OTCPK:IRNC

Stock Analysis Report

Executive Summary

IronClad Encryption Corporation develops and licenses cyber software technology that encrypts data files and electronic communications.


Snowflake Analysis

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

IRNC

-8.9%

US Software

-7.4%

US Market


1 Year Return

-99.5%

IRNC

26.1%

US Software

10.5%

US Market

Return vs Industry: IRNC underperformed the US Software industry which returned 26.1% over the past year.

Return vs Market: IRNC underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

IRNCIndustryMarket
7 Day0%-8.9%-7.4%
30 Day-33.3%1.1%-3.6%
90 Day0%6.0%-0.6%
1 Year-99.5%-99.5%27.4%26.1%12.8%10.5%
3 Year-100.0%-100.0%130.1%120.4%37.4%28.6%
5 Yearn/a198.5%177.0%61.3%43.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


In this section, we usually try to help investors determine whether IronClad Encryption is trading at an attractive price based on the cash flow it is expected to produce in the future. But as IronClad Encryption has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

Future Growth

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

10.8%

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 IronClad Encryption 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 IRNC’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 IronClad Encryption's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has IronClad Encryption performed over the past 5 years?

-44.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRNC is currently unprofitable.

Growing Profit Margin: IRNC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IRNC is unprofitable, and losses have increased over the past 5 years at a rate of -44.2% per year.

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

Earnings vs Industry: IRNC is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (21%).


Return on Equity

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


Next Steps

Financial Health

How is IronClad Encryption's financial position?


Financial Position Analysis

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

Long Term Liabilities: IRNC 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: IRNC has negative shareholder equity, which is a more serious situation than a high debt level.

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


Balance Sheet

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

Debt Coverage by Assets: IRNC 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: IRNC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: IRNC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -26.1% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

3.1yrs

Average management tenure


CEO

JD McGraw (60yo)

3.1yrs

Tenure

US$33,174

Compensation

Mr. James Doyle McGraw has been the President at Jonah Capital Partners, a financial advisory firm, since 2004. Mr. McGraw serves as Chairman of IronClad Encryption Corporation and has been its President a ...


CEO Compensation Analysis

Compensation vs Market: JD's total compensation ($USD33.17K) is below average for companies of similar size in the US market ($USD524.26K).

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


Leadership Team

NamePositionTenureCompensationOwnership
James McGraw
Chairman3.1yrsUS$33.17k0.90% $2.6k
Jeff Barrett
Co-Founder1.8yrsUS$53.39k0.55% $1.6k
David Gullickson
VP of Finance2.8yrsUS$133.64k0.00087% $2.5
Daniel Lerner
VP of Engineering & CTO3.1yrsUS$23.92k0.17% $492.7
Len Walker
VP of Legal3.1yrsUS$31.80k0.0052% $15.0
Dan Dinhoble
Vice President of Operations3.1yrsno datano data

3.1yrs

Average Tenure

60.5yo

Average Age

Experienced Management: IRNC's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James McGraw
Chairman3.1yrsUS$33.17k0.90% $2.6k
Jeff Barrett
Co-Founder1.8yrsUS$53.39k0.55% $1.6k
John Reiland
Independent Director2.4yrsno data0.0017% $5.0
Fintan McGovern
Member of Advisory Board2.1yrsno datano data
Bill Sanstrom
Member of Advisory Board2.1yrsno datano data
Mark Watson
Independent Director2yrsno data0.068% $194.9

2.1yrs

Average Tenure

60.5yo

Average Age

Experienced Board: IRNC's board of directors are not considered experienced ( 2.1 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: IRNC 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 708.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: IronClad Encryption Corporation
  • Ticker: IRNC
  • Exchange: OTCPK
  • Founded: 2006
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$286.579k
  • Shares outstanding: 2.87b
  • Website: https://www.ironcladencryption.com

Number of Employees


Location

  • IronClad Encryption Corporation
  • One Riverway
  • Suite 1700
  • Houston
  • Texas
  • 77056
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IRNCOTCPK (Pink Sheets LLC)YesClass A Common StockUSUSDJun 2013

Biography

IronClad Encryption Corporation develops and licenses cyber software technology that encrypts data files and electronic communications. The company sells ICE-enabled security applications, subscriptions, services, and maintenance contracts, as well as BlackICE gateway and ICEmicro. It also provides IronClad’s, a proprietary technology, and context free and natively secure containers. The company was founded in 2006 and is based in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 02:36
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
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.