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Tucows

Nasdaq:TCX
Snowflake Description

Mediocre balance sheet and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TCX
Nasdaq
$541M
Market Cap
  1. Home
  2. US
  3. Software
Company description

Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in Canada, the United States, and Germany. The last earnings update was 75 days ago. More info.


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  • Tucows has significant price volatility in the past 3 months.
TCX Share Price and Events
7 Day Returns
2.5%
NasdaqCM:TCX
-0.1%
US IT
-1.2%
US Market
1 Year Returns
-16.6%
NasdaqCM:TCX
23%
US IT
3.4%
US Market
TCX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tucows (TCX) 2.5% -15.7% -42.7% -16.6% 71.9% 222.3%
US IT -0.1% 3.5% 11.1% 23% 94.3% 115.1%
US Market -1.2% 0.7% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • TCX underperformed the IT industry which returned 23% over the past year.
  • TCX underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
TCX
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Tucows undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Tucows to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Tucows.

NasdaqCM:TCX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:TCX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.986 (1 + (1- 26.5%) (19.3%))
1.084
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.084 * 5.96%)
9.19%

Discounted Cash Flow Calculation for NasdaqCM:TCX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Tucows is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqCM:TCX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.19%)
2020 13.51 Est @ -2.18% 12.38
2021 13.42 Est @ -0.71% 11.25
2022 13.46 Est @ 0.32% 10.34
2023 13.60 Est @ 1.04% 9.57
2024 13.81 Est @ 1.55% 8.90
2025 14.08 Est @ 1.9% 8.30
2026 14.38 Est @ 2.15% 7.77
2027 14.71 Est @ 2.33% 7.28
2028 15.07 Est @ 2.45% 6.83
2029 15.45 Est @ 2.53% 6.41
Present value of next 10 years cash flows $89.03
NasdaqCM:TCX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $15.45 × (1 + 2.73%) ÷ (9.19% – 2.73%)
$245.67
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $245.67 ÷ (1 + 9.19%)10
$101.96
NasdaqCM:TCX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $89.03 + $101.96
$191.00
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $191.00 / 10.65
$17.93
NasdaqCM:TCX Discount to Share Price
Calculation Result
Value per share (USD) From above. $17.93
Current discount Discount to share price of $50.82
= -1 x ($50.82 - $17.93) / $17.93
-183.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Tucows is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Tucows's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Tucows's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:TCX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.53
NasdaqCM:TCX Share Price ** NasdaqCM (2019-07-19) in USD $50.82
United States of America IT Industry PE Ratio Median Figure of 76 Publicly-Listed IT Companies 35.17x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Tucows.

NasdaqCM:TCX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:TCX Share Price ÷ EPS (both in USD)

= 50.82 ÷ 1.53

33.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tucows is good value based on earnings compared to the US IT industry average.
  • Tucows is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Tucows's expected growth come at a high price?
Raw Data
NasdaqCM:TCX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
9.2%per year
United States of America IT Industry PEG Ratio Median Figure of 65 Publicly-Listed IT Companies 2.56x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Tucows, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Tucows's assets?
Raw Data
NasdaqCM:TCX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $7.84
NasdaqCM:TCX Share Price * NasdaqCM (2019-07-19) in USD $50.82
United States of America IT Industry PB Ratio Median Figure of 126 Publicly-Listed IT Companies 4.08x
United States of America Market PB Ratio Median Figure of 5,247 Publicly-Listed Companies 1.79x
NasdaqCM:TCX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:TCX Share Price ÷ Book Value per Share (both in USD)

= 50.82 ÷ 7.84

6.48x

* Primary Listing of Tucows.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tucows is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess Tucows's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Tucows has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover Tucows, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Tucows expected to grow at an attractive rate?
  • Tucows's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Tucows's earnings growth is positive but not above the United States of America market average.
  • Tucows's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:TCX Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:TCX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 9.2%
NasdaqCM:TCX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 6.7%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.8%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 10.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:TCX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:TCX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 424 1
2021-12-31 404 1
2020-12-31 384 1
2019-12-31 351 1
NasdaqCM:TCX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 329 37 16
2018-12-31 346 37 17
2018-09-30 351 41 24
2018-06-30 353 37 22
2018-03-31 356 39 24
2017-12-31 329 32 22
2017-09-30 288 27 14
2017-06-30 252 25 15
2017-03-31 215 19 14
2016-12-31 190 23 16
2016-09-30 186 15 16
2016-06-30 180 16 15

