OTCPK:INRD

Stock Analysis Report

Executive Summary

Inrad Optics, Inc., together with its subsidiaries, develops, manufactures, and markets crystal-based optical components and devices, custom optical components, and precision optical and opto-mechanical assemblies in the United States.

Snowflake

Fundamentals

Imperfect balance sheet with poor track record.

Share Price & News

How has Inrad Optics's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-20.0%

INRD

-0.4%

US Electronic

0.7%

US Market


1 Year Return

31.9%

INRD

18.0%

US Electronic

12.9%

US Market

Return vs Industry: INRD exceeded the US Electronic industry which returned 18% over the past year.

Return vs Market: INRD exceeded the US Market which returned 12.9% over the past year.


Shareholder returns

INRDIndustryMarket
7 Day-20.0%-0.4%0.7%
30 Day-33.3%4.8%4.4%
90 Day-31.4%14.5%7.0%
1 Year31.9%31.9%19.3%18.0%15.4%12.9%
3 Year166.7%166.7%51.4%47.2%49.1%39.5%
5 Year500.0%500.0%81.6%72.7%62.7%44.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Inrad Optics undervalued compared to its fair value and its price relative to the market?

7.9x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: INRD ($1.2) is trading above our estimate of fair value ($0.01)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: INRD is overvalued based on its PB Ratio (7.9x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

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

24.0%

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 Inrad Optics 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 INRD’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 Inrad Optics's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has Inrad Optics performed over the past 5 years?

54.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INRD has high quality earnings.

Growing Profit Margin: INRD's current net profit margins (-5.4%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: INRD is unprofitable, but has reduced losses over the past 5 years at a rate of 54.6% per year.

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

Earnings vs Industry: INRD is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (56.3%).


Return on Equity

High ROE: INRD has a negative Return on Equity (-26.32%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Inrad Optics's financial position?


Financial Position Analysis

Short Term Liabilities: INRD's short term assets ($5.0M) exceeds its short term liabilities ($1.9M)

Long Term Liabilities: INRD's short term assets (5.0M) exceeds its long term liabilities (3.2M)


Debt to Equity History and Analysis

Debt Level: INRD's debt to equity ratio (128.7%) is considered high

Reducing Debt: INRD's debt to equity ratio has increased from 92.9% to 128.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: INRD's debt is covered by short term assets (assets are 1.9x 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: Insufficient data to determine if INRD has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if INRD has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Inrad Optics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

4.0yrs

Average management tenure


CEO

Amy Ekilson (59yo)

7.1yrs

Tenure

US$227,303

Compensation

Ms. Amy Ekilson has been the Chief Executive Officer and President of Inrad Optics, Inc. since October 1, 2012. Ms. Ekilson served as a Vice President of Sales and Marketing at Photonic Products Group Inc. ...


CEO Compensation Analysis

Compensation vs Market: Amy's total compensation ($USD227.30K) is below average for companies of similar size in the US market ($USD508.62K).

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


Management Age and Tenure

4.0yrs

Average Tenure

58yo

Average Age

Experienced Management: INRD's management team is considered experienced (4 years average tenure).


Board Age and Tenure

10.3yrs

Average Tenure

75.5yo

Average Age

Experienced Board: INRD's board of directors are seasoned and experienced ( 10.3 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

  • Amy Ekilson (59yo)

    CEO, President & Director

    • Tenure: 7.1yrs
    • Compensation: US$227.30k
  • George Murray (54yo)

    Vice President of Sales & Marketing

    • Tenure: 6.8yrs
    • Compensation: US$164.86k
  • Elias Kabous (63yo)

    Secretary

    • Tenure: 1.1yrs
  • Theresa Balog (57yo)

    Chief Financial Officer

    • Tenure: 0.7yrs

Board Members

  • Bill Foote (68yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$180.89k
  • Jan Winston (82yo)

    Independent Chairman

    • Tenure: 10.5yrs
    • Compensation: US$29.80k
  • Luke LaValle (77yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$23.80k
  • N. E. Strandlund (75yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$24.80k
  • Dennis Romano (76yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: US$24.80k
  • Amy Ekilson (59yo)

    CEO, President & Director

    • Tenure: 7.1yrs
    • Compensation: US$227.30k

Company Information

Inrad Optics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Inrad Optics, Inc.
  • Ticker: INRD
  • Exchange: OTCPK
  • Founded: 1973
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: US$16.482m
  • Shares outstanding: 13.74m
  • Website: https://www.inradoptics.com

Number of Employees


Location

  • Inrad Optics, Inc.
  • 181 Legrand Avenue
  • Northvale
  • New Jersey
  • 7647
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INRDOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJul 1983

Biography

Inrad Optics, Inc., together with its subsidiaries, develops, manufactures, and markets crystal-based optical components and devices, custom optical components, and precision optical and opto-mechanical as ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 23:37
End of Day Share Price2019/11/14 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.