AMEX:NTIP

Stock Analysis Report

Network-1 Technologies

Executive Summary

Network-1 Technologies, Inc. develops, licenses, and protects intellectual property assets.


Snowflake Analysis

Flawless balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

How has Network-1 Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.1%

NTIP

-5.3%

US Communications

-4.2%

US Market


1 Year Return

-11.4%

NTIP

-13.5%

US Communications

14.0%

US Market

Return vs Industry: NTIP underperformed the US Communications industry which returned -8.7% over the past year.

Return vs Market: NTIP underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

NTIPIndustryMarket
7 Day-3.1%-5.3%-4.2%
30 Day-3.1%-9.2%-1.8%
90 Day6.8%-2.5%2.6%
1 Year-7.7%-11.4%-11.7%-13.5%16.3%14.0%
3 Year-31.1%-37.9%25.5%17.5%43.2%34.0%
5 Year10.8%-0.2%48.6%31.9%65.9%47.6%

Price Volatility Vs. Market

How volatile is Network-1 Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Network-1 Technologies undervalued compared to its fair value and its price relative to the market?

1.01x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NTIP ($2.32) is trading above our estimate of fair value ($1.56)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NTIP is good value based on its PB Ratio (1x) compared to the US Communications industry average (1.9x).


Next Steps

Future Growth

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

13.7%

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 Network-1 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 Network-1 Technologies performed over the past 5 years?

-1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTIP is currently unprofitable.

Growing Profit Margin: NTIP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NTIP is unprofitable, and losses have increased over the past 5 years at a rate of -1.8% per year.

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

Earnings vs Industry: NTIP is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-19.9%).


Return on Equity

High ROE: NTIP has a negative Return on Equity (-2.62%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Network-1 Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: NTIP's short term assets ($48.5M) exceed its short term liabilities ($638.0K).

Long Term Liabilities: NTIP has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: NTIP is debt free.

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


Balance Sheet

Inventory Level: NTIP has a low level of unsold assets or inventory.

Debt Coverage by Assets: NTIP's debt is not covered by short term assets (assets are -6068x 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: NTIP has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: NTIP has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Network-1 Technologies's current dividend yield, its reliability and sustainability?

4.35%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%1.5%markettop25%3.8%industryaverage3.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: NTIP's dividend (4.31%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NTIP's dividend (4.31%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NTIP has been paying a dividend for less than 10 years.

Growing Dividend: NTIP has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: NTIP is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

16.1yrs

Average management tenure


CEO

Corey Horowitz (64yo)

16.2yrs

Tenure

US$1,870,750

Compensation

Mr. Corey M. Horowitz, J.D. has been the Chairman of the Board and Chief Executive Officer of Network-1 Technologies, Inc. since January 1996 and December 2003 Respectively. Mr. Horowitz was an early stag ...


CEO Compensation Analysis

Compensation vs Market: Corey's total compensation ($USD1.87M) is above average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Corey's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Corey Horowitz
Chairman & CEO16.2yrsUS$1.87m26.36% $14.6m
David Kahn
CFO, Secretary & Director7.8yrsUS$347.65k0.39% $216.2k
Jonathan Greene
Executive Vice President6.3yrsUS$408.25k0.18% $97.6k
Robert Olsen
Executive Officer0yrsno datano data

16.1yrs

Average Tenure

60.5yo

Average Age

Experienced Management: NTIP's management team is seasoned and experienced (16.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Corey Horowitz
Chairman & CEO16.2yrsUS$1.87m26.36% $14.6m
David Kahn
CFO, Secretary & Director7.8yrsUS$347.65k0.39% $216.2k
George Conant
Member of the Technical Advisory Board15.3yrsno datano data
Ron Keenan
Member of the Technical Advisory Board15.3yrsno datano data
Niv Harizman
Independent Director7.2yrsUS$86.51k1% $556.2k
Emanuel Pearlman
Independent Director8.1yrsUS$90.26k0.45% $248.7k
Allison Hoffman
Independent Director7.2yrsUS$89.09k0.30% $165.5k
Andrew Maslow
Member of the Technical Advisory Board15.3yrsno datano data
Boris Katzenberg
Member of the Technical Advisory Board0yrsno datano data

11.7yrs

Average Tenure

58yo

Average Age

Experienced Board: NTIP's board of directors are seasoned and experienced ( 11.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NTIP insiders have only sold shares 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

Network-1 Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Network-1 Technologies, Inc.
  • Ticker: NTIP
  • Exchange: AMEX
  • Founded: 1990
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$55.420m
  • Shares outstanding: 24.14m
  • Website: https://www.network-1.com

Number of Employees


Location

  • Network-1 Technologies, Inc.
  • 445 Park Avenue
  • Suite 912
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTIPAMEX (NYSE MKT LLC)YesCommon StockUSUSDNov 1998
6LKDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1998
0K6PLSE (London Stock Exchange)YesCommon StockGBUSDNov 1998

Biography

Network-1 Technologies, Inc. develops, licenses, and protects intellectual property assets. As of May 28, 2019, the company owned 69 patents, including the remote power patent covering the delivery of power over Ethernet cables for the purpose of remotely powering network devices, such as wireless access ports, IP phones, and network based cameras; and the Mirror Worlds patent portfolio relating to foundational technologies that enable unified search and indexing, displaying, and archiving of documents in a computer system. Its patents also comprise the Cox patent portfolio relating to enabling technology for identifying media content on the Internet; M2M/IoT patent portfolio related to enabling technology for authenticating and using embedded sim cards in next generation IoT, Machine-to-Machine, and other mobile devices, including smartphones, tablets, and computers; and the quality of service (QoS) patents covering systems and methods for the transmission of audio, video, and data in order to achieve high QoS over computer and telephony networks. The company was formerly known as Network-1 Security Solutions, Inc. and changed its name to Network-1 Technologies, Inc. in October 2013 to reflect the nature of its business. Network-1 Technologies, Inc. was founded in 1990 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:20
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
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.