NasdaqGM:EDGW

Stock Analysis Report

Edgewater Technology Prior to Reverse Merger with Alithya Group

Executive Summary

As of November 1, 2018, Edgewater Technology, Inc.

Snowflake

Fundamentals

Mediocre balance sheet and overvalued.

Risks

  • Edgewater Technology Prior to Reverse Merger with Alithya Group is not covered by any analysts.

Similar Companies

Share Price & News

How has Edgewater Technology Prior to Reverse Merger with Alithya Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.5%

NasdaqGM:EDGW

-0.7%

US IT

-1.6%

US Market


1 Year Return

-31.8%

NasdaqGM:EDGW

17.8%

US IT

-3.0%

US Market

EDGW underperformed the IT industry which returned 22.2% over the past year.

EDGW underperformed the Market in United States of America which returned 11.4% over the past year.


Share holder returns

EDGWIndustryMarket
7 Day-7.5%-0.7%-1.6%
30 Day-12.4%-4.0%-5.7%
90 Day-13.8%6.4%0.2%
1 Year-10.0%-31.8%19.0%17.8%-0.8%-3.0%
3 Year-25.2%-43.4%96.2%87.8%38.1%29.1%
5 Year-13.7%-34.6%137.6%113.4%50.8%34.1%

Price Volatility Vs. Market

How volatile is Edgewater Technology Prior to Reverse Merger with Alithya Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Edgewater Technology Prior to Reverse Merger with Alithya Group undervalued based on future cash flows and its price relative to the stock market?

1.29x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Edgewater Technology Prior to Reverse Merger with Alithya Group to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Edgewater Technology Prior to Reverse Merger with Alithya Group to establish if it is available at substantial discount.


Price Based on Earnings

Edgewater Technology Prior to Reverse Merger with Alithya Group is loss making, we can't compare its value to the US IT industry average.

Edgewater Technology Prior to Reverse Merger with Alithya Group is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Edgewater Technology Prior to Reverse Merger with Alithya Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Edgewater Technology Prior to Reverse Merger with Alithya Group is good value based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is Edgewater Technology Prior to Reverse Merger with Alithya Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.1%

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 Edgewater Technology Prior to Reverse Merger with Alithya Group 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 Edgewater Technology Prior to Reverse Merger with Alithya Group performed over the past 5 years?

-75.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Edgewater Technology Prior to Reverse Merger with Alithya Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Edgewater Technology Prior to Reverse Merger with Alithya Group's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Edgewater Technology Prior to Reverse Merger with Alithya Group's 1-year growth to the US IT industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Edgewater Technology Prior to Reverse Merger with Alithya Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Edgewater Technology Prior to Reverse Merger with Alithya Group has efficiently used its assets last year compared to the US IT industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Edgewater Technology Prior to Reverse Merger with Alithya Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Edgewater Technology Prior to Reverse Merger with Alithya Group's financial position?


Financial Position Analysis

Edgewater Technology Prior to Reverse Merger with Alithya Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Edgewater Technology Prior to Reverse Merger with Alithya Group has no long term commitments.


Debt to Equity History and Analysis

Edgewater Technology Prior to Reverse Merger with Alithya Group's level of debt (9.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0% vs 9.9% today).

Operating cash flow is negative therefore debt is not well covered.

Edgewater Technology Prior to Reverse Merger with Alithya Group is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 7.8x debt.


Next Steps

Dividend

What is Edgewater Technology Prior to Reverse Merger with Alithya Group's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Edgewater Technology Prior to Reverse Merger with Alithya Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Edgewater Technology Prior to Reverse Merger with Alithya Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Edgewater Technology Prior to Reverse Merger with Alithya Group has not reported any payouts.

Unable to verify if Edgewater Technology Prior to Reverse Merger with Alithya Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Edgewater Technology Prior to Reverse Merger with Alithya Group has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Edgewater Technology Prior to Reverse Merger with Alithya Group's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Jeff Rutherford (57yo)

0.8yrs

Tenure

US$444,205

Compensation

Mr. Jeffrey L. Rutherford, also known as Jeff, serves as Interim Chief Financial Officer at Diebold Nixdorf, Incorporated since October 01, 2018. He has been Chairman of the Board at Edgewater Technology I ...


CEO Compensation Analysis

Jeff's remuneration is higher than average for companies of similar size in United States of America.

Insufficient data for Jeff to compare compensation growth.


Management Age and Tenure

1.0yrs

Average Tenure

52.5yo

Average Age

The average tenure for the Edgewater Technology Prior to Reverse Merger with Alithya Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

54yo

Average Age

The average tenure for the Edgewater Technology Prior to Reverse Merger with Alithya Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Edgewater Technology Prior to Reverse Merger with Alithya Group insiders in the past 3 months.


Recent Insider Transactions

BuyUS$15,08826 Sep 18
Ancora Advisors, LLC
EntityCompany
Shares2,976
Max PriceUS$5.07
BuyUS$209,62821 Sep 18
Ancora Advisors, LLC
EntityCompany
Shares40,665
Max PriceUS$5.16
SellUS$209,62821 Sep 18
Ancora Advisors, LLC
EntityCompany
Shares40,665
Max PriceUS$5.16
BuyUS$101,40019 Sep 18
Jeffrey Rutherford
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares20,000
Max PriceUS$5.07

Ownership Breakdown


Management Team

  • Jeff Rutherford (57yo)

    Chairman

    • Tenure: 0.8yrs
    • Compensation: US$444.21k
  • Kristin Zaepfel (54yo)

    Vice President of Human Resources

    • Tenure: 15.2yrs
    • Compensation: US$264.85k
  • Russell Smith (51yo)

    President of Edgewater Fullscope

    • Tenure: 1.3yrs
    • Compensation: US$646.93k
  • Veda Gagliardi

    Vice President of Operations - Ranzal & Associates

    • Tenure: 0.0yrs
  • Paul McNeice (41yo)

    Chief Accounting Officer & Interim CFO

    • Tenure: 0.6yrs
    • Compensation: US$246.71k

Board Members

  • Jeff Rutherford (57yo)

    Chairman

    • Tenure: 0.8yrs
    • Compensation: US$444.21k
  • Steve Bova (71yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$76.22k
  • Matt Carpenter (46yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$113.12k
  • Tim Whelan (52yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$79.79k
  • Kurt Wolf (45yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$129.48k
  • Fred DiSanto (56yo)

    Lead Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$117.69k

Company Information

Edgewater Technology, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Edgewater Technology, Inc.
  • Ticker: EDGW
  • Exchange: NasdaqGM
  • Founded: 1992
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$64.875m
  • Shares outstanding: 14.61m
  • Website: https://www.edgewater.com

Number of Employees


Location

  • Edgewater Technology, Inc.
  • 200 Harvard Mill Square
  • Suite 210
  • Wakefield
  • Massachusetts
  • 1880
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EDGWNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDSep 1996
SF4DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1996

Biography

As of November 1, 2018, Edgewater Technology, Inc. was acquired by Alithya Group Inc., in a reverse merger transaction. Edgewater Technology, Inc. provides business and technology services, and channel-bas ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2018/11/02 21:06
End of Day Share Price2018/11/01 00:00
Earnings2018/06/30
Annual Earnings2017/12/31


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.