OTCPK:NDVN

Stock Analysis Report

Executive Summary

nDivision Inc. provides autonomic managed services and end user help desk services to small businesses and enterprises.

Rewards

Revenue grew by 31.4% over the past year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($16M)



Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NDVN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.6%

NDVN

2.1%

US IT

1.5%

US Market


1 Year Return

-45.7%

NDVN

37.2%

US IT

20.1%

US Market

Return vs Industry: NDVN underperformed the US IT industry which returned 37.2% over the past year.

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


Shareholder returns

NDVNIndustryMarket
7 Day5.6%2.1%1.5%
30 Day-2.6%4.4%1.4%
90 Day-2.2%13.9%8.7%
1 Year-45.7%-45.7%38.6%37.2%22.7%20.1%
3 Yearn/a112.3%103.1%50.1%40.5%
5 Yearn/a148.0%125.8%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

40.49x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NDVN ($0.38) is trading above our estimate of fair value ($0.21)

Significantly Below Fair Value: NDVN is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NDVN is overvalued based on its PB Ratio (40.5x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

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

18.5%

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 nDivision 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 NDVN’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 nDivision's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has nDivision performed over the past 5 years?

46.7%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: NDVN is currently unprofitable.

Growing Profit Margin: NDVN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if NDVN's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: NDVN is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (12%).


Return on Equity

High ROE: NDVN has a negative Return on Equity (-336.9%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is nDivision's financial position?


Financial Position Analysis

Short Term Liabilities: NDVN's short term assets ($965.4K) do not cover its short term liabilities ($1.5M).

Long Term Liabilities: NDVN's short term assets ($965.4K) exceed its long term liabilities ($59.0K).


Debt to Equity History and Analysis

Debt Level: NDVN's debt to equity ratio (67.6%) is considered high.

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


Balance Sheet

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

Debt Coverage by Assets: NDVN's debt is covered by short term assets (assets are 3.7x 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: Whilst unprofitable NDVN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NDVN is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -7.1% per year.


Next Steps

Dividend

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

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

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

1.7yrs

Average board tenure


CEO

Alan Hixon (59yo)

9.1yrs

Tenure

US$430,767

Compensation

Mr. Alan Hixon serves as the Chief Executive Officer at Go2Green Landscaping, Inc. Mr. Hixon is responsible for strategy, key partnerships, finance, sales and marketing. He serves as Chief Executive Office ...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD430.77K) is about average for companies of similar size in the US market ($USD521.92K).

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


Board Members

NamePositionTenureCompensationOwnership
Alan Hixon
Chairman of the Board9.1yrsUS$430.77k18.51% $2.9m
Andrew Norstrud
CFO & Director1.1yrsUS$126.00k0.24% $38.0k
Justin Roby
CTO & Director8.7yrsUS$267.51k18.51% $2.9m
Michael Beavers
Chief Commercial Officer & Director8.7yrsUS$575.40k2.75% $430.9k
Laurence King
Independent Director2.3yrsno datano data
Philip Morrow
Independent Director0.8yrsno datano data
Khaled Saffouri
Member of Executive Advisory Board0.9yrsno datano data
Sean McIlrath
Independent Director2.3yrsno datano data
Scott White
Member of Executive Advisory Board0.9yrsno datano data

1.7yrs

Average Tenure

47yo

Average Age

Experienced Board: NDVN's board of directors are not considered experienced ( 1.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: nDivision Inc.
  • Ticker: NDVN
  • Exchange: OTCPK
  • Founded:
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$15.675m
  • Shares outstanding: 41.25m
  • Website: https://www.ndivision.com

Number of Employees


Location

  • nDivision Inc.
  • 4925 Greenville Avenue
  • Suite 200
  • Dallas
  • Texas
  • 75206
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NDVNOTCPK (Pink Sheets LLC)YesCommon StockUSUSDFeb 2018

Biography

nDivision Inc. provides autonomic managed services and end user help desk services to small businesses and enterprises. The company offers virtual engineer as a service, single pane-of-glass IT operation, integrated configuration management database, and pre-built automation services. It provides remote support for customer IT operations in 45 countries and across 6 continents. The company is based in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:38
End of Day Share Price2020/02/14 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.