OTCPK:CLOK

Stock Analysis Report

Executive Summary

Cipherloc Corporation develops products and services based on a quantum-resistant encryption technology.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.4%

CLOK

-2.6%

US Software

-1.0%

US Market


1 Year Return

-31.5%

CLOK

35.8%

US Software

18.0%

US Market

Return vs Industry: CLOK underperformed the US Software industry which returned 35.8% over the past year.

Return vs Market: CLOK underperformed the US Market which returned 18% over the past year.


Shareholder returns

CLOKIndustryMarket
7 Day1.4%-2.6%-1.0%
30 Day-6.3%4.9%0.6%
90 Day-1.3%15.2%7.9%
1 Year-31.5%-31.5%37.3%35.8%20.4%18.0%
3 Year-73.6%-73.6%145.0%134.6%48.0%38.5%
5 Year-65.1%-65.1%214.6%191.9%72.2%53.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

5.9x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CLOK is good value based on its PB Ratio (5.9x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

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

11.2%

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 Cipherloc 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

  • Examine Cipherloc's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • 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 Cipherloc's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has Cipherloc performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLOK is currently unprofitable.

Growing Profit Margin: CLOK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CLOK is unprofitable, but has reduced losses over the past 5 years at a rate of 13.4% per year.

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

Earnings vs Industry: CLOK is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.4%).


Return on Equity

High ROE: CLOK has a negative Return on Equity (-153%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cipherloc's financial position?


Financial Position Analysis

Short Term Liabilities: CLOK's short term assets ($5.7M) exceed its short term liabilities ($774.8K).

Long Term Liabilities: CLOK's short term assets ($5.7M) exceed its long term liabilities ($102.4K).


Debt to Equity History and Analysis

Debt Level: CLOK is debt free.

Reducing Debt: CLOK has no debt compared to 5 years ago when its debt to equity ratio was 30.5%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if CLOK'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: CLOK has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: CLOK has less than a year of cash runway if free cash flow continues to reduce at historical rates of -43.8% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if CLOK'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 CLOK'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?

0.5yrs

Average board tenure


CEO

Andrew Borene (44yo)

0.3yrs

Tenure

0

Mr. Andrew Borene has been the Chief Executive Officer at Cipherloc Corporation since November 25, 2019 and served as its President since December 2019 and serves as its Director since December 20, 2019. M ...


Board Members

NamePositionTenureCompensationOwnership
Michael De La Garza
Co-Founder & Director9.3yrsUS$529.04k35.37% $10.7m
Andrew Borene
President0.3yrsno datano data
Anthony Ambrose
Lead Independent Director0yrsno datano data
Thomas Wilkinson
Chairman of the Board0yrsUS$131.50k0.037% $11.2k
Zeynep Young
Independent Director0.5yrsno datano data
Sammy Davis
Independent Director2.8yrsUS$20.00k0.025% $7.4k
David Chasteen
Independent Director0.5yrsno datano data

0.5yrs

Average Tenure

49yo

Average Age

Experienced Board: CLOK's board of directors are not considered experienced ( 0.5 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 been diluted in the past year, with total shares outstanding growing by 31.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Cipherloc Corporation
  • Ticker: CLOK
  • Exchange: OTCPK
  • Founded: 1953
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$30.186m
  • Shares outstanding: 40.79m
  • Website: https://www.cipherloc.net

Number of Employees


Location

  • Cipherloc Corporation
  • 825 Main Street
  • Suite 100
  • Buda
  • Texas
  • 78610
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLOKOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 1996

Biography

Cipherloc Corporation develops products and services based on a quantum-resistant encryption technology. It develops CipherLoc, a polymorphic key progression algorithm encryption cipher engine for use in commercial data security industry and/or in sensitive applications. The company was formerly known as National Scientific Corporation and changed its name to Cipherloc Corporation in March 2015. Cipherloc Corporation was incorporated in 1953 and is headquartered in Buda, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:40
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.