OTCPK:CRSS

Stock Analysis Report

Executive Summary

Crossroads Systems, Inc., a holding company, focuses on investing in businesses that promote economic vitality and community development.


Snowflake Analysis

Questionable track record and overvalued.


Similar Companies

Share Price & News

How has Crossroads Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.7%

CRSS

-3.6%

US Tech

-1.1%

US Market


1 Year Return

22.0%

CRSS

71.4%

US Tech

17.8%

US Market

Return vs Industry: CRSS underperformed the US Tech industry which returned 72.7% over the past year.

Return vs Market: CRSS exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

CRSSIndustryMarket
7 Day4.7%-3.6%-1.1%
30 Dayn/a-2.0%1.5%
90 Day27.1%16.9%6.6%
1 Year22.0%22.0%74.0%71.4%20.2%17.8%
3 Yearn/a122.4%107.2%47.5%38.1%
5 Yearn/a141.4%117.7%71.2%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Crossroads Systems undervalued compared to its fair value and its price relative to the market?

34.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: CRSS is poor value based on its PE Ratio (34.1x) compared to the Tech industry average (21.5x).

PE vs Market: CRSS is poor value based on its PE Ratio (34.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CRSS is good value based on its PB Ratio (1.8x) compared to the US Tech industry average (1.8x).


Next Steps

Future Growth

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

7.7%

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 Crossroads Systems 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 CRSS’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 Crossroads Systems's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has Crossroads Systems performed over the past 5 years?

76.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRSS has high quality earnings.

Growing Profit Margin: CRSS's current net profit margins (6.8%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: CRSS has become profitable over the past 5 years, growing earnings by 76.9% per year.

Accelerating Growth: CRSS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CRSS had negative earnings growth (-92.8%) over the past year, making it difficult to compare to the Tech industry average (-3.2%).


Return on Equity

High ROE: CRSS's Return on Equity (4.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Crossroads Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CRSS's short term assets ($18.8M) do not cover its short term liabilities ($69.4M).

Long Term Liabilities: CRSS's short term assets ($18.8M) do not cover its long term liabilities ($59.0M).


Debt to Equity History and Analysis

Debt Level: CRSS's debt to equity ratio (244.6%) is considered high.

Reducing Debt: CRSS had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: CRSS's debt is not covered by short term assets (assets are 0.2x 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: CRSS is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: CRSS is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Crossroads Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

2.3yrs

Average board tenure


CEO

Eric Donnelly 0

2.1yrs

Tenure

Mr. Eric Donnelly has been a Director of Crossroads Systems, Inc., since December 2017 and has been its Chief Executive Officer since January 2018. Mr. Donnelly has spent his 20-year career focused on supp ...


Board Members

NamePositionTenureCompensationOwnership
Eric Donnelly
CEO & Director2.1yrsno datano data
Farzana Giga
Director & CFO2.2yrsno datano data
Andrew Heller
Member of Strategic Advisory Board14yrsno datano data
Robert Alpert
Chairman of the Board2.3yrsno datano data
Ray Kembel
Director2yrsno datano data
John Stenbit
Member of Federal Business Advisory Board7.2yrsno datano data
Carolyn Purcell
Member of Strategic Advisory Board14yrsno datano data
C. Webb
Director2.3yrsno datano data
Claire Gogel
Director2.3yrsno datano data
James Foster
Director2yrsno datano data

2.3yrs

Average Tenure

50yo

Average Age

Experienced Board: CRSS's board of directors are not considered experienced ( 2.3 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: 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.


Top Shareholders

Company Information

Crossroads Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Crossroads Systems, Inc.
  • Ticker: CRSS
  • Exchange: OTCPK
  • Founded: 1996
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$59.720m
  • Shares outstanding: 5.97m
  • Website: https://www.crossroads.com

Number of Employees


Location

  • Crossroads Systems, Inc.
  • 8214 Westchester Drive
  • Suite 950
  • Dallas
  • Texas
  • 75225
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
7CS1DB (Deutsche Boerse AG)Common StockDEEUROct 1999
CRSSOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDOct 2017
CRSSUNQ-USA (Unquoted - United States)YesNew Common SharesUSUSDOct 2017

Biography

Crossroads Systems, Inc., a holding company, focuses on investing in businesses that promote economic vitality and community development. The company’s subsidiary, Capital Plus Financial (CPF), is a certified community development financial institution, which supports Hispanic homeownership with a long term, fixed rate single family mortgage product. Crossroads Systems, Inc. was founded in 1996 and is based in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 03:48
End of Day Share Price2020/02/21 00:00
Earnings2019/10/31
Annual Earnings2019/10/31


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.