OTCPK:POSA.F

Stock Analysis Report

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Executive Summary

POSaBIT Systems Corporation, a financial technology company, provides block chain-enabled payment processing and point-of-sale systems for cash-only businesses with a focus on the cannabis industry in the United States.


Snowflake Analysis

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

55.6%

POSA.F

4.1%

US IT

3.0%

US Market


1 Year Return

-44.0%

POSA.F

22.8%

US IT

15.8%

US Market

Return vs Industry: POSA.F underperformed the US IT industry which returned 22.8% over the past year.

Return vs Market: POSA.F underperformed the US Market which returned 15.8% over the past year.


Shareholder returns

POSA.FIndustryMarket
7 Day55.6%4.1%3.0%
30 Day55.6%6.7%6.0%
90 Day197.9%18.6%16.4%
1 Year-44.0%-44.0%24.0%22.8%18.4%15.8%
3 Yearn/a110.8%102.3%44.8%35.4%
5 Yearn/a153.7%132.7%75.7%56.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


In this section, we usually try to help investors determine whether POSaBIT Systems is trading at an attractive price based on the cash flow it is expected to produce in the future. But as POSaBIT Systems 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 POSA.F'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 POSaBIT Systems regulatory filings here.
  • Explore potentially undervalued companies in the Software industry.

Future Growth

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

24.6%

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 POSaBIT Systems 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 POSA.F’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 theOTC Markets Website. If you are looking for more of a qualitative research into the company, you can access POSaBIT Systems's filings and announcementshere.
  • Explore growth companies in the Software industry.

Past Performance

How has POSaBIT Systems performed over the past 5 years?

-30.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: POSA.F is currently unprofitable.

Growing Profit Margin: POSA.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: POSA.F is unprofitable, and losses have increased over the past 5 years at a rate of 30.1% per year.

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

Earnings vs Industry: POSA.F is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (7.5%).


Return on Equity

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


Next Steps

Financial Health

How is POSaBIT Systems's financial position?


Financial Position Analysis

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

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

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


Balance Sheet


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: POSA.F has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: POSA.F has less than a year of cash runway if free cash flow continues to reduce at historical rates of 41.8% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate POSA.F's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if POSA.F's dividends per share have been stable in the past.

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


Next Steps

  • Explore strong dividend paying companies in the Software industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Ryan Hamlin (50 yo)

1.33yrs

Tenure

Mr. Ryan Hamlin is a Co-Founder of POSaBIT Systems Corporation (formerly known as POSaBIT, Inc.) and serves as its Chief Executive Officer, President and Director since April 5, 2019.


Leadership Team

NamePositionTenureCompensationOwnership
Ryan Hamlin
Co-Founder1.33yrsno data10.96%
$ 717.3k
Jon Baugher
Co-Founder1.33yrsno data0.44%
$ 28.6k
Stephen Gledhill
CFO & Secretary1.33yrsno data0.15%
$ 10.1k
Andrew Sweet
Chief Technical Officer1.33yrsno data0.021%
$ 1.3k
Laurie Rosini
Chief Compliance Officer1.83yrsno datano data

1.3yrs

Average Tenure

55yo

Average Age

Experienced Management: POSA.F's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ryan Hamlin
Co-Founder1.33yrsno data10.96%
$ 717.3k
Jon Baugher
Co-Founder1.33yrsno data0.44%
$ 28.6k
Michael Apker
Director0.17yrno data6.78%
$ 443.5k
Bruce Jaffe
Non-Voting Board Advisor0.17yrno datano data
Jeffrey Dossett
Chairman of the Board1.33yrsno data4.71%
$ 308.0k

1.3yrs

Average Tenure

56yo

Average Age

Experienced Board: POSA.F's board of directors are not considered experienced ( 1.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.4%.


Top Shareholders

Company Information

POSaBIT Systems Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: POSaBIT Systems Corporation
  • Ticker: POSA.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: CA$8.753m
  • Listing Market Cap: CA$6.544m
  • Shares outstanding: 97.25m
  • Website: https://www.posabit.com

Number of Employees


Location

  • POSaBIT Systems Corporation
  • 1128 8th Street
  • Kirkland
  • Washington
  • 98033
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PBITCNSX (Canadian National Stock Exchange)YesCommon SharesCACADApr 2019
POSA.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2019

Biography

POSaBIT Systems Corporation, a financial technology company, provides block chain-enabled payment processing and point-of-sale systems for cash-only businesses with a focus on the cannabis industry in the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/08 00:44
End of Day Share Price2020/08/06 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.