OTCPK:ANDR

Stock Analysis Report

Executive Summary

Andrea Electronics Corporation designs, develops, and manufactures digital microphone products and noise reduction software that facilitate natural language and human/machine interfaces for the computer and business enterprise markets in the United States and internationally.


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has Andrea Electronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

17.6%

ANDR

-1.8%

US Electronic

-1.1%

US Market


1 Year Return

-61.8%

ANDR

5.6%

US Electronic

17.8%

US Market

Return vs Industry: ANDR underperformed the US Electronic industry which returned 5.6% over the past year.

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


Shareholder returns

ANDRIndustryMarket
7 Day17.6%-1.8%-1.1%
30 Day-13.8%-4.9%1.5%
90 Day-19.0%-0.4%6.6%
1 Year-61.8%-61.8%6.6%5.6%20.2%17.8%
3 Year-67.7%-67.7%35.0%31.4%47.5%38.1%
5 Year-72.1%-72.1%66.2%58.0%71.2%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Andrea Electronics undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Andrea Electronics is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Andrea Electronics has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of ANDR’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Andrea Electronics regulatory filings here.
  • Explore potentially undervalued companies in the Tech industry.

Future Growth

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

21.6%

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 Andrea Electronics 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

  • Take a look at our analysis of ANDR’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Andrea Electronics's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has Andrea Electronics performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ANDR is currently unprofitable.

Growing Profit Margin: ANDR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ANDR is unprofitable, but has reduced losses over the past 5 years at a rate of 7.8% per year.

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

Earnings vs Industry: ANDR is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (13.8%).


Return on Equity

High ROE: ANDR's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Andrea Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: ANDR has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: ANDR has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: ANDR has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: ANDR's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: ANDR has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: ANDR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ANDR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -16.7% each year


Next Steps

Dividend

What is Andrea Electronics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

16.7yrs

Average management tenure


CEO

Douglas Andrea (56yo)

15.1yrs

Tenure

US$216,000

Compensation

Mr. Douglas J. Andrea has been the Chief Executive Officer and President of Andrea Electronics Corporation since January 25, 2005 and has been Secretary since 2003. Mr. Andrea has been the Executive Chairm ...


CEO Compensation Analysis

Compensation vs Market: Douglas's total compensation ($USD216.00K) is below average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Andrea
Chairman15.1yrsUS$216.00k3.26% $44.5k
Corisa Guiffre
VP, CFO & Assistant Corporate Secretary16.7yrsUS$186.00k0.15% $2.1k
Vicki Tursi
Director of Human Resources19.2yrsno datano data

16.7yrs

Average Tenure

Experienced Management: ANDR's management team is seasoned and experienced (16.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Douglas Andrea
Chairman15.1yrsUS$216.00k3.26% $44.5k
Gary Jones
Independent Director23.8yrsUS$8.00k0.64% $8.7k
Louis Libin
Lead Independent Director0yrsUS$7.50k0.52% $7.0k
Joseph Migliozzi
Independent Director16.4yrsUS$9.50k1.57% $21.3k
Jonathan Spaet
Independent Director17.1yrsUS$7.50k0.043% $585.2

17.7yrs

Average Tenure

62yo

Average Age

Experienced Board: ANDR's board of directors are seasoned and experienced ( 17.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.


Top Shareholders

Company Information

Andrea Electronics Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Andrea Electronics Corporation
  • Ticker: ANDR
  • Exchange: OTCPK
  • Founded: 1934
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$1.362m
  • Shares outstanding: 68.10m
  • Website: https://www.andreaelectronics.com

Number of Employees


Location

  • Andrea Electronics Corporation
  • 620 Johnson Avenue
  • Suite 1B
  • Bohemia
  • New York
  • 11716
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANDROTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1968

Biography

Andrea Electronics Corporation designs, develops, and manufactures digital microphone products and noise reduction software that facilitate natural language and human/machine interfaces for the computer and business enterprise markets in the United States and internationally. It designs and markets digital signal processing (DSP) microphone and audio software. The company’s DSP microphone and audio noise reduction software products include DA-350 auto array microphone for far-field voice intelligibility and accuracy of automatic speech recognition in high noise environments; DA-250 OEM array microphone, a small compact stereo array microphone and DSP circuit board platform; USB-SA array microphone, which offers a USB digital audio adapter to bypass a computer’s standard integrated sound system; PureAudio VST3 plug-in, a noise reduction and center channel focus VST3 plug-in for audio/video editing post-processing; AudioCommander, a PC audio control panel; an audio software for Mac that offers an intuitive graphic user interface to control stereo array microphone beam forming and noise cancellation on the input and EQ filters; PureAudio Live Recorder, a digital voice and audio recording application; and PureAudio Pro Recorder, which provides bookmarks for navigation of recordings. Its products are used in various applications, including mass transit and automotive communication systems, automated teller machines, information kiosks, home automation products, Internet of Things digital assistants, TV set top boxes, audio and video recordings, robotics, and video surveillance. The company markets and sells its products through sales representatives and organizations to computer original equipment manufacturers, distributors of personal computers and communications equipment, software publishers, and industrial system integrators. Andrea Electronics Corporation was founded in 1934 and is headquartered in Bohemia, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 00:33
End of Day Share Price2020/02/21 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.