AMEX:ISDR

Stock Analysis Report

Executive Summary

Issuer Direct Corporation provides shareholder communications and compliance platforms, technologies, and services in North America and Europe.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.2%

ISDR

-9.9%

US Software

-10.6%

US Market


1 Year Return

-15.7%

ISDR

20.4%

US Software

5.2%

US Market

Return vs Industry: ISDR underperformed the US Software industry which returned 27.3% over the past year.

Return vs Market: ISDR underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

ISDRIndustryMarket
7 Day-5.2%-9.9%-10.6%
30 Day-6.4%-5.5%-8.5%
90 Day-9.8%1.9%-4.6%
1 Year-15.7%-15.7%21.7%20.4%7.4%5.2%
3 Year15.0%12.7%122.5%112.9%31.7%23.2%
5 Year29.8%23.0%190.9%169.8%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

65.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ISDR ($12.02) is trading above our estimate of fair value ($7.5)

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


Price To Earnings Ratio

PE vs Industry: ISDR is poor value based on its PE Ratio (68.5x) compared to the Software industry average (45.3x).

PE vs Market: ISDR is poor value based on its PE Ratio (68.5x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: ISDR is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ISDR is good value based on its PB Ratio (1.7x) compared to the US Software industry average (5.5x).


Next Steps

Future Growth

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

38.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ISDR's forecast earnings growth (38.4% per year) is above the savings rate (1.7%).

Earnings vs Market: ISDR's earnings (38.4% per year) are forecast to grow faster than the US market (13.2% per year).

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

Revenue vs Market: ISDR's revenue (6.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ISDR's revenue (6.8% 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 ISDR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Issuer Direct performed over the past 5 years?

25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ISDR has high quality earnings.

Growing Profit Margin: ISDR's current net profit margins (4.3%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: ISDR's earnings have grown significantly by 25.3% per year over the past 5 years.

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

Earnings vs Industry: ISDR had negative earnings growth (-55%) over the past year, making it difficult to compare to the Software industry average (19%).


Return on Equity

High ROE: ISDR's Return on Equity (2.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Issuer Direct's financial position?


Financial Position Analysis

Short Term Liabilities: ISDR's short term assets ($18.2M) exceed its short term liabilities ($3.0M).

Long Term Liabilities: ISDR's short term assets ($18.2M) exceed its long term liabilities ($712.0K).


Debt to Equity History and Analysis

Debt Level: ISDR's debt to equity ratio (2.3%) is considered satisfactory.

Reducing Debt: ISDR's debt to equity ratio has reduced from 28.1% to 2.3% over the past 5 years.

Debt Coverage: ISDR's debt is well covered by operating cash flow (435%).

Interest Coverage: ISDR earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: ISDR's debt is covered by short term assets (assets are 29.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.6%markettop25%4.1%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if ISDR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ISDR is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ISDR'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?

1.3yrs

Average management tenure


CEO

Brian Balbirnie (48yo)

14yrs

Tenure

US$218,000

Compensation

Mr. Brian R. Balbirnie co-founded Issuer Direct Corporation in 2006. Mr. Balbirnie serves as the Chief Executive Officer and President at Issuer Direct Corporation. He Founded a Compliance and Consulting p ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD218.00K) is below average for companies of similar size in the US market ($USD529.87K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brian Balbirnie
Founder14yrsUS$218.00k16.29% $7.1m
Steven Knerr
Chief Financial Officer4.8yrsUS$176.55k0.26% $114.6k
Dick Bromley
Executive Vice President of Sales1.3yrsno datano data
Angie Goertz
Vice President of of Marketing0.08yrsno datano data
Dee Brown
Director of Human Resources1yrsno datano data

1.3yrs

Average Tenure

Experienced Management: ISDR's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Brian Balbirnie
Founder14yrsUS$218.00k16.29% $7.1m
William Everett
Independent Chairman of the Board2.4yrsUS$149.44k0.77% $335.1k
Michael Nowlan
Independent Director2.4yrsUS$131.44k0.053% $22.9k
James Galleher
Independent Director5.9yrsUS$131.44k0.74% $321.0k
Eric Frank
Independent Director2.4yrsUS$131.44k0.053% $22.9k

2.4yrs

Average Tenure

54yo

Average Age

Experienced Board: ISDR's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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 22.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Issuer Direct Corporation
  • Ticker: ISDR
  • Exchange: AMEX
  • Founded: 1988
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$43.544m
  • Shares outstanding: 3.79m
  • Website: https://www.issuerdirect.com

Number of Employees


Location

  • Issuer Direct Corporation
  • 1 Glenwood Avenue
  • Suite 1001
  • Raleigh
  • North Carolina
  • 27603
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ISDRAMEX (NYSE MKT LLC)YesCommon StockUSUSDMay 1992

Biography

Issuer Direct Corporation provides shareholder communications and compliance platforms, technologies, and services in North America and Europe. The company provides Platform id, a cloud-based subscription platform that manages the events of customers to distribute their messages to constituents, investors, markets, and regulatory systems; whistleblower module, which delivers secure notifications and basic incident workflow management processes that align with a company’s corporate governance whistleblower policy; and proxy module, a real-time voting platform for customers and their shareholders of record. It also offers Regulation Fair Disclosure, news dissemination and media outreach service; and VisualWebcaster Platform, a cloud-based earnings Webcast, Webinar, and training platform that delivers live and on-demand streaming of events to audiences of various sizes, as well as allows customers to create, produce, and deliver events. In addition, the company provides SEC documents conversion and editing; XBRL tagging; stock certificates fulfillment and delivery; telecommunications; printing; press release distribution; and investor outreach and engagement services, as well as proxy materials or annual reports. It operates under Direct Transfer, PrecisionIR (PIR), Blueprint, Classify, Investor Network, iProxy Direct, iR Direct, QX Interactive, Interwest, ACCESSWIRE, and FSCwire brands name. The company serves corporate issuers, private companies, banks, brokerage firms, investment banks, and mutual funds; and professional firms, such as investor relations and public relations firms, as well as the accounting and legal communities. Issuer Direct Corporation was founded in 1988 and is headquartered in Raleigh, 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 01:47
End of Day Share Price2020/02/27 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.