OTCPK:TEHG

Stock Analysis Report

Executive Summary

Technovative Group, Inc., through its subsidiaries, provides financial technology, blockchain solutions, and big data analytics technologies to financial service institutions in the Greater China Region and Southeast Asia Region.

Rewards

Revenue grew by 21104.5% over the past year

Risk Analysis

Latest financial reports are more than a year old

Makes less than USD$1m in revenue ($458K)

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

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Worrying balance sheet with weak fundamentals.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: TEHG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

TEHG

0.9%

US Software

0.8%

US Market


1 Year Return

-88.2%

TEHG

35.5%

US Software

22.0%

US Market

Return vs Industry: TEHG underperformed the US Software industry which returned 35.5% over the past year.

Return vs Market: TEHG underperformed the US Market which returned 22% over the past year.


Shareholder returns

TEHGIndustryMarket
7 Day0%0.9%0.8%
30 Dayn/a0.2%1.7%
90 Dayn/a7.6%5.2%
1 Year-88.2%-88.2%37.5%35.5%24.7%22.0%
3 Year-73.3%-73.3%131.3%122.0%46.9%37.3%
5 Yearn/a172.6%153.3%65.5%47.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

5.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TEHG's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TEHG's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TEHG is overvalued based on its PB Ratio (5.9x) compared to the US Software industry average (5.6x).


Next Steps

Future Growth

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

15.6%

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 Technovative Group 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 TEHG’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 Technovative Group's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has Technovative Group performed over the past 5 years?

-14.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: TEHG is currently unprofitable.

Growing Profit Margin: TEHG is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: TEHG is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (15.8%).


Return on Equity

High ROE: TEHG has a negative Return on Equity (-74.82%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Technovative Group's financial position?


Financial Position Analysis

Short Term Liabilities: TEHG's short term assets ($1.1M) do not cover its short term liabilities ($2.6M).

Long Term Liabilities: TEHG's short term assets ($1.1M) exceed its long term liabilities ($522.7K).


Debt to Equity History and Analysis

Debt Level: TEHG's debt to equity ratio (62.1%) is considered high.

Reducing Debt: Insufficient data to determine if TEHG's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: TEHG's debt is not covered by short term assets (assets are 0.8x debt).


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 TEHG has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is Technovative Group'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 TEHG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

0.7yrs

Average management tenure


CEO

Nicolas Lin (31yo)

2.5yrs

Tenure

0

Mr. Kuan Liang Lin, also known as Nicolas, serves as a Director of Bard Ventures Ltd. since October 2019. Mr. Lin serves as a Director of Asia Pacific at TAG Asia Partners LLC. Mr. Lin is an experienced Co ...


Management Age and Tenure

0.7yrs

Average Tenure

43yo

Average Age

Experienced Management: TEHG's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

Experienced Board: TEHG's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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 37.9%.


Management Team

  • Nicolas Lin (31yo)

    CEO & President

    • Tenure: 2.5yrs
  • Kewei Huang (51yo)

    Chief Technology Officer

    • Tenure: 1.8yrs
  • Zou Xin (43yo)

    Executive Director

    • Tenure: 1yrs
  • Scarlett Li

    Chief Operating Officer

    • Tenure: 0.7yrs
  • Yuanfeng Chen

    Chief Financial Officer

    • Tenure: 0.7yrs
  • Tom Lam

    • Tenure: 0.5yrs

Board Members

  • Meihua Liang (41yo)

    Director

    • Tenure: 2.2yrs
  • Peter Cheng

    Member of Advisory Board

    • Tenure: 1.8yrs
  • Jovey Lee

    Member of Advisory Board

    • Tenure: 1.8yrs
  • Zou Xin (43yo)

    Executive Director

    • Tenure: 1yrs

Company Information

Technovative Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Technovative Group, Inc.
  • Ticker: TEHG
  • Exchange: OTCPK
  • Founded: 2010
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$12.286m
  • Shares outstanding: 90.21m
  • Website: https://www.technovative.co

Number of Employees


Location

  • Technovative Group, Inc.
  • Tower 2, Silvercord
  • Unit 701, 7th Floor
  • Tsim Sha Tsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TEHGOTCPK (Pink Sheets LLC)YesCommon StockUSUSDApr 2015

Biography

Technovative Group, Inc., through its subsidiaries, provides financial technology, blockchain solutions, and big data analytics technologies to financial service institutions in the Greater China Region an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/16 00:42
End of Day Share Price2019/11/27 00:00
Earnings2018/09/30
Annual Earnings2017/12/31


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.