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tucows's earnings are expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
  • Tucows's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:TCX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Tucows Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:TCX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31
2019-12-31
NasdaqCM:TCX Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.53
2018-12-31 1.62
2018-09-30 2.26
2018-06-30 2.08
2018-03-31 2.24
2017-12-31 2.12
2017-09-30 1.33
2017-06-30 1.46
2017-03-31 1.34
2016-12-31 1.53
2016-09-30 1.54
2016-06-30 1.38

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Tucows will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Tucows's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Tucows has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Tucows performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Tucows's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Tucows has delivered over 20% year on year earnings growth in the past 5 years.
  • Tucows's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Tucows's 1-year earnings growth is negative, it can't be compared to the US IT industry average.
Earnings and Revenue History
Tucows's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Tucows Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:TCX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 329.17 16.19 50.77 9.18
2018-12-31 346.01 17.14 50.77 8.75
2018-09-30 351.02 23.90 48.38 8.51
2018-06-30 352.51 21.99 46.61 8.22
2018-03-31 355.65 23.62 45.24 7.66
2017-12-31 329.42 22.33 43.02 7.26
2017-09-30 287.60 13.94 41.16 6.45
2017-06-30 251.66 15.24 38.04 5.81
2017-03-31 214.64 14.08 35.47 5.01
2016-12-31 189.82 16.07 32.16 4.50
2016-09-30 185.72 16.35 30.35 4.54
2016-06-30 180.28 14.76 29.22 4.37
2016-03-31 175.97 12.98 28.66 4.57
2015-12-31 171.69 11.37 28.06 4.50
2015-09-30 165.79 10.14 26.89 4.47
2015-06-30 161.03 9.67 27.08 4.41
2015-03-31 153.73 8.73 25.13 4.33
2014-12-31 146.51 6.37 23.49 4.31
2014-09-30 142.00 5.44 23.42 4.30
2014-06-30 138.77 5.34 21.59 4.47
2014-03-31 134.35 4.58 20.59 4.11
2013-12-31 129.93 4.18 19.66 4.16
2013-09-30 126.59 3.69 18.07 4.17
2013-06-30 120.20 2.73 16.72 3.97
2013-03-31 117.17 2.84 15.89 4.32
2012-12-31 114.73 4.42 15.31 4.30
2012-09-30 111.31 10.05 14.56 4.45

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Tucows has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Tucows used its assets less efficiently than the US IT industry average last year based on Return on Assets.
  • Tucows's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Tucows's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Tucows has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Tucows's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Tucows's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Tucows's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Tucows's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Tucows's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Tucows Company Filings, last reported 3 months ago.

NasdaqCM:TCX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 83.44 92.81 11.04
2018-12-31 79.78 64.60 12.64
2018-09-30 75.43 64.42 10.78
2018-06-30 69.26 68.73 11.16
2018-03-31 65.41 72.42 16.59
2017-12-31 61.35 76.92 18.05
2017-09-30 49.82 81.43 12.55
2017-06-30 46.24 85.96 15.15
2017-03-31 41.08 90.46 15.03
2016-12-31 40.90 10.25 15.11
2016-09-30 37.59 10.48 10.50
2016-06-30 32.34 9.06 5.88
2016-03-31 32.75 9.28 10.01
2015-12-31 29.37 3.50 7.72
2015-09-30 30.69 3.50 11.90
2015-06-30 37.23 3.50 15.30
2015-03-31 34.01 3.50 13.68
2014-12-31 35.64 0.00 8.27
2014-09-30 33.64 0.00 13.59
2014-06-30 31.12 5.36 14.16
2014-03-31 29.12 5.68 13.54
2013-12-31 26.92 6.30 12.42
2013-09-30 26.16 6.90 11.55
2013-06-30 20.71 7.50 6.47
2013-03-31 20.02 8.10 4.29
2012-12-31 26.55 3.70 6.42
2012-09-30 25.95 4.00 4.97
  • Tucows's level of debt (111.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (19.5% vs 111.2% today).
  • Debt is well covered by operating cash flow (39.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.7x coverage).
X
Financial health checks
We assess Tucows's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Tucows has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Tucows dividends.
If you bought $2,000 of Tucows shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Tucows's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Tucows's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:TCX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:TCX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Tucows has not reported any payouts.
  • Unable to verify if Tucows's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Tucows's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Tucows has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Tucows's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Tucows afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Tucows has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Tucows's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Elliot Noss
COMPENSATION $575,987
AGE 56
TENURE AS CEO 20.2 years
CEO Bio

