NasdaqCM:OTEL

Stock Analysis Report

Executive Summary

Otelco Inc. provides a range of telecommunications services on a retail and wholesale basis.

Snowflake

Fundamentals

Good value with mediocre balance sheet.

Risks

  • Otelco has significant price volatility in the past 3 months.
  • Otelco is not covered by any analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.5%

NasdaqCM:OTEL

-0.5%

US Telecom

0.8%

US Market


1 Year Return

-28.7%

NasdaqCM:OTEL

7.0%

US Telecom

1.9%

US Market

OTEL underperformed the Telecom industry which returned 6.9% over the past year.

OTEL underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

OTELIndustryMarket
7 Day3.5%-0.5%0.8%
30 Day0.6%5.8%3.4%
90 Day-26.3%8.9%2.1%
1 Year-28.7%-28.7%12.6%7.0%4.2%1.9%
3 Year172.5%172.5%17.6%0.6%46.7%37.2%
5 Year136.3%136.3%34.6%3.7%62.3%44.5%

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

Valuation

Is Otelco undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Otelco's share price is below the future cash flow value, and at a moderate discount (> 20%).

Otelco's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Otelco is good value based on earnings compared to the US Telecom industry average.

Otelco is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Otelco, we can't assess if its growth is good value.


Price Based on Value of Assets

Otelco is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

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

-10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Otelco is high growth as no revenue estimate data is available.

Otelco's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Otelco's revenue growth to the United States of America market average as no estimate data is available.

Otelco's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Otelco's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Otelco will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Otelco performed over the past 5 years?

19.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Otelco's year on year earnings growth rate has been positive over the past 5 years.

Otelco's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Otelco's 1-year earnings growth is negative, it can't be compared to the US Telecom industry average.


Return on Equity

Whilst Otelco made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Otelco used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Otelco's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Otelco's financial position?


Financial Position Analysis

Otelco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Otelco's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Otelco's level of debt (479.1%) compared to net worth is high (greater than 40%).

Otelco had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Debt is well covered by operating cash flow (26.4%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.9x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Otelco's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Otelco's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Otelco has not reported any payouts.

Unable to verify if Otelco's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Otelco has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Otelco's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Rob Souza (66yo)

4.7yrs

Tenure

US$531,654

Compensation

Mr. Robert J. Souza, also known as Rob, serves as the President of The Granby Telephone & Telegraph Co. Mr. Souza served as the President of Otelco Inc. from May 1, 2014 to May 1, 2019 and has been its Chi ...


CEO Compensation Analysis

Rob's remuneration is about average for companies of similar size in United States of America.

Rob's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.6yrs

Average Tenure

66yo

Average Age

The average tenure for the Otelco management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.3yrs

Average Tenure

62.5yo

Average Age

The tenure for the Otelco board of directors is about average.


