NYSE:ECOM

Stock Analysis Report

Executive Summary

ChannelAdvisor Corporation provides software-as-a-service (SaaS) solutions in the United States and internationally.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.8%

ECOM

-9.9%

US Software

-10.6%

US Market


1 Year Return

-28.6%

ECOM

20.4%

US Software

5.2%

US Market

Return vs Industry: ECOM underperformed the US Software industry which returned 20.4% over the past year.

Return vs Market: ECOM underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

ECOMIndustryMarket
7 Day-6.8%-9.9%-10.6%
30 Day-1.2%-5.5%-8.5%
90 Day-1.9%1.9%-4.6%
1 Year-28.6%-28.6%21.7%20.4%7.4%5.2%
3 Year-12.6%-12.6%122.5%112.9%31.7%23.2%
5 Year-4.6%-4.6%190.9%169.8%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ECOM ($9.31) is trading below our estimate of fair value ($18.89)

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


Price To Earnings Ratio

PE vs Industry: ECOM is poor value based on its PE Ratio (74.6x) compared to the Software industry average (43.4x).

PE vs Market: ECOM is poor value based on its PE Ratio (74.6x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: ECOM is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: ECOM is good value based on its PB Ratio (2.6x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

How is ChannelAdvisor forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

32.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECOM's forecast earnings growth (32% per year) is above the savings rate (1.7%).

Earnings vs Market: ECOM's earnings (32% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: ECOM's revenue (5.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ECOM's revenue (5.7% 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 ECOM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ChannelAdvisor performed over the past 5 years?

41.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECOM has a large one-off loss of $1.4M impacting its December 31 2019 financial results.

Growing Profit Margin: ECOM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ECOM has become profitable over the past 5 years, growing earnings by 41.3% per year.

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

Earnings vs Industry: ECOM 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: ECOM's Return on Equity (3.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ChannelAdvisor's financial position?


Financial Position Analysis

Short Term Liabilities: ECOM's short term assets ($84.4M) exceed its short term liabilities ($36.4M).

Long Term Liabilities: ECOM's short term assets ($84.4M) exceed its long term liabilities ($10.8M).


Debt to Equity History and Analysis

Debt Level: ECOM is debt free.

Reducing Debt: ECOM currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

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

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.1%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

4.3yrs

Average management tenure


CEO

David Spitz (46yo)

4.8yrs

Tenure

US$1,709,095

Compensation

Mr. David J. Spitz has been Chief Executive Officer of ChannelAdvisor Corporation since May 2015 and served as its President and Chief Operating Officer since 2010 until May 2015 and served as its Vice Pre ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.71M) is above average for companies of similar size in the US market ($USD1.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Spitz
CEO & Director4.8yrsUS$1.71m1.42% $3.7m
Diana Allen
VP, General Counsel & Secretary6.1yrsUS$797.44k0.15% $383.3k
Richard Cornetta
Chief Financial Officer0.8yrsno data0.097% $254.6k
Elizabeth Segovia
Chief Operating Officer0.5yrsno data0.051% $132.2k
Traci Mangini
Director of Investor Relations0yrsno datano data
Melissa Sargeant
Chief Marketing Officer3.8yrsno datano data
Amy Robertson
Chief People Officer & VP3.4yrsno datano data
James Huang
MD & VP of Greater China6.2yrsno datano data
Michal Kaluzynski
Head of Services - EMEA5.8yrsno datano data
Mike Shapaker
MD of EMEA & VP of Product Management4.3yrsno datano data

4.3yrs

Average Tenure

Experienced Management: ECOM's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Spitz
CEO & Director4.8yrsUS$1.71m1.42% $3.7m
Timothy Buckley
Lead Independent Chairman0.2yrsUS$229.76k0.29% $755.5k
Timothy Williams
Independent Director7.3yrsUS$229.39k0.23% $592.6k
Mitchell Wingo
Co-Founder & Independent Director19.1yrsUS$278.39k1.68% $4.4m
Joseph Cowan
Independent Director3.5yrsUS$210.64k0.20% $527.2k
Janet Cowell
Independent Director4yrsUS$213.39k0.15% $393.5k
Jon Sakoda
Board Observer0yrsno datano data
Marshall Heinberg
Director0.2yrsno datano data
Marc Huffman
Independent Director3.9yrsUS$208.39k0.19% $496.8k

4.0yrs

Average Tenure

50yo

Average Age

Experienced Board: ECOM's board of directors are considered experienced (4 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 2.8%.


Top Shareholders

Company Information

ChannelAdvisor Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ChannelAdvisor Corporation
  • Ticker: ECOM
  • Exchange: NYSE
  • Founded: 2001
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$261.448m
  • Shares outstanding: 28.08m
  • Website: https://www.channeladvisor.com

Number of Employees


Location

  • ChannelAdvisor Corporation
  • 3025 Carrington Mill Boulevard
  • Suite 500
  • Morrisville
  • North Carolina
  • 27560
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECOMNYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 2013
CDLDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2013

Biography

ChannelAdvisor Corporation provides software-as-a-service (SaaS) solutions in the United States and internationally. The company’s SaaS, a cloud platform that helps brands and retailers to improve their online performance by expanding sales channels, connecting with consumers around the world, optimizing their operations for peak performance, and providing actionable analytics to improve competitiveness. Its suite of solutions include various modules, including Marketplaces module that connects customers to third-party marketplaces; and Digital Marketing module, which connects customers to compare shopping Websites that allow customers to advertise products on search engines. The company also offers Where to Buy solution that allows brands to provide their Web visitors or digital marketing audiences with information about the authorized resellers that carry their products and the availability of those products; and Product Intelligence, a solution that provides brands with insights about online assortment, product coverage gaps, pricing trends, and adherence by their retailers to content guidelines. Its customers include online businesses of brands and retailers, as well as advertising agencies that use its solutions on behalf of their clients. The company was founded in 2001 and is headquartered in Morrisville, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 01:43
End of Day Share Price2020/02/27 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.