OTCPK:VNWT.F

Stock Analysis Report

Executive Summary

Vecima Networks Inc. provides technology solutions that empower network service providers and content providers to connect people and enterprises to information and entertainment worldwide.


Snowflake Analysis

Excellent balance sheet with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.02%

VNWT.F

-5.3%

US Communications

-4.2%

US Market


1 Year Return

17.8%

VNWT.F

-13.5%

US Communications

14.0%

US Market

Return vs Industry: VNWT.F exceeded the US Communications industry which returned -8.7% over the past year.

Return vs Market: VNWT.F matched the US Market which returned 17.8% over the past year.


Shareholder returns

VNWT.FIndustryMarket
7 Day0.02%-5.3%-4.2%
30 Day1.7%-9.2%-1.8%
90 Dayn/a-2.5%2.6%
1 Year20.5%17.8%-11.7%-13.5%16.3%14.0%
3 Year10.4%3.1%25.5%17.5%43.2%34.0%
5 Year12.2%0.5%48.6%31.9%65.9%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

33.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VNWT.F ($8.25) is trading below our estimate of fair value ($12.17)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: VNWT.F is good value based on its PB Ratio (1.3x) compared to the US Communications industry average (1.9x).


Next Steps

Future Growth

How is Vecima Networks forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

207.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

Revenue vs Market: VNWT.F's revenue (35.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: VNWT.F's revenue (35.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if VNWT.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Vecima Networks performed over the past 5 years?

-50.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VNWT.F is currently unprofitable.

Growing Profit Margin: VNWT.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VNWT.F is unprofitable, and losses have increased over the past 5 years at a rate of -50.9% per year.

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

Earnings vs Industry: VNWT.F is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-19.9%).


Return on Equity

High ROE: VNWT.F has a negative Return on Equity (-1.23%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vecima Networks's financial position?


Financial Position Analysis

Short Term Liabilities: VNWT.F's short term assets (CA$73.9M) exceed its short term liabilities (CA$15.8M).

Long Term Liabilities: VNWT.F's short term assets (CA$73.9M) exceed its long term liabilities (CA$6.8M).


Debt to Equity History and Analysis

Debt Level: VNWT.F's debt to equity ratio (1%) is considered satisfactory.

Reducing Debt: VNWT.F's debt to equity ratio has reduced from 2% to 1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: VNWT.F's debt is covered by short term assets (assets are 40.3x 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: VNWT.F has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: VNWT.F has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

2.07%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.5%markettop25%3.8%industryaverage3.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: VNWT.F's dividend (2.05%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: VNWT.F's dividend (2.05%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, VNWT.F has been paying a dividend for less than 10 years.

Growing Dividend: VNWT.F's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: VNWT.F is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Sumit Kumar 0

6.5yrs

Tenure

CA$330,509

Compensation

Mr. Sumit Kumar has been the Chief Executive Officer and President at Vecima Networks Inc. since August 1, 2013 and 2011 respectively. Mr. Kumar work closely with the senior management team and the Board o ...


CEO Compensation Analysis

Compensation vs Market: Sumit's total compensation ($USD250.13K) is below average for companies of similar size in the US market ($USD1.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Surinder Kumar
Founder & Chairman of the Board6.5yrsCA$72.60k0.47% CA$839.2k
Sumit Kumar
CEO, President & Non Independent Director6.5yrsCA$330.51k0.029% CA$51.3k
Dan Gledhill
Vice President of Sales2.2yrsCA$441.95kno data
Clay McCreery
Chief Revenue Officer2.2yrsCA$619.03kno data
Osamu Nakamura
President of Concurrent Content Solutions Corporation2.2yrsCA$324.70kno data
Dale Booth
Chief Financial Officer0.3yrsno datano data
David Hobb
Vice President of Operations2.8yrsno datano data
Peter Torn
General Counsel & Corporate Secretary0yrsno datano data
Mark DePietro
Senior Vice President of Marketing3.5yrsCA$249.05kno data
Richard Blenkinsop
Senior Vice President of Business Development0yrsCA$230.75kno data

2.5yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Surinder Kumar
Founder & Chairman of the Board6.5yrsCA$72.60k0.47% CA$839.2k
Sumit Kumar
CEO, President & Non Independent Director6.5yrsCA$330.51k0.029% CA$51.3k
Danial Faizullabhoy
Independent Director3.2yrsCA$42.05k0.0011% CA$2.0k
T. Elliott
Lead Independent Director1.1yrsCA$38.50kno data
Derek Elder
Independent Director1.5yrsCA$27.35kno data
Ben Colabrese
Independent Director2.3yrsCA$29.00kno data

2.7yrs

Average Tenure

54.5yo

Average Age

Experienced Board: VNWT.F's board of directors are not considered experienced ( 2.7 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: VNWT.F insiders have only sold shares 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

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


Key Information

  • Name: Vecima Networks Inc.
  • Ticker: VNWT.F
  • Exchange: OTCPK
  • Founded: 1988
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: CA$238.038m
  • Listing Market Cap: CA$179.341m
  • Shares outstanding: 22.44m
  • Website: https://www.vecima.com

Number of Employees


Location

  • Vecima Networks Inc.
  • 771 Vanalman Avenue
  • Victoria
  • British Columbia
  • V8Z 3B8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VCMTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 2005
VNWT.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2005

Biography

Vecima Networks Inc. provides technology solutions that empower network service providers and content providers to connect people and enterprises to information and entertainment worldwide. It offers products for the cable and broadcast industries, which provides video and broadband access to service providers, content creators, and broadcasters. The company operates through three segments: Video and Broadband Solutions, Content Delivery and Storage, and Telematics. The Video and Broadband Solutions segment offers platforms and modules that process data from the cable network and deliver in formats suitable to be consumed on televisions and Internet devices. Its principal products include Terrace and TerraceQAM, which are designed to meet the needs of the business services verticals, such as multi-unit dwellings, hotels, motels, and resorts; and Entra distributed access platform that addresses the network migration to a distributed access architecture. The Content Delivery and Storage segment offers solutions and software for industries and customers that focus on ingesting, producing, storing, delivering, and streaming video content for live linear, video on demand (VOD), network digital video recorder (nDVR), and time-shifted TV services under the MediaScaleX and ContentAgent brands. The Telematics segment provides information and analytics for the fleet managers to manage their mobile and fixed assets under the Contigo, Nero Global Tracking, and FleetLynx brands. Vecima Networks Inc. was founded in 1988 and is headquartered in Victoria, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:32
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.