OTCPK:SKKY

Stock Analysis Report

Executive Summary

Skkynet Cloud Systems, Inc., an industrial middleware vendor, provides connectivity and data acquisition to various industrial and office hardware and software products in Canada and internationally.

Snowflake

Fundamentals

Flawless balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

SKKY

-3.2%

US Software

0.4%

US Market


1 Year Return

-33.5%

SKKY

20.3%

US Software

6.9%

US Market

Return vs Industry: SKKY underperformed the US Software industry which returned 20.3% over the past year.

Return vs Market: SKKY underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

SKKYIndustryMarket
7 Day0%-3.2%0.4%
30 Day46.4%-2.7%-1.2%
90 Day22.0%-5.9%-0.4%
1 Year-33.5%-33.5%22.0%20.3%9.3%6.9%
3 Year-59.3%-59.3%112.1%103.8%45.8%36.4%
5 Year-75.4%-75.4%163.1%144.1%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

45.1x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: SKKY ($0.37) is trading above our estimate of fair value ($0.02)

Significantly Undervalued: SKKY is trading above our estimate of fair value.


Price To Earnings Ratio

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

PE vs Market: SKKY is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate SKKY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SKKY is overvalued based on its PB Ratio (45.1x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

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

14.9%

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 Skkynet Cloud 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

Past Performance

How has Skkynet Cloud Systems performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SKKY is unprofitable, but has reduced losses over the past 5 years at a rate of 19.6% per year.

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

Earnings vs Industry: SKKY is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (19.1%).


Return on Equity

High ROE: SKKY has a negative Return on Equity (-62.48%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SKKY is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SKKY is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Skkynet Cloud Systems's financial position?


Financial Position Analysis

Short Term Liabilities: SKKY's short term assets ($908.9K) exceeds its short term liabilities ($312.2K)

Long Term Liabilities: SKKY has no long term liabilities


Debt to Equity History and Analysis

Debt Level: SKKY is debt free.

Reducing Debt: SKKY has no debt compared to 5 years ago when its debt to equity ratio was 200.2%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if SKKY'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: Whilst unprofitable SKKY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SKKY is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 101.3% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

7.6yrs

Average management tenure


CEO

Andrew Thomas (55yo)

7.9yrs

Tenure

US$108,803

Compensation

Mr. Andrew S. Thomas has been the Chief Executive Officer at Skkynet Cloud Systems, Inc. since November 01, 2011. Mr. Thomas has been the Chief Executive Officer and President of Cogent Real Time Systems,  ...


CEO Compensation Analysis

Compensation vs. Market: Andrew's total compensation ($USD108.80K) is about average for companies of similar size in the US market ($USD491.38K).

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


Management Age and Tenure

7.6yrs

Average Tenure

53.5yo

Average Age

Experienced Management: SKKY's management team is seasoned and experienced (7.6 years average tenure).


Board Age and Tenure

6.2yrs

Average Tenure

59.5yo

Average Age

Experienced Board: SKKY's board of directors are considered experienced (6.2 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


Management Team

  • Lowell Holden (76yo)

    CFO, Chief Accounting Officer & Treasurer

    • Tenure: 7.6yrs
    • Compensation: US$48.00k
  • Mike Thomas

    Senior Advisor of Communications & Member of Advisory Board

    • Tenure: 0yrs
  • Andrew Thomas (55yo)

    Chairman of the Board & CEO

    • Tenure: 7.9yrs
    • Compensation: US$108.80k
  • Paul Thomas (45yo)

    President

    • Tenure: 6.6yrs
    • Compensation: US$108.80k
  • Paul Benford (52yo)

    COO & Director

    • Tenure: 6.6yrs
    • Compensation: US$108.80k
  • Ken Collins

    Director of Product Development

    • Tenure: 6.3yrs
  • Mickey Yamazaki

    Senior Advisor of Cogent Datahub Application Centre (Japan) & Member of Advisory Board

    • Tenure: 0yrs
  • Bob McIlvride

    Director of Communications

    • Tenure: 6.3yrs
  • Xavier Mesrobian

    Vice President of Sales & Marketing

    • Tenure: 6yrs
    • Compensation: US$128.68k
  • José Fernandez

    Senior Advisor of Security & Member of Advisory Board

    • Tenure: 4.7yrs

Board Members

  • John Adiletta (70yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$30.00k
  • Norm Evans (64yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$30.00k
  • Mike Thomas

    Senior Advisor of Communications & Member of Advisory Board

    • Tenure: 0yrs
  • Andrew Thomas (55yo)

    Chairman of the Board & CEO

    • Tenure: 7.9yrs
    • Compensation: US$108.80k
  • Paul Thomas (45yo)

    President

    • Tenure: 6.6yrs
    • Compensation: US$108.80k
  • Paul Benford (52yo)

    COO & Director

    • Tenure: 6.6yrs
    • Compensation: US$108.80k
  • Mickey Yamazaki

    Senior Advisor of Cogent Datahub Application Centre (Japan) & Member of Advisory Board

    • Tenure: 0yrs
  • Ken Jennings (70yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$30.00k
  • José Fernandez

    Senior Advisor of Security & Member of Advisory Board

    • Tenure: 4.7yrs
  • Francois van Vuuren

    Senior Advisor of Licensing & Member of Advisory Board

    • Tenure: 2.4yrs

Company Information

Skkynet Cloud Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Skkynet Cloud Systems, Inc.
  • Ticker: SKKY
  • Exchange: OTCPK
  • Founded: 2011
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$18.836m
  • Shares outstanding: 51.47m
  • Website: https://skkynet.com

Number of Employees


Location

  • Skkynet Cloud Systems, Inc.
  • 2233 Argentia Road
  • Suite 306
  • Mississauga
  • Ontario
  • L5N 2X7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SKKYOTCPK (Pink Sheets LLC)YesCommon StockUSUSDFeb 2013

Biography

Skkynet Cloud Systems, Inc., an industrial middleware vendor, provides connectivity and data acquisition to various industrial and office hardware and software products in Canada and internationally. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:34
End of Day Share Price2019/10/09 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.