OTCPK:SMKG

Stock Analysis Report

Smart Card Marketing Systems

Executive Summary

Smart Card Marketing Systems Inc., doing business as PaymentActiveNetwork, operates as a fintech solutions provider that delivers a cloud-based EMV MPOS, and EPOS Host platform to issuing and acquiring banks, telecoms, and global enterprises.


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

32.8%

SMKG

-12.1%

US IT

-10.6%

US Market


1 Year Return

-3.7%

SMKG

16.7%

US IT

5.2%

US Market

Return vs Industry: SMKG underperformed the US IT industry which returned 16.7% over the past year.

Return vs Market: SMKG underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

SMKGIndustryMarket
7 Day32.8%-12.1%-10.6%
30 Day53.3%-9.0%-8.5%
90 Day68.7%-2.0%-4.6%
1 Year-3.7%-3.7%17.9%16.7%7.4%5.2%
3 Year29.5%29.5%82.2%74.4%31.7%23.2%
5 Year178.5%178.5%119.6%100.4%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Smart Card Marketing 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 Smart Card Marketing Systems is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Smart Card Marketing 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 SMKG’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 Smart Card Marketing Systems regulatory filings here.
  • Explore potentially undervalued companies in the Software industry.

Future Growth

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

16.8%

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 Smart Card Marketing 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 SMKG’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 Smart Card Marketing Systems's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has Smart Card Marketing Systems performed over the past 5 years?

11.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: SMKG is currently unprofitable.

Growing Profit Margin: SMKG is currently unprofitable.


Past Earnings Growth Analysis

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

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

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


Return on Equity

High ROE: SMKG'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 Smart Card Marketing Systems's financial position?


Financial Position Analysis

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

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

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


Balance Sheet

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

Debt Coverage by Assets: SMKG 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: Insufficient data to determine if SMKG has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SMKG has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Smart Card Marketing Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.1%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


CEO

Massimo J. Barone 0

16.9yrs

Tenure

0

Mr. Massimo J. N. Barone co-founded Smart Card Marketing Systems Inc. in 2003 and serves as its Chief Executive Officer and Chairman. Mr. Barone has over 20 years of experience in the alternative payment i ...


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Smart Card Marketing Systems Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Smart Card Marketing Systems Inc.
  • Ticker: SMKG
  • Exchange: OTCPK
  • Founded: 2006
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$9.513m
  • Shares outstanding: 367.29m
  • Website: https://smartcardmarketingsystems.com

Number of Employees


Location

  • Smart Card Marketing Systems Inc.
  • 20C Trolley Square
  • Wilmington
  • Delaware
  • 19806
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMKGOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJun 1993

Biography

Smart Card Marketing Systems Inc., doing business as PaymentActiveNetwork, operates as a fintech solutions provider that delivers a cloud-based EMV MPOS, and EPOS Host platform to issuing and acquiring banks, telecoms, and global enterprises. The company offers EmphasisPay that delivers advisory and technology solutions for payment acquirers and issuers; Mtickets.events that allows users to create an event or events and issue mobile tickets; Genorocity.com, a web publication portal and mobile platform that enables retailers, property managers, and event promoters; and Check21SAAS.com, a remote check deposit solution. It also provides VelocityMPOS, a customizable EMV MPOS solution for Retail or ‘On the Go business’; and Articul8te.com for individuals and busineses to create and publish articles. In addition, the company offers advisory and product development services. The company was founded in 2006 and is based in Wilmington, Delaware. Smart Card Marketing Systems Inc. is a former subsidiary of Performance Optician Software Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:32
End of Day Share Price2020/02/27 00:00
Earnings2018/12/31
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.