NasdaqCM:OTIV

Stock Analysis Report

Executive Summary

On Track Innovations Ltd. designs, develops, and markets cashless payment solutions worldwide.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.

Share Price & News

How has On Track Innovations's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

OTIV

2.3%

US Tech

1.8%

US Market


1 Year Return

-69.6%

OTIV

8.1%

US Tech

7.3%

US Market

Return vs Industry: OTIV underperformed the US Tech industry which returned 8.1% over the past year.

Return vs Market: OTIV underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

OTIVIndustryMarket
7 Day-0.3%2.3%1.8%
30 Day-20.2%5.7%-0.7%
90 Day-34.1%14.8%0.06%
1 Year-69.6%-69.6%9.9%8.1%9.7%7.3%
3 Year-71.4%-71.4%100.6%85.1%46.3%36.9%
5 Year-87.7%-87.7%121.4%99.0%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is On Track Innovations undervalued compared to its fair value and its price relative to the market?

1.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate OTIV's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate OTIV's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: OTIV is unprofitable, so we can't compare its PE Ratio to the Tech industry average.

PE vs Market: OTIV is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OTIV is good value based on its PB Ratio (1.2x) compared to the US Tech industry average (1.7x).


Next Steps

Future Growth

How is On Track Innovations forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

4.7%

Forecasted Tech 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 On Track Innovations 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

Past Performance

How has On Track Innovations performed over the past 5 years?

35.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OTIV is unprofitable, but has reduced losses over the past 5 years at a rate of 35.7% per year.

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

Earnings vs Industry: OTIV is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (64%).


Return on Equity

High ROE: OTIV has a negative Return on Equity (-36.07%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: OTIV is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: OTIV is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is On Track Innovations's financial position?


Financial Position Analysis

Short Term Liabilities: OTIV's short term assets ($15.6M) exceeds its short term liabilities ($10.3M)

Long Term Liabilities: OTIV's short term assets (15.6M) exceeds its long term liabilities (2.5M)


Debt to Equity History and Analysis

Debt Level: OTIV's debt to equity ratio (29.3%) is considered satisfactory

Reducing Debt: OTIV's debt to equity ratio has reduced from 53.2% to 29.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: OTIV's debt is covered by short term assets (assets are 5.504930x debt).


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: OTIV has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: OTIV has sufficient cash runway for 1.292903 years if free cash flow continues to grow at historical rates of 23.1% each year.


Next Steps

Dividend

What is On Track Innovations's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Growing Dividend: Insufficient data to determine if OTIV'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 OTIV'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 On Track Innovations's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average board tenure


CEO

Assaf Cohen (34yo)

0.2yrs

Tenure

US$191,651

Compensation

Mr. Assaf Cohen has been Chief Financial Officer at On Track Innovations Ltd. since February 27, 2018 and also serves as its Interim Chief Executive Officer since August 01, 2019. Mr. Cohen was appointed a ...


CEO Compensation Analysis

Compensation vs. Market: Assaf has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Assaf's compensation with company performance.


Board Age and Tenure

3.3yrs

Average Tenure

52yo

Average Age

Experienced Board: OTIV's board of directors are considered experienced (3.3 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.


Recent Insider Transactions

SellUS$5,00009 Jul 19
Jerry Ivy
EntityIndividual
Shares10,000
Max PriceUS$0.50
SellUS$39,90623 Nov 18
Shlomi Cohen
EntityIndividual
Shares54,938
Max PriceUS$0.75

Ownership Breakdown


Management Team

  • Nehemia Itay (70yo)

    Chief Scientist

    • Tenure: 0yrs
    • Compensation: US$227.86k
  • Charlotte Hambly-Nuss

    Managing Director of OTI PetroSmart

    • Tenure: 0yrs
  • Sagi Nataf

    Vice President of Operations & Engineering

    • Tenure: 0yrs
  • Agnieszka Swiatly

    Managing Director of OTI Europa

    • Tenure: 2.2yrs
  • Assaf Cohen (34yo)

    Interim CEO & CFO

    • Tenure: 0.2yrs
    • Compensation: US$191.65k
  • Richard Harris

    Director of Marketing

    • Tenure: 0yrs

Board Members

  • Eran Gilad (52yo)

    Independent Director

    • Tenure: 0yrs
  • Bill Anderson (49yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$29.88k
  • Donna Marks (63yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$25.46k
  • James Medford (67yo)

    Independent Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$21.79k
  • Michael Soluri (47yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$25.46k

Company Information

On Track Innovations Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: On Track Innovations Ltd.
  • Ticker: OTIV
  • Exchange: NasdaqCM
  • Founded: 1990
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$11.695m
  • Shares outstanding: 41.32m
  • Website: https://www.otiglobal.com

Number of Employees


Location

  • On Track Innovations Ltd.
  • Z.H.R. Industrial Zone
  • PO Box 32
  • Rosh Pina
  • 1210001
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OTIVNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDAug 1999
OT5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1999

Biography

On Track Innovations Ltd. designs, develops, and markets cashless payment solutions worldwide. It operates in two segments, Retail and Mass Transit Ticketing; and Petroleum. The company offers OTI UNO, a s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:42
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.