NasdaqCM:TCX

Stock Analysis Report

Executive Summary

Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in Canada, the United States, and Germany.


Snowflake Analysis

Questionable track record with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TCX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

TCX

-1.6%

US IT

-1.2%

US Market


1 Year Return

2.2%

TCX

31.2%

US IT

15.5%

US Market

Return vs Industry: TCX underperformed the US IT industry which returned 31.2% over the past year.

Return vs Market: TCX underperformed the US Market which returned 15.5% over the past year.


Shareholder returns

TCXIndustryMarket
7 Day1.9%-1.6%-1.2%
30 Day4.3%4.6%1.4%
90 Day7.2%-1.8%4.7%
1 Year2.2%2.2%32.5%31.2%18.0%15.5%
3 Year66.8%66.8%97.0%88.6%44.8%35.4%
5 Year228.5%228.5%137.1%116.0%67.3%48.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

44.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TCX ($58.37) is trading above our estimate of fair value ($10.92)

Significantly Below Fair Value: TCX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TCX is poor value based on its PE Ratio (44.2x) compared to the IT industry average (30.5x).

PE vs Market: TCX is poor value based on its PE Ratio (44.2x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TCX is overvalued based on its PB Ratio (7.1x) compared to the US IT industry average (3.7x).


Next Steps

Future Growth

How is Tucows forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

6.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TCX's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if TCX'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: TCX's revenue (6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: TCX's revenue (6% 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 TCX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tucows performed over the past 5 years?

16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCX has high quality earnings.

Growing Profit Margin: TCX's current net profit margins (4.2%) are lower than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: TCX's earnings have grown by 16.7% per year over the past 5 years.

Accelerating Growth: TCX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TCX had negative earnings growth (-41.2%) over the past year, making it difficult to compare to the IT industry average (17%).


Return on Equity

High ROE: TCX's Return on Equity (16.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tucows's financial position?


Financial Position Analysis

Short Term Liabilities: TCX's short term assets ($147.1M) do not cover its short term liabilities ($166.1M).

Long Term Liabilities: TCX's short term assets ($147.1M) do not cover its long term liabilities ($166.2M).


Debt to Equity History and Analysis

Debt Level: TCX's debt to equity ratio (120.7%) is considered high.

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

Debt Coverage: TCX's debt is well covered by operating cash flow (36.1%).

Interest Coverage: TCX's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: TCX's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

2.7yrs

Average management tenure


CEO

Elliot Noss (56yo)

20.6yrs

Tenure

US$575,987

Compensation

Mr. Elliot Noss has been the Chief Executive Officer and President of Tucows Inc. since May 1999. Mr. Noss has been a leader in the Internet industry for ten years. From May 1999 to August 2001, he served  ...


CEO Compensation Analysis

Compensation vs Market: Elliot's total compensation ($USD575.99K) is below average for companies of similar size in the US market ($USD1.71M).

Compensation vs Earnings: Elliot's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.7yrs

Average Tenure

47yo

Average Age

Experienced Management: TCX's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

