NasdaqGS:INAP

Stock Analysis Report

Executive Summary

Internap Corporation provides data center infrastructure, cloud solutions, and network services in the United States, Canada, and internationally.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-22.9%

INAP

-12.1%

US IT

-10.6%

US Market


1 Year Return

-86.3%

INAP

16.7%

US IT

5.2%

US Market

Return vs Industry: INAP underperformed the US IT industry which returned 16.7% over the past year.

Return vs Market: INAP underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

INAPIndustryMarket
7 Day-22.9%-12.1%-10.6%
30 Day-33.0%-9.0%-8.5%
90 Day-37.5%-2.0%-4.6%
1 Year-86.3%-86.3%17.9%16.7%7.4%5.2%
3 Year-91.9%-91.9%82.2%74.4%31.7%23.2%
5 Year-98.1%-98.1%119.6%100.4%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Internap is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Internap has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

Future Growth

How is Internap forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INAP is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: INAP is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: INAP is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: INAP's revenue (2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: INAP's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if INAP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Internap performed over the past 5 years?

-7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INAP is currently unprofitable.

Growing Profit Margin: INAP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: INAP is unprofitable, and losses have increased over the past 5 years at a rate of -7.6% per year.

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

Earnings vs Industry: INAP is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (12%).


Return on Equity

High ROE: INAP's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Internap's financial position?


Financial Position Analysis

Short Term Liabilities: INAP has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: INAP has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: INAP has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: INAP's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: INAP has negative shareholder equity (liabilities exceed assets) therefore debt is not 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: INAP has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: INAP has sufficient cash runway for 2 years if free cash flow continues to grow at historical rates of 37.5% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.1%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if INAP'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 INAP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Pete Aquino (58yo)

3.4yrs

Tenure

US$3,045,706

Compensation

Mr. Peter D. Aquino, also known as Pete, has been Chief Executive Officer of Internap Corporation since September 19, 2016 and serves as its Chairman of the board since December 2019. Mr. Aquino has been  ...


CEO Compensation Analysis

Compensation vs Market: Pete's total compensation ($USD3.05M) is above average for companies of similar size in the US market ($USD535.60K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Aquino
Chairman & CEO3.4yrsUS$3.05m3.16% $679.2k
Andrew Day
Executive VP & COO1.2yrsUS$587.21k0.38% $82.3k
Richard Diegnan
Executive VP3.3yrsUS$561.43k0.34% $72.9k
Michael Sicoli
President & CFO0.3yrsno data0.59% $127.4k
Christine Herren
Principal Accounting Officer0.5yrsno data0.095% $20.3k
John Filipowicz
Senior VP0yrsno data0.23% $48.4k
Joseph DuFresne
Senior VP of Finance2.3yrsno data0.19% $41.3k
Terry Waldorf
Chief Marketing Officer0.4yrsno data0.022% $4.8k
Michael Higgins
Senior Vice President of Data Center Services1yrsno datano data
Mary Horne
Senior Vice President of Global Network Services2.3yrsno datano data

1.2yrs

Average Tenure

52yo

Average Age

Experienced Management: INAP's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Peter Aquino
Chairman & CEO3.4yrsUS$3.05m3.16% $679.2k
Gary Pfeiffer
Lead Independent Director0.2yrsUS$184.55k0.32% $68.5k
Lance Weaver
Independent Director2.3yrsUS$162.84k0.18% $38.8k
Debora Wilson
Independent Director10.1yrsUS$164.49k0.49% $104.5k
David Potts
Independent Director2.5yrsUS$167.02k0.19% $41.1k
Peter Rogers
Independent Director3.4yrsUS$164.54k0.29% $63.0k

2.4yrs

Average Tenure

63yo

Average Age

Experienced Board: INAP's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 17.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Internap Corporation
  • Ticker: INAP
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: US$21.469m
  • Shares outstanding: 25.28m
  • Website: https://www.inap.com

Number of Employees


Location

  • Internap Corporation
  • 12120 Sunset Hills Road
  • Suite 330
  • Reston
  • Virginia
  • 20190
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INAPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1999
IP9NDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1999

Biography

Internap Corporation provides data center infrastructure, cloud solutions, and network services in the United States, Canada, and internationally. It operates through two business segments, INAP US and INAP INTL. The company offers conditioned power with back-up capacity and physical space within data centers with related services, such as interconnection, remote hands, environmental controls, monitoring, and security; and bare metal, private and managed third party cloud, Disaster Recovery-as-a-Service, cloud backup, and managed storage and security services, as well as multi-cloud solutions. It also provides patented Performance IP and content delivery network services, and IP routing hardware and software platforms. The company offers its colocation services through 53 data centers and 102 points of presence. It serves various industries, including healthcare, advertising technology, financial, technology infrastructure, and gaming and software. The company was formerly known as Internap Network Services Corporation and changed its name to Internap Corporation in November 2014. Internap Corporation was founded in 1996 and is headquartered in Reston, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:36
End of Day Share Price2020/02/27 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.