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 as the President and Chief Executive Officer of Tucows Delaware. From April 1997 to May 1999, he served as Vice President of corporate services of Tucows Interactive Ltd. In August 2001, he helped orchestrate Tucows' merger with Infonautics, Inc., under the Tucows name. He has rapidly expanded Tucows wholesale services to offer digital certificates, DNS and email services to a growing international Reseller channel. He serves as Chairman of the University of Toronto's Department of Computer Science Advisory Board. He has been a Director of Tucows Inc. since August 2001. He served as a Non-Executive Director of Minds + Machines Group Limited from March 4, 2014 to February 2, 2016. Mr. Noss graduated at University of Toronto where he earned a BA. He earned an MBA and LLB from the University of Western Ontario.

CEO Compensation
  • Elliot's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Elliot's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Tucows management team in years:

2.5
Average Tenure
47
Average Age
  • The tenure for the Tucows management team is about average.
Management Team

Elliot Noss

TITLE
President
COMPENSATION
$576K
AGE
56
TENURE
20.2 yrs

Dave Singh

TITLE
CFO, Executive VP
COMPENSATION
$324K
AGE
44
TENURE
2.3 yrs

Jason Silverstein

TITLE
Vice President of Corporate Operations
COMPENSATION
$336K
AGE
45
TENURE
2.5 yrs

Bret Fausett

TITLE
Chief Legal Officer & General Counsel
COMPENSATION
$328K
AGE
55
TENURE
1.8 yrs

David Woroch

TITLE
Executive Vice President of Domains
COMPENSATION
$374K
AGE
56
TENURE
5.5 yrs

Hanno Liem

TITLE
Chief Technology Officer
AGE
45
TENURE
1.5 yrs

Michael Goldstein

TITLE
Vice President of Sales & Marketing
COMPENSATION
$419K
AGE
47
TENURE
9.8 yrs

Jess Johannson

TITLE
Vice President of Human Resources
AGE
46
TENURE
2.5 yrs

Thorsten Einig

TITLE
Managing Director of Europe
TENURE
8.8 yrs

Mike Cooperman

TITLE
Senior Advisor
COMPENSATION
$320K
AGE
68
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Tucows board of directors in years:

10.2
Average Tenure
60
Average Age
  • The average tenure for the Tucows board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Allen Karp

TITLE
Chairman & Lead Director of the Board
COMPENSATION
$137K
AGE
79
TENURE
7.2 yrs

