NasdaqCM:SCKT

Stock Analysis Report

Executive Summary

Socket Mobile, Inc. produces data capture products for mobile applications used in business mobility markets in the United States, Europe, Asia, and internationally.

Rewards

Became profitable this year

Risk Analysis

Earnings have declined by -19.24% per year over past 5 years

Does not have a meaningful market cap ($10M)



Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.0%

SCKT

1.4%

US Tech

1.5%

US Market


1 Year Return

-12.6%

SCKT

81.9%

US Tech

20.1%

US Market

Return vs Industry: SCKT underperformed the US Tech industry which returned 81.9% over the past year.

Return vs Market: SCKT underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

SCKTIndustryMarket
7 Day-1.0%1.4%1.5%
30 Day-2.6%1.5%1.4%
90 Day-3.5%19.9%8.7%
1 Year-12.6%-12.6%84.6%81.9%22.7%20.1%
3 Year-59.3%-59.3%132.4%116.2%50.1%40.5%
5 Year-26.9%-26.9%149.3%124.7%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SCKT ($1.66) is trading above our estimate of fair value ($0.41)

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


Price To Earnings Ratio

PE vs Industry: SCKT is poor value based on its PE Ratio (34.6x) compared to the Tech industry average (22.1x).

PE vs Market: SCKT is poor value based on its PE Ratio (34.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SCKT is good value based on its PB Ratio (0.8x) compared to the US Tech industry average (1.8x).


Next Steps

Future Growth

How is Socket Mobile forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.8%

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 Socket Mobile 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 Socket Mobile performed over the past 5 years?

-19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCKT has high quality earnings.

Growing Profit Margin: SCKT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SCKT's earnings have declined by -19.2% per year over the past 5 years.

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

Earnings vs Industry: SCKT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Tech industry (0.4%).


Return on Equity

High ROE: SCKT's Return on Equity (2.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Socket Mobile's financial position?


Financial Position Analysis

Short Term Liabilities: SCKT's short term assets ($7.5M) exceed its short term liabilities ($4.7M).

Long Term Liabilities: SCKT's short term assets ($7.5M) exceed its long term liabilities ($1.5M).


Debt to Equity History and Analysis

Debt Level: SCKT's debt to equity ratio (10%) is considered satisfactory.

Reducing Debt: SCKT's debt to equity ratio has reduced from 210.5% to 10% over the past 5 years.

Debt Coverage: SCKT's debt is well covered by operating cash flow (48.7%).

Interest Coverage: SCKT's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet

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

Debt Coverage by Assets: SCKT's debt is covered by short term assets (assets are 5.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if SCKT'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 SCKT'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?

10.0yrs

Average management tenure


CEO

Kevin Mills (58yo)

19.9yrs

Tenure

US$276,725

Compensation

Mr. Kevin J. Mills has been the President and Chief Executive Officer of Socket Mobile, Inc. since March 2000. Mr. Mills served as the Chief Operating Officer of Socket from September 1998 to March 2000. M ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD276.73K) is below average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Mills
President19.9yrsUS$276.73k1.73% $172.5k
Lynn Zhao
CFO, VP of Finance & Administration0.8yrsUS$156.70kno data
Leonard Ott
Executive VP of Engineering & CTO19.3yrsUS$208.55k0.024% $2.4k
David Dunlap
Consultant & Director5.8yrsUS$203.68k0.14% $14.1k

10.0yrs

Average Tenure

59yo

Average Age

Experienced Management: SCKT's management team is seasoned and experienced (10 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Mills
President19.9yrsUS$276.73k1.73% $172.5k
Lynn Zhao
CFO, VP of Finance & Administration0.8yrsUS$156.70kno data
David Dunlap
Consultant & Director5.8yrsUS$203.68k0.14% $14.1k
William Parnell
Independent Director2.7yrsUS$34.15kno data
Charlie Bass
Chairman of the Board27.9yrsUS$38.50k18.15% $1.8m
Brenton MacDonald
Independent Director3.7yrsUS$34.15kno data
Ivan Lazarev
Independent Director0.3yrsno datano data

3.7yrs

Average Tenure

61yo

Average Age

Experienced Board: SCKT's board of directors are considered experienced (3.7 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Socket Mobile, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Socket Mobile, Inc.
  • Ticker: SCKT
  • Exchange: NasdaqCM
  • Founded: 1992
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$9.959m
  • Shares outstanding: 6.00m
  • Website: https://www.socketmobile.com

Number of Employees


Location

  • Socket Mobile, Inc.
  • 39700 Eureka Drive
  • Newark
  • California
  • 94560
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCKTNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJun 1995
SNB1BST (Boerse-Stuttgart)YesCommon StockDEEURJun 1995

Biography

Socket Mobile, Inc. produces data capture products for mobile applications used in business mobility markets in the United States, Europe, Asia, and internationally. The company’s products are incorporated into mobile applications used in point of sale, enterprise mobility, asset tracking, manufacturing process and quality control, transportation and logistics, event management, medical, and education. It provides cordless data capture devices that connect over Bluetooth and work with applications running on smartphones, mobile computers, and tablets; and software developer kits to application developers to enable them to provide their users with its advanced barcode scanning features. The company’s cordless data capture devices include DuraScan 700 and 730 series linear barcode scanners; D740, D750, D760, and D790 universal barcode scanners that reads all common 1D, stacked, 2D, and postal codes; SocketScan 700 series barcode scanners, which include S700, S730, and S740 barcode scanners; and SocketScan 800 series cordless barcode scanners, including S800, a 1D linear imaging scanner, and S840 and S860 2D scanner that are attachable to smartphones, tablets, and other mobile devices with detachable clip or DuraCase. It also provides D600 contactless RFID/ Near Field Communications reader writer that can read and write various types of electronic SmartTags or transfer data with near field communication; and S500 token exchanger to facilitate the transfer of electronic tokens. In addition, the company offers SocketCare services program, which provides extended warranty and accidental breakage coverage for various products. It markets its products through a network of distributors and online resellers, application developers, and value added resellers. The company was formerly known as Socket Communications, Inc. and changed its name to Socket Mobile, Inc. in April 2008. Socket Mobile, Inc. was founded in 1992 and is headquartered in Newark, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:40
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.