OTCPK:TWOH

Stock Analysis Report

Executive Summary

Two Hands Corporation, through its subsidiary, I8 Interactive Corporation, engages in the research and development of Two Hands co-parenting application that provides communication and organization between divorced parties.


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-10.8%

TWOH

-7.4%

US Software

-7.6%

US Market


1 Year Return

-99.9%

TWOH

27.3%

US Software

10.2%

US Market

Return vs Industry: TWOH underperformed the US Software industry which returned 26.1% over the past year.

Return vs Market: TWOH underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

TWOHIndustryMarket
7 Day-10.8%-7.4%-7.6%
30 Day-31.8%0.2%-4.5%
90 Day-88.4%7.0%-0.6%
1 Year-99.9%-99.9%28.6%27.3%12.5%10.2%
3 Year-100.0%-100.0%132.6%122.8%37.1%28.3%
5 Year-100.0%-100.0%200.3%178.7%60.8%43.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


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

Future Growth

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

11.1%

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 Two Hands 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 TWOH’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 Two Hands's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has Two Hands performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TWOH is currently unprofitable.

Growing Profit Margin: TWOH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TWOH is unprofitable, but has reduced losses over the past 5 years at a rate of 13.5% per year.

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

Earnings vs Industry: TWOH is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (21%).


Return on Equity

High ROE: TWOH's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Two Hands's financial position?


Financial Position Analysis

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

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

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


Balance Sheet

Inventory Level: TWOH has a high level of physical assets or inventory.

Debt Coverage by Assets: TWOH 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: TWOH has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: TWOH has less than a year of cash runway if free cash flow continues to reduce at historical rates of -43.3% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

US$1m

CEO Compensation


CEO

Nadav Elituv (55yo)

5.7yrs

Tenure

US$1,485,774

Compensation

Mr. Nadav Elituv has been Chief Executive Officer of Two Hands Corporation (Innovative Product Opportunities Inc.) since June 30, 2014 and had been its Chief Financial Officer since November 18, 2014 until ...


CEO Compensation Analysis

Compensation vs Market: Nadav's total compensation ($USD1.49M) is above average for companies of similar size in the US market ($USD524.26K).

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


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: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Two Hands Corporation
  • Ticker: TWOH
  • Exchange: OTCPK
  • Founded: 2009
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$377.715k
  • Shares outstanding: 6.51m
  • Website: https://www.twohandsapp.com

Number of Employees


Location

  • Two Hands Corporation
  • 33 Davies Avenue
  • Toronto
  • Ontario
  • M4M 2A9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TWOHOTCPK (Pink Sheets LLC)YesCommon StockUSUSDFeb 2011

Biography

Two Hands Corporation, through its subsidiary, I8 Interactive Corporation, engages in the research and development of Two Hands co-parenting application that provides communication and organization between divorced parties. It also offers Two Hands Gone, an encrypted private messaging application. The company was formerly known as Innovative Product Opportunities, Inc. and changed its name to Two Hands Corporation in September 2016. Two Hands Corporation was founded in 2009 and is based in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 02:17
End of Day Share Price2020/02/26 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.