OTCPK:ENAF.F

Stock Analysis Report

Enablence Technologies

Executive Summary

Enablence Technologies Inc. designs, manufactures, and sells optical components and subsystems for access, metro, and long-haul markets worldwide.

Rewards

Earnings have grown 7% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Shares are highly illiquid

Does not have a meaningful market cap ($3M)

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

+ 2 more risks


Snowflake Analysis

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ENAF.F

4.4%

US Communications

1.3%

US Market


1 Year Return

-70.0%

ENAF.F

-3.0%

US Communications

19.4%

US Market

Return vs Industry: ENAF.F underperformed the US Communications industry which returned -3% over the past year.

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


Shareholder returns

ENAF.FIndustryMarket
7 Day0%4.4%1.3%
30 Day50.0%-3.9%2.6%
90 Dayn/a-7.2%5.0%
1 Year-70.0%-70.0%-0.7%-3.0%22.0%19.4%
3 Yearn/a41.2%32.1%46.8%37.3%
5 Year-89.5%-89.5%65.4%46.7%66.3%48.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


In this section, we usually try to help investors determine whether Enablence Technologies is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Enablence Technologies 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 ENAF.F’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 Enablence Technologies regulatory filings here.
  • Explore potentially undervalued companies in the Tech industry.

Future Growth

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

13.4%

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 Enablence 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 ENAF.F’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 Enablence Technologies's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has Enablence Technologies performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENAF.F is currently unprofitable.

Growing Profit Margin: ENAF.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ENAF.F is unprofitable, but has reduced losses over the past 5 years at a rate of 7% per year.

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

Earnings vs Industry: ENAF.F is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (17.3%).


Return on Equity

High ROE: ENAF.F'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 Enablence Technologies's financial position?


Financial Position Analysis

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

Long Term Liabilities: ENAF.F 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: ENAF.F has negative shareholder equity, which is a more serious situation than a high debt level.

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


Balance Sheet

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

Debt Coverage by Assets: ENAF.F 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: ENAF.F has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ENAF.F has less than a year of cash runway if free cash flow continues to grow at historical rates of 16.4% each year.


Next Steps

Dividend

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

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

Growing Dividend: Insufficient data to determine if ENAF.F'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 ENAF.F'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 Enablence Technologies's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Steve Wang 0

0.8yrs

Tenure

0

Mr. Steve Wang has been the Chief Executive Officer of Enablence Technologies Inc. since February 06, 2019. He served as Chief Technology Officer of Alien Technology Corporation since October 16, 2015. Mr. ...


Management Age and Tenure

0.8yrs

Average Tenure

Experienced Management: ENAF.F's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

73yo

Average Age

Experienced Board: ENAF.F's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 2.6%.


Management Team

  • Gerald Leahy

    Interim CFO & Corporate Treasurer

    • Tenure: 0.8yrs
  • Serge Bidnyk (47yo)

    Director of Research & Design

    • Tenure: 13.4yrs
    • Compensation: US$191.87k
  • Steve Wang

    Chief Executive Officer

    • Tenure: 0.8yrs

Board Members

  • Jozef Straus (73yo)

    Member of Advisory Board

    • Tenure: 0yrs
  • Derek Burney (79yo)

    Chairman

    • Tenure: 0.8yrs
  • Anthony De Jong

    Director

    • Tenure: 7yrs
  • Evan Chen (47yo)

    Director

    • Tenure: 4yrs
    • Compensation: US$213.50k
  • Dan Shmitt

    Director

    • Tenure: 2.3yrs
  • Yongxing Zhu

    Director

    • Tenure: 0.8yrs

Company Information

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


Key Information

  • Name: Enablence Technologies Inc.
  • Ticker: ENAF.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: CA$3.210m
  • Listing Market Cap: CA$2.434m
  • Shares outstanding: 641.93m
  • Website: https://www.enablence.com

Location

  • Enablence Technologies Inc.
  • 390 March Road
  • Suite 119
  • Ottawa
  • Ontario
  • K2K 0G7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MEU2DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2002
ENATSXV (TSX Venture Exchange)YesCommon SharesCACADAug 2002
ENAF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2002

Biography

Enablence Technologies Inc. designs, manufactures, and sells optical components and subsystems for access, metro, and long-haul markets worldwide. The company offers a line of transmit optical sub-assembly ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 00:40
End of Day Share Price2019/11/14 00:00
Earnings2019/09/30
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.