OTCPK:NUKK

Stock Analysis Report

Executive Summary

Nukkleus Inc., a financial technology company, focuses on providing software and technology solutions for retail foreign exchange trading industry worldwide.

Risk Analysis

Earnings have declined by -38.65% per year over past 5 years

Has less than 1 year of cash runway

Shares are highly illiquid

Does not have a meaningful market cap ($5M)

+ 1 more risk


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

110.0%

NUKK

2.4%

US Software

1.7%

US Market


1 Year Return

n/a

NUKK

39.0%

US Software

23.2%

US Market

Return vs Industry: Insufficient data to determine how NUKK performed against the US Software industry.

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


Shareholder returns

NUKKIndustryMarket
7 Day110.0%2.4%1.7%
30 Day-6.7%7.8%4.2%
90 Day-58.0%19.4%11.9%
1 Yearn/a40.2%39.0%25.8%23.2%
3 Year-58.0%-58.0%144.0%134.3%52.8%42.9%
5 Yearn/a198.3%177.0%75.2%55.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


In this section, we usually try to help investors determine whether Nukkleus is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Nukkleus 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

  • Take a look at our analysis of NUKK’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.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Nukkleus regulatory filings here.
  • Explore potentially undervalued companies in the Software industry.

Future Growth

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

15.8%

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

Past Performance

How has Nukkleus performed over the past 5 years?

-43.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NUKK is currently unprofitable.

Growing Profit Margin: NUKK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NUKK is unprofitable, and losses have increased over the past 5 years at a rate of -38.7% per year.

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

Earnings vs Industry: NUKK is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.8%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nukkleus's financial position?


Financial Position Analysis

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

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

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


Balance Sheet

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

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

Forecast Cash Runway: NUKK has less than a year of cash runway if free cash flow continues to reduce at historical rates of -39.7% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if NUKK'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 NUKK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Nukkleus's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average board tenure


CEO

Emil Assentato (69yo)

3.7yrs

Tenure

0

Mr. Emil Assentato has been Co-Chairman of the Board, Chief Executive Officer, President, Secretary and Treasurer at Nukkleus, Inc. since May 24, 2016 and serves as its Chief Accounting Officer. Mr. Assent ...


Board Age and Tenure

3.4yrs

Average Tenure

60yo

Average Age

Experienced Board: NUKK's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

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 not been meaningfully diluted in the past year.


Management Team

  • Emil Assentato (69yo)

    Co-Chairman of the Board

    • Tenure: 3.7yrs
  • Shawn Dilkes

    Chief Information Officer


    Board Members

    • Emil Assentato (69yo)

      Co-Chairman of the Board

      • Tenure: 3.7yrs
    • Craig Marshak (60yo)

      Director

      • Tenure: 3.4yrs
    • Markos Kashiouris (46yo)

      Director

      • Tenure: 3.4yrs

    Company Information

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


    Key Information

    • Name: Nukkleus Inc.
    • Ticker: NUKK
    • Exchange: OTCPK
    • Founded: 2013
    • Industry: Application Software
    • Sector: Software
    • Market Cap: US$9.680m
    • Shares outstanding: 230.49m
    • Website: https://www.nukk.com

    Number of Employees


    Location

    • Nukkleus Inc.
    • 525 Washington Boulevard
    • 21st Floor
    • Jersey City
    • New Jersey
    • 7310
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    NUKKOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 2014

    Biography

    Nukkleus Inc., a financial technology company, focuses on providing software and technology solutions for retail foreign exchange trading industry worldwide. It primarily offers customer sales and marketing, and risk management technology hardware and software solutions. The company was formerly known as Compliance & Risk Management Solutions Inc. and changed its name to Nukkleus Inc. The company was founded in 2013 and is headquartered in Jersey City, New Jersey. Nukkleus Inc. is a subsidiary of Currency Mountain Holdings Bermuda, Limited. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/17 02:21
    End of Day Share Price2020/01/16 00:00
    Earnings2019/09/30
    Annual Earnings2019/09/30


    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.