OTCPK:SDON

Stock Analysis Report

Executive Summary

Sandston Corporation does not have significant operations.

Risk Analysis

Has less than 1 year of cash runway

Shares are highly illiquid

Does not have a meaningful market cap ($1M)

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

+ 1 more risk


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SDON

0.8%

US Software

0.6%

US Market


1 Year Return

40.0%

SDON

40.0%

US Software

24.6%

US Market

Return vs Industry: SDON matched the US Software industry which returned 39.3% over the past year.

Return vs Market: SDON exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

SDONIndustryMarket
7 Day0%0.8%0.6%
30 Day16.7%6.0%3.0%
90 Day27.3%17.3%10.6%
1 Year40.0%40.0%41.3%40.0%27.3%24.6%
3 Year222.1%222.1%139.7%130.2%50.5%40.8%
5 Year100.0%100.0%220.7%198.4%78.9%59.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


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

Future Growth

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

15.7%

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

Past Performance

How has Sandston performed over the past 5 years?

2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SDON is currently unprofitable.

Growing Profit Margin: SDON is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SDON is unprofitable, but has reduced losses over the past 5 years at a rate of 2.4% per year.

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

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


Return on Equity

High ROE: SDON'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 Sandston's financial position?


Financial Position Analysis

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

Long Term Liabilities: SDON 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: SDON is debt free.

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


Balance Sheet

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

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

Forecast Cash Runway: SDON has less than a year of cash runway if free cash flow continues to grow at historical rates of 3.2% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if SDON'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 SDON'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 Sandston's salary, the management and board of directors tenure and is there insider trading?


CEO

Dan Dorman (56yo)

0yrs

Tenure

0

Mr. Daniel J. Dorman, also known as Dan, serves as Chairman, Chief Executive Officer, President and Principal Financial Officer at Sandston Corp.(alternate name Nematron Corporation). Mr. Dorman serves as  ...


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 been diluted in the past year, with total shares outstanding growing by 3%.


Management Team

  • Dan Dorman (56yo)

    Chairman


    Board Members

    • Dan Dorman (56yo)

      Chairman

      • Larry De Fiore (58yo)

        Director

        • Tenure: 15.8yrs
      • Richard Walawender (58yo)

        Director

        • Tenure: 13.1yrs

      Company Information

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


      Key Information

      • Name: Sandston Corporation
      • Ticker: SDON
      • Exchange: OTCPK
      • Founded: 1983
      • Industry: Systems Software
      • Sector: Software
      • Market Cap: US$1.192m
      • Shares outstanding: 17.03m
      • Website: https://null

      Location

      • Sandston Corporation
      • 1496 Business Park Drive
      • Suite A
      • Traverse City
      • Michigan
      • 49868
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      SDONOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMar 1993

      Biography

      Sandston Corporation does not have significant operations. The company intends to acquire and/or invest in and operate strategically positioned companies in multiple industry groups. Previously, it was involved in the design, manufacture, and marketing of environmentally ruggedized computers and computer displays; design, development, and marketing of software for use in factory automation and control, and in test and measurement environments; and provision of application engineering support to customers of its own and third parties’ products. The company was formerly known as Nematron Corporation and changed its name to Sandston Corporation in April 2004. Sandston Corporation was founded in 1983 and is based in Traverse City, Michigan. Sandston Corporation is a subsidiary of Dorman Industries, LLC. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/23 00:03
      End of Day Share Price2020/01/14 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.