NasdaqGS:ORBC

Stock Analysis Report

Executive Summary

ORBCOMM Inc. provides Internet of Things solutions in the United States, South America, Japan, Europe, and internationally.

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.0%

ORBC

2.1%

US Telecom

2.3%

US Market


1 Year Return

-53.4%

ORBC

10.9%

US Telecom

5.6%

US Market

Return vs Industry: ORBC underperformed the US Telecom industry which returned 10.9% over the past year.

Return vs Market: ORBC underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

ORBCIndustryMarket
7 Day5.0%2.1%2.3%
30 Day-17.6%1.0%-1.0%
90 Day-41.5%9.1%-0.7%
1 Year-53.4%-53.4%16.7%10.9%7.9%5.6%
3 Year-51.4%-51.4%20.2%2.7%45.6%36.3%
5 Year-26.0%-26.0%40.1%8.2%65.8%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ORBC ($4.6) is trading below our estimate of fair value ($19.87)

Significantly Undervalued: ORBC is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: ORBC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ORBC is overvalued based on its PB Ratio (1.5x) compared to the US Telecom industry average (1.4x).


Next Steps

Future Growth

How is ORBCOMM forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

61.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORBC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ORBC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ORBC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ORBC's revenue (6.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ORBC's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has ORBCOMM performed over the past 5 years?

-33.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ORBC is unprofitable, and losses have increased over the past 5 years at a rate of -33.8% per year.

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

Earnings vs Industry: ORBC is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-23%).


Return on Equity

High ROE: ORBC has a negative Return on Equity (-8.19%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ORBC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ORBC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is ORBCOMM's financial position?


Financial Position Analysis

Short Term Liabilities: ORBC's short term assets ($164.5M) exceeds its short term liabilities ($54.1M)

Long Term Liabilities: ORBC's short term assets (164.5M) do not cover its long term liabilities (283.1M)


Debt to Equity History and Analysis

Debt Level: ORBC's debt to equity ratio (98.6%) is considered high

Reducing Debt: ORBC's debt to equity ratio has increased from 19.8% to 98.6% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ORBC's debt is not covered by short term assets (assets are 0.7x 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: Whilst unprofitable ORBC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ORBC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 28.6% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if ORBC's dividends per share have been stable in the past.

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

8.9yrs

Average management tenure


CEO

Marc Eisenberg (53yo)

11.6yrs

Tenure

US$2,587,599

Compensation

Mr. Marc J. Eisenberg has been the President and Chief Executive Officer at ORBCOMM Inc. since March 31, 2008 and since April 2008, respectively. Mr. Eisenberg served as the Chief Operating Officer of ORBC ...


CEO Compensation Analysis

Compensation vs. Market: Marc's total compensation ($USD2.59M) is above average for companies of similar size in the US market ($USD1.82M).

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


Management Age and Tenure

8.9yrs

Average Tenure

54yo

Average Age

Experienced Management: ORBC's management team is seasoned and experienced (8.9 years average tenure).


Board Age and Tenure

11.6yrs

Average Tenure

57yo

Average Age

Experienced Board: ORBC's board of directors are seasoned and experienced ( 11.6 years average tenure).


Insider Trading

Insider Buying: ORBC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$78,70512 Sep 19
Constantine Milcos
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares15,000
Max PriceUS$5.25

Ownership Breakdown


Management Team

  • John Stolte (59yo)

    Executive VP of Technology & Operations

    • Tenure: 18.5yrs
    • Compensation: US$678.75k
  • Greg Flessate

    Senior VP and GM of Government & AIS

    • Tenure: 0yrs
  • Marc Eisenberg (53yo)

    CEO, President & Director

    • Tenure: 11.6yrs
    • Compensation: US$2.59m
  • Christian Le Brun (51yo)

    Executive VP

    • Tenure: 11.6yrs
    • Compensation: US$783.39k
  • Sue Rutherford

    Vice President of Marketing

    • Tenure: 0yrs
  • Craig Malone (56yo)

    Executive Vice President of Product Development

    • Tenure: 6.3yrs
    • Compensation: US$784.24k
  • Dean Milcos (54yo)

    Executive VP & CFO

    • Tenure: 0.5yrs
    • Compensation: US$653.53k
  • Michelle Ferris

    Director of Corporate Communications

    • Tenure: 0yrs
  • Aly Bonilla

    Vice President of Investor Relations

    • Tenure: 1.4yrs
  • Mike Coniglio

    Vice President of Human Resources

    • Tenure: 0yrs

Board Members

  • Tim Kelleher (56yo)

    Director

    • Tenure: 11.6yrs
    • Compensation: US$150.00k
  • John Major (73yo)

    Director

    • Tenure: 12.5yrs
    • Compensation: US$156.25k
  • Karen Gould (54yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$89.61k
  • Denise Gibson (59yo)

    Director

    • Tenure: 1yrs
    • Compensation: US$36.95k
  • Marco Fuchs (57yo)

    Director

    • Tenure: 15.7yrs
  • Jerry Eisenberg (80yo)

    Non-Executive Chairman of the Board

    • Tenure: 11.6yrs
    • Compensation: US$206.82k
  • Marc Eisenberg (53yo)

    CEO, President & Director

    • Tenure: 11.6yrs
    • Compensation: US$2.59m

Company Information

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


Key Information

  • Name: ORBCOMM Inc.
  • Ticker: ORBC
  • Exchange: NasdaqGS
  • Founded: 2001
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: US$366.868m
  • Shares outstanding: 79.75m
  • Website: https://www.orbcomm.com

Number of Employees


Location

  • ORBCOMM Inc.
  • 395 West Passaic Street
  • Suite 325
  • Rochelle Park
  • New Jersey
  • 7662
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ORBCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2006

Biography

ORBCOMM Inc. provides Internet of Things solutions in the United States, South America, Japan, Europe, and internationally. The company offers network connectivity, devices, device management, and Web repo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:55
End of Day Share Price2019/10/16 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.