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Evolving Systems

Nasdaq:EVOL
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EVOL
Nasdaq
$15M
Market Cap
  1. Home
  2. US
  3. Software
Company description

Evolving Systems, Inc. provides real-time digital engagement solutions and services to the wireless, wireline, and cable markets in the United Kingdom and internationally. The last earnings update was 127 days ago. More info.


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EVOL Share Price and Events
7 Day Returns
-2.4%
NasdaqCM:EVOL
2.4%
US Software
1.2%
US Market
1 Year Returns
-77.5%
NasdaqCM:EVOL
25.6%
US Software
3%
US Market
EVOL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Evolving Systems (EVOL) -2.4% -6.1% 4.2% -77.5% -78.3% -86.2%
US Software 2.4% 5.5% 19.8% 25.6% 110.4% 139.4%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • EVOL underperformed the Software industry which returned 25.6% over the past year.
  • EVOL underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
EVOL
Industry
5yr Volatility vs Market

Value

 Is Evolving Systems undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Evolving Systems to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Evolving Systems.

NasdaqCM:EVOL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 10.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:EVOL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.141 (1 + (1- 21%) (46.39%))
1.374
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.37
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.374 * 5.96%)
10.92%

Discounted Cash Flow Calculation for NasdaqCM:EVOL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Evolving Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqCM:EVOL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.92%)
2019 3.33 Est @ -6.4% 3.00
2020 3.21 Est @ -3.66% 2.61
2021 3.15 Est @ -1.74% 2.31
2022 3.14 Est @ -0.4% 2.08
2023 3.16 Est @ 0.54% 1.88
2024 3.20 Est @ 1.2% 1.72
2025 3.25 Est @ 1.66% 1.57
2026 3.31 Est @ 1.98% 1.45
2027 3.39 Est @ 2.2% 1.33
2028 3.47 Est @ 2.36% 1.23
Present value of next 10 years cash flows $19.18
NasdaqCM:EVOL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $3.47 × (1 + 2.73%) ÷ (10.92% – 2.73%)
$43.48
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $43.48 ÷ (1 + 10.92%)10
$15.42
NasdaqCM:EVOL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $19.18 + $15.42
$34.60
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $34.60 / 12.12
$2.86
NasdaqCM:EVOL Discount to Share Price
Calculation Result
Value per share (USD) From above. $2.86
Current discount Discount to share price of $1.24
= -1 x ($1.24 - $2.86) / $2.86
56.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Evolving Systems is available for.
Intrinsic value
>50%
Share price is $1.24 vs Future cash flow value of $2.86
Current Discount Checks
For Evolving Systems to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Evolving Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Evolving Systems's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Evolving Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Evolving Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:EVOL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $0.07
NasdaqCM:EVOL Share Price ** NasdaqCM (2019-03-20) in USD $1.24
United States of America Software Industry PE Ratio Median Figure of 84 Publicly-Listed Software Companies 53.03x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Evolving Systems.

NasdaqCM:EVOL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:EVOL Share Price ÷ EPS (both in USD)

= 1.24 ÷ 0.07

17.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Evolving Systems is good value based on earnings compared to the US Software industry average.
  • Evolving Systems is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Evolving Systems's expected growth come at a high price?
Raw Data
NasdaqCM:EVOL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
13%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.6x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Evolving Systems, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Evolving Systems's assets?
Raw Data
NasdaqCM:EVOL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $2.86
NasdaqCM:EVOL Share Price * NasdaqCM (2019-03-20) in USD $1.24
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.84x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NasdaqCM:EVOL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:EVOL Share Price ÷ Book Value per Share (both in USD)

= 1.24 ÷ 2.86

0.43x

* Primary Listing of Evolving Systems.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Evolving Systems is good value based on assets compared to the US Software industry average.
X
Value checks
We assess Evolving Systems's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Evolving Systems has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover Evolving Systems, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Evolving Systems expected to grow at an attractive rate?
  • Evolving Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Evolving Systems's earnings growth is positive but not above the United States of America market average.
  • Unable to compare Evolving Systems's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:EVOL Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:EVOL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 13%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 16.1%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 10.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:EVOL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:EVOL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 33 4 1
2018-06-30 33 6 1
2018-03-31 31 5 2
2017-12-31 29 3 3
2017-09-30 26 4 4
2017-06-30 24 4 4
2017-03-31 24 8 4
2016-12-31 25 7 3
2016-09-30 26 5 3
2016-06-30 25 2 3
2016-03-31 25 -1 3
2015-12-31 26 2 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Evolving Systems's earnings are expected to grow by 13% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Evolving Systems is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:EVOL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Evolving Systems Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:EVOL Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 0.07
2018-06-30 0.09
2018-03-31 0.17
2017-12-31 0.21
2017-09-30 0.35
2017-06-30 0.36
2017-03-31 0.34
2016-12-31 0.29
2016-09-30 0.27
2016-06-30 0.24
2016-03-31 0.24
2015-12-31 0.28

