AMEX:WYY

Stock Analysis Report

Executive Summary

WidePoint Corporation provides trusted mobility management solutions to the government and commercial sectors in North America and Europe.

Snowflake

Fundamentals

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

WYY

-1.8%

US IT

1.0%

US Market


1 Year Return

-26.9%

WYY

20.6%

US IT

8.0%

US Market

Return vs Industry: WYY underperformed the US IT industry which returned 20.6% over the past year.

Return vs Market: WYY underperformed the US Market which returned 8% over the past year.


Shareholder returns

WYYIndustryMarket
7 Day0%-1.8%1.0%
30 Day4.6%-0.9%-0.07%
90 Day-19.1%-5.5%-1.0%
1 Year-26.9%-26.9%21.9%20.6%10.4%8.0%
3 Year-15.1%-15.1%93.3%85.4%46.2%36.7%
5 Year-78.2%-78.2%146.1%123.5%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is WidePoint 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: WYY ($0.34) is trading below our estimate of fair value ($1.3)

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


Price To Earnings Ratio

PE vs Industry: WYY is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: WYY is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WYY is good value based on its PB Ratio (1.2x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is WidePoint forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

137.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WYY is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: WYY is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: WYY is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: WYY's revenue (6.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: WYY's revenue (6.4% 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 WYY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has WidePoint performed over the past 5 years?

31.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WYY is unprofitable, but has reduced losses over the past 5 years at a rate of 31.8% per year.

Accelerating Growth: Unable to compare WYY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WYY is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (9.8%).


Return on Equity

High ROE: WYY has a negative Return on Equity (-1.79%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: WYY is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: WYY is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is WidePoint's financial position?


Financial Position Analysis

Short Term Liabilities: WYY's short term assets ($25.8M) exceeds its short term liabilities ($21.5M)

Long Term Liabilities: WYY's short term assets (25.8M) exceeds its long term liabilities (7.5M)


Debt to Equity History and Analysis

Debt Level: WYY's debt to equity ratio (0.1%) is considered satisfactory

Reducing Debt: WYY's debt to equity ratio has reduced from 12.2% to 0.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: WYY's debt is covered by short term assets (assets are 715.812810x 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: Whilst unprofitable WYY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: WYY is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -29.7% per year.


Next Steps

Dividend

What is WidePoint'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


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if WYY's dividends per share have been stable in the past.

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

1.9yrs

Average management tenure


CEO

Jin Kang (55yo)

2.3yrs

Tenure

US$493,000

Compensation

Mr. Jin H. Kang has been the Chief Executive Officer, President and Director of WidePoint Corporation since July 1, 2017 and served as its Executive Vice President since January 2018 until 2018. Mr. Kang f ...


CEO Compensation Analysis

Compensation vs. Market: Jin has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.9yrs

Average Tenure

55yo

Average Age

Experienced Management: WYY's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

52yo

Average Age

Experienced Board: WYY's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: WYY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$40,39023 Aug 19
Otto Guenther
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares100,000
Max PriceUS$0.40
BuyUS$37,48021 Aug 19
Jin Kang
EntityIndividual
Role
Chief Executive Officer
President
Shares100,000
Max PriceUS$0.37
BuyUS$34,47021 Aug 19
Richard Todaro
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100,000
Max PriceUS$0.34
SellUS$49,79803 Dec 18
Morton Taubman
EntityIndividual
Shares106,383
Max PriceUS$0.47
BuyUS$16,31929 Nov 18
Jin Kang
EntityIndividual
Role
Chief Executive Officer
President
Shares33,034
Max PriceUS$0.49

Ownership Breakdown


Management Team

  • Jim McCubbin (55yo)

    Consultant

    • Tenure: 2yrs
    • Compensation: US$273.86k
  • Otto Guenther (78yo)

    Independent Chairman of the Board

    • Tenure: 2yrs
    • Compensation: US$68.75k
  • Ian Sparling (53yo)

    Interim Chief Financial Officer

    • Tenure: 0.4yrs
  • Jin Kang (55yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$493.00k
  • Todd Dzyak

    President and CEO of WidePoint Integrated Solutions Corporation & WidePoint Solutions Corporation

    • Tenure: 1.8yrs
  • Jason Holloway (51yo)

    Executive VP and Chief Sales & Marketing Officer

    • Tenure: 3.4yrs
    • Compensation: US$424.00k
  • Caroline Godfrey

    Chief Security Officer & Executive VP of WidePoint Cybersecurity Solutions Corporation

    • Tenure: 1.8yrs

Board Members

  • Philip Richter (49yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$68.75k
  • Otto Guenther (78yo)

    Independent Chairman of the Board

    • Tenure: 2yrs
    • Compensation: US$68.75k
  • Julia Bowen (52yo)

    Independent Director

    • Tenure: 0.7yrs
  • Richard Todaro (47yo)

    Independent Director

    • Tenure: 0.7yrs
  • Jin Kang (55yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$493.00k

Company Information

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


Key Information

  • Name: WidePoint Corporation
  • Ticker: WYY
  • Exchange: AMEX
  • Founded: 1996
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$28.586m
  • Shares outstanding: 84.10m
  • Website: https://www.widepoint.com

Number of Employees


Location

  • WidePoint Corporation
  • South Tower
  • Suite 210
  • Fairfax
  • Virginia
  • 22030
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WYYAMEX (NYSE MKT LLC)YesCommon StockUSUSDJul 1992
ZMXDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1992

Biography

WidePoint Corporation provides trusted mobility management solutions to the government and commercial sectors in North America and Europe. It offers federally certified secure identity management and commu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:46
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.