NasdaqCM:SSTI

Stock Analysis Report

Executive Summary

ShotSpotter, Inc. provides precision-policing and security solutions for law enforcement and security personnel in the United States and South Africa.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

31.6%

SSTI

-6.6%

US Software

-4.2%

US Market


1 Year Return

-21.5%

SSTI

29.5%

US Software

14.0%

US Market

Return vs Industry: SSTI underperformed the US Software industry which returned 35.1% over the past year.

Return vs Market: SSTI underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

SSTIIndustryMarket
7 Day31.6%-6.6%-4.2%
30 Day31.5%1.8%-1.8%
90 Day51.7%8.4%2.6%
1 Year-21.5%-21.5%30.8%29.5%16.3%14.0%
3 Yearn/a138.3%128.2%43.2%34.0%
5 Yearn/a203.2%181.5%65.9%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

40.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SSTI ($36.9) is trading below our estimate of fair value ($62.19)

Significantly Below Fair Value: SSTI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SSTI is poor value based on its PE Ratio (232x) compared to the Software industry average (49.4x).

PE vs Market: SSTI is poor value based on its PE Ratio (232x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SSTI is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: SSTI is overvalued based on its PB Ratio (15.4x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is ShotSpotter forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

44.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSTI's forecast earnings growth (44.3% per year) is above the savings rate (1.7%).

Earnings vs Market: SSTI's earnings (44.3% per year) are forecast to grow faster than the US market (14.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SSTI's revenue (18.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: SSTI's revenue (18.1% 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 SSTI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ShotSpotter performed over the past 5 years?

45.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SSTI has high quality earnings.

Growing Profit Margin: SSTI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SSTI has become profitable over the past 5 years, growing earnings by 45% per year.

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

Earnings vs Industry: SSTI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (18.4%).


Return on Equity

High ROE: SSTI's Return on Equity (6.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ShotSpotter's financial position?


Financial Position Analysis

Short Term Liabilities: SSTI's short term assets ($40.2M) exceed its short term liabilities ($32.4M).

Long Term Liabilities: SSTI's short term assets ($40.2M) exceed its long term liabilities ($896.0K).


Debt to Equity History and Analysis

Debt Level: SSTI is debt free.

Reducing Debt: SSTI had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: SSTI's debt is not covered by short term assets (assets are -59.4x 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: SSTI is profitable, therefore cash runway is not a concern.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

4.1yrs

Average management tenure


CEO

Ralph Clark (60yo)

9.5yrs

Tenure

US$970,000

Compensation

Mr. Ralph A. Clark has been the Chief Executive Officer and President of ShotSpotter, Inc. since August 2010. He served as Venture Partner of Ascend Ventures NY II, LP., Ascend Ventures II, LP, Ascend Vent ...


CEO Compensation Analysis

Compensation vs Market: Ralph's total compensation ($USD970.00K) is below average for companies of similar size in the US market ($USD1.67M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ralph Clark
President9.5yrsUS$970.00k4.52% $19.2m
Alan Stewart
CFO & Secretary3yrsUS$700.00k0.33% $1.4m
Gary Bunyard
Senior Vice President of Sales & Security2.1yrsUS$563.24kno data
Robert Klepper
Senior Vice President of Marketing & Product Strategy1.9yrsUS$1.69m0.14% $593.3k
Robert Showen
Founder & CSO26.1yrsno datano data
Robert Calhoun
0yrsno datano data
Jason Dunham
0yrsno datano data
Joseph Hawkins
Senior Vice President of Operations7.6yrsUS$231.63k0.17% $722.0k
Paul Ames
Senior Vice President of Products & Technology5.3yrsUS$220.00k0.27% $1.1m
Nasim Golzadeh
Senior Vice President of Customer Support & Professional Services1yrsno data0.00010% $425.3

4.1yrs

Average Tenure

60yo

Average Age

Experienced Management: SSTI's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ralph Clark
President9.5yrsUS$970.00k4.52% $19.2m
Pascal Levensohn
Chair of the Board0yrsUS$175.00k0.30% $1.3m
William Bratton
Independent Director2.3yrsUS$125.00k0.073% $308.6k
Randall Hawks
Independent Director13.8yrsUS$140.00k0.10% $425.8k
Marc Morial
Independent Director4.4yrsUS$128.75k0.078% $331.3k
Josh Cohen
Observer0yrsno datano data
Thomas Groos
Independent Director6yrsUS$125.00k0.47% $2.0m
Merline Saintil
Independent Director0.8yrsno data0.0030% $12.6k

5.2yrs

Average Tenure

61yo

Average Age

Experienced Board: SSTI's board of directors are considered experienced (5.2 years average tenure).


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 6.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: ShotSpotter, Inc.
  • Ticker: SSTI
  • Exchange: NasdaqCM
  • Founded: 1996
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$425.295m
  • Shares outstanding: 11.43m
  • Website: https://www.shotspotter.com

Number of Employees


Location

  • ShotSpotter, Inc.
  • 7979 Gateway Boulevard
  • Suite 210
  • Newark
  • California
  • 94560
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
918BST (Boerse-Stuttgart)YesCommon StockDEEURJun 2017
SSTINasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJun 2017

Biography

ShotSpotter, Inc. provides precision-policing and security solutions for law enforcement and security personnel in the United States and South Africa. Its solutions include ShotSpotter Flex, a public safety solution, which serves cities and municipalities to identify, locate, and deter gun violence by incorporating a real-time gunshot detection system into their policing systems; and ShotSpotter Missions, a cloud-based patrol management solution to help police departments plan patrol missions and tactics for crime deterrence. The company also provides ShotSpotter SecureCampus that helps the law enforcement and security personnel serving universities, colleges, and other educational institutions to mitigate risk and enhance security by notifying authorities and first responders of an active-shooter. In addition, it offers ShotSpotter SiteSecure, which serves customers, such as corporations to safeguard their facilities; and public agencies focused on protecting critical infrastructure, including train stations, airports, and freeways. The company sells its solutions through its direct sales teams. ShotSpotter, Inc. was founded in 1996 and is headquartered in Newark, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 02:29
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.