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Evolving Systems will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Evolving Systems's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Evolving Systems has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Evolving Systems performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Evolving Systems's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Evolving Systems's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Evolving Systems's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Evolving Systems's 1-year earnings growth is negative, it can't be compared to the US Software industry average.
Earnings and Revenue History
Evolving Systems's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Evolving Systems Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:EVOL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 32.88 0.87 14.18 3.43
2018-06-30 33.01 1.08 13.50 2.71
2018-03-31 31.10 2.03 12.22 2.42
2017-12-31 28.81 2.52 10.88 2.04
2017-09-30 25.76 4.12 9.28 2.03
2017-06-30 24.32 4.30 8.47 2.37
2017-03-31 24.17 3.98 8.51 2.53
2016-12-31 24.78 3.44 8.82 3.01
2016-09-30 25.73 3.23 9.05 3.45
2016-06-30 25.40 2.86 9.21 3.66
2016-03-31 25.40 2.86 9.70 3.79
2015-12-31 25.58 3.30 9.85 3.85
2015-09-30 26.10 3.81 9.75 3.74
2015-06-30 27.89 4.92 9.65 3.78
2015-03-31 29.76 5.82 9.37 3.77
2014-12-31 29.68 5.61 9.37 3.64
2014-09-30 28.65 4.81 9.55 3.63
2014-06-30 27.16 4.05 9.56 3.40
2014-03-31 25.01 3.28 9.31 3.13
2013-12-31 25.09 3.81 9.01 2.96
2013-09-30 25.37 4.44 8.46 3.00
2013-06-30 26.14 4.76 8.42 2.96
2013-03-31 27.01 5.98 8.63 3.05
2012-12-31 26.25 5.56 8.68 3.07
2012-09-30 24.31 4.57 8.84 2.80
2012-06-30 21.75 3.22 9.09 2.76
2012-03-31 19.54 0.03 9.19 2.53

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Evolving Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Evolving Systems used its assets less efficiently than the US Software industry average last year based on Return on Assets.
  • Evolving Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Evolving Systems's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Evolving Systems has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Evolving Systems's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Evolving Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Evolving Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Evolving Systems's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Evolving Systems's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Evolving Systems Company Filings, last reported 5 months ago.

NasdaqCM:EVOL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 34.69 6.97 8.52
2018-06-30 34.61 7.73 9.29
2018-03-31 35.99 8.23 8.67
2017-12-31 34.41 8.75 7.56
2017-09-30 34.16 9.41 7.58
2017-06-30 32.87 4.99 5.51
2017-03-31 30.75 5.48 7.51
2016-12-31 29.33 6.00 7.61
2016-09-30 29.20 6.00 6.94
2016-06-30 28.94 5.99 5.91
2016-03-31 30.80 5.99 3.66
2015-12-31 32.16 10.01 8.40
2015-09-30 31.81 10.01 9.41
2015-06-30 33.47 0.01 10.25
2015-03-31 32.54 0.01 11.04
2014-12-31 34.05 0.01 9.78
2014-09-30 34.11 0.01 10.98
2014-06-30 34.35 0.01 12.38
2014-03-31 32.76 0.02 12.41
2013-12-31 32.74 0.02 13.79
2013-09-30 31.53 0.02 13.72
2013-06-30 30.17 0.02 13.37
2013-03-31 30.06 0.02 11.46
2012-12-31 30.84 0.02 8.84
2012-09-30 30.88 0.02 12.39
2012-06-30 28.75 0.02 10.04
2012-03-31 46.44 0.03 13.78
  • Evolving Systems's level of debt (20.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.1% vs 20.1% today).
  • Debt is well covered by operating cash flow (52.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).
X
Financial health checks
We assess Evolving Systems's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Evolving Systems has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Evolving Systems dividends.
If you bought $2,000 of Evolving Systems shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Evolving Systems's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Evolving Systems's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:EVOL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:EVOL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-04-03 0.000 0.000
2018-04-02 0.000 0.000
2017-11-14 0.000 0.000
2017-11-13 0.000 0.000
2017-08-08 0.000 0.000
2017-05-11 0.000 0.000
2017-03-28 0.000 0.000
2016-11-08 0.000 0.000
2016-05-03 0.440 9.395
2016-03-15 0.440 7.649
2015-08-04 0.440 7.832
2015-05-05 0.440 4.968
2015-03-17 0.440 4.765
2014-08-05 0.440 4.650
2014-05-06 0.400 4.649
2014-03-11 0.400 4.523
2013-11-12 0.400 4.146
2013-08-13 0.400 4.238
2013-05-07 0.320 4.720
2013-03-12 2.170 35.246
2012-11-13 0.200 3.096
2012-08-07 0.200 3.121
2012-01-06 0.200 3.559
2011-08-11 0.200 2.911
2011-05-11 0.200 2.824
2011-03-03 0.200 2.735
2010-11-04 0.200 2.487
2010-08-05 0.200 2.757

