OTCPK:VRTC

Stock Analysis Report

Executive Summary

Veritec, Inc. together with its subsidiaries, develops, markets, sells, and licenses products; and provides professional services related to mobile banking prepaid debit card solutions in the United States.

Rewards

Earnings have grown 11.9% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Makes less than USD$1m in revenue ($379K)

Does not have a meaningful market cap ($2M)

Currently unprofitable and not forecast to become profitable over the next 3 years



Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

VRTC

1.4%

US Tech

1.5%

US Market


1 Year Return

-72.2%

VRTC

81.9%

US Tech

20.1%

US Market

Return vs Industry: VRTC underperformed the US Tech industry which returned 81.9% over the past year.

Return vs Market: VRTC underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

VRTCIndustryMarket
7 Day0%1.4%1.5%
30 Day0%1.5%1.4%
90 Day-16.7%19.9%8.7%
1 Year-72.2%-72.2%84.6%81.9%22.7%20.1%
3 Year-50.0%-50.0%132.4%116.2%50.1%40.5%
5 Year-79.2%-79.2%149.3%124.7%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


In this section, we usually try to help investors determine whether Veritec is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Veritec has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of VRTC’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.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Veritec regulatory filings here.
  • Explore potentially undervalued companies in the Tech industry.

Future Growth

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

7.8%

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 Veritec 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 VRTC’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 Veritec's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has Veritec performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRTC is currently unprofitable.

Growing Profit Margin: VRTC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VRTC is unprofitable, but has reduced losses over the past 5 years at a rate of 11.9% per year.

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

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


Return on Equity

High ROE: VRTC's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Veritec's financial position?


Financial Position Analysis

Short Term Liabilities: VRTC has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: VRTC has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: VRTC has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: VRTC's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: VRTC has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: VRTC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: VRTC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -23.6% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if VRTC'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 VRTC'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?

11.1yrs

Average board tenure


CEO

Van Tran (75yo)

10.2yrs

Tenure

US$154,627

Compensation

Ms. Van Thuy Tran has been Executive Chairwoman of Veritec, Inc. since 2009. Ms. Tran has been Chief Executive Officer at Veritec, Inc. since December 23, 2009 and serves as its Treasurer. Ms. Tran served ...


CEO Compensation Analysis

Compensation vs Market: Van's total compensation ($USD154.63K) is below average for companies of similar size in the US market ($USD521.92K).

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


Board Members

NamePositionTenureCompensationOwnership
Van Tran
Executive Chairwoman10.2yrsUS$154.63k0.58% $11.5k
Steve Handy
Independent Director1.3yrsUS$4.63kno data
Laird Powers
Independent Director11.9yrsUS$4.63k0.64% $12.6k

11.1yrs

Average Tenure

72yo

Average Age

Experienced Board: VRTC's board of directors are seasoned and experienced ( 11.1 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Veritec, Inc.
  • Ticker: VRTC
  • Exchange: OTCPK
  • Founded: 1982
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$1.977m
  • Shares outstanding: 39.54m
  • Website: https://www.veritecinc.com

Number of Employees


Location

  • Veritec, Inc.
  • 2445 Winnetka Avenue North
  • Golden Valley
  • Minnesota
  • 55427
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRTCOTCPK (Pink Sheets LLC)YesCommon StockUSUSDAug 1995

Biography

Veritec, Inc. together with its subsidiaries, develops, markets, sells, and licenses products; and provides professional services related to mobile banking prepaid debit card solutions in the United States. The company provides Mobile Toggle Card program, a debit based, pre-paid, and gift card solution to debit card issuers and sponsoring organizations; and blinx ON-OFF debit card-Visa prepaid card programs. It also enables card issuers and sponsors to issue debit, pre-paid, and gift cards under their own branded programs through the licensed use of the mobile banking platform and provision of related professional services. In addition, the company offers blinxPay mobile wallet application, a payment processing system that enables customers to make purchases at participating merchants using funds loaded into their blinxPay virtual account. Further, its mobile banking solution enables member card programs to process and settle member rewards in open or closed loop processing environment. Additionally, the company offers back-end card processing services to the card issuing institutions for various cardholder transactions on the licensed platform. Veritec, Inc. was founded in 1982 and is based in Golden Valley, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:45
End of Day Share Price2020/01/31 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.