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 Analysis

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

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


Market Performance


7 Day Return

-6.7%

WYY

-5.9%

US IT

-3.8%

US Market


1 Year Return

-22.9%

WYY

-10.2%

US IT

-15.9%

US Market

Return vs Industry: WYY underperformed the US IT industry which returned -10.1% over the past year.

Return vs Market: WYY underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

WYYIndustryMarket
7 Day-6.7%-5.9%-3.8%
30 Day-20.1%-18.9%-17.4%
90 Day-12.9%-22.4%-24.1%
1 Year-22.9%-22.9%-9.2%-10.2%-14.1%-15.9%
3 Year-20.7%-20.7%51.2%44.7%10.0%2.8%
5 Year-76.2%-76.2%76.9%61.4%27.6%13.5%

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 ($0.35) is trading below our estimate of fair value ($0.81)

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


Price To Earnings Ratio

PE vs Industry: WYY is poor value based on its PE Ratio (128.1x) compared to the IT industry average (22.7x).

PE vs Market: WYY is poor value based on its PE Ratio (128.1x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: WYY is poor value based on its PEG Ratio (1.9x)


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 (2.7x).


Next Steps

Future Growth

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

66.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WYY's forecast earnings growth (66.2% per year) is above the savings rate (1.7%).

Earnings vs Market: WYY's earnings (66.2% per year) are forecast to grow faster than the US market (13.4% per year).

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

Revenue vs Market: WYY's revenue (4.3% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: WYY's revenue (4.3% 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?

42.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WYY has high quality earnings.

Growing Profit Margin: WYY became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WYY has become profitable over the past 5 years, growing earnings by 42.4% per year.

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

Earnings vs Industry: WYY has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (13.7%).


Return on Equity

High ROE: WYY's Return on Equity (0.9%) is considered low.


Next Steps

Financial Health

How is WidePoint's financial position?


Financial Position Analysis

Short Term Liabilities: WYY's short term assets ($36.5M) exceed its short term liabilities ($31.5M).

Long Term Liabilities: WYY's short term assets ($36.5M) exceed its long term liabilities ($7.8M).


Debt to Equity History and Analysis

Debt Level: WYY is debt free.

Reducing Debt: WYY has no debt compared to 5 years ago when its debt to equity ratio was 9.9%.


Balance Sheet

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

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Jin Kang (55yo)

2.75s

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's total compensation ($USD493.00K) is about average for companies of similar size in the US market ($USD626.05K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jin Kang
President2.75yrsUS$493.00k4.36% $1.3m
Jason Holloway
Executive VP and Chief Sales & Marketing Officer3.92yrsUS$424.00k1.48% $424.3k
S. Kellie Kim
Chief Financial Officer0.25yrno datano data
Amy O'Bryan
Human Resources Managerno datano datano data
Caroline Godfrey
Chief Security Officer & Executive VP of WidePoint Cybersecurity Solutions Corporation2.33yrsno datano data
Todd Dzyak
President and CEO of WidePoint Integrated Solutions Corporation & WidePoint Solutions Corporation2.33yrsno datano data
James McCubbin
Consultant2.5yrsUS$273.86kno data

2.4yrs

Average Tenure

54.5yo

Average Age

Experienced Management: WYY's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jin Kang
President2.75yrsUS$493.00k4.36% $1.3m
Philip Richter
Independent Director2.75yrsUS$68.75k0.26% $75.0k
Otto Guenther
Independent Chairman of the Board2.5yrsUS$68.75k0.48% $137.6k
Julia Bowen
Independent Director1.17yrsno data0.048% $13.7k
Richard Todaro
Independent Director1.17yrsno data0.17% $48.2k

2.5yrs

Average Tenure

52yo

Average Age

Experienced Board: WYY's board of directors are not considered experienced ( 2.5 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 not been meaningfully diluted in the past year.


Top Shareholders

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$28.749m
  • Shares outstanding: 83.33m
  • 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 communications solutions through a proprietary portal. The company provides telecom lifecycle management, mobile and identity management, and telecom bill presentment and analytics solutions. It also offers professional services to its federally certified software solutions. WidePoint Corporation was founded in 1996 and is headquartered in Fairfax, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 05:41
End of Day Share Price2020/04/03 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.