OTCPK:LVNS.F

Stock Analysis Report

Executive Summary

LeoNovus Inc. provides cloud solutions software that optimizes enterprise data storage and management with its multi-cloud data controller solutions.

Risk Analysis

Earnings have declined by -38.64% per year over past 5 years

Has less than 1 year of cash runway

Shares are highly illiquid

Makes less than USD$1m in revenue ($22K)

+ 2 more risks


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

185.7%

LVNS.F

1.7%

US Software

1.5%

US Market


1 Year Return

-85.3%

LVNS.F

42.3%

US Software

20.1%

US Market

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

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


Shareholder returns

LVNS.FIndustryMarket
7 Day185.7%1.7%1.5%
30 Day3.8%7.7%1.4%
90 Day37.4%18.4%8.7%
1 Year-85.3%-85.3%43.9%42.3%22.7%20.1%
3 Yearn/a152.8%142.4%50.1%40.5%
5 Year-89.0%-89.0%224.7%201.5%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

3.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: LVNS.F is good value based on its PB Ratio (3.1x) compared to the US Software industry average (6x).


Next Steps

Future Growth

How is LeoNovus 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 LeoNovus 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 LeoNovus'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 LeoNovus's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has LeoNovus performed over the past 5 years?

-38.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LVNS.F is currently unprofitable.

Growing Profit Margin: LVNS.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LVNS.F is unprofitable, and losses have increased over the past 5 years at a rate of -38.6% per year.

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

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


Return on Equity

High ROE: LVNS.F has a negative Return on Equity (-309.28%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LeoNovus's financial position?


Financial Position Analysis

Short Term Liabilities: LVNS.F's short term assets ($1.3M) exceed its short term liabilities ($343.0K).

Long Term Liabilities: LVNS.F's short term assets ($1.3M) exceed its long term liabilities ($852.0K).


Debt to Equity History and Analysis

Debt Level: LVNS.F is debt free.

Reducing Debt: LVNS.F had no debt 5 years ago.


Balance Sheet

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

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

Forecast Cash Runway: LVNS.F has less than a year of cash runway if free cash flow continues to reduce at historical rates of -26.6% each year


Next Steps

Dividend

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

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

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

3.3yrs

Average management tenure


CEO

Michael Gaffney (65yo)

3.3yrs

Tenure

US$157,444

Compensation

Mr. Michael J. Gaffney, B.Sc., M.B.A., CHRP has been the Chairman and Chief Executive Officer of LeoNovus Inc. since November 5, 2016. Mr. Gaffney has been the of In-Touch Survey Systems Ltd. (now Intouch ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD157.44K) is below average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Gaffney
Chairman & CEO3.3yrsUS$157.44k1.59% $85.4k
Daniel Willis
VP & CTO3.3yrsUS$385.89k1.8% $97.2k
George Pretli
CFO & Corporate Secretary0.7yrsno data0.11% $5.9k
James LaPalme
Senior Vice President of Sales0yrsno datano data
Alyson Gaffney
Vice President of Partnerships & Marketing0yrsno datano data

3.3yrs

Average Tenure

Experienced Management: LVNS.F's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Gaffney
Chairman & CEO3.3yrsUS$157.44k1.59% $85.4k
John Hilton
Independent Director11.2yrsUS$19.45k0.58% $31.4k
David Chow
Independent Director3.3yrsUS$19.45k0.90% $48.5k
Mike Carr
Member of Advisory Board8.8yrsno datano data
Denise Archambault
Independent Director3.3yrsUS$19.45k2.06% $110.9k

3.3yrs

Average Tenure

54.5yo

Average Age

Experienced Board: LVNS.F's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LVNS.F insiders have sold more shares than they have bought 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

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


Key Information

  • Name: LeoNovus Inc.
  • Ticker: LVNS.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Application Software
  • Sector: Software
  • Market Cap: CA$7.136m
  • Listing Market Cap: CA$5.385m
  • Shares outstanding: 285.45m
  • Website: https://www.leonovus.com

Number of Employees


Location

  • LeoNovus Inc.
  • 2611 Queensview Drive
  • Suite 125
  • Ottawa
  • Ontario
  • K2B 8K2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LTVTSXV (TSX Venture Exchange)YesCommon SharesCACADNov 2010
LVNS.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2010
LE4DB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2010

Biography

LeoNovus Inc. provides cloud solutions software that optimizes enterprise data storage and management with its multi-cloud data controller solutions. The company offers storage management solutions with technologies that enable intelligent data management across local, network, and cloud storage. Its products include Data Discovery Tool, a tool that scans server message block network attached file storage and characterizes the stored data; Smart Filer, a cloud information lifecycle management solution that analyzes existing file storage and extends its capacity; and Vault, a multi-cloud data controller that stores data securely across hybrid and multi-cloud environments. LeoNovus Inc. is based in Ottawa, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:52
End of Day Share Price2020/02/12 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.