OTCPK:AKRF.F

Stock Analysis Report

Executive Summary

Ackroo Inc. engages in the development and sale of an online loyalty and rewards platform that enables businesses to design and execute customer transaction, engagement, and retention strategies primarily in North America.

Rewards

Earnings have grown 19.9% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

Does not have meaningful revenue (CA$5M)

+ 1 more risk


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

AKRF.F

0.2%

US Software

0.8%

US Market


1 Year Return

114.1%

AKRF.F

28.5%

US Software

17.8%

US Market

Return vs Industry: AKRF.F exceeded the US Software industry which returned 28.5% over the past year.

Return vs Market: AKRF.F exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

AKRF.FIndustryMarket
7 Day0%0.2%0.8%
30 Day12.0%1.1%1.8%
90 Day27.5%4.2%4.1%
1 Year114.1%114.1%30.5%28.5%20.4%17.8%
3 Year-18.5%-18.5%125.6%116.5%45.9%36.4%
5 Year109.5%109.5%181.2%161.4%68.1%49.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

6.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AKRF.F's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AKRF.F's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: AKRF.F 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 AKRF.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AKRF.F is overvalued based on its PB Ratio (6.6x) compared to the US Software industry average (5.7x).


Next Steps

Future Growth

How is Ackroo forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.4%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ackroo has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of AKRF.F’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Ackroo's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has Ackroo performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKRF.F is currently unprofitable.

Growing Profit Margin: AKRF.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AKRF.F is unprofitable, but has reduced losses over the past 5 years at a rate of 19.9% per year.

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

Earnings vs Industry: AKRF.F is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (15.8%).


Return on Equity

High ROE: AKRF.F has a negative Return on Equity (-43.01%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ackroo's financial position?


Financial Position Analysis

Short Term Liabilities: AKRF.F's short term assets (CA$1.3M) exceed its short term liabilities (CA$954.2K).

Long Term Liabilities: AKRF.F's short term assets (CA$1.3M) do not cover its long term liabilities (CA$3.4M).


Debt to Equity History and Analysis

Debt Level: AKRF.F's debt to equity ratio (155.6%) is considered high.

Reducing Debt: AKRF.F's debt to equity ratio has increased from 23% to 155.6% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: AKRF.F's debt is not covered by short term assets (assets are 0.4x 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: AKRF.F has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: AKRF.F has less than a year of cash runway if free cash flow continues to grow at historical rates of 11.8% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

5.5yrs

Average management tenure


CEO

Steve Levely 0

5.6yrs

Tenure

CA$253,498

Compensation

Mr. Steve Levely has been the Chief Executive Officer of Ackroo Inc. since May 20, 2014 and served as its Executive Vice President since January 2013 until May 2014. Mr. Levely served as Vice President of  ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD191.99K) is below average for companies of similar size in the US market ($USD530.45K).

Compensation vs Earnings: Steve's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

5.5yrs

Average Tenure

Experienced Management: AKRF.F's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

Experienced Board: AKRF.F's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCA$1,32002 Dec 19
Wayne O'Connell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,000
Max PriceCA$0.15
BuyCA$1,32429 Nov 19
2221287 Ontario Limited
EntityCompany
Shares13,500
Max PriceCA$0.098
BuyCA$42,09729 Nov 19
Jason Donville
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares300,000
Max PriceCA$0.14
BuyCA$13,07820 Nov 19
Jason Donville
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100,000
Max PriceCA$0.14
BuyCA$20,78403 Sep 19
2221287 Ontario Limited
EntityCompany
Shares200,000
Max PriceCA$0.11
BuyCA$1,022,07516 Aug 19
2700715 Ontario Inc.
EntityCompany
Shares12,232,362
Max PriceCA$0.084
BuyCA$10,50814 Aug 19
2221287 Ontario Limited
EntityCompany
Shares100,000
Max PriceCA$0.11
BuyCA$24,05207 Aug 19
Jason Donville
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares240,000
Max PriceCA$0.10
SellCA$1,022,07530 Jul 19
Jacmat Holdings Ltd.
EntityCompany
Shares12,232,362
Max PriceCA$0.084
SellCA$29410 Jul 19
Jacmat Holdings Ltd.
EntityCompany
Shares3,500
Max PriceCA$0.084
SellCA$171,75626 Jun 19
Jacmat Holdings Ltd.
EntityCompany
Shares2,000,000
Max PriceCA$0.086
BuyCA$4,28123 Jan 19
2221287 Ontario Limited
EntityCompany
Shares52,000
Max PriceCA$0.083
BuyCA$3,97318 Jan 19
2221287 Ontario Limited
EntityCompany
Shares48,000
Max PriceCA$0.083
BuyCA$7,40708 Jan 19
2221287 Ontario Limited
EntityCompany
Shares100,000
Max PriceCA$0.075

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.4%.


Management Team

  • Jeff Durno (51yo)

    Legal Counsel

    • Tenure: 5.4yrs
    • Compensation: CA$60.58k
  • Shane Mclean (44yo)

    Secretary

    • Tenure: 7.2yrs
  • Steve Levely

    CEO & Director

    • Tenure: 5.6yrs
    • Compensation: CA$253.50k
  • Derek Schaaf

    Chief Financial Officer

    • Tenure: 2.9yrs
    • Compensation: CA$140.00k
  • Tyler Moss

    Director of Finance & Operations

    • Tenure: 0yrs
  • Craig Vukovic

    Managing Director of Sales

    • Tenure: 0yrs
  • Jennifer Feijo

    Director of Marketing

    • Tenure: 0yrs

Board Members

  • Jason Donville (54yo)

    Independent Director

    • Tenure: 1yrs
  • Kristaps Ronka (32yo)

    Independent Director

    • Tenure: 1.9yrs
  • Steve Levely

    CEO & Director

    • Tenure: 5.6yrs
    • Compensation: CA$253.50k
  • Sam Cole

    Independent Director

    • Tenure: 4.7yrs
  • Wayne O'Connell

    Independent Director

    • Tenure: 3.4yrs

Company Information

Ackroo Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ackroo Inc.
  • Ticker: AKRF.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Application Software
  • Sector: Software
  • Market Cap: CA$14.546m
  • Listing Market Cap: CA$11.017m
  • Shares outstanding: 76.56m
  • Website: https://www.ackroo.com

Location

  • Ackroo Inc.
  • Unit A3-1, 1250 South Service Road
  • 3rd Floor
  • Hamilton
  • Ontario
  • L8E 5R9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AKRTSXV (TSX Venture Exchange)YesNew Common StockCACADOct 2012
AKRF.FOTCPK (Pink Sheets LLC)YesNew Common StockUSUSDOct 2012
3CKNDB (Deutsche Boerse AG)YesNew Common StockDEEUROct 2012

Biography

Ackroo Inc. engages in the development and sale of an online loyalty and rewards platform that enables businesses to design and execute customer transaction, engagement, and retention strategies primarily  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 00:32
End of Day Share Price2019/11/27 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.