OTCPK:SRBB.F

Stock Analysis Report

Executive Summary

Subscribe Technologies Inc. develops, acquires, operates, and manages software as a service (SaaS) business in Canada.

Risk Analysis

Earnings have declined by -38.82% per year over past 5 years

Has less than 1 year of cash runway

Shares are highly illiquid

Makes less than USD$1m in revenue (CA$15K)

+ 3 more risks


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SRBB.F

1.7%

US Software

1.5%

US Market


1 Year Return

139.3%

SRBB.F

42.3%

US Software

20.1%

US Market

Return vs Industry: SRBB.F exceeded the US Software industry which returned 42.2% over the past year.

Return vs Market: SRBB.F exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

SRBB.FIndustryMarket
7 Day0%1.7%1.5%
30 Day19.0%7.7%1.4%
90 Day74.8%18.4%8.7%
1 Year139.3%139.3%43.9%42.3%22.7%20.1%
3 Yearn/a152.8%142.4%50.1%40.5%
5 Yearn/a224.7%201.5%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


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

Future Growth

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

11.4%

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 Subscribe Technologies 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 SRBB.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 the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Subscribe Technologies's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has Subscribe Technologies performed over the past 5 years?

-38.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRBB.F is currently unprofitable.

Growing Profit Margin: SRBB.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SRBB.F is unprofitable, and losses have increased over the past 5 years at a rate of -38.8% per year.

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

Earnings vs Industry: SRBB.F is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (17.1%).


Return on Equity

High ROE: SRBB.F'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 Subscribe Technologies's financial position?


Financial Position Analysis

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

Long Term Liabilities: SRBB.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: SRBB.F is debt free.

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


Balance Sheet

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

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

Forecast Cash Runway: SRBB.F has less than a year of cash runway if free cash flow continues to reduce at historical rates of -43.1% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if SRBB.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 SRBB.F'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?

2.3yrs

Average management tenure


CEO

Paul Dickson (45yo)

3.2yrs

Tenure

CA$120,000

Compensation

Mr. Paul E. Dickson has been Chief Executive Officer and President at Subscribe Technologies Inc. since December 15, 2016. Mr. Dickson has been an entrepreneur and software developer. Mr. Dickson has been  ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD90.55K) is below average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Dickson
President3.2yrsCA$120.00k22.48% CA$137.6k
Christopher Cherry
CFO & Director1.3yrsCA$36.00k6.44% CA$39.4k
Patrick Butler
Vice President of Shareholder Communications1.5yrsno datano data
Rosie Hausler
Vice President of Marketing1.5yrsno datano data

2.3yrs

Average Tenure

Experienced Management: SRBB.F's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Dickson
President3.2yrsCA$120.00k22.48% CA$137.6k
Christopher Cherry
CFO & Director1.3yrsCA$36.00k6.44% CA$39.4k
Harvey Dick
Independent Director3.2yrsCA$90.00k23.18% CA$141.9k
Mark Thompson
Member of Advisory Board1.3yrsno datano data

2.2yrs

Average Tenure

45yo

Average Age

Experienced Board: SRBB.F's board of directors are not considered experienced ( 2.2 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: SRBB.F 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 28.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Subscribe Technologies Inc.
  • Ticker: SRBB.F
  • Exchange: OTCPK
  • Founded: 2010
  • Industry: Application Software
  • Sector: Software
  • Market Cap: CA$811.113k
  • Listing Market Cap: CA$612.064k
  • Shares outstanding: 10.14m
  • Website: https://www.subscribetech.com

Location

  • Subscribe Technologies Inc.
  • 750 West Pender Street
  • Suite 804
  • Vancouver
  • British Columbia
  • V6C 2T7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAASCNSX (Canadian National Stock Exchange)YesCommon SharesCACADJan 2015
SRBB.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 2015
6GQDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2015

Biography

Subscribe Technologies Inc. develops, acquires, operates, and manages software as a service (SaaS) business in Canada. The company offers bContact, a cloud based business management solution that provides integrated business management tools, including customer relationship management, accounting, banking, invoicing, billing, and quotation for small and medium sized organizations. It also provides ServerHawk.com, a SaaS Website analysis, SEO, and marketing tool for marketing professionals, business owners, and Web developers; FileQ.com, an electronic file sharing and storage service that enable users to access content in real time; and BladeVPN.com, a VPN provider. In addition, the company offers GamerVPN.com, a robust international service to allow VPN connections to online games; SiteSafe.io, an Internet security service that assists IT professionals in maintaining and managing networks, including the detection of viruses, worms, Trojans, and other malware injected on Websites; Gingerly, a virtual business assistant; and WebinarIgnition, a platform for creating professional live and automated Webinar funnels. Further, it engages in the development of LenderTech.com, a cloud based SaaS loan management utility solution for banks, financial institutions, mortgage lending facilitators, and micro-finance lenders. The company was formerly known as Surrey Capital Corp. and changed its name to Subscribe Technologies Inc. in January 2017. Subscribe Technologies Inc. was incorporated in 2010 and is based in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:58
End of Day Share Price2020/02/05 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.