NasdaqGS:RNWK

Stock Analysis Report

Executive Summary

RealNetworks, Inc. provides network-delivered digital media applications and services to manage, play, and share digital media.

Snowflake

Fundamentals

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-10.7%

RNWK

1.2%

US Software

-0.2%

US Market


1 Year Return

-38.1%

RNWK

37.4%

US Software

16.1%

US Market

Return vs Industry: RNWK underperformed the US Software industry which returned 37.4% over the past year.

Return vs Market: RNWK underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

RNWKIndustryMarket
7 Day-10.7%1.2%-0.2%
30 Day-13.0%11.6%3.7%
90 Day-9.7%7.5%8.5%
1 Year-38.1%-38.1%39.5%37.4%18.7%16.1%
3 Year-71.4%-71.4%126.6%117.7%46.9%37.4%
5 Year-80.1%-80.1%173.6%154.0%61.8%44.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RNWK's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RNWK's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RNWK is good value based on its PB Ratio (1.2x) compared to the US Software industry average (6x).


Next Steps

Future Growth

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

15.1%

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 RealNetworks 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 RealNetworks performed over the past 5 years?

35.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNWK has large one-off items impacting its financial results.

Growing Profit Margin: RNWK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RNWK is unprofitable, but has reduced losses over the past 5 years at a rate of 35.2% per year.

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

Earnings vs Industry: RNWK is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (25.8%).


Return on Equity

High ROE: RNWK has a negative Return on Equity (-48.71%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is RealNetworks's financial position?


Financial Position Analysis

Short Term Liabilities: RNWK's short term assets ($65.9M) do not cover its short term liabilities ($107.0M)

Long Term Liabilities: RNWK's short term assets ($65.9M) exceeds its long term liabilities (25.9M)


Debt to Equity History and Analysis

Debt Level: RNWK's debt to equity ratio (17.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if RNWK's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: RNWK's debt is covered by short term assets (assets are 8.8x debt).


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: RNWK has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: RNWK has less than a year of cash runway if free cash flow continues to grow at historical rates of 9.1% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if RNWK'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 RNWK'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 RealNetworks's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Rob Glaser (57yo)

7.3yrs

Tenure

US$1,106,878

Compensation

Mr. Robert Glaser, also known as Rob, serves as an Advisor of Bitium Inc. Mr. Glaser co-founded Sidecar Communications, Inc. in 2010 and serves as its Chairman of the Board. He is a Founder of Real Network ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD1.11M) is above average for companies of similar size in the US market ($USD504.52K).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.5yrs

Average Tenure

53yo

Average Age

Experienced Management: RNWK's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

59yo

Average Age

Experienced Board: RNWK's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: RNWK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$12,15712 Nov 19
Michael Parham
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares7,500
Max PriceUS$1.62
SellUS$15,98028 Aug 19
Michael Parham
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares10,000
Max PriceUS$1.60
SellUS$25,17708 Mar 19
Michael Parham
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares7,600
Max PriceUS$3.31
SellUS$49,58308 Mar 19
Massimiliano Pellegrini
EntityIndividual
Role
President
President
Shares15,000
Max PriceUS$3.31

Ownership Breakdown

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


Management Team

  • Rob Glaser (57yo)

    Founder

    • Tenure: 7.3yrs
    • Compensation: US$1.11m
  • Max Pellegrini (51yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$1.15m
  • Ben Rotholtz

    Vice President of Marketing

    • Tenure: 1.4yrs
  • Cary Baker (43yo)

    Senior VP

    • Tenure: 2.5yrs
    • Compensation: US$637.25k
  • Reza Rassool

    Chief Technology Officer

    • Tenure: 3.5yrs
  • Michael Parham (55yo)

    Senior VP

    • Tenure: 7.3yrs
    • Compensation: US$566.05k
  • Laura Bainbridge

    Investor Relations

    • Tenure: 0yrs
  • Jay Burrell

    Chief Revenue Officer for Computer Vision

    • Tenure: 0.5yrs

Board Members

  • Janice Roberts (63yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$122.82k
  • Mike Slade (61yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$156.87k
  • Dawn Lepore (65yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$118.92k
  • Rob Glaser (57yo)

    Founder

    • Tenure: 7.3yrs
    • Compensation: US$1.11m
  • Chris Jones (50yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$102.55k
  • Bruce Jaffe (54yo)

    Lead Independent Director

    • Tenure: 0.08yrs
    • Compensation: US$106.78k

Company Information

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


Key Information

  • Name: RealNetworks, Inc.
  • Ticker: RNWK
  • Exchange: NasdaqGS
  • Founded: 1994
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$50.318m
  • Shares outstanding: 38.12m
  • Website: https://www.realnetworks.com

Number of Employees


Location

  • RealNetworks, Inc.
  • 1501 First Avenue South
  • Suite 600
  • Seattle
  • Washington
  • 98134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNWKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1997
RNWADB (Deutsche Boerse AG)YesCommon StockDEEURNov 1997

Biography

RealNetworks, Inc. provides network-delivered digital media applications and services to manage, play, and share digital media. Its Consumer Media segment offers RealPlayer media player software, which ena ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 23:47
End of Day Share Price2019/11/21 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.