OTCPK:RAZF.F

Stock Analysis Report

Executive Summary

Razer Inc. designs, develops, and sells gaming hardware, software, and services under the Razer brand for gamers worldwide.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RAZF.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

RAZF.F

-1.4%

US Tech

0.06%

US Market


1 Year Return

-19.8%

RAZF.F

76.7%

US Tech

19.3%

US Market

Return vs Industry: RAZF.F underperformed the US Tech industry which returned 76.7% over the past year.

Return vs Market: RAZF.F underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

RAZF.FIndustryMarket
7 Day2.4%-1.4%0.06%
30 Day2.4%0.4%1.7%
90 Day-4.4%20.6%9.0%
1 Year-19.8%-19.8%79.3%76.7%21.8%19.3%
3 Yearn/a128.0%112.5%49.5%39.9%
5 Yearn/a148.3%123.9%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

49.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAZF.F ($0.17) is trading below our estimate of fair value ($0.35)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RAZF.F is overvalued based on its PB Ratio (2.6x) compared to the US Tech industry average (1.8x).


Next Steps

Future Growth

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

108.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAZF.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: RAZF.F is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RAZF.F's is expected to become profitable in the next 3 years.

Revenue vs Market: RAZF.F's revenue (18.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: RAZF.F's revenue (18.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RAZF.F's Return on Equity is forecast to be low in 3 years time (2.5%).


Next Steps

Past Performance

How has Razer performed over the past 5 years?

-30.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAZF.F is currently unprofitable.

Growing Profit Margin: RAZF.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RAZF.F is unprofitable, and losses have increased over the past 5 years at a rate of -30.5% per year.

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

Earnings vs Industry: RAZF.F is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (0.4%).


Return on Equity

High ROE: RAZF.F has a negative Return on Equity (-14.78%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Razer's financial position?


Financial Position Analysis

Short Term Liabilities: RAZF.F's short term assets ($783.2M) exceed its short term liabilities ($319.9M).

Long Term Liabilities: RAZF.F's short term assets ($783.2M) exceed its long term liabilities ($18.0M).


Debt to Equity History and Analysis

Debt Level: RAZF.F is debt free.

Reducing Debt: RAZF.F had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: RAZF.F's debt is covered by short term assets (assets are 4.4090015171975E+17x 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: RAZF.F has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Years0%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if RAZF.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 RAZF.F'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?

2.5yrs

Average management tenure


CEO

Min-Liang Tan (41yo)

13.4yrs

Tenure

US$1,929,000

Compensation

Mr. Min-Liang Tan Co-founded Razer Inc. in 1998 and has been its Chief Executive Officer and Creative Director since September 1, 2006. He is Member of the Global Advisory Council at CyLon Limited since De ...


CEO Compensation Analysis

Compensation vs Market: Min-Liang's total compensation ($USD1.93M) is below average for companies of similar size in the US market ($USD3.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Min-Liang Tan
Co-Founder13.4yrsUS$1.93m33.54% $531.0m
Khaw Joo
Chief Operating Officer7.7yrsUS$3.60m0.66% $10.4m
Thiong Joo Chan
Chief Investment Officer & Executive Director2.7yrsUS$2.27m0.60% $9.5m
Chong Tan
Chief Financial Officer0.08yrsno datano data
Wei-Pin Choo
Chief Legal & Compliance Officer and Joint Company Secretary3yrsno datano data
Siew Lan Liu
Executive Director & Chief of Staff0.9yrsno data0.051% $810.6k
Wai Chan
Joint Company Secretary0yrsno datano data

2.5yrs

Average Tenure

49.5yo

Average Age

Experienced Management: RAZF.F's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Min-Liang Tan
Co-Founder13.4yrsUS$1.93m33.54% $531.0m
Thiong Joo Chan
Chief Investment Officer & Executive Director2.7yrsUS$2.27m0.60% $9.5m
Siew Lan Liu
Executive Director & Chief of Staff0.9yrsno data0.051% $810.6k
Kwok Fun Chau
Independent Non-Executive Director2.3yrsUS$106.00k0.012% $182.7k
Yong Sun Lee
Independent Non-Executive Director2.3yrsUS$77.00k0.0035% $55.6k
Gideon Yu
Independent Non-Executive Director2.3yrsUS$191.00k0.048% $767.2k
Ed Fries
Member of Board of Advisors9.1yrsno datano data
Rahul Sood
Member of Board of Advisors0yrsno datano data
Kaling Lim
Non-Executive Director2.7yrsUS$94.00k19.94% $315.8m

2.5yrs

Average Tenure

55yo

Average Age

Experienced Board: RAZF.F's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RAZF.F insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Razer Inc.
  • Ticker: RAZF.F
  • Exchange: OTCPK
  • Founded: 2005
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: HK$12.324b
  • Listing Market Cap: HK$1.583b
  • Shares outstanding: 8.93b
  • Website: https://www.razer.com

Number of Employees


Location

  • Razer Inc.
  • 201 3rd Street
  • Suite 900
  • San Francisco
  • California
  • 94103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
5RZBST (Boerse-Stuttgart)YesOrdinary SharesDEEURNov 2017
1337SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2017
RAZF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2017
RZZR.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJan 2018

Biography

Razer Inc. designs, develops, and sells gaming hardware, software, and services under the Razer brand for gamers worldwide. The company operates through four segments: Peripherals, Systems, Software and Services, and Others. It offers hardware products, including high-performance gaming peripherals for PC and console platforms; and Razer Blade gaming laptops. The company’s software platform includes Razer Synapse, an Internet of Things platform; Razer Chroma, a proprietary RGB lighting technology system; and Razer Cortex, a game optimizer and launcher. It also provides Razer Gold, a virtual credit services for gamers; and Razer Fintech, an online-to-offline digital payment networks in SE Asia. The company sells its products through a network of distributors and retailers. Razer Inc. was founded in 2005 and has dual headquarters in San Francisco, California and Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 02:45
End of Day Share Price2020/02/20 00:00
Earnings2019/06/30
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.