OTCPK:ELBS.F

Stock Analysis Report

Executive Summary

Engagement Labs Inc. provides intelligent data, analytics, and insights for marketers and organizations to track, measure, and benchmark the conversations happening around a brand or industry.

Risk Analysis

Has less than 1 year of cash runway

Shares are highly illiquid

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap ($7M)

+ 2 more risks


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ELBS.F

1.7%

US Software

1.5%

US Market


1 Year Return

-41.6%

ELBS.F

42.3%

US Software

20.1%

US Market

Return vs Industry: ELBS.F underperformed the US Software industry which returned 42.2% over the past year.

Return vs Market: ELBS.F underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

ELBS.FIndustryMarket
7 Day0%1.7%1.5%
30 Day5.0%7.7%1.4%
90 Dayn/a18.4%8.7%
1 Year-41.6%-41.6%43.9%42.3%22.7%20.1%
3 Yearn/a152.8%142.4%50.1%40.5%
5 Yearn/a224.7%201.5%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.29x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ELBS.F is good value based on its PB Ratio (1.3x) compared to the US Software industry average (6x).


Next Steps

Future Growth

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

11.4%

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 Engagement Labs 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

Past Performance

How has Engagement Labs performed over the past 5 years?

15.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELBS.F is currently unprofitable.

Growing Profit Margin: ELBS.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ELBS.F is unprofitable, but has reduced losses over the past 5 years at a rate of 15.2% per year.

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

Earnings vs Industry: ELBS.F is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (17.1%).


Return on Equity

High ROE: ELBS.F has a negative Return on Equity (-89.38%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Engagement Labs's financial position?


Financial Position Analysis

Short Term Liabilities: ELBS.F's short term assets (CA$1.7M) exceed its short term liabilities (CA$1.0M).

Long Term Liabilities: ELBS.F's short term assets (CA$1.7M) exceed its long term liabilities (CA$148.4K).


Debt to Equity History and Analysis

Debt Level: ELBS.F is debt free.

Reducing Debt: ELBS.F has no debt compared to 5 years ago when its debt to equity ratio was 273.5%.


Balance Sheet

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

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

Forecast Cash Runway: ELBS.F has less than a year of cash runway if free cash flow continues to grow at historical rates of 1.4% each year.


Next Steps

Dividend

What is Engagement Labs'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 ELBS.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Growing Dividend: Insufficient data to determine if ELBS.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 ELBS.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?

2.6yrs

Average management tenure


CEO

Ed Keller (63yo)

3.5yrs

Tenure

CA$648,864

Compensation

Mr. Edward B. Keller, also known as Ed, has been the Chief Executive Officer of Engagement Labs Inc. since August 30, 2016 and served as its President since July 2015 until December 28, 2016. Mr. Keller co ...


CEO Compensation Analysis

Compensation vs Market: Ed's total compensation ($USD489.63K) is about average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Edward Keller
CEO & Director3.5yrsCA$648.86k2.4% CA$127.3k
Steven Brown
President & Chief Revenue Officer2.1yrsCA$479.79k0.085% CA$4.5k
Gilbert Boyer
Chief Financial Officer10.8yrsCA$179.76k0.16% CA$8.2k
Cédric de Saint Léger
Chief Technology Officer3.1yrsCA$161.68k0.087% CA$4.6k
Rick Larkin
Chief Analytics Officer0.8yrsCA$284.61kno data
Daniel Laflèche
Chief Operating Officer0yrsno datano data
Heather Evans
Head of Product1.1yrsno datano data

2.6yrs

Average Tenure

56.5yo

Average Age

Experienced Management: ELBS.F's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Keller
CEO & Director3.5yrsCA$648.86k2.4% CA$127.3k
Gordon Paterson
Non-Executive Chairman6.1yrsCA$126.99k5.31% CA$281.1k
Bruce Lev
Vice Chairman0yrsCA$60.20k0.82% CA$43.2k
Gilman Anderson
Independent Director3.4yrsCA$36.27k1.59% CA$84.5k

4.6yrs

Average Tenure

63yo

Average Age

Experienced Board: ELBS.F's board of directors are considered experienced (4.6 years average tenure).


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 102.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Engagement Labs Inc.
  • Ticker: ELBS.F
  • Exchange: OTCPK
  • Founded: 2007
  • Industry: Application Software
  • Sector: Software
  • Market Cap: CA$7.021m
  • Listing Market Cap: CA$5.298m
  • Shares outstanding: 234.03m
  • Website: https://www.engagementlabs.com

Number of Employees


Location

  • Engagement Labs Inc.
  • 5605 De Gaspé Avenue
  • Suite 106
  • Montréal
  • Quebec
  • H2T 2A4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELTSXV (TSX Venture Exchange)YesCommon SharesCACADJul 2010
280DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2010
ELBS.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2010

Biography

Engagement Labs Inc. provides intelligent data, analytics, and insights for marketers and organizations to track, measure, and benchmark the conversations happening around a brand or industry. The company offers TotalSocial, a platform that delivers data, insights, and recommendations based on various metrics, comprising TotalSocial Scorecard, which provides a weekly updated stream of consumer conversation data through a cloud-based dashboard accessed by licensed users; TotalSocial Diagnostics that provides clients with a blueprint for improvement through the user interface, which provides access to data mining tools to identify the causes of change in social performance of brands or competitors; and TotalSocial Predict that estimates the predictive relationship between TotalSocial performance and the client’s business outcomes. It has operations in Canada, the United States, and the United Kingdom. The company was formerly known as Parta Dialogue Inc. and changed its name to Engagement Labs Inc. in December 2013. Engagement Labs Inc. was incorporated in 2007 and is headquartered in Montréal, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:13
End of Day Share Price2020/02/05 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.