OTCPK:VCSY

Stock Analysis Report

Vertical Computer Systems

Executive Summary

Vertical Computer Systems, Inc., together with its subsidiaries, provides application software, cloud-based and software services, Internet core technologies, and intellectual property assets primarily in the United States, Canada, and Brazil.

Rewards

Revenue grew by 6.1% over the past year

Risk Analysis

Latest financial reports are more than a year old

Does not have a meaningful market cap ($6M)

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

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-24.2%

VCSY

0.2%

US Software

1.1%

US Market


1 Year Return

-61.2%

VCSY

28.8%

US Software

17.8%

US Market

Return vs Industry: VCSY underperformed the US Software industry which returned 28.8% over the past year.

Return vs Market: VCSY underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

VCSYIndustryMarket
7 Day-24.2%0.2%1.1%
30 Day-49.5%1.3%1.4%
90 Day-54.5%4.0%3.9%
1 Year-61.2%-61.2%30.7%28.8%20.3%17.8%
3 Year-74.4%-74.4%125.1%116.1%44.8%35.4%
5 Year-58.3%-58.3%185.0%164.8%71.3%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

Future Growth

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

15.5%

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 Vertical Computer 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 VCSY’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 Vertical Computer Systems's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has Vertical Computer Systems performed over the past 5 years?

2.3%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: VCSY is currently unprofitable.

Growing Profit Margin: VCSY is currently unprofitable.


Past Earnings Growth Analysis

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

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

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


Return on Equity

High ROE: VCSY'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 Vertical Computer Systems's financial position?


Financial Position Analysis

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

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

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


Balance Sheet

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

Debt Coverage by Assets: VCSY 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 VCSY has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is Vertical Computer Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

US$300k

CEO Compensation


CEO

Richard Wade (75yo)

20.2yrs

Tenure

US$300,000

Compensation

Mr. Richard S. Wade has been the President and Chief Executive Officer at Vertical Computer Systems, Inc since October 1999. Mr. Wade joined Externet World, Inc. in mid-1999 and then transitioning to what  ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD529.29K).

Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.


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 not been meaningfully diluted in the past year.


Management Team

  • Marianne Franklin (59yo)

    President & CEO of NOW Solutions

    • Tenure: 0yrs
  • William Mills (60yo)

    Secretary & Director

    • Tenure: 19yrs
    • Compensation: US$42.00k
  • Jim Salz

    Corporate Counsel

    • Tenure: 0yrs
    • Compensation: US$185.00k
  • Laurent Tetard (49yo)

    Chief Operating Officer of SaaS

    • Tenure: 0yrs
    • Compensation: US$210.00k
  • Luiz Valdetaro (60yo)

    Chief Technology Officer

    • Tenure: 19.9yrs
    • Compensation: US$200.00k
  • Richard Wade (75yo)

    Chairman

    • Tenure: 20.2yrs
    • Compensation: US$300.00k

Board Members

  • William Mills (60yo)

    Secretary & Director

    • Tenure: 19yrs
    • Compensation: US$42.00k
  • Richard Wade (75yo)

    Chairman

    • Tenure: 20.2yrs
    • Compensation: US$300.00k

Company Information

Vertical Computer Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vertical Computer Systems, Inc.
  • Ticker: VCSY
  • Exchange: OTCPK
  • Founded:
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$5.838m
  • Shares outstanding: 1.17b
  • Website: https://www.vcsy.com

Number of Employees


Location

  • Vertical Computer Systems, Inc.
  • 101 West Renner Road
  • Suite 200
  • Richardson
  • Texas
  • 75082
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VCSYOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 1999

Biography

Vertical Computer Systems, Inc., together with its subsidiaries, provides application software, cloud-based and software services, Internet core technologies, and intellectual property assets primarily in  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:48
End of Day Share Price2019/12/10 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.