Elliot Noss

TITLE
President
COMPENSATION
$576K
AGE
56
TENURE
17.9 yrs

Jeffrey Schwartz

TITLE
Independent Director
COMPENSATION
$122K
AGE
56
TENURE
14.1 yrs

Erez Gissin

TITLE
Independent Director
COMPENSATION
$102K
AGE
60
TENURE
17.9 yrs

Rawleigh Ralls

TITLE
Director
COMPENSATION
$114K
AGE
57
TENURE
10.2 yrs

Robin Chase

TITLE
Director
COMPENSATION
$102K
AGE
60
TENURE
4.8 yrs

Brad Burnham

TITLE
Director
COMPENSATION
$90K
AGE
64
TENURE
2.5 yrs
Who owns this company?
Recent Insider Trading
  • Tucows individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Jul 19 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 18. Jul 19 18. Jul 19 22,794 $50.83 $1,158,717
18. Jul 19 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 17. Jul 19 17. Jul 19 16,440 $49.88 $819,975
17. Jul 19 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 16. Jul 19 17. Jul 19 21,500 $50.00 $1,069,824
16. Jul 19 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 15. Jul 19 15. Jul 19 15,216 $49.44 $752,308
15. Jul 19 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 12. Jul 19 12. Jul 19 64,827 $50.45 $3,251,758
09. Jul 19 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 08. Jul 19 08. Jul 19 22,957 $62.02 $1,423,818
26. Jun 19 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 26. Jun 19 26. Jun 19 7,483 $55.84 $417,842
25. Jun 19 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 25. Jun 19 25. Jun 19 20,000 $58.97 $1,179,484
17. Jun 19 Sell David Woroch Individual 14. Jun 19 14. Jun 19 -6,000 $60.68 $-364,065
06. Jun 19 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 06. Jun 19 06. Jun 19 7,000 $58.88 $412,097
04. Jun 19 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 03. Jun 19 03. Jun 19 3,500 $58.60 $205,106
21. May 19 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 21. May 19 21. May 19 2,000 $61.28 $122,569
15. May 19 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 14. May 19 15. May 19 8,000 $64.91 $518,316
14. May 19 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 13. May 19 13. May 19 5,000 $65.67 $328,361
13. May 19 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 10. May 19 10. May 19 28,000 $68.86 $1,901,356
18. Apr 19 Sell Investmentaktiengesellschaft für langfristige Investoren TGV Company 18. Apr 19 18. Apr 19 -10,000 $85.97 $-859,709
07. Apr 19 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 04. Apr 19 04. Apr 19 6,500 $81.94 $532,628
01. Apr 19 Sell Jeffrey Schwartz Individual 28. Mar 19 28. Mar 19 -4,000 $79.50 $-318,000
26. Mar 19 Sell Investmentaktiengesellschaft für langfristige Investoren TGV Company 25. Mar 19 25. Mar 19 -5,000 $78.78 $-393,893
26. Mar 19 Sell Jeffrey Schwartz Individual 22. Mar 19 22. Mar 19 -3,000 $80.50 $-241,500
14. Mar 19 Sell David Woroch Individual 13. Mar 19 13. Mar 19 -5,500 $77.14 $-420,980
02. Mar 19 Sell Rawleigh Ralls Individual 28. Feb 19 01. Mar 19 -5,000 $77.86 $-389,245
13. Feb 19 Sell Investmentaktiengesellschaft für langfristige Investoren TGV Company 05. Feb 19 05. Feb 19 -20,000 $73.93 $-1,478,620
17. Dec 18 Sell Allen Karp Individual 14. Dec 18 14. Dec 18 -5,000 $64.00 $-319,760
13. Dec 18 Sell David Woroch Individual 12. Dec 18 12. Dec 18 -5,500 $64.61 $-355,351
09. Nov 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 08. Nov 18 08. Nov 18 150 $51.00 $7,650
08. Nov 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 07. Nov 18 07. Nov 18 1,600 $50.91 $81,458
09. Nov 18 Sell Elliot Noss Individual 08. Nov 18 08. Nov 18 -1,500 $54.63 $-81,945
07. Nov 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 02. Nov 18 02. Nov 18 11,000 $50.40 $554,379
02. Nov 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 01. Nov 18 01. Nov 18 9,000 $50.24 $452,119
12. Oct 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 11. Oct 18 11. Oct 18 20,000 $53.04 $1,060,842
08. Oct 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 05. Oct 18 05. Oct 18 10,600 $55.00 $582,985
05. Oct 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 04. Oct 18 04. Oct 18 9,400 $54.85 $515,598
21. Sep 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 20. Sep 18 20. Sep 18 264 $55.50 $14,652
24. Sep 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 21. Sep 18 24. Sep 18 2,171 $55.50 $120,491
20. Sep 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 19. Sep 18 19. Sep 18 3,748 $55.49 $207,966
19. Sep 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 18. Sep 18 18. Sep 18 1,955 $55.47 $108,448
18. Sep 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 17. Sep 18 17. Sep 18 4,489 $55.49 $249,091
18. Sep 18 Sell Rawleigh Ralls Individual 17. Sep 18 17. Sep 18 -2,500 $55.52 $-138,790
17. Sep 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 14. Sep 18 14. Sep 18 3,395 $55.50 $188,423
14. Sep 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 13. Sep 18 13. Sep 18 2,978 $55.49 $165,263
14. Sep 18 Sell David Woroch Individual 13. Sep 18 13. Sep 18 -5,500 $55.60 $-305,670
13. Sep 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 12. Sep 18 12. Sep 18 1,000 $55.50 $55,500
11. Sep 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 10. Sep 18 11. Sep 18 20,000 $55.94 $1,118,618
06. Sep 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 05. Sep 18 05. Sep 18 6,065 $56.88 $344,964
05. Sep 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 04. Sep 18 04. Sep 18 13,935 $57.93 $807,298
03. Sep 18 Buy Investmentaktiengesellschaft für langfristige Investoren TGV Company 30. Aug 18 31. Aug 18 17,500 $56.30 $978,841
31. Aug 18 Buy Michael Goldstein Individual 29. Aug 18 29. Aug 18 200 $54.52 $10,904
X
Management checks
We assess Tucows's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Tucows has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Have Insiders Been Selling Tucows Inc. (NASDAQ:TCX) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for Tucows The Last 12 Months Of Insider Transactions At Tucows Over the last year, we can see that the biggest insider sale was by the Executive Vice President of Domains, David Woroch, for US$421k worth of shares, at about US$77.14 per share. … While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. … NasdaqCM:TCX Recent Insider Trading, July 19th 2019 Insiders at Tucows Have Sold Stock Recently The last three months saw significant insider selling at Tucows.

