NasdaqCM:LRAD

Stock Analysis Report

Executive Summary

LRAD Corporation designs, develops, and commercializes directed and multidirectional sound technologies in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

Snowflake

Fundamentals

High growth potential with excellent balance sheet.

Risks

  • LRAD has significant price volatility in the past 3 months.
  • LRAD is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.5%

NasdaqCM:LRAD

4.1%

US Electronic

1.2%

US Market


1 Year Return

6.0%

NasdaqCM:LRAD

-0.7%

US Electronic

1.7%

US Market

LRAD outperformed the Electronic industry which returned -0.7% over the past year.

LRAD outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

LRADIndustryMarket
7 Day-5.5%4.1%1.2%
30 Day-8.1%11.2%4.9%
90 Day-0.6%6.9%3.7%
1 Year6.0%6.0%0.2%-0.7%3.9%1.7%
3 Year70.6%70.6%58.6%54.2%47.2%37.7%
5 Year15.1%13.1%69.0%60.6%60.0%42.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is LRAD undervalued based on future cash flows and its price relative to the stock market?

248.69x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

LRAD's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

LRAD's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

LRAD is overvalued based on earnings compared to the US Electronic industry average.

LRAD is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

LRAD is poor value based on expected growth next year.


Price Based on Value of Assets

LRAD is overvalued based on assets compared to the US Electronic industry average.


Next Steps

Future Growth

How is LRAD expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

68.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

LRAD's revenue is expected to grow significantly at over 20% yearly.

LRAD's earnings are expected to grow significantly at over 20% yearly.

LRAD's revenue growth is expected to exceed the United States of America market average.

LRAD's earnings growth is expected to exceed the United States of America market average.

LRAD's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if LRAD will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has LRAD performed over the past 5 years?

-53.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

LRAD's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

LRAD has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

LRAD has become profitable in the last year making it difficult to compare the US Electronic industry average.


Return on Equity

LRAD has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

LRAD used its assets less efficiently than the US Electronic industry average last year based on Return on Assets.


Return on Capital Employed

LRAD has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is LRAD's financial position?


Financial Position Analysis

LRAD is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

LRAD's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

LRAD's level of debt (0.9%) compared to net worth is satisfactory (less than 40%).

Unable to establish if LRAD's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (465.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 50.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 88.1x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate LRAD's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate LRAD's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as LRAD has not reported any payouts.

Unable to verify if LRAD's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as LRAD has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of LRAD's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Richard Danforth (59yo)

3.1yrs

Tenure

US$587,500

Compensation

Mr. Richard S. Danforth has been the Chief Executive Officer at LRAD Corporation since August 1, 2016. Mr. Danforth founded RsD Aero, Ltd. in October 2013. He served as the Group President of DRS Integrate ...


CEO Compensation Analysis

Richard's remuneration is about average for companies of similar size in United States of America.

Richard's compensation has increased in line with LRAD recently becoming profitable.


Management Age and Tenure

3.6yrs

Average Tenure

61yo

Average Age

The tenure for the LRAD management team is about average.


Board Age and Tenure

4.5yrs

Average Tenure

60yo

Average Age

The tenure for the LRAD board of directors is about average.


Insider Trading

LRAD individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$78,25010 Sep 19
Scott Anchin
EntityIndividual
Role
Member of the Board of Directors
Director
Shares25,000
Max PriceUS$3.13
SellUS$401,87006 Aug 19
AWM Investment Company Inc.
EntityCompany
Shares100,000
Max PriceUS$4.02
SellUS$38,59924 Jun 19
Scott Anchin
EntityIndividual
Role
Member of the Board of Directors
Director
Shares11,995
Max PriceUS$3.28

Ownership Breakdown


Management Team

  • Karen Bowling (64yo)

    VP & Director of Marketing

    • Tenure: 4.1yrs
  • Richard Danforth (59yo)

    Chief Executive Officer

    • Tenure: 3.1yrs
    • Compensation: US$587.50k
  • E. Harvey

    Director of Investor Relations & Capital Markets

    • Tenure: 5.9yrs
  • Dennis Klahn (61yo)

    CFO & Secretary

    • Tenure: 2.1yrs
    • Compensation: US$297.73k

Board Members

  • Richard Osgood (65yo)

    Director

    • Tenure: 6.2yrs
    • Compensation: US$80.75k
  • John Coburn (77yo)

    Non-Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: US$80.75k
  • Laura Clague (60yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$80.75k
  • Dan McCollum (44yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$80.75k
  • Scott Anchin (45yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$80.75k

Company Information

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


Key Information

  • Name: LRAD Corporation
  • Ticker: LRAD
  • Exchange: NasdaqCM
  • Founded: 1980
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$103.974m
  • Shares outstanding: 32.59m
  • Website: https://www.lradx.com

Number of Employees


Location

  • LRAD Corporation
  • 16262 West Bernardo Drive
  • San Diego
  • California
  • 92127
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LRADNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDOct 1990

Biography

LRAD Corporation designs, develops, and commercializes directed and multidirectional sound technologies in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers voice broadcast pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/14 23:39
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.