OTCPK:VEII

Stock Analysis Report

Value Exchange International

Executive Summary

Value Exchange International, Inc. provides customer-centric technology solutions to the retail industries in the People’s Republic of China, Hong Kong, Malaysia, and the Philippines.

Rewards

PE ratio (1.7x) is below the US market (18.9x)

Earnings grew by 565.7% over the past year

Risk Analysis

High level of non-cash earnings

Does not have a meaningful market cap ($922K)

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Fujitsu

TSE:6702

Share Price & News

How has Value Exchange International's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

VEII

3.4%

US IT

2.0%

US Market


1 Year Return

37.6%

VEII

40.8%

US IT

23.6%

US Market

Return vs Industry: VEII underperformed the US IT industry which returned 39.9% over the past year.

Return vs Market: VEII exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

VEIIIndustryMarket
7 Day0%3.4%2.0%
30 Day-11.1%6.7%3.9%
90 Day-22.3%14.3%12.0%
1 Year37.6%37.6%42.3%40.8%26.2%23.6%
3 Year-65.4%-65.4%110.0%101.0%53.2%43.3%
5 Year-83.2%-83.2%153.4%130.9%75.7%56.3%

Price Volatility Vs. Market

How volatile is Value Exchange International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Value Exchange International undervalued compared to its fair value and its price relative to the market?

1.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VEII ($0.03) is trading above our estimate of fair value ($0)

Significantly Below Fair Value: VEII is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VEII is good value based on its PE Ratio (1.7x) compared to the IT industry average (32x).

PE vs Market: VEII is good value based on its PE Ratio (1.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VEII is good value based on its PB Ratio (0.6x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

How is Value Exchange International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.2%

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 Value Exchange International 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

  • Examine whether Value Exchange International is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • 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 Value Exchange International's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has Value Exchange International performed over the past 5 years?

23.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VEII has a high level of non-cash earnings.

Growing Profit Margin: VEII's current net profit margins (6.6%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: VEII's earnings have grown significantly by 23.8% per year over the past 5 years.

Accelerating Growth: VEII's earnings growth over the past year (565.7%) exceeds its 5-year average (23.8% per year).

Earnings vs Industry: VEII earnings growth over the past year (565.7%) exceeded the IT industry 16.2%.


Return on Equity

High ROE: VEII's Return on Equity (33.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Value Exchange International's financial position?


Financial Position Analysis

Short Term Liabilities: VEII's short term assets ($2.3M) exceed its short term liabilities ($1.3M).

Long Term Liabilities: VEII's short term assets ($2.3M) exceed its long term liabilities ($3.8K).


Debt to Equity History and Analysis

Debt Level: VEII is debt free.

Reducing Debt: VEII had no debt 5 years ago.

Debt Coverage: VEII has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: VEII has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if VEII's debt is covered by short term assets.


Next Steps

Dividend

What is Value Exchange International'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 VEII's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Growing Dividend: Insufficient data to determine if VEII'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 VEII'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 Value Exchange International's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average board tenure


CEO

Kenneth Tan (55yo)

6.4yrs

Tenure

US$33,333

Compensation

Mr. Seng Wee Tan, also known as Kenneth, has been the Chief Executive Officer and Director of Value Exchange International, Inc. since August 26, 2013 and also serves as its President. Mr. Tan was the Pres ...


CEO Compensation Analysis

Compensation vs Market: Kenneth's total compensation ($USD33.33K) is below average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Kenneth's compensation has increased by more than 20% in the past year.


Board Age and Tenure

5.5yrs

Average Tenure

54.5yo

Average Age

Experienced Board: VEII's board of directors are considered experienced (5.5 years average tenure).


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

  • Kenneth Tan (55yo)

    CEO, President & Director

    • Tenure: 6.4yrs
    • Compensation: US$33.33k
  • Bella Tsang (54yo)

    Secretary & Director

    • Compensation: US$46.15k
  • Channing Au (40yo)

    CFO & Treasurer

    • Tenure: 4.2yrs
    • Compensation: US$46.15k
  • Lee Benny

    Founder & Chairman


    Board Members

    • Kenneth Tan (55yo)

      CEO, President & Director

      • Tenure: 6.4yrs
      • Compensation: US$33.33k
    • Bella Tsang (54yo)

      Secretary & Director

      • Compensation: US$46.15k
    • Johan Pehrson (61yo)

      Independent Director

      • Tenure: 5.5yrs
      • Compensation: US$10.00k
    • Edmund Yeung (49yo)

      Independent Director

      • Tenure: 4.6yrs
      • Compensation: US$10.00k
    • Lee Benny

      Founder & Chairman

      Company Information

      Value Exchange International, Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Value Exchange International, Inc.
      • Ticker: VEII
      • Exchange: OTCPK
      • Founded: 2007
      • Industry: IT Consulting and Other Services
      • Sector: Software
      • Market Cap: US$922.305k
      • Shares outstanding: 29.66m
      • Website: https://www.value-exch.com

      Number of Employees


      Location

      • Value Exchange International, Inc.
      • Block B
      • 6th Floor, Unit 602
      • Shatin
      • New Territories
      • Hong Kong

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      VEIIOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 2012

      Biography

      Value Exchange International, Inc. provides customer-centric technology solutions to the retail industries in the People’s Republic of China, Hong Kong, Malaysia, and the Philippines. The company provides systems maintenance and related services, including software patches and software code revisions; installing, testing, and implementing software; training of customer personnel for the use of software; and technical support for software systems. It also offers systems development and integration services, as well as software development and IT consulting services. The company also sells hardware and consumables products; and markets, sells, and maintains point of sale (POS) software under the edgePOS brand, as well as sells third party POS software programs. The company was formerly known as Sino Payments, Inc. and changed its name to Value Exchange International, Inc. in December 2017. Value Exchange International, Inc. was incorporated in 2007 and is headquartered in Shatin, Hong Kong. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/19 00:27
      End of Day Share Price2020/01/02 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.