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.

Risks

  • WidePoint has significant price volatility in the past 3 months.
  • WidePoint is covered by less than 3 analysts.

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

1.0%

AMEX:WYY

-0.7%

US IT

-1.6%

US Market


1 Year Return

-26.9%

AMEX:WYY

17.8%

US IT

-3.0%

US Market

WYY underperformed the IT industry which returned 17.7% over the past year.

WYY underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

WYYIndustryMarket
7 Day1.0%-0.7%-1.6%
30 Day-12.2%-4.0%-5.7%
90 Day-26.9%6.4%0.2%
1 Year-26.9%-26.9%19.0%17.8%-0.8%-3.0%
3 Year-28.0%-28.0%96.2%87.8%38.1%29.1%
5 Year-77.8%-77.8%137.6%113.4%50.8%34.1%

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

WidePoint's share price is below the future cash flow value, and at a moderate discount (> 20%).

WidePoint's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

WidePoint is loss making, we can't compare its value to the US IT industry average.

WidePoint is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for WidePoint, we can't assess if its growth is good value.


Price Based on Value of Assets

WidePoint is good value based on assets compared to the US IT industry average.


Next Steps

Future Growth

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

164.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

WidePoint's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).

WidePoint's earnings are expected to grow significantly at over 20% yearly.

WidePoint's revenue growth is positive but not above the United States of America market average.

WidePoint's earnings growth is expected to exceed the United States of America market average.

WidePoint's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if WidePoint will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

WidePoint does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare WidePoint's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare WidePoint's 1-year growth to the US IT industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if WidePoint has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if WidePoint has efficiently used its assets last year compared to the US IT industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if WidePoint improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is WidePoint's financial position?


Financial Position Analysis

WidePoint is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

WidePoint's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

WidePoint's level of debt (0.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (12.2% vs 0.1% today).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 715.8x 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.

Whilst loss making WidePoint has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making WidePoint has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 29.7% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate WidePoint's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate WidePoint's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as WidePoint has not reported any payouts.

Unable to verify if WidePoint's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as WidePoint 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.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Jin Kang (55yo)

2.1yrs

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

Jin's remuneration is about average for companies of similar size in United States of America.

Jin's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.8yrs

Average Tenure

54yo

Average Age

The average tenure for the WidePoint management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

52yo

Average Age

The average tenure for the WidePoint board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by WidePoint individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$40,39023 Aug 19
Otto Guenther
EntityIndividual
Role
Chairman of the Board
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: 1.8yrs
    • Compensation: US$273.86k
  • Ian Sparling (53yo)

    Interim Chief Financial Officer

    • Tenure: 0.3yrs
  • Jin Kang (55yo)

    President

    • Tenure: 2.1yrs
    • Compensation: US$493.00k
  • Todd Dzyak

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

    • Tenure: 1.7yrs
  • Jason Holloway (51yo)

    Executive VP and Chief Sales & Marketing Officer

    • Tenure: 3.3yrs
    • Compensation: US$424.00k
  • Caroline Godfrey

    Chief Security Officer & Executive VP of WidePoint Cybersecurity Solutions Corporation

    • Tenure: 1.7yrs

Board Members

  • Philip Richter (49yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$68.75k
  • Otto Guenther (78yo)

    Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: US$68.75k
  • Julia Bowen (52yo)

    Independent Director

    • Tenure: 0.5yrs
  • Richard Todaro (47yo)

    Independent Director

    • Tenure: 0.5yrs
  • Jin Kang (55yo)

    President

    • Tenure: 2.1yrs
    • 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$30.268m
  • 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 Analysis2019/08/24 23:44
End of Day Share Price2019/08/23 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.