Net Element, Inc. operates as a financial technology and value-added solutions company in North America, Russia, and the Commonwealth of Independent States.
Overvalued with weak fundamentals.
Share Price & News
How has Net Element's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NETE's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: NETE underperformed the US Software industry which returned 33% over the past year.
Return vs Market: NETE underperformed the US Market which returned 9.2% over the past year.
Price Volatility Vs. Market
How volatile is Net Element's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall StImagine Owning Net Element (NASDAQ:NETE) And Taking A 98% Loss Square On The Chin
3 months ago | Simply Wall StWhat Kind Of Shareholders Own Net Element, Inc. (NASDAQ:NETE)?
4 months ago | Simply Wall StNet Element (NASDAQ:NETE) Is Making Moderate Use Of Debt
Is Net Element undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate NETE's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate NETE's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: NETE is unprofitable, so we can't compare its PE Ratio to the Software industry average.
PE vs Market: NETE 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 NETE's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: NETE is good value based on its PB Ratio (3.4x) compared to the US Software industry average (6.2x).
How is Net Element forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if NETE's forecast earnings growth is above the savings rate (2.2%).
Earnings vs Market: Insufficient data to determine if NETE's earnings are forecast to grow faster than the US market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NETE's revenue (3.1% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: NETE's revenue (3.1% 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 NETE's Return on Equity is forecast to be high in 3 years time
How has Net Element performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NETE is currently unprofitable.
Growing Profit Margin: NETE is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: NETE is unprofitable, but has reduced losses over the past 5 years at a rate of 20% per year.
Accelerating Growth: Unable to compare NETE's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: NETE is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (9.6%).
Return on Equity
High ROE: NETE has a negative Return on Equity (-240.12%), as it is currently unprofitable.
How is Net Element's financial position?
Financial Position Analysis
Short Term Liabilities: NETE's short term assets ($5.9M) do not cover its short term liabilities ($8.5M).
Long Term Liabilities: NETE's short term assets ($5.9M) do not cover its long term liabilities ($8.6M).
Debt to Equity History and Analysis
Debt Level: NETE's debt to equity ratio (326.7%) is considered high.
Reducing Debt: NETE's debt to equity ratio has increased from 105.1% to 326.7% over the past 5 years.
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: NETE has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: NETE has less than a year of cash runway if free cash flow continues to reduce at historical rates of 16.7% each year
What is Net Element's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NETE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NETE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if NETE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NETE'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 NETE's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Oleg Firer (42yo)
Mr. Oleg Firer has been Chief Executive Officer of Net Element, Inc. since April 16, 2013 and has also been its Director since April 16, 2013 and Executive Chairman since November, 2018. Mr. Firer served a ...
CEO Compensation Analysis
Compensation vs Market: Oleg's total compensation ($USD1.46M) is above average for companies of similar size in the US market ($USD589.00K).
Compensation vs Earnings: Oleg's compensation has increased whilst the company is unprofitable.
|Executive Chairman & CEO||7.17yrs||US$1.46m||10.32% $1.1m|
|Chief Financial Officer||1.92yrs||US$179.33k||0.32% $34.2k|
|Chief Legal Officer & Secretary||7.17yrs||US$842.80k||0.89% $95.5k|
|Head of Technology||6.25yrs||no data||no data|
|Head of Acquiring & Compliance||no data||no data||no data|
|Head of Integrated Payments||no data||no data||no data|
|Head of Risk Management||no data||no data||no data|
|Head of Online Solutions||no data||no data||no data|
Experienced Management: NETE's management team is seasoned and experienced (6.7 years average tenure).
|Executive Chairman & CEO||7.17yrs||US$1.46m||10.32% $1.1m|
|Independent Director||4yrs||US$90.81k||0.035% $3.8k|
|Independent Director||2.25yrs||US$43.23k||0.25% $26.6k|
Experienced Board: NETE's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Net Element, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Net Element, Inc.
- Ticker: NETE
- Exchange: NasdaqCM
- Founded: 2004
- Industry: Application Software
- Sector: Software
- Market Cap: US$10.741m
- Shares outstanding: 4.20m
- Website: https://www.netelement.com
Number of Employees
- Net Element, Inc.
- 3363 NE 163rd Street
- Suite 705
- North Miami Beach
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NETE||NasdaqCM (Nasdaq Capital Market)||Yes||Common Stock||US||USD||Oct 2012|
|1N52||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Oct 2012|
Net Element, Inc. operates as a financial technology and value-added solutions company in North America, Russia, and the Commonwealth of Independent States. It operates in two segments, North American Transaction Solutions and International Transaction Solutions. The company offers a range of payment acceptance and transaction processing services that enable merchants of various sizes to accept and process approximately 100 payment options, including credit, debit, prepaid, and alternative payments; and value-added services and technologies, such as integrated payment technologies, point-of-sale solutions (POS), fraud management solutions, information solutions, and analytical tools. Its services include Unified Payments that provides integrated payment acceptance solutions, value-added POS, and business process management services; Unified m-POS, a mobile POS application that accepts payments; Aptito POS Platform, an integrated POS platform for the hospitality, retail, service, and on the go industries; Restoactive, a POS restaurant management platform; Zero Pay, a zero-fee payment acceptance program for SMB merchants; transactional services, mobile payment transactions, online payment transactions, and other payment technologies under the PayOnline name; Pay-Travel, an integrated payment processing solutions to the travel industry; and Netevia, a multi-channel payments and merchant management platform that delivers end-to-end payment processing through easy-to-use APIs. Net Element, Inc. offers its services through retail and mobile merchants, as well as online. The company was formerly known as Net Element International, Inc. and changed its name to Net Element, Inc. in December 2013. Net Element, Inc. was founded in 2004 and is based in North Miami Beach, Florida.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/06/04 04:26|
|End of Day Share Price||2020/06/03 00:00|
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.