataV solution is used in various industrial sectors and vertical markets, such as commercial transportation, oil and gas extraction, manufacturing, water and power, and other vertical markets. The company’s software products also include HTML5 Rendering Engine; and TestQuest 10, a software testing automation tool. It serves original equipment manufacturers, original design manufacturers, corporate enterprises, silicon vendors, and peripheral vendors. BSQUARE Corporation was founded in 1994 and is headquartered in Bellevue, Washington. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/18 23:32
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
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.