10.6yrs

Average Tenure

60yo

Average Age

Experienced Board: TCX's board of directors are seasoned and experienced ( 10.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$233,90006 Oct 19
Investmentaktiengesellschaft für langfristige Investoren TGV
EntityCompany
Shares4,428
Max PriceUS$52.82
BuyUS$1,212,90404 Oct 19
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Shares31,239
Max PriceUS$38.83
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Shares7,422
Max PriceUS$52.65
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Shares5,000
Max PriceUS$47.62
BuyUS$140,96906 Aug 19
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Shares3,000
Max PriceUS$46.99
BuyUS$3,338,10025 Jul 19
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EntityCompany
Shares66,762
Max PriceUS$50.00
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Shares50,000
Max PriceUS$50.20
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Max PriceUS$51.17
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Shares10,766
Max PriceUS$50.93
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Shares22,794
Max PriceUS$50.83
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Shares16,440
Max PriceUS$49.88
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Shares21,500
Max PriceUS$50.00
BuyUS$752,30816 Jul 19
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EntityCompany
Shares15,216
Max PriceUS$49.44
BuyUS$3,251,75815 Jul 19
Investmentaktiengesellschaft für langfristige Investoren TGV
EntityCompany
Shares64,827
Max PriceUS$50.45
BuyUS$1,423,81809 Jul 19
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EntityCompany
Shares22,957
Max PriceUS$62.02
BuyUS$417,84226 Jun 19
Investmentaktiengesellschaft für langfristige Investoren TGV
EntityCompany
Shares7,483
Max PriceUS$55.84
BuyUS$1,179,48425 Jun 19
Investmentaktiengesellschaft für langfristige Investoren TGV
EntityCompany
Shares20,000
Max PriceUS$58.97
SellUS$364,06517 Jun 19
David Woroch
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Domains
Shares6,000
Max PriceUS$60.68
BuyUS$412,09706 Jun 19
Investmentaktiengesellschaft für langfristige Investoren TGV
EntityCompany
Shares7,000
Max PriceUS$58.88
BuyUS$205,10604 Jun 19
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Shares3,500
Max PriceUS$58.60
BuyUS$122,56921 May 19
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Shares2,000
Max PriceUS$61.28
BuyUS$518,31615 May 19
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EntityCompany
Shares8,000
Max PriceUS$64.91
BuyUS$328,36114 May 19
Investmentaktiengesellschaft für langfristige Investoren TGV
EntityCompany
Shares5,000
Max PriceUS$65.67
BuyUS$1,901,35613 May 19
Investmentaktiengesellschaft für langfristige Investoren TGV
EntityCompany
Shares28,000
Max PriceUS$68.86
SellUS$859,70918 Apr 19
Investmentaktiengesellschaft für langfristige Investoren TGV
EntityCompany
Shares10,000
Max PriceUS$85.97
BuyUS$532,62807 Apr 19
Investmentaktiengesellschaft für langfristige Investoren TGV
EntityCompany
Shares6,500
Max PriceUS$81.94
SellUS$318,00001 Apr 19
Jeffrey Schwartz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$79.50
SellUS$241,50026 Mar 19
Jeffrey Schwartz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$80.50
SellUS$393,89326 Mar 19
Investmentaktiengesellschaft für langfristige Investoren TGV
EntityCompany
Shares5,000
Max PriceUS$78.78
SellUS$420,98014 Mar 19
David Woroch
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Domains
Shares5,500
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SellUS$389,24502 Mar 19
Rawleigh Ralls
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$77.86
SellUS$1,478,62013 Feb 19
Investmentaktiengesellschaft für langfristige Investoren TGV
EntityCompany
Shares20,000
Max PriceUS$73.93
SellUS$319,76017 Dec 18
Allen Karp
EntityIndividual
Role
Chairman of the Board
Chairman & Lead Director of the Board
Shares5,000
Max PriceUS$64.00
SellUS$355,35113 Dec 18
David Woroch
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Domains
Shares5,500
Max PriceUS$64.61

Ownership Breakdown

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


Management Team

  • Elliot Noss (56yo)

    President

    • Tenure: 20.6yrs
    • Compensation: US$575.99k
  • David Woroch (56yo)

    Executive Vice President of Domains

    • Tenure: 5.9yrs
    • Compensation: US$374.43k
  • Ross Rader (47yo)

    Chief Customer Officer

    • Tenure: 0yrs
  • Thorsten Einig

    Managing Director of Europe

    • Tenure: 9.2yrs
  • Dave Singh (44yo)

    CFO, Executive VP

    • Tenure: 2.7yrs
    • Compensation: US$324.09k
  • Michael Goldstein (47yo)

    Chief Revenue Officer of Ting

    • Tenure: 0.4yrs
    • Compensation: US$419.22k
  • Jess Johannson (46yo)

    Chief People Officer

    • Tenure: 2.9yrs
  • Bret Fausett (55yo)

    Chief Legal Officer & General Counsel

    • Tenure: 2.3yrs
    • Compensation: US$328.14k
  • Hanno Liem (45yo)

    Chief Technology Officer

    • Tenure: 1.9yrs
  • Justin Reilly

    Chief Product Officer

    • Tenure: 0.3yrs

Board Members

  • Brad Burnham (64yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$90.30k
  • Jeffrey Schwartz (56yo)

    Independent Director

    • Tenure: 14.5yrs
    • Compensation: US$121.80k
  • Allen Karp (79yo)

    Chairman & Lead Director of the Board

    • Tenure: 7.6yrs
    • Compensation: US$136.80k
  • Erez Gissin (60yo)

    Independent Director

    • Tenure: 18.3yrs
    • Compensation: US$102.30k
  • Elliot Noss (56yo)

    President

    • Tenure: 20.6yrs
    • Compensation: US$575.99k
  • Robin Chase (60yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$102.30k
  • Rawleigh Ralls (57yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: US$113.55k

Company Information

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


Key Information

  • Name: Tucows Inc.
  • Ticker: TCX
  • Exchange: NasdaqCM
  • Founded: 1992
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: US$597.226m
  • Shares outstanding: 10.57m
  • Website: https://www.tucows.com

Number of Employees


Location

  • Tucows Inc.
  • 96 Mowat Avenue
  • Toronto
  • Ontario
  • M6K 3M1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCXNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDAug 2001
TUQ1DB (Deutsche Boerse AG)YesCommon StockDEEURAug 2001
TCTSX (The Toronto Stock Exchange)YesCommon StockCACADAug 2001
0LH4LSE (London Stock Exchange)YesCommon StockGBUSDAug 2001

Biography

Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in Canada, the United States, and Germany. It operates in two segments, Network Access Se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 23:46
End of Day Share Price2019/12/05 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.