Otelco Inc. provides a range of telecommunications services on a retail and wholesale basis.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: OTEL underperformed the US Telecom industry which returned -4.3% over the past year.
Return vs Market: OTEL underperformed the US Market which returned -6.8% over the past year.
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
1 day ago | Simply Wall StOtelco (NASDAQ:OTEL) Seems To Be Using An Awful Lot Of Debt
2 weeks ago | Simply Wall StWhat Percentage Of Otelco Inc. (NASDAQ:OTEL) Shares Do Insiders Own?
1 month ago | Simply Wall StRead This Before Selling Otelco Inc. (NASDAQ:OTEL) Shares
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 ($5.99) is trading below our estimate of fair value ($21.83)
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 (2.6x) compared to the Telecom industry average (15.7x).
PE vs Market: OTEL is good value based on its PE Ratio (2.6x) compared to the US market (13.6x).
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 (1.1x) compared to the US Telecom industry average (1.1x).
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 (12.4%) are lower than last year (14.3%).
Past Earnings Growth Analysis
Earnings Trend: OTEL's earnings have grown by 13.1% 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 (-17.7%) over the past year, making it difficult to compare to the Telecom industry average (4.8%).
Return on Equity
High ROE: Whilst OTEL's Return on Equity (41.56%) is outstanding, 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 ($14.8M) exceed its short term liabilities ($12.3M).
Long Term Liabilities: OTEL's short term assets ($14.8M) do not cover its long term liabilities ($89.7M).
Debt to Equity History and Analysis
Debt Level: OTEL's debt to equity ratio (368.3%) 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 (22.4%).
Interest Coverage: OTEL's interest payments on its debt are not well covered by EBIT (2.8x coverage).
What is Otelco's 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 payouts.
High Dividend: Unable to evaluate OTEL'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 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 (54yo)
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 ...
|Secretary & CFO||16.17yrs||US$352.58k||1.09% $222.5k|
|CEO, President & Director||0.25yr||no data||no data|
|General Counsel||7.08yrs||no data||no data|
|Senior VP & Controller||21.25yrs||US$232.07k||0.48% $97.6k|
Experienced Management: OTEL's management team is seasoned and experienced (11.6 years average tenure).
|CEO, President & Director||0.25yr||no data||no data|
|Independent Chairman of the Board||6.83yrs||US$98.00k||0.29% $59.3k|
|Independent Director||6.92yrs||US$79.00k||0.21% $42.9k|
|Independent Director||6.92yrs||US$81.50k||0.24% $49.0k|
|Independent Director||15.33yrs||US$87.50k||0.24% $48.8k|
|Independent Director||6.92yrs||US$74.00k||0.34% $69.2k|
|Independent Director||0.92yr||no data||0.025% $5.1k|
|Independent Director||0.92yr||no data||0.084% $17.1k|
Experienced Board: OTEL's board of directors are considered experienced (6.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: OTEL 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$20.497m
- 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. The company offers local services, including voice lines that provide local dial tone and calling features, such as caller identification, call waiting, call forwarding, and voicemail; long distance services; billing and collection services for other carriers under contract; and directory advertising services. It also provides network access services comprising the origination, transportation, and termination of calls of long distance, wireless, and other interexchange carriers; digital high-speed data lines and ancillary services, such as Web hosting and computer virus protection; and basic, digital, high-definition, digital video recording, video on demand, and pay per view cable television services. In addition, it offers Internet protocol television; wireless security systems and system monitoring services; and private/hybrid cloud hosting services, as well as consulting and professional IT engineering services for mission-critical software applications for small and mid-sized companies. Further, the company rents fiber to transport data and other telecommunications services. It primarily serves business and residential customers residing in and adjacent to the exchanges in Alabama, Maine, Massachusetts, Missouri, Vermont, and West Virginia; and business customers in Maine and New Hampshire. As of March 6, 2019, it operated approximately 99,000 voice and data access lines. The company was founded in 1998 and is based in Oneonta, Alabama.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/10 02:54|
|End of Day Share Price||2020/04/09 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.