NasdaqCM:SPRT

Stock Analysis Report

Executive Summary

Support.com, Inc. provides customer support services, end user software, and cloud-based software primarily in the United States.

Rewards

PE ratio (5.6x) is below the US market (18.4x)

Became profitable this year

Risk Analysis

Highly volatile share price over past 3 months

Does not have a meaningful market cap ($23M)



Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Support.com's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.0%

SPRT

1.7%

US Software

1.5%

US Market


1 Year Return

-48.7%

SPRT

42.3%

US Software

20.1%

US Market

Return vs Industry: SPRT underperformed the US Software industry which returned 42.2% over the past year.

Return vs Market: SPRT underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

SPRTIndustryMarket
7 Day-2.0%1.7%1.5%
30 Day-4.0%7.7%1.4%
90 Day-33.9%18.4%8.7%
1 Year-0.8%-48.7%43.9%42.3%22.7%20.1%
3 Year8.4%-44.0%152.8%142.4%50.1%40.5%
5 Year-53.6%-76.0%224.7%201.5%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Support.com undervalued compared to its fair value and its price relative to the market?

5.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: SPRT is good value based on its PE Ratio (5.6x) compared to the Software industry average (52.1x).

PE vs Market: SPRT is good value based on its PE Ratio (5.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SPRT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SPRT is good value based on its PB Ratio (0.4x) compared to the US Software industry average (6x).


Next Steps

Future Growth

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

11.4%

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 Support.com 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 Support.com performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPRT has high quality earnings.

Growing Profit Margin: SPRT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SPRT has become profitable over the past 5 years, growing earnings by 23.3% per year.

Accelerating Growth: SPRT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SPRT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (17.1%).


Return on Equity

High ROE: SPRT's Return on Equity (7.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Support.com's financial position?


Financial Position Analysis

Short Term Liabilities: SPRT's short term assets ($55.6M) exceed its short term liabilities ($4.5M).

Long Term Liabilities: SPRT's short term assets ($55.6M) exceed its long term liabilities ($815.0K).


Debt to Equity History and Analysis

Debt Level: SPRT is debt free.

Reducing Debt: SPRT has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if SPRT's debt is 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: SPRT is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: SPRT is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Support.com's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if SPRT'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 SPRT'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?

3.7yrs

Average board tenure


CEO

Rick Bloom (51yo)

3.3yrs

Tenure

US$795,551

Compensation

Mr. Richard A. Bloom, also known as Rick, has been Chief Executive Officer and President of Support.com, Inc. since August 7, 2018 and has been its Principal Financial Officer since February 28, 2017. Mr.  ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD795.55K) is above average for companies of similar size in the US market ($USD521.92K).

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


Board Members

NamePositionTenureCompensationOwnership
Richard Bloom
President3.3yrsUS$795.55k5.28% $1.2m
Brian Kelley
Independent Director3.7yrsUS$100.00k0.31% $71.8k
Joshua Schechter
Chairman of The Board3.7yrsUS$106.05k0.21% $47.8k
Bradley Radoff
Independent Director3.7yrsUS$87.80k1.83% $422.7k

3.7yrs

Average Tenure

48.5yo

Average Age

Experienced Board: SPRT's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Support.com, Inc.
  • Ticker: SPRT
  • Exchange: NasdaqCM
  • Founded: 1997
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$23.040m
  • Shares outstanding: 19.04m
  • Website: https://www.support.com

Number of Employees


Location

  • Support.com, Inc.
  • 1200 Crossman Avenue
  • Suite 210-240
  • Sunnyvale
  • California
  • 94089
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPRTNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJul 2000

Biography

Support.com, Inc. provides customer support services, end user software, and cloud-based software primarily in the United States. The company offers turnkey and outsourced support services for service providers, retailers, original equipment manufacturers (OEMs), warranty providers, Internet of Things solution providers, and technology companies. Its customer support services programs include pre-purchased concierge advice, device set-up, trouble shooting, security and support, virus and malware removal, wireless network set-up, and home security and automation system support designed for consumer, and small and medium business markets. The company also provides Support.com Cloud, a software-as-a-service solution for companies to optimize support interactions with their customers using their own or third party support personnel, as well as enables companies to resolve complex technology issues for their customers, boost support agent productivity, provide ease of use for customer self-service, and enhance the customer experience. In addition, it offers end-user software products, including SUPERAntiSpyware for malware protection and removal; and Cosmos for personal computer, smartphone, and tablet maintenance and optimization. The company provides its technology support services through partners. Support.com, Inc. was founded in 1997 and is headquartered in Sunnyvale, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:54
End of Day Share Price2020/02/14 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.