OTCPK:CVAT

Stock Analysis Report

Cavitation Technologies

Executive Summary

Cavitation Technologies, Inc. develops, patents, and commercializes proprietary technology for use in liquid processing applications in the United States.

Rewards

Earnings have grown 28.5% per year over the past 5 years

Risk Analysis

Does not have a meaningful market cap ($4M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have meaningful revenue ($1M)



Snowflake Analysis

Mediocre balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

CVAT

-2.3%

US Electronic

0.06%

US Market


1 Year Return

-19.6%

CVAT

7.7%

US Electronic

19.4%

US Market

Return vs Industry: CVAT underperformed the US Electronic industry which returned 7.7% over the past year.

Return vs Market: CVAT underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

CVATIndustryMarket
7 Day0%-2.3%0.06%
30 Day7.1%-6.2%1.1%
90 Day-25.0%1.1%8.9%
1 Year-19.6%-19.6%8.8%7.7%21.9%19.4%
3 Year-45.1%-45.1%34.4%30.8%48.9%39.3%
5 Year-65.1%-65.1%66.6%58.5%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


Share Price vs. Fair Value

Below Fair Value: CVAT ($0.02) is trading above our estimate of fair value ($0)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CVAT has negative assets, so we can't compare its PB Ratio to the US Electronic industry average.


Next Steps

Future Growth

How is Cavitation Technologies 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 Cavitation 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

  • Take a look at our analysis of CVAT’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 Cavitation Technologies's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has Cavitation Technologies performed over the past 5 years?

28.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVAT is currently unprofitable.

Growing Profit Margin: CVAT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CVAT is unprofitable, but has reduced losses over the past 5 years at a rate of 28.5% per year.

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

Earnings vs Industry: CVAT is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (14.6%).


Return on Equity

High ROE: CVAT'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 Cavitation Technologies's financial position?


Financial Position Analysis

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

Long Term Liabilities: CVAT 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: CVAT is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: CVAT 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: Whilst unprofitable CVAT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CVAT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 12.4% per year.


Next Steps

Dividend

What is Cavitation Technologies'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 CVAT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

7.1yrs

Average management tenure


CEO

Igor Gorodnitsky (59yo)

7.3yrs

Tenure

US$173,800

Compensation

Mr. Igor Gorodnitsky Co-Founded Cavitation Technologies, Inc. on January 29, 2007 and serves as its Principal Executive Officer since November 2012. Mr. Gorodnitsky has been President of Cavitation Technol ...


CEO Compensation Analysis

Compensation vs Market: Igor's total compensation ($USD173.80K) is below average for companies of similar size in the US market ($USD519.76K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Igor Gorodnitsky
Co-Founder7.3yrsUS$173.80k8.76% $388.1k
Naum Voloshin
CFO, COO & Principal Accounting Officer7.1yrsUS$173.80k30.46% $1.3m
Roman Gordon
Co-Founder & Global Technology Manager0yrsUS$289.00kno data
Maxim Promtov
Head of Research and Director of Research & Development1.1yrsno datano data

7.1yrs

Average Tenure

59yo

Average Age

Experienced Management: CVAT's management team is seasoned and experienced (7.1 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Cavitation Technologies, Inc.
  • Ticker: CVAT
  • Exchange: OTCPK
  • Founded: 2007
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: US$4.432m
  • Shares outstanding: 197.00m
  • Website: https://www.ctinanotech.com

Number of Employees


Location

  • Cavitation Technologies, Inc.
  • 10019 Canoga Avenue
  • Chatsworth
  • California
  • 91311
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVATOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 2008

Biography

Cavitation Technologies, Inc. develops, patents, and commercializes proprietary technology for use in liquid processing applications in the United States. It offers Nano Neutralization system for refining vegetable oils, such as soybean, rapeseed, canola, and palm oil. The company also develops technology based systems that are designed to serve various markets, such as vegetable oil refining, renewable fuels, water treatment, wines and spirits enhancement, algae oil extraction, water-oil emulsions, and crude oil yield enhancement. Cavitation Technologies, Inc. was founded in 2007 and is headquartered in Chatsworth, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:27
End of Day Share Price2020/02/11 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.