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Evolving Systems has not reported any payouts.
  • Unable to verify if Evolving Systems's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Evolving Systems's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Evolving Systems 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.
X
Income/ dividend checks
We assess Evolving Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Evolving Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Evolving Systems has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Evolving Systems's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Matthew Stecker
COMPENSATION $181,500
AGE 50
TENURE AS CEO 0.7 years
CEO Bio

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 2014 to 2017. Mr. Stecker served as the Chief Executive Officer and President of Live Microsystems, Inc., from November 30, 2009 to December 2013. He has 20 years of experience with a deep background in the telecommunications and wireless industries and a successful track record in turnarounds, M&A and operations. From October 2014 through August 2015, Mr. Stecker served as Founder and Chief Executive Officer of Kaneland, LLC. From May 2013 through October 2014, Mr. Stecker served as Vice President, Mobile Content—North America for RealNetworks, Inc., a telecommunications and media firm. He has served as Vice President and leader of CSMG/TMNG's technology strategy practice, consulting to some of the world's leading brands as they navigate the convergence of the Media and Telecom industries. Mr. Stecker’s expertise in areas such as corporate governance, mobile advertising and turnarounds as well as his service as an entrepreneur and executive in the mobile and telecommunications industries. He served as Chief Technology Officer of Uphonia, Inc. (formerly, Smartserv Online) since April 2004 and was responsible for developing and managing its Mobile Applications Technology and retail and web-based mobile content delivery network. He served as a senior advisor in the United States Department of Commerce since September of 2015. Mr. Stecker served as a Technology Director of Vindigo, Inc., from 2000 to 2003, where he led the team that built one of the first mobile advertising systems to consistently generate annual revenue. He served as President of Marble Associates, Inc. of Boston, MA. Mr. Stecker served as the Vice President of Mobile Entertainment for RealNetworks from January 2014 to November 2014, where he oversaw the SMS interoperability business and a Senior Executive in both Telecom Operations and Strategy at Cartesian, Inc. from April 2005 to November 2009. He has proven experience as a technology executive and telecom policy advisor to the US government. Mr. Stecker has executive experience includes assignments in the telecommunications and technology sectors. He served as the Chief Executive Officer of Livewire Mobile. since August 2009 to May 2013. He began his career with NeXT Computer, Inc. At TMNG, Mr. Stecker has worked exclusively in the MVNO space, helping carriers, MVNOs, MVNEs, as well as substantial content brands in all aspects of the economy of wireless resale ranging from business strategy to implementation and marketing. He serves as Chairman of the Board of Live Microsystems. He has been Executive Chairman of Evolving Systems Inc. since April 3, 2018 and has been its Director since March 17, 2016. He was the Chairman of Evolving Systems Inc. from August 16, 2016 to April 3, 2018. He serves as a Director of Live Microsystems, Inc. He served as a Director of SITO Mobile, Ltd. from June 5, 2017 to September 6, 2017. He served as Director of MRV Communications, Inc. from April 9, 2013 to June 15, 2016. He served as a Director of HealthWarehouse.com, Inc. from December 8, 2010 to August 15, 2013. Mr. Stecker holds the BA Degree in Computer Science and Political Science from Duke University and a JD degree from the University of North Carolina at Chapel Hill School of Law.

CEO Compensation
  • Matthew's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Matthew's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure of the Evolving Systems management team in years:

1.5
Average Tenure
  • The average tenure for the Evolving Systems management team is less than 2 years, this suggests a new team.
Management Team

Matthew Stecker

TITLE
President
COMPENSATION
$182K
AGE
50
TENURE
0.7 yrs

Mark Szynkowski

TITLE
Chief Financial Officer
COMPENSATION
$315K
AGE
50
TENURE
1.3 yrs

Don Stone

TITLE
Senior Vice President of Research & Development
TENURE
3 yrs

Richard Lewis

TITLE
Senior Vice President of Sales
TENURE
1.7 yrs

Mo Firouzabadian

TITLE
Senior Vice President of Sales

Adhish Kulkarni

TITLE
Senior Vice President of Solutions

Eric Hatton

TITLE
Senior Vice President of Solutions
Board of Directors Tenure

Average tenure and age of the Evolving Systems board of directors in years:

7.6
Average Tenure
56.5
Average Age
  • The tenure for the Evolving Systems board of directors is about average.
Board of Directors

