OTCPK:IMCI

Stock Analysis Report

Executive Summary

Infinite Group, Inc. provides managed information technology (IT) and virtualization services, and develops and provides cybersecurity tools and solutions to private businesses and government agencies in the United States.


Snowflake Analysis

Overvalued with poor track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

IMCI

-12.1%

US IT

-10.6%

US Market


1 Year Return

n/a

IMCI

16.7%

US IT

5.2%

US Market

Return vs Industry: Insufficient data to determine how IMCI performed against the US IT industry.

Return vs Market: Insufficient data to determine how IMCI performed against the US Market.


Shareholder returns

IMCIIndustryMarket
7 Day0%-12.1%-10.6%
30 Day19.7%-9.0%-8.5%
90 Day37.1%-2.0%-4.6%
1 Yearn/a17.9%16.7%7.4%5.2%
3 Year14.6%14.6%82.2%74.4%31.7%23.2%
5 Year4.3%4.3%119.6%100.4%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

24.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: IMCI is good value based on its PE Ratio (24.4x) compared to the IT industry average (29.4x).

PE vs Market: IMCI is poor value based on its PE Ratio (24.4x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IMCI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IMCI has negative assets, so we can't compare its PB Ratio to the US IT industry average.


Next Steps

Future Growth

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

16.8%

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 Infinite Group 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 IMCI’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 Infinite Group's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has Infinite Group performed over the past 5 years?

46.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IMCI has a large one-off gain of $83.3K impacting its September 30 2019 financial results.

Growing Profit Margin: IMCI's current net profit margins (0.8%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: IMCI has become profitable over the past 5 years, growing earnings by 46.7% per year.

Accelerating Growth: IMCI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IMCI had negative earnings growth (-85.3%) over the past year, making it difficult to compare to the IT industry average (12%).


Return on Equity

High ROE: IMCI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Infinite Group's financial position?


Financial Position Analysis

Short Term Liabilities: IMCI has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: IMCI has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: IMCI has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: IMCI's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: IMCI has a high level of physical assets or inventory.

Debt Coverage by Assets: IMCI has negative shareholder equity (liabilities exceed assets) therefore debt is not 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: IMCI is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: IMCI is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

5.1yrs

Average management tenure


CEO

James Villa (62yo)

6.1yrs

Tenure

US$215,000

Compensation

Mr. James A. Villa, also known as Jim, has been the President of Infinite Group Inc. since February 25, 2010 and has been its Chief Executive Officer since January 1, 2014. Mr. Villa has been the President ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD215.00K) is below average for companies of similar size in the US market ($USD535.60K).

Compensation vs Earnings: James's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Villa
CEO, President & Director6.1yrsUS$215.00k2.79% $39.0k
Andrew Hoyen
COO & Director2.6yrsUS$210.00k0.64% $9.0k
Richard Glickman
Chief Accounting Officer0.5yrsno data0.14% $1.9k
Deanna Wohlschlegel
Director of Human Resources13.1yrsno datano data

5.1yrs

Average Tenure

52.5yo

Average Age

Experienced Management: IMCI's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Villa
CEO, President & Director6.1yrsUS$215.00k2.79% $39.0k
Andrew Hoyen
COO & Director2.6yrsUS$210.00k0.64% $9.0k
Paul Delmore
Member of Advisory Board0yrsUS$4.00k8.76% $122.2k
Donald Reeve
Chairman of the Board0.5yrsno data2.86% $39.9k

2.6yrs

Average Tenure

62yo

Average Age

Experienced Board: IMCI's board of directors are not considered experienced ( 2.6 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: IMCI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Infinite Group, Inc.
  • Ticker: IMCI
  • Exchange: OTCPK
  • Founded: 1986
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$1.395m
  • Shares outstanding: 29.06m
  • Website: https://www.igius.com

Number of Employees


Location

  • Infinite Group, Inc.
  • 175 Sully’s Trail
  • Suite 202
  • Pittsford
  • New York
  • 14534
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IMCIOTCPK (Pink Sheets LLC)YesCommon StockUSUSDSep 1993

Biography

Infinite Group, Inc. provides managed information technology (IT) and virtualization services, and develops and provides cybersecurity tools and solutions to private businesses and government agencies in the United States. It offers Nodeware, an automated network vulnerability management system that assesses vulnerabilities in a computer network using scanning technology. The company also provides cloud computing services, including public and private cloud architecture, hybrid cloud hosting, server virtualization, and desktop virtualization solutions; and level 2 Microsoft and Hewlett Packard server, and software-based managed services through its partnership with Perspecta Inc. In addition, it sells third party software licenses, as well as offers virtualization support services. Futher, it distributes Webroot, a cloud-based endpoint security platform solution. The company was formerly known as Infinite Machines Corp. and changed its name to Infinite Group, Inc. in January 1998. Infinite Group, Inc. was founded in 1986 and is headquartered in Pittsford, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:44
End of Day Share Price2020/02/27 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.