NasdaqCM:WRTC

Stock Analysis Report

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Executive Summary

Wrap Technologies, Inc., a security technology company, develops security products for law enforcement and security personnel. More Details


Snowflake Analysis

Excellent balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WRTC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.2%

WRTC

-0.9%

US Electronic

-1.1%

US Market


1 Year Return

53.5%

WRTC

7.1%

US Electronic

15.6%

US Market

Return vs Industry: WRTC exceeded the US Electronic industry which returned 7.1% over the past year.

Return vs Market: WRTC exceeded the US Market which returned 15.6% over the past year.


Shareholder returns

WRTCIndustryMarket
7 Day1.2%-0.9%-1.1%
30 Day-17.2%9.1%4.2%
90 Day-49.4%8.6%6.3%
1 Year53.5%53.5%8.2%7.1%18.2%15.6%
3 Yearn/a18.7%15.3%39.6%30.4%
5 Yearn/a81.9%73.4%79.5%59.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.26x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate WRTC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate WRTC's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WRTC is overvalued based on its PB Ratio (5.3x) compared to the US Electronic industry average (2.2x).


Next Steps

Future Growth

How is Wrap Technologies forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

101.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if WRTC's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if WRTC's earnings are forecast to grow faster than the US market

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

Revenue vs Market: WRTC's revenue (101% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: WRTC's revenue (101% 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 WRTC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Wrap Technologies performed over the past 5 years?

-79.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WRTC is currently unprofitable.

Growing Profit Margin: WRTC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WRTC is unprofitable, and losses have increased over the past 5 years at a rate of 79.7% per year.

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

Earnings vs Industry: WRTC is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-18%).


Return on Equity

High ROE: WRTC has a negative Return on Equity (-27.22%), as it is currently unprofitable.


Next Steps

Financial Health

How is Wrap Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: WRTC's short term assets ($38.2M) exceed its short term liabilities ($1.6M).

Long Term Liabilities: WRTC's short term assets ($38.2M) exceed its long term liabilities ($357.1K).


Debt to Equity History and Analysis

Debt Level: WRTC's debt to equity ratio (1.1%) is considered satisfactory.

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


Balance Sheet


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: WRTC has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: WRTC has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 80.6% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

1.9yrs

Average management tenure


CEO

Marc Thomas

0.25

Tenure

Mr. Marc Thomas serves as Chief Executive Officer at Wrap Technologies, Inc since July 30, 2020. He is an experienced executive with a diverse background who has successfully led and advised teams in a va ...


Leadership Team

NamePositionTenureCompensationOwnership
Scot Cohen
Executive Chairman3.25yrsUS$120.00k14.39%
$ 29.9m
Thomas Smith
President1.58yrsUS$2.27m0%
$ 0
James Barnes
CFO, Corporate Secretary & Treasurer3.58yrsUS$303.67k5.09%
$ 10.6m
Marc Thomas
Chief Executive Officer0.25yrno datano data
Michael Rothans
Chief Operating Officer1.92yrsno data0.044%
$ 91.0k
Elwood Norris
Chief Technology Officerno datano data17.24%
$ 35.8m
Paul Manley
Vice President of Investor Relationsno datano datano data
Judah Meiteles
Director of Marketing2.75yrsno datano data
Don De Lucca
Chief Strategy Officerno datano datano data

1.9yrs

Average Tenure

58yo

Average Age

Experienced Management: WRTC's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Scot Cohen
Executive Chairman3.25yrsUS$120.00k14.39%
$ 29.9m
Wayne Walker
Independent Director1.92yrsUS$42.00k0%
$ 0
David Norris
Director2.75yrsUS$798.33k5.03%
$ 10.4m
Patrick Kinsella
Independent Director1.92yrsUS$42.00k0.082%
$ 170.4k
Michael Parris
Independent Director2.92yrsUS$42.00k0.54%
$ 1.1m

2.8yrs

Average Tenure

61yo

Average Age

Experienced Board: WRTC's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WRTC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.2%.


Top Shareholders

Company Information

Wrap Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wrap Technologies, Inc.
  • Ticker: WRTC
  • Exchange: NasdaqCM
  • Founded: 2016
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$207.593m
  • Shares outstanding: 36.55m
  • Website: https://www.wraptechnologies.com

Number of Employees


Location

  • Wrap Technologies, Inc.
  • 1817 West 4th Street
  • Tempe
  • Arizona
  • 85281
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WRTCNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMay 2018

Biography

Wrap Technologies, Inc., a security technology company, develops security products for law enforcement and security personnel. It develops BolaWrap 100, a hand-held remote restraint device that discharges ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 00:46
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
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.