OTCPK:MFCO

Stock Analysis Report

Microwave Filter Company

Executive Summary

Microwave Filter Company, Inc. designs, develops, manufactures, and sells electronic filters for radio and microwave frequencies primarily in the United States.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Microwave Filter Company's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

19.5%

MFCO

-1.1%

US Communications

-1.1%

US Market


1 Year Return

40.4%

MFCO

-8.7%

US Communications

17.8%

US Market

Return vs Industry: MFCO exceeded the US Communications industry which returned -8.6% over the past year.

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


Shareholder returns

MFCOIndustryMarket
7 Day19.5%-1.1%-1.1%
30 Day0%-4.9%1.5%
90 Day43.1%1.8%6.6%
1 Year40.4%40.4%-6.8%-8.7%20.2%17.8%
3 Year17.7%17.7%30.6%22.3%47.5%38.1%
5 Year35.2%35.2%57.6%39.9%71.2%52.4%

Price Volatility Vs. Market

How volatile is Microwave Filter Company's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Microwave Filter Company undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MFCO ($0.73) is trading below our estimate of fair value ($1.59)

Significantly Below Fair Value: MFCO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MFCO is good value based on its PE Ratio (14.4x) compared to the Communications industry average (24.7x).

PE vs Market: MFCO is good value based on its PE Ratio (14.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MFCO is good value based on its PB Ratio (1.6x) compared to the US Communications industry average (1.9x).


Next Steps

Future Growth

How is Microwave Filter Company forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.5%

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 Microwave Filter Company 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 Microwave Filter Company 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 Microwave Filter Company's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has Microwave Filter Company performed over the past 5 years?

-4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFCO has high quality earnings.

Growing Profit Margin: MFCO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MFCO has become profitable over the past 5 years, growing earnings by -4.5% per year.

Accelerating Growth: MFCO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MFCO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (-19.9%).


Return on Equity

High ROE: MFCO's Return on Equity (10.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Microwave Filter Company's financial position?


Financial Position Analysis

Short Term Liabilities: MFCO's short term assets ($1.5M) exceed its short term liabilities ($361.2K).

Long Term Liabilities: MFCO's short term assets ($1.5M) exceed its long term liabilities ($179.2K).


Debt to Equity History and Analysis

Debt Level: MFCO's debt to equity ratio (19.3%) is considered satisfactory.

Reducing Debt: MFCO's debt to equity ratio has reduced from 28.7% to 19.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: MFCO's debt is covered by short term assets (assets are 6.3x 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: MFCO is profitable, therefore cash runway is not a concern.

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


Next Steps

Dividend

What is Microwave Filter Company's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if MFCO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MFCO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MFCO'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?

4.2yrs

Average management tenure


CEO

Paul Mears (60yo)

4.2yrs

Tenure

US$96,672

Compensation

Mr. Paul W. Mears has been the Chief Executive Officer and Director of Microwave Filter Co. Inc. since December 9, 2015 and previously served as its Vice President of Engineering since April 1998. Mr. Mear ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD96.67K) is below average for companies of similar size in the US market ($USD522.48K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Mears
CEO & Director4.2yrsUS$96.67k0.039% $730.0
Richard Jones
VP, CFO & Corporate Secretary27.3yrsUS$103.09kno data
Carl Fahrenkrug
Executive Vice President4.2yrsUS$110.24k0.19% $3.6k

4.2yrs

Average Tenure

60yo

Average Age

Experienced Management: MFCO's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Mears
CEO & Director4.2yrsUS$96.67k0.039% $730.0
Carl Fahrenkrug
Vice Chairman4.2yrsUS$2.25k2.8% $52.8k
Robert Andrews
Chairman of the Board15.3yrsUS$4.00k0.081% $1.5k
Sidney Chong
Independent Director25.1yrsUS$2.50k0.12% $2.2k
Frank Markovich
Independent Director28.1yrsUS$1.75k0.17% $3.2k
John Kennedy
Director11.1yrsUS$2.00k0.039% $730.0
Anne Tindall
Director8.1yrsUS$1.25kno data
Robert Shiroki
Independent Director7.3yrsUS$2.25k3.43% $64.6k
Irene Scruton
Director4.1yrsUS$750.00no data

8.1yrs

Average Tenure

70yo

Average Age

Experienced Board: MFCO's board of directors are considered experienced (8.1 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Microwave Filter Company, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Microwave Filter Company, Inc.
  • Ticker: MFCO
  • Exchange: OTCPK
  • Founded: 1967
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$1.883m
  • Shares outstanding: 2.58m
  • Website: https://www.microwavefilter.com

Number of Employees


Location

  • Microwave Filter Company, Inc.
  • 6743 Kinne Street
  • East Syracuse
  • New York
  • 13057
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFCOOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJun 1984

Biography

Microwave Filter Company, Inc. designs, develops, manufactures, and sells electronic filters for radio and microwave frequencies primarily in the United States. It manufactures RF filters and related components for eliminating interference and facilitating signal processing for cable television, broadcast, commercial and military communications, avionics, radar, navigation, and defense markets. The company also designs waveguide, stripline/microstrip, transmission line, miniature/subminiature, and lumped constant filters. Its configurations include bandpass, highpass, lowpass, bandstop, multiplexers, tunable notch, tunable bandpass, high power filters, amplitude equalized, delay equalized, and filter networks. Microwave Filter Company, Inc. was founded in 1967 and is based in East Syracuse, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 01:41
End of Day Share Price2020/02/21 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.