Wayside Technology Group (NasdaqGM:WSTG) - Share price, News & Analysis

WSTG fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	4/6
Financial Health	6/6
Dividends	5/6

WSTG Stock Overview

Wayside Technology Group, Inc. operates as a value-added information technology (IT) distribution and solutions company in the United States, Canada, Europe, the United Kingdom, and internationally.

Rewards

Price-To-Earnings ratio (14.7x) is below the Electronic industry average (17.6x)

Earnings grew by 102.2% over the past year

Pays a reliable dividend of 1.98%

Risk Analysis

High level of non-cash earnings

Significant insider selling over the past 3 months

Wayside Technology Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Wayside Technology Group
Historical stock prices
Current Share Price	US$34.40
52 Week High	US$39.45
52 Week Low	US$24.25
Beta	0.76
1 Month Change	-6.50%
3 Month Change	4.59%
1 Year Change	41.80%
3 Year Change	204.69%
5 Year Change	77.78%
Change since IPO	212.73%

Recent News & Updates

May 11

Wayside Technology Group: Q1 EPS +74%, 23% Net Cash, 12x Ex-Cash P/E

1Q22 EPS of $0.61, up 74% YoY; net sales up 13.5% YoY. Relatively inexpensive ex-cash P/E of 11.8x for 2022, 10.2x for 2023. 5.9% 2022 FCF yield, 6.5% FCF yield for 2023, 2.0% dividend yield. 19% net cash to market cap in 2021, expect 23% net cash in 2022. Stock is up 138% since our initiation in June 2020, we still see 56% upside.

Shareholder Returns

	WSTG	US Electronic	US Market
7D	3.5%	4.5%	6.6%
1Y	41.8%	-19.7%	-18.4%

Return vs Industry: WSTG exceeded the US Electronic industry which returned -19% over the past year.

Return vs Market: WSTG exceeded the US Market which returned -18.5% over the past year.

Price Volatility

Is WSTG's price volatile compared to industry and market?
WSTG volatility
WSTG Average Weekly Movement	5.4%
Electronic Industry Average Movement	7.4%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: WSTG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WSTG's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1982	269	Dale Foster	https://www.waysidetechnology.com

Wayside Technology Group, Inc. operates as a value-added information technology (IT) distribution and solutions company in the United States, Canada, Europe, the United Kingdom, and internationally. It operates in two segments, Distribution and Solutions. The company distributes technical software and hardware to corporate and value added resellers, consultants, and systems integrators under the names Climb Channel Solutions and Sigma Software Distribution; and software, hardware, and services under the names TechXtend and Grey Matter.

Wayside Technology Group Fundamentals Summary

How do Wayside Technology Group's earnings and revenue compare to its market cap?
WSTG fundamental statistics
Market Cap	US$148.85m
Earnings (TTM)	US$10.10m
Revenue (TTM)	US$291.09m

14.7x

P/E Ratio

0.5x

P/S Ratio

Is WSTG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WSTG income statement (TTM)
Revenue	US$291.09m
Cost of Revenue	US$244.23m
Gross Profit	US$46.85m
Other Expenses	US$36.75m
Earnings	US$10.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.33
Gross Margin	16.10%
Net Profit Margin	3.47%
Debt/Equity Ratio	0%

How did WSTG perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

29%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is WSTG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WSTG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for WSTG. This is calculated by dividing WSTG's market cap by their current preferred multiple.
What is WSTG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$148.85m

WSTG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	7.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does WSTG's PE Ratio compare to its peers?

WSTG PE Ratio vs Peers

The above table shows the PE ratio for WSTG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9.7x

Forward PE

Price-To-Earnings vs Peers: WSTG is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the peer average (9.7x).

Price to Earnings Ratio vs Industry

How does WSTG's PE Ratio compare vs other companies in the U.S. Electronic Industry?

Price-To-Earnings vs Industry: WSTG is good value based on its Price-To-Earnings Ratio (14.7x) compared to the US Electronic industry average (17.6x)

Price to Earnings Ratio vs Fair Ratio

What is WSTG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WSTG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate WSTG's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of WSTG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WSTG ($34.4) is trading above our estimate of fair value ($12.76)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Wayside Technology Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.8%

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 Wayside Technology Group 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.

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Check out Wayside Technology Group's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has Wayside Technology Group performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

11.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WSTG has a high level of non-cash earnings.

Growing Profit Margin: WSTG's current net profit margins (3.5%) are higher than last year (2%).

Past Earnings Growth Analysis

Earnings Trend: WSTG's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: WSTG's earnings growth over the past year (102.2%) exceeds its 5-year average (11.7% per year).

Earnings vs Industry: WSTG earnings growth over the past year (102.2%) exceeded the Electronic industry 33%.

Return on Equity

High ROE: WSTG's Return on Equity (19.3%) is considered low.

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Financial Health

How is Wayside Technology Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: WSTG's short term assets ($158.3M) exceed its short term liabilities ($131.3M).

Long Term Liabilities: WSTG's short term assets ($158.3M) exceed its long term liabilities ($3.6M).

Debt to Equity History and Analysis

Debt Level: WSTG is debt free.

Reducing Debt: WSTG had no debt 5 years ago.

Debt Coverage: WSTG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WSTG has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Wayside Technology Group current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.98%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WSTG's dividend (1.98%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: WSTG's dividend (1.98%) is low compared to the top 25% of dividend payers in the US market (4.24%).

Stability and Growth of Payments

Stable Dividend: WSTG's dividends per share have been stable in the past 10 years.

Growing Dividend: WSTG's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.9%), WSTG's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (54.5%), WSTG's dividend payments are covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure

CEO

Dale Foster (57 yo)

2.42yrs

Tenure

US$1,031,203

Compensation

Mr. Dale Richard Foster has been Chief Executive Officer of Wayside Technology Group, Inc. since January 20, 2020 and Director since January 15, 2020. He also serves as President at Wayside Technology Grou...

CEO Compensation Analysis

Compensation vs Market: Dale's total compensation ($USD1.03M) is above average for companies of similar size in the US market ($USD752.25K).

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

Leadership Team

Experienced Management: WSTG's management team is considered experienced (2.4 years average tenure).

Board Members

Experienced Board: WSTG's board of directors are not considered experienced ( 2.5 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: WSTG insiders have sold more shares than they have bought in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31