Matthew Stecker

TITLE
President
COMPENSATION
$182K
AGE
50
TENURE
2.6 yrs

David Nicol

TITLE
Independent Director
COMPENSATION
$177K
AGE
72
TENURE
15 yrs

Richard Ramlall

TITLE
Independent Director
COMPENSATION
$167K
AGE
62
TENURE
11 yrs

Julian Singer

TITLE
Independent Director
COMPENSATION
$974K
AGE
34
TENURE
4.2 yrs

David Oros

TITLE
Independent Director
COMPENSATION
$167K
AGE
57
TENURE
11 yrs

Thomas Thekkethala

TITLE
Director
COMPENSATION
$1M
AGE
56
TENURE
3.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Evolving Systems's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Evolving Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is There More To Evolving Systems, Inc. (NASDAQ:EVOL) Than Its 7.9% Returns On Capital?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … How Do You Calculate Return On Capital Employed

Simply Wall St -

Did Changing Sentiment Drive Evolving Systems's Share Price Down A Painful 85%?

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the five years over which the share price declined, Evolving Systems's earnings per share (EPS) dropped by 32% each year. … In this case, the EPS change is really very close to the share price drop of 31% a year.

Simply Wall St -

What You Must Know About Evolving Systems, Inc.'s (NASDAQ:EVOL) Beta Value

Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Why Evolving Systems Inc's (NASDAQ:EVOL) Investor Composition Impacts Your Returns

In this article, I'm going to take a look at Evolving Systems Inc’s (NASDAQ:EVOL) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders. … Therefore, it is beneficial for us to examine EVOL's ownership structure in more detail.

Simply Wall St -

Is Evolving Systems Inc's (NASDAQ:EVOL) Balance Sheet A Threat To Its Future?

Investors are always looking for growth in small-cap stocks like Evolving Systems Inc (NASDAQ:EVOL), with a market cap of US$32.11m. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Should You Be Tempted To Buy Evolving Systems Inc (NASDAQ:EVOL) Because Of Its PE Ratio?

I am writing today to help inform people who are new to the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … While EVOL might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.

Simply Wall St -

You Should Consider Evolving Systems Inc (NASDAQ:EVOL) Because Of These Reasons

Evolving Systems Inc (NASDAQ:EVOL) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … report on Evolving Systems here

Simply Wall St -

Why You Need To Look At This Factor Before Buying Evolving Systems Inc (NASDAQ:EVOL)

The second type is market risk, one that you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks in the market. … A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one. … With a market cap of US$39.98M, EVOL falls within the small-cap spectrum of stocks, which are found to experience higher relative risk compared to larger companies.

Simply Wall St -

Should You Be Concerned With Evolving Systems Inc's (NASDAQ:EVOL) -49.08% Earnings Drop?

View our latest analysis for Evolving Systems Was EVOL weak performance lately part of a long-term decline? … For Evolving Systems, its latest earnings (trailing twelve month) is US$2.03M, which, in comparison to last year’s level, has taken a dive by a substantial -49.08%. … This suggests that any tailwind the industry is profiting from, Evolving Systems has not been able to realize the gains unlike its industry peers.What does this mean?

Simply Wall St -

Is Evolving Systems Inc (NASDAQ:EVOL) A Financially Sound Company?

How does EVOL’s operating cash flow stack up against its debt? … Moreover, EVOL has produced US$3.46M in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 39.53%, signalling that EVOL’s operating cash is sufficient to cover its debt. … We can check to see whether EVOL is able to meet its debt obligations by looking at the net interest coverage ratio.

Simply Wall St -

Company Info

Description

Evolving Systems, Inc. provides real-time digital engagement solutions and services to the wireless, wireline, and cable markets 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 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 analytics and value management solutions comprising 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, which engages subscribers when they are first configuring new services or when they are upgrading to mobile devices with new capabilities. Additionally, the company offers Customer Retention and Loyalty solution; Real-time Lifecycle Marketing solution innovate, execute, and manage interactive campaigns that engage consumers in real time; and Mobile Data Enablement solution, which provides a data consumption and policy management solution. It also provides marketing, IT, and managed services, as well as customer value management and engagement solutions. The company was founded in 1985 and is headquartered in Englewood, Colorado.

Details
Name: Evolving Systems, Inc.
EVOL
Exchange: NasdaqCM
Founded: 1985
$15,025,097
12,117,014
Website: http://www.evolving.com
Address: Evolving Systems, Inc.
9800 Pyramid Court,
Suite 400,
Englewood,
Colorado, 80112,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM EVOL Common Stock Nasdaq Capital Market US USD 12. May 1998
Number of employees
Current staff
Staff numbers
314
Evolving Systems employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:36
End of day share price update: 2019/03/20 00:00
Last earnings filing: 2018/11/13
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.