NasdaqCM:EVOL

Stock Analysis Report

Executive Summary

Evolving Systems, Inc. provides real-time digital engagement solutions and services to the wireless, wireline, and cable network operators in the United Kingdom and internationally.


Snowflake Analysis

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.6%

EVOL

0.8%

US Software

0.6%

US Market


1 Year Return

-27.9%

EVOL

40.0%

US Software

24.6%

US Market

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

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


Shareholder returns

EVOLIndustryMarket
7 Day5.6%0.8%0.6%
30 Day8.4%6.0%3.0%
90 Day-23.1%17.3%10.6%
1 Year-27.9%-27.9%41.3%40.0%27.3%24.6%
3 Year-78.4%-78.4%139.7%130.2%50.5%40.8%
5 Year-88.4%-89.5%220.7%198.4%78.9%59.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: EVOL ($0.92) is trading above our estimate of fair value ($0.01)

Significantly Below Fair Value: EVOL is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: EVOL is good value based on its PB Ratio (1.1x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

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

15.7%

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 Evolving 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.


Next Steps

Past Performance

How has Evolving Systems performed over the past 5 years?

-70.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EVOL is currently unprofitable.

Growing Profit Margin: EVOL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EVOL is unprofitable, and losses have increased over the past 5 years at a rate of -70.8% per year.

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

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


Return on Equity

High ROE: EVOL has a negative Return on Equity (-238.26%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Evolving Systems's financial position?


Financial Position Analysis

Short Term Liabilities: EVOL's short term assets ($16.3M) exceed its short term liabilities ($11.4M).

Long Term Liabilities: EVOL's short term assets ($16.3M) exceed its long term liabilities ($1.5M).


Debt to Equity History and Analysis

Debt Level: EVOL's debt to equity ratio (31.9%) is considered satisfactory.

Reducing Debt: EVOL's debt to equity ratio has increased from 0% to 31.9% over the past 5 years.

Debt Coverage: EVOL's debt is not well covered by operating cash flow (9.6%).

Interest Coverage: Insufficient data to determine if EVOL's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: EVOL's debt is covered by short term assets (assets are 5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

Dividend Coverage: EVOL is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EVOL'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 Evolving Systems's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Matthew Stecker (51yo)

1.5yrs

Tenure

US$309,940

Compensation

Mr. Matthew Stecker has been the President and Chief Executive Officer of Evolving Systems, Inc. since July 16, 2018. He served as a Senior Policy Advisor to the United States Department of Commerce from 2 ...


CEO Compensation Analysis

Compensation vs Market: Matthew's total compensation ($USD309.94K) is below average for companies of similar size in the US market ($USD519.76K).

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


Management Age and Tenure

2.3yrs

Average Tenure

Experienced Management: EVOL's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

8.4yrs

Average Tenure

54.5yo

Average Age

Experienced Board: EVOL's board of directors are considered experienced (8.4 years average tenure).


Insider Trading

Insider Buying: EVOL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$7,92030 Dec 19
David Nicol
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,000
Max PriceUS$0.88
BuyUS$6,43226 Nov 19
David Nicol
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,700
Max PriceUS$0.99
BuyUS$14,27316 Sep 19
David Nicol
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,999
Max PriceUS$0.85
BuyUS$4,20012 Sep 19
David Nicol
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$0.84
BuyUS$3,10005 Sep 19
David Nicol
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$0.78
BuyUS$3,00029 Aug 19
David Nicol
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$0.75
BuyUS$1,19017 Jun 19
David Nicol
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,400
Max PriceUS$0.85
BuyUS$16,59817 Jun 19
David Nicol
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares18,881
Max PriceUS$0.88
BuyUS$414 Jun 19
David Nicol
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5
Max PriceUS$0.85
BuyUS$31,97012 Jun 19
David Nicol
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares37,000
Max PriceUS$0.89

Ownership Breakdown

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


Management Team

  • Matthew Stecker (51yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$309.94k
  • Adhish Kulkarni

    Senior Vice President of Solutions

    • Don Stone

      Senior Vice President of Research & Development

      • Tenure: 3.8yrs
    • Richard Lewis

      Senior Vice President of Sales

      • Tenure: 2.5yrs
    • Mark Szynkowski (51yo)

      Senior VP of Finance & Secretary

      • Tenure: 2.1yrs
      • Compensation: US$185.00k
    • Mo Firouzabadian

      Senior Vice President of Sales

      • Eric Hatton

        Senior Vice President of Solutions


        Board Members

        • David Nicol (73yo)

          Independent Director

          • Tenure: 15.8yrs
          • Compensation: US$30.00k
        • David Oros (58yo)

          Independent Director

          • Tenure: 11.8yrs
          • Compensation: US$20.00k
        • Matthew Stecker (51yo)

          President

          • Tenure: 1.5yrs
          • Compensation: US$309.94k
        • Julian Singer (35yo)

          Independent Director

          • Tenure: 5yrs
          • Compensation: US$20.00k

        Company Information

        Evolving Systems, Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Evolving Systems, Inc.
        • Ticker: EVOL
        • Exchange: NasdaqCM
        • Founded: 1985
        • Industry: Application Software
        • Sector: Software
        • Market Cap: US$11.312m
        • Shares outstanding: 12.16m
        • Website: https://www.evolving.com

        Number of Employees


        Location

        • Evolving Systems, Inc.
        • 9800 Pyramid Court
        • Suite 400
        • Englewood
        • Colorado
        • 80112
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        EVOLNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMay 1998

        Biography

        Evolving Systems, Inc. provides real-time digital engagement solutions and services to the wireless, wireline, and cable network operators in the United Kingdom and internationally. The company offers acquisition and activation solutions, including Smart Dealer, a tool set that enables SIM retailers to sell SIM cards; and Dynamic SIM Allocation, a SIM/eSIM activation solution. Its acquisition and activation solutions also comprise Tertio Service Activation solution used to activate a new subscriber or to add a new service to an existing subscriber; and Number Inventory and Management solution, an automated solution that enables operators to manage their telephone numbers and other communication identifiers. In addition, the company offers customer analytics and value management solutions, such as the Profiling Engine, a rules-driven flexible aggregator, which supports static and ongoing dynamic profiling of subscribers; Campaign Engine that is used to configure and deliver marketing campaigns, and offers to subscribers; and Campaign Module, which provides predefined templates for specific types of real-time mobile marketing tactics. Further, it provides Social Media Integration solution, which enables carriers to expand their engagement with subscribers; and App Promotion solution. Additionally, the company offers Customer Retention and Loyalty solutions; Mobile Data Enablement solution that provides a data consumption and policy management solution for wireless carriers and mobile virtual network operators that monitor the usage and consumption of data services; and Total Number Management solution, an automated database solution that enables operators to manage their telephone numbers, and other communication identifiers. It also provides marketing, IT, and managed services; and customer value management and engagement solutions. The company was founded in 1985 and is headquartered in Englewood, Colorado. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/22 23:36
        End of Day Share Price2020/01/22 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.