OTCPK:ATGN

Stock Analysis Report

Altigen Communications

Executive Summary

Altigen Communications, Inc. designs, delivers, and supports Voice over Internet Protocol (VoIP) phone systems and call center solutions worldwide.

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Altigen Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.5%

ATGN

-4.2%

US Communications

0.9%

US Market


1 Year Return

124.5%

ATGN

1.2%

US Communications

16.8%

US Market

Return vs Industry: ATGN exceeded the US Communications industry which returned 1.2% over the past year.

Return vs Market: ATGN exceeded the US Market which returned 16.8% over the past year.


Shareholder returns

ATGNIndustryMarket
7 Day0.5%-4.2%0.9%
30 Day-3.5%-2.3%4.5%
90 Day-3.0%-4.7%6.2%
1 Year124.5%124.5%3.5%1.2%19.4%16.8%
3 Year547.1%547.1%44.0%34.9%47.5%38.0%
5 Year511.1%511.1%65.9%47.4%62.0%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Altigen Communications undervalued compared to its fair value and its price relative to the market?

13.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATGN ($1.1) is trading below our estimate of fair value ($1.28)

Significantly Below Fair Value: ATGN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ATGN is good value based on its PE Ratio (2.4x) compared to the Communications industry average (20.3x).

PE vs Market: ATGN is good value based on its PE Ratio (2.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ATGN is overvalued based on its PB Ratio (2x) compared to the US Communications industry average (1.9x).


Next Steps

Future Growth

How is Altigen Communications 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 Altigen Communications 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

  • Examine whether Altigen Communications is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • 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 Altigen Communications's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has Altigen Communications performed over the past 5 years?

77.6%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: ATGN's current net profit margins (100.1%) are higher than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: ATGN has become profitable over the past 5 years, growing earnings by 77.6% per year.

Accelerating Growth: ATGN's earnings growth over the past year (939.4%) exceeds its 5-year average (77.6% per year).

Earnings vs Industry: ATGN earnings growth over the past year (939.4%) exceeded the Communications industry 42.2%.


Return on Equity

High ROE: ATGN's Return on Equity (82.8%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Altigen Communications's financial position?


Financial Position Analysis

Short Term Liabilities: ATGN's short term assets ($5.4M) exceeds its short term liabilities ($2.0M)

Long Term Liabilities: ATGN's short term assets ($5.4M) exceeds its long term liabilities (299.0K)


Debt to Equity History and Analysis

Debt Level: ATGN's debt to equity ratio (2.5%) is considered satisfactory.

Reducing Debt: ATGN's debt to equity ratio has reduced from 640.4% to 2.5% over the past 5 years.

Debt Coverage: ATGN's debt is well covered by operating cash flow (458%).

Interest Coverage: ATGN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: ATGN's debt is covered by short term assets (assets are 16.6x debt).


Next Steps

Dividend

What is Altigen Communications'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 ATGN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

15.3yrs

Average management tenure


CEO

Jerry Fleming (61yo)

12.6yrs

Tenure

US$273,729

Compensation

Mr. Jeremiah J. Fleming, also known as Jerry, serves as the Chairman of the Board at AltiGen Communications, Inc. and has been its President since and Chief Executive Officer since April 2, 2007. Mr. Flemi ...


CEO Compensation Analysis

Compensation vs Market: Jerry's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD505.35K).

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


Management Age and Tenure

15.3yrs

Average Tenure

59yo

Average Age

Experienced Management: ATGN's management team is seasoned and experienced (15.3 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

66yo

Average Age

Experienced Board: ATGN's board of directors are considered experienced (5.1 years average tenure).


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

  • Shirley Sun (59yo)

    Vice President of Research and Development

    • Tenure: 20.1yrs
    • Compensation: US$177.15k
  • Jerry Fleming (61yo)

    Chairman

    • Tenure: 12.6yrs
    • Compensation: US$273.73k
  • Mike Plumer (55yo)

    Vice President of Sales

    • Tenure: 15.3yrs
    • Compensation: US$245.15k
  • David Tang

    Chief Operations Officer

    • Tenure: 0yrs
  • Carolyn David

    VP of Finance & Investor Relations Officer

    • Tenure: 0yrs

Board Members

  • Phil McDermott (73yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: US$220.62k
  • Simon Chouldjian (66yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$143.09k
  • Keith Midkiff (56yo)

    Director

    • Tenure: 0yrs
  • Jerry Fleming (61yo)

    Chairman

    • Tenure: 12.6yrs
    • Compensation: US$273.73k
  • Kenneth Tai (68yo)

    Director

    • Tenure: 21.6yrs
  • Ken Epps

    Director

    • Tenure: 2.4yrs
  • Mike Yen Tsai

    Director

    • Tenure: 0yrs
  • Tacheng Wang

    Director

    • Tenure: 0yrs

Company Information

Altigen Communications, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Altigen Communications, Inc.
  • Ticker: ATGN
  • Exchange: OTCPK
  • Founded: 1994
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$24.977m
  • Shares outstanding: 22.91m
  • Website: https://www.altigen.com

Number of Employees


Location

  • Altigen Communications, Inc.
  • 679 River Oaks Parkway
  • San Jose
  • California
  • 95134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATGNOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 1999

Biography

Altigen Communications, Inc. designs, delivers, and supports Voice over Internet Protocol (VoIP) phone systems and call center solutions worldwide. The company offers MaxCommunications Server (MaxCS) IP-PB ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 23:31
End of Day Share Price2019/11/19 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.