OTCPK:DRKO.F

Stock Analysis Report

Martello Technologies Group

Executive Summary

Martello Technologies Group Inc. develops and sells products and solutions that monitor, manage, and optimize the performance of real-time applications on various networks.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Martello Technologies Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.1%

DRKO.F

0.7%

US IT

0.06%

US Market


1 Year Return

-18.1%

DRKO.F

36.9%

US IT

19.3%

US Market

Return vs Industry: DRKO.F underperformed the US IT industry which returned 36.9% over the past year.

Return vs Market: DRKO.F underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

DRKO.FIndustryMarket
7 Day-7.1%0.7%0.06%
30 Day-14.5%4.4%1.7%
90 Day-14.6%15.9%9.0%
1 Year-18.1%-18.1%38.3%36.9%21.8%19.3%
3 Yearn/a110.3%101.2%49.5%39.9%
5 Yearn/a151.1%128.7%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Martello Technologies Group 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: DRKO.F ($0.21) is trading below our estimate of fair value ($0.54)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: DRKO.F is good value based on its PB Ratio (3x) compared to the US IT industry average (4.4x).


Next Steps

Future Growth

How is Martello Technologies Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

70.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRKO.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: DRKO.F is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DRKO.F's is expected to become profitable in the next 3 years.

Revenue vs Market: DRKO.F's revenue (16.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: DRKO.F's revenue (16.9% 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 DRKO.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Martello Technologies Group performed over the past 5 years?

-61.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DRKO.F is currently unprofitable.

Growing Profit Margin: DRKO.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DRKO.F is unprofitable, and losses have increased over the past 5 years at a rate of -61.7% per year.

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

Earnings vs Industry: DRKO.F is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (13.7%).


Return on Equity

High ROE: DRKO.F has a negative Return on Equity (-22.44%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Martello Technologies Group's financial position?


Financial Position Analysis

Short Term Liabilities: DRKO.F's short term assets (CA$13.1M) exceed its short term liabilities (CA$6.8M).

Long Term Liabilities: DRKO.F's short term assets (CA$13.1M) exceed its long term liabilities (CA$3.8M).


Debt to Equity History and Analysis

Debt Level: DRKO.F's debt to equity ratio (14.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if DRKO.F's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: DRKO.F's debt is covered by short term assets (assets are 4.4x 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: DRKO.F has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if DRKO.F has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Martello Technologies Group'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 DRKO.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Growing Dividend: Insufficient data to determine if DRKO.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 DRKO.F'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?

1.8yrs

Average management tenure


CEO

John Proctor (51yo)

2.2yrs

Tenure

CA$290,192

Compensation

Mr. John Proctor is President and Chief Executive Officer of Martello Technologies Group Inc. and serves as its Director since December 18, 2017 also he join on December 11, 2017. He oversees corporate dir ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD218.82K) is below average for companies of similar size in the US market ($USD521.37K).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Proctor
President2.2yrsCA$290.19kno data
Niall Gallagher
Co-Founder & Director10.8yrsCA$180.58k2.01% CA$915.0k
Erin Crowe
Chief Financial Officer1.8yrsCA$267.00k0.096% CA$43.7k
Doug Bellinger
Chief Technology Officer1.3yrsCA$218.31k0.88% CA$399.9k
Tracy King
Vice President of Marketing0yrsno datano data
Frederic Parent
Chief Innovation Officer0yrsno datano data
Christa Plumley
Corporate Secretary0yrsno datano data

1.8yrs

Average Tenure

51yo

Average Age

Experienced Management: DRKO.F's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Proctor
President2.2yrsCA$290.19kno data
Niall Gallagher
Co-Founder & Director10.8yrsCA$180.58k2.01% CA$915.0k
Terence Matthews
Co-Chairman of the Board1.5yrsCA$25.00kno data
Colley Clarke
Independent Director4.4yrsCA$41.80kno data
Bruce Linton
Co-Chairman of the Board2.2yrsCA$173.75k1.47% CA$669.8k
Donald Smith
Independent Director4.4yrsCA$19.28kno data
Jennifer Camelon
Director1.3yrsCA$11.83kno data
Michael Michalyshyn
Independent Director4.4yrsCA$41.25kno data
Michael Galvin
Director1.3yrsCA$11.84kno data

2.2yrs

Average Tenure

60yo

Average Age

Experienced Board: DRKO.F's board of directors are not considered experienced ( 2.2 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 substantially diluted in the past year, with total shares outstanding growing by 56.4%.


Top Shareholders

Company Information

Martello Technologies Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Martello Technologies Group Inc.
  • Ticker: DRKO.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: CA$60.382m
  • Listing Market Cap: CA$45.531m
  • Shares outstanding: 208.21m
  • Website: https://martellotech.com

Number of Employees


Location

  • Martello Technologies Group Inc.
  • 390 March Road
  • Suite 110
  • Ottawa
  • Ontario
  • K2K 0G7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTLOTSXV (TSX Venture Exchange)YesCommon SharesCACADAug 2018
DRKO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2018

Biography

Martello Technologies Group Inc. develops and sells products and solutions that monitor, manage, and optimize the performance of real-time applications on various networks. The company operates through three segments: Performance Analytics; Network Performance Management; and IT Visualization. Its products include unified communications (UC) performance management software, IT systems visualization software, and software-defined wide area network (SD-WAN) technologies. The company also offers ATLAS, a SD-WAN solution with security, optimization, virtual private network, and failover components; and Martello Vantage suite of products to prevent, detect, troubleshoot, and address UC performance problems, such as delay, jitter, packet loss, and poor voice quality. In addition, it offers subscription and perpetual software licensing, maintenance and support, and training and professional services, as well as hardware products. The company serves education, hospitality, healthcare, and professional service industries, as well as enterprise networks, IoT and autonomous vehicles, and service providers. It operates in Canada, the United States, Europe, Asia, the Latin America, Australia, and internationally. Martello Technologies Group Inc. is headquartered in Ottawa, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 02:34
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.