Simply Wall St -

Does Tucows Inc. (NASDAQ:TCX) Have A Volatile Share Price?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … Given that it has a beta of 1.1, we can surmise that the Tucows share price has been fairly sensitive to market volatility (over the last 5 years).

Simply Wall St -

Despite Its High P/E Ratio, Is Tucows Inc. (NASDAQ:TCX) Still Undervalued?

See our latest analysis for Tucows How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Tucows: P/E of 40.57 = $61.87 ÷ $1.53 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings.

Simply Wall St -

If You Had Bought Tucows (NASDAQ:TCX) Stock Five Years Ago, You Could Pocket A 332% Gain Today

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Tucows achieved compound earnings per share (EPS) growth of 29% per year. … So the EPS growth rate is rather close to the annualized share price gain of 34% per year.

Simply Wall St -

Is Tucows Inc.'s (NASDAQ:TCX) 19% ROE Better Than Average?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Tucows: 19% = US$16m ÷ US$83m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … In my book the highest quality companies have high return on equity, despite low debt. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

Tucows Inc. (NASDAQ:TCX): Time For A Financial Health Check

(NASDAQ:TCX) is a small-cap stock with a market capitalization of US$920m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

How Much Are Tucows Inc. (NASDAQ:TCX) Insiders Taking Off The Table?

So shareholders might well want to know whether insiders have been buying or selling shares in Tucows Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation.

Simply Wall St -

Tucows Inc. (NASDAQ:TCX) Is Employing Capital Very Effectively

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Could The Tucows Inc. (NASDAQ:TCX) Ownership Structure Tell Us Something Useful?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … It has a market capitalization of US$851m, which means it would generally expect to see some institutions on the share registry. … Let's take a closer look to see what the different types of shareholder can tell us about TCX

Simply Wall St -

Here's What Tucows Inc.'s (NASDAQ:TCX) P/E Is Telling Us

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … To keep it practical, we'll show how Tucows Inc.'s (NASDAQ:TCX) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

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 Services and Domain Services. The Network Access Services segment engages in the provision of mobile services under the Ting Mobile name, including the sale of retail telephony services, mobile phone hardware, and related accessories. It also provides roaming service to international travelers under the Zipsim and Always Online Wireless names; fixed high-speed Internet access services to consumer and business customers; Internet hosting and network consulting services; and billing, provisioning, and customer care software solutions to Internet Service Providers (ISPs) through its Platypus billing software. This segment distributes its products and services through the Ting Website, as well as through third-party retail stores and online retailers. The Domain Services segment offers wholesale and retail domain name registration services, value added services, and portfolio services under the OpenSRS, eNom, and Hover names. Its value-added services include hosted email, which provides email delivery and Webmail access to various mailboxes; Internet security services; and Internet hosting, WHOIS privacy, publishing tools, and other value-added services for end-users. In addition, this segment sells retail domain name registration and email services to individuals and small businesses; and leases and sells a portfolio of domain names. The company was formerly known as Infonautics, Inc. and changed its name to Tucows Inc. in August 2001. Tucows Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.

Details
Name: Tucows Inc.
TCX
Exchange: NasdaqCM
Founded: 1992
$541,480,036
10,654,861
Website: http://www.tucows.com
Address: Tucows Inc.
96 Mowat Avenue,
Toronto,
Ontario, M6K 3M1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM TCX Common Stock Nasdaq Capital Market US USD 29. Aug 2001
DB TUQ1 Common Stock Deutsche Boerse AG DE EUR 29. Aug 2001
LSE 0LH4 Common Stock London Stock Exchange GB USD 29. Aug 2001
TSX TC Common Stock The Toronto Stock Exchange CA CAD 29. Aug 2001
Number of employees
Current staff
Staff numbers
584
Tucows employees.
Industry
Internet Services and Infrastructure
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 01:56
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/10
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.