OTCPK:VLDI

Stock Analysis Report

Executive Summary

Validian Corporation, a development stage company, provides software products to assist public and private enterprises in Canada and internationally.

Rewards

Earnings have grown 26.5% per year over the past 5 years

Risk Analysis

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

Has less than 1 year of cash runway

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($17M)



Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.6%

VLDI

1.7%

US Software

1.5%

US Market


1 Year Return

77.0%

VLDI

42.3%

US Software

20.1%

US Market

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

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


Shareholder returns

VLDIIndustryMarket
7 Day-1.6%1.7%1.5%
30 Day-3.5%7.7%1.4%
90 Day2.5%18.4%8.7%
1 Year77.0%77.0%43.9%42.3%22.7%20.1%
3 Year-23.0%-23.0%152.8%142.4%50.1%40.5%
5 Year-45.3%-45.3%224.7%201.5%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


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

Future Growth

How is Validian 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 Validian 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 VLDI’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 Validian's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has Validian performed over the past 5 years?

26.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VLDI is currently unprofitable.

Growing Profit Margin: VLDI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VLDI is unprofitable, but has reduced losses over the past 5 years at a rate of 26.5% per year.

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

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


Return on Equity

High ROE: VLDI'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 Validian's financial position?


Financial Position Analysis

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

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

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


Balance Sheet

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

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

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


Next Steps

Dividend

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

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

Growing Dividend: Insufficient data to determine if VLDI'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 VLDI'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$93k

CEO Compensation


CEO

Bruce Benn (65yo)

14.8yrs

Tenure

US$92,626

Compensation

Mr. Bruce I. Benn serves as the Chief Financial Officer and Vice President of Finance at Topaz Resources, Inc. Mr. Benn Co-founded Validian Corporation and has been its Chief Executive Officer and Presiden ...


CEO Compensation Analysis

Compensation vs Market: Bruce's total compensation ($USD92.63K) is below average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Bruce'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: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Validian Corporation
  • Ticker: VLDI
  • Exchange: OTCPK
  • Founded: 1989
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$16.932m
  • Shares outstanding: 688.28m
  • Website: https://www.validian.com

Number of Employees


Location

  • Validian Corporation
  • 6 Gurdwara Road
  • Suite 205
  • Ottawa
  • Ontario
  • K2E 8A3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VLDIOTCPK (Pink Sheets LLC)YesCommon StockUSUSDSep 1992

Biography

Validian Corporation, a development stage company, provides software products to assist public and private enterprises in Canada and internationally. The company primarily offers ValidianProtect, a software only cyber security technology comprising an application and data protection platform and a data protection module, which protect the life cycle of data by providing secure access, retrieval, transfer, receipt, storage, and usage of digital information on mobile, cloud, Web, local and network applications, devices, servers, databases, and memory at rest, as well as in transit and in usage using wired, and wireless and mobile networks. Its ValidianProtect also provides secure mobile messaging and communications, cloud computing, cloud storage, distributed computing and Web application and Web portal access and usage, software defined networking, and the Internet of Things and SCADA for computers, servers, databases, intelligent sensors, and tablets and smartphones. In addition, the company offers solutions customized to the client’s business process to ensure authenticity, integrity, and custody of digital assets. It offers its products through direct sales, as well as through channel partners, such as independent software vendors, application service providers, value-added resellers, independent marketing representatives, system integrators, and original equipment manufacturers. The company was formerly known as Sochrys.com Inc. and changed its name to Validian Corporation in January 2003. Validian Corporation was incorporated in 1989 and is based in Ottawa, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:52
End of Day Share Price2020/02/14 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.