Otelco Inc. provides a range of telecommunications services on a retail and wholesale basis. More Details
Undervalued with mediocre balance sheet.
Share Price & News
How has Otelco's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: OTEL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 1% a week.
Volatility Over Time: OTEL's weekly volatility has decreased from 15% to 1% over the past year.
7 Day Return
1 Year Return
Return vs Industry: OTEL exceeded the US Telecom industry which returned -12.2% over the past year.
Return vs Market: OTEL exceeded the US Market which returned 19.6% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Otelco's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 months ago | Simply Wall StShould You Take Comfort From Insider Transactions At Otelco Inc. (NASDAQ:OTEL)?
4 months ago | Simply Wall StIs Otelco Inc. (NASDAQ:OTEL) A High Quality Stock To Own?
5 months ago | Simply Wall StDoes Otelco (NASDAQ:OTEL) Have A Healthy Balance Sheet?
Is Otelco undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: OTEL ($11.65) is trading below our estimate of fair value ($31.87)
Significantly Below Fair Value: OTEL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: OTEL is good value based on its PE Ratio (5.8x) compared to the US Telecom industry average (10.8x).
PE vs Market: OTEL is good value based on its PE Ratio (5.8x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate OTEL's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: OTEL is good value based on its PB Ratio (1.7x) compared to the US Telecom industry average (1.8x).
How is Otelco forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Telecom 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 Otelco 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.
How has Otelco performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OTEL has high quality earnings.
Growing Profit Margin: OTEL's current net profit margins (11%) are lower than last year (12.7%).
Past Earnings Growth Analysis
Earnings Trend: OTEL's earnings have grown by 6% per year over the past 5 years.
Accelerating Growth: OTEL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: OTEL had negative earnings growth (-14.8%) over the past year, making it difficult to compare to the Telecom industry average (27.1%).
Return on Equity
High ROE: Whilst OTEL's Return on Equity (28.84%) is high, this metric is skewed due to their high level of debt.
How is Otelco's financial position?
Financial Position Analysis
Short Term Liabilities: OTEL's short term assets ($19.3M) exceed its short term liabilities ($13.5M).
Long Term Liabilities: OTEL's short term assets ($19.3M) do not cover its long term liabilities ($89.9M).
Debt to Equity History and Analysis
Debt Level: OTEL's debt to equity ratio (290.2%) is considered high.
Reducing Debt: OTEL had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: OTEL's debt is well covered by operating cash flow (24.8%).
Interest Coverage: OTEL's interest payments on its debt are not well covered by EBIT (2.8x coverage).
What is Otelco current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate OTEL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate OTEL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if OTEL's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if OTEL's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of OTEL's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Richard Clark (55 yo)
Mr. Richard Allen Clark serves as Chief Executive Officer at Otelco Inc. since January 1, 2020. He serves as President at Otelco Inc. since May 1, 2019. He has been Chief Executive Officer and Director of ...
CEO Compensation Analysis
Compensation vs Market: Richard's total compensation ($USD404.93K) is about average for companies of similar size in the US market ($USD533.86K).
Compensation vs Earnings: Richard's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|CEO, President & Director||1yr||US$404.93k||no data|
|Secretary & CFO||16.92yrs||US$373.42k||1.09% |
|General Counsel||7.83yrs||no data||no data|
|Director of Marketing||0.17yr||no data||no data|
|Senior VP & Controller||22yrs||US$232.07k||0.48% |
Experienced Management: OTEL's management team is seasoned and experienced (7.8 years average tenure).
|CEO, President & Director||1yr||US$404.93k||no data|
|Independent Chairman of the Board||7.58yrs||US$95.00k||0.29% |
|Independent Director||16.08yrs||US$88.50k||0.24% |
|Independent Director||7.67yrs||US$73.00k||0.34% |
|Independent Director||1.67yrs||US$51.50k||0.025% |
|Independent Director||1.67yrs||US$51.00k||0.084% |
Experienced Board: OTEL's board of directors are considered experienced (4.6 years average tenure).
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.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Otelco Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Otelco Inc.
- Ticker: OTEL
- Exchange: NasdaqCM
- Founded: 1998
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: US$39.864m
- Shares outstanding: 3.42m
- Website: https://www.otelco.com
Number of Employees
- Otelco Inc.
- 505 Third Avenue East
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|OTEL||NasdaqCM (Nasdaq Capital Market)||Yes||Class A Common Stock||US||USD||May 2013|
Otelco Inc. provides a range of telecommunications services on a retail and wholesale basis. It offers local services, including voice lines that provide local dial tone and calling features, such as calle...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/01/17 00:57|
|End of Day Share Price||2021/01/15 00:00|
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.