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.


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

3.1%

LRAD

2.4%

US Electronic

0.07%

US Market


1 Year Return

14.7%

LRAD

16.3%

US Electronic

8.9%

US Market

Return vs Industry: LRAD underperformed the US Electronic industry which returned 16.3% over the past year.

Return vs Market: LRAD exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

LRADIndustryMarket
7 Day3.1%2.4%0.07%
30 Day6.0%3.7%-0.3%
90 Day-16.8%2.3%-1.6%
1 Year14.7%14.7%17.5%16.3%11.3%8.9%
3 Year110.0%110.0%55.8%51.4%46.3%36.8%
5 Year22.6%20.4%83.7%74.7%62.1%44.3%

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 compared to its fair value and its price relative to the market?

261.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LRAD ($3.36) is trading above our estimate of fair value ($1.96)

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


Price To Earnings Ratio

PE vs Industry: LRAD is poor value based on its PE Ratio (261.9x) compared to the Electronic industry average (19.6x).

PE vs Market: LRAD is poor value based on its PE Ratio (261.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: LRAD is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: LRAD is overvalued based on its PB Ratio (3.2x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is LRAD forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LRAD's forecast earnings growth (68.8% per year) is above the savings rate (2.7%).

Earnings vs Market: LRAD's earnings (68.8% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LRAD's revenue (23.2% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: LRAD's revenue (23.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LRAD's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: LRAD's earnings have declined by -53% per year over the past 5 years.

Accelerating Growth: LRAD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LRAD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (58.6%).


Return on Equity

High ROE: LRAD's Return on Equity (1.2%) is considered low.


Return on Assets

ROA vs Industry: LRAD's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: LRAD's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is LRAD's financial position?


Financial Position Analysis

Short Term Liabilities: LRAD's short term assets ($28.6M) exceeds its short term liabilities ($4.7M)

Long Term Liabilities: LRAD's short term assets (28.6M) exceeds its long term liabilities (2.5M)


Debt to Equity History and Analysis

Debt Level: LRAD's debt to equity ratio (0.9%) is considered satisfactory

Reducing Debt: Insufficient data to determine if LRAD's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: LRAD's debt is well covered by operating cash flow (465.3%).

Interest Coverage: LRAD's interest payments on its debt are well covered by EBIT (50.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: LRAD's debt is covered by short term assets (assets are 88.138280x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if LRAD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LRAD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LRAD is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LRAD'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 LRAD's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Richard Danforth (59yo)

3.2yrs

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

Compensation vs. Market: Richard's total compensation ($USD587.50K) is about average for companies of similar size in the US market ($USD509.30K).

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


Management Age and Tenure

3.7yrs

Average Tenure

61yo

Average Age

Experienced Management: LRAD's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

60yo

Average Age

Experienced Board: LRAD's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: LRAD 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
Independent 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
Independent Director
Shares11,995
Max PriceUS$3.28

Ownership Breakdown


Management Team

  • Karen Bowling (64yo)

    VP & Director of Marketing

    • Tenure: 4.2yrs
  • Richard Danforth (59yo)

    Chief Executive Officer

    • Tenure: 3.2yrs
    • Compensation: US$587.50k
  • E. Harvey

    Director of Investor Relations & Capital Markets

    • Tenure: 6yrs
  • Dennis Klahn (61yo)

    CFO & Secretary

    • Tenure: 2.2yrs
    • Compensation: US$297.73k

Board Members

  • Richard Osgood (65yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$80.75k
  • John Coburn (77yo)

    Non-Executive Chairman

    • Tenure: 4.6yrs
    • Compensation: US$80.75k
  • Laura Clague (60yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$80.75k
  • Dan McCollum (44yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$80.75k
  • Scott Anchin (45yo)

    Independent Director

    • Tenure: 3.6yrs
    • 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$109.515m
  • 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 Analysis2019/10/22 23:31
End of Day Share Price2019/10/22 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.