NasdaqCM:WSTL

Stock Analysis Report

Executive Summary

Westell Technologies, Inc., through its subsidiary, Westell, Inc., designs and distributes telecommunications products to telephone companies in the United States.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-33.0%

WSTL

-5.0%

US Communications

0.5%

US Market


1 Year Return

-59.5%

WSTL

-0.5%

US Communications

16.1%

US Market

Return vs Industry: WSTL underperformed the US Communications industry which returned -0.5% over the past year.

Return vs Market: WSTL underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

WSTLIndustryMarket
7 Day-33.0%-5.0%0.5%
30 Day-38.3%-4.1%3.9%
90 Day-41.1%-4.3%6.6%
1 Year-59.5%-59.5%1.9%-0.5%18.7%16.1%
3 Year-59.7%-59.7%43.3%34.3%47.2%37.7%
5 Year-84.4%-84.4%64.2%45.8%61.5%43.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.36x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: WSTL 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 WSTL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WSTL is good value based on its PB Ratio (0.4x) compared to the US Communications industry average (1.9x).


Next Steps

Future Growth

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

13.9%

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 Westell Technologies 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 Westell Technologies performed over the past 5 years?

43.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WSTL has large one-off items impacting its financial results.

Growing Profit Margin: WSTL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WSTL is unprofitable, but has reduced losses over the past 5 years at a rate of 43.5% per year.

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

Earnings vs Industry: WSTL is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (42.2%).


Return on Equity

High ROE: WSTL has a negative Return on Equity (-42.31%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Westell Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: WSTL's short term assets ($36.9M) exceeds its short term liabilities ($7.5M)

Long Term Liabilities: WSTL's short term assets ($36.9M) exceeds its long term liabilities (432.0K)


Debt to Equity History and Analysis

Debt Level: WSTL is debt free.

Reducing Debt: WSTL has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: WSTL's debt is not covered by short term assets (assets are -109.8x 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: WSTL has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: WSTL has sufficient cash runway for 2.485382 years if free cash flow continues to grow at historical rates of 61.9% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if WSTL'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 WSTL'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 Westell Technologies's salary, the management and board of directors tenure and is there insider trading?

0.3yrs

Average management tenure


CEO

Tim Duitsman (57yo)

0.2yrs

Tenure

0

Mr. Timothy Duitsman, also known as Tim, serves as President and Chief Executive Officer at Westell Technologies, Inc. since September 1, 2019. Mr. Duitsman has been Director of Westell Technologies, Inc.  ...


Management Age and Tenure

0.3yrs

Average Tenure

47yo

Average Age

Experienced Management: WSTL's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Age and Tenure

2.7yrs

Average Tenure

57yo

Average Age

Experienced Board: WSTL's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Management Team

  • J.J. Swartwood (45yo)

    Senior Vice President of Worldwide Sales

    • Tenure: 3.2yrs
    • Compensation: US$304.61k
  • Tim Duitsman (57yo)

    President CEO & Director

    • Tenure: 0.2yrs
  • Jeniffer Jaynes (47yo)

    VP, Corporate Controller & Interim CFO

    • Tenure: 0.3yrs

Board Members

  • Scott Chandler (57yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$61.65k
  • Robert Penny (66yo)

    Independent Director

    • Tenure: 21.2yrs
    • Compensation: US$65.00k
  • Mark Zorko (67yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$80.00k
  • Cary Wood (52yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$77.77k
  • Robert Foskett (42yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: US$65.00k
  • Kirk Brannock (61yo)

    Chairman of the Board

    • Tenure: 2.2yrs
    • Compensation: US$123.08k
  • Tim Duitsman (57yo)

    President CEO & Director

    • Tenure: 0.2yrs

Company Information

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


Key Information

  • Name: Westell Technologies, Inc.
  • Ticker: WSTL
  • Exchange: NasdaqCM
  • Founded: 1980
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$12.935m
  • Shares outstanding: 15.57m
  • Website: https://www.westell.com

Number of Employees


Location

  • Westell Technologies, Inc.
  • 750 North Commons Drive
  • Aurora
  • Illinois
  • 60504
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WSTLNasdaqCM (Nasdaq Capital Market)YesClass A Common StockUSUSDDec 1995
WEU1DB (Deutsche Boerse AG)YesClass A Common StockDEEURDec 1995

Biography

Westell Technologies, Inc., through its subsidiary, Westell, Inc., designs and distributes telecommunications products to telephone companies in the United States. The company operates through three segmen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 23:52
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.