Insider Trading

More shares have been bought than sold by Otelco individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$641,44827 Aug 19
Ira Sochet
EntityIndividual
Shares53,454
Max PriceUS$12.00
BuyUS$514,54216 Aug 19
Ira Sochet
EntityIndividual
Shares44,993
Max PriceUS$11.70
BuyUS$137,43131 Jul 19
Ira Sochet
EntityIndividual
Shares9,330
Max PriceUS$14.73
BuyUS$139,87126 Jul 19
Ira Sochet
EntityIndividual
Shares9,456
Max PriceUS$14.80
BuyUS$25126 Jul 19
Ira Sochet
EntityIndividual
Shares17
Max PriceUS$14.75
BuyUS$329,72119 Jul 19
Ira Sochet
EntityIndividual
Shares22,497
Max PriceUS$14.72
BuyUS$70,83817 Jul 19
Ira Sochet
EntityIndividual
Shares4,874
Max PriceUS$14.65
BuyUS$1,072,21210 Jun 19
Ira Sochet
EntityIndividual
Shares67,211
Max PriceUS$16.00
BuyUS$427,99422 May 19
Ira Sochet
EntityIndividual
Shares27,934
Max PriceUS$15.50
BuyUS$10722 May 19
Ira Sochet
EntityIndividual
Shares7
Max PriceUS$15.26
BuyUS$23,63209 May 19
Ira Sochet
EntityIndividual
Shares1,343
Max PriceUS$17.60
BuyUS$101,02402 May 19
Ira Sochet
EntityIndividual
Shares5,819
Max PriceUS$17.48
BuyUS$123,31426 Apr 19
Ira Sochet
EntityIndividual
Shares7,128
Max PriceUS$17.30
BuyUS$537,01124 Apr 19
Ira Sochet
EntityIndividual
Shares31,017
Max PriceUS$17.33
BuyUS$112,76116 Apr 19
Ira Sochet
EntityIndividual
Shares6,518
Max PriceUS$17.30
BuyUS$125,41910 Apr 19
Ira Sochet
EntityIndividual
Shares7,341
Max PriceUS$17.20
BuyUS$341,31901 Apr 19
Ira Sochet
EntityIndividual
Shares20,692
Max PriceUS$16.50
BuyUS$115,99921 Mar 19
Ira Sochet
EntityIndividual
Shares7,508
Max PriceUS$15.45
BuyUS$110,15218 Mar 19
Ira Sochet
EntityIndividual
Shares7,151
Max PriceUS$15.41
BuyUS$944,75008 Mar 19
Ira Sochet
EntityIndividual
Shares60,000
Max PriceUS$15.75
BuyUS$461,16827 Feb 19
Ira Sochet
EntityIndividual
Shares28,120
Max PriceUS$16.40
BuyUS$96,06010 Jan 19
Ira Sochet
EntityIndividual
Shares6,000
Max PriceUS$16.01
BuyUS$79,95010 Jan 19
Ira Sochet
EntityIndividual
Shares5,000
Max PriceUS$15.99
BuyUS$94,92604 Jan 19
Ira Sochet
EntityIndividual
Shares5,935
Max PriceUS$16.01
BuyUS$585,54320 Dec 18
Ira Sochet
EntityIndividual
Shares36,830
Max PriceUS$15.98
BuyUS$451,61019 Dec 18
Ira Sochet
EntityIndividual
Shares28,300
Max PriceUS$16.10
BuyUS$190,42113 Dec 18
Ira Sochet
EntityIndividual
Shares11,870
Max PriceUS$16.05
BuyUS$631,07211 Dec 18
Ira Sochet
EntityIndividual
Shares39,442
Max PriceUS$16.00
BuyUS$203,62404 Dec 18
Ira Sochet
EntityIndividual
Shares12,751
Max PriceUS$16.05
BuyUS$176,12028 Nov 18
Ira Sochet
EntityIndividual
Shares10,992
Max PriceUS$16.05
BuyUS$83,23026 Oct 18
Ira Sochet
EntityIndividual
Shares5,228
Max PriceUS$15.92

Ownership Breakdown


Management Team

  • Curtis Garner (72yo)

    Secretary & CFO

    • Tenure: 15.6yrs
    • Compensation: US$352.58k
  • Dennis Andrews (63yo)

    Senior Vice President of Regulatory Affairs & Human Resources

    • Tenure: 2.3yrs
    • Compensation: US$293.78k
  • Jerry Boles (67yo)

    Senior VP & Controller

    • Tenure: 9.2yrs
    • Compensation: US$232.07k
  • Rob Souza (66yo)

    CEO & Director

    • Tenure: 4.7yrs
    • Compensation: US$531.65k
  • Trina Bragdon

    General Counsel

    • Tenure: 6.5yrs
  • Richard Clark (53yo)

    COO & President

    • Tenure: 0.3yrs

Board Members

  • Stephen McCall (48yo)

    Chairman of the Board

    • Tenure: 6.3yrs
    • Compensation: US$98.00k
  • Gary Sugarman (66yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$79.00k
  • Norman Frost (64yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$81.50k
  • Howard Haug (68yo)

    Director

    • Tenure: 14.8yrs
    • Compensation: US$87.50k
  • Rob Souza (66yo)

    CEO & Director

    • Tenure: 4.7yrs
    • Compensation: US$531.65k
  • Brian Ross (61yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$74.00k
  • Barbara Dondiego-Stewart (43yo)

    Director

    • Tenure: 0.3yrs
  • Dayton Judd (47yo)

    Director

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Otelco Inc.
  • Ticker: OTEL
  • Exchange: NasdaqCM
  • Founded: 1998
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$40.147m
  • Shares outstanding: 3.41m
  • Website: https://www.otelco.com

Number of Employees


Location

  • Otelco Inc.
  • 505 Third Avenue East
  • Oneonta
  • Alabama
  • 35121
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OTELNasdaqCM