OTCPK:ONCI

Stock Analysis Report

Executive Summary

On4 Communications, Inc., a development stage company, provides wireless communications services to telecommunication companies, consumers, and businesses.

Rewards

PE ratio (0.5x) is below the US market (18.9x)

Earnings grew by 50.8% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Does not have a meaningful market cap ($883K)

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Solid track record with adequate balance sheet.

Share Price & News

How has On4 Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

50.0%

ONCI

1.5%

US Communications

0.6%

US Market


1 Year Return

-87.5%

ONCI

6.4%

US Communications

24.6%

US Market

Return vs Industry: ONCI underperformed the US Communications industry which returned 6.7% over the past year.

Return vs Market: ONCI underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

ONCIIndustryMarket
7 Day50.0%1.5%0.6%
30 Day200.0%2.1%3.0%
90 Day50.0%5.0%10.6%
1 Year-87.5%-87.5%8.6%6.4%27.3%24.6%
3 Year-57.1%-57.1%50.3%40.7%50.5%40.8%
5 Year-57.1%-57.1%80.8%60.5%78.9%59.1%

Price Volatility Vs. Market

How volatile is On4 Communications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is On4 Communications undervalued compared to its fair value and its price relative to the market?

0.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: ONCI is good value based on its PE Ratio (0.5x) compared to the Communications industry average (21.1x).

PE vs Market: ONCI is good value based on its PE Ratio (0.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ONCI is good value based on its PB Ratio (0.2x) compared to the US Communications industry average (1.9x).


Next Steps

Future Growth

How is On4 Communications forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.3%

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 On4 Communications 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 On4 Communications 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 On4 Communications's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has On4 Communications performed over the past 5 years?

45.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ONCI has a high level of non-cash earnings.

Growing Profit Margin: ONCI's current net profit margins (36%) are higher than last year (35.2%).


Past Earnings Growth Analysis

Earnings Trend: ONCI has become profitable over the past 5 years, growing earnings by 45.4% per year.

Accelerating Growth: ONCI's earnings growth over the past year (50.8%) exceeds its 5-year average (45.4% per year).

Earnings vs Industry: ONCI earnings growth over the past year (50.8%) exceeded the Communications industry 12.6%.


Return on Equity

High ROE: ONCI's Return on Equity (40%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is On4 Communications's financial position?


Financial Position Analysis

Short Term Liabilities: ONCI's short term assets ($7.4M) exceed its short term liabilities ($3.9M).

Long Term Liabilities: ONCI's short term assets ($7.4M) exceed its long term liabilities ($2.0M).


Debt to Equity History and Analysis

Debt Level: ONCI's debt to equity ratio (66.1%) is considered high.

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

Debt Coverage: ONCI's debt is not well covered by operating cash flow (4.6%).

Interest Coverage: ONCI's interest payments on its debt are well covered by EBIT (14x coverage).


Balance Sheet

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

Debt Coverage by Assets: ONCI's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

What is On4 Communications's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if ONCI'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 ONCI'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 On4 Communications's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Steve Berman 0

0yrs

Tenure

0

Mr. Steve Berman, also known as Steve, serves as the Chief Executive Officer of On4 Communications, Inc. Mr. Berman serves as the Chief Executive Officer of Stealth Sports and Marketing. He served as the C ...


Management Age and Tenure

4.2yrs

Average Tenure

63yo

Average Age

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


Board Age and Tenure

3.6yrs

Average Tenure

Experienced Board: ONCI's board of directors are considered experienced (3.6 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.


Management Team

  • Jeff Mahl (67yo)

    Senior Vice President of Business Development

    • Tenure: 3.6yrs
  • Steven Dallas (62yo)

    Secretary and Director

    • Tenure: 4.8yrs
  • Tim Owens (63yo)

    President

    • Tenure: 4.8yrs
  • Steve Berman

    Chief Executive Officer

    • Eric Ritter

      Senior Vice President of Sales

      • Tenure: 2.3yrs

    Board Members

    • Mike Wach

      Director

      • Tenure: 2.3yrs
    • Steven Dallas (62yo)

      Secretary and Director

      • Tenure: 4.8yrs
    • Rich Lefkowitz

      Director

      • Tenure: 2.3yrs
    • Tim Owens (63yo)

      President

      • Tenure: 4.8yrs

    Company Information

    On4 Communications, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: On4 Communications, Inc.
    • Ticker: ONCI
    • Exchange: OTCPK
    • Founded: 2009
    • Industry: Communications Equipment
    • Sector: Tech
    • Market Cap: US$1.060m
    • Shares outstanding: 3.53b
    • Website: https://null

    Number of Employees


    Location

    • On4 Communications, Inc.
    • 24 Flamingo Run
    • Roslyn
    • New York
    • 11576
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    ONCIOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMay 2009

    Biography

    On4 Communications, Inc., a development stage company, provides wireless communications services to telecommunication companies, consumers, and businesses. Its platform comprises global positioning system (GPS) device management, location-based services (LBS) capabilities, and the broadcasting of proprietary and non-proprietary content. The company intends to deliver LBS through two-way communication tracking devices with applications that track people, pets, assets, and inventory. Its solution platform integrates various location-aware devices, such as GPS receivers, as well as transmits data to a range of devices, including Web browsers, instant messengers, short message service/mail, and mobile phones. On4 Communications, Inc. was founded in 2009 and is based in Roslyn, New York. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 00:40
    End of Day Share Price2020/01/22 00:00
    Earnings2019/07/31
    Annual Earnings2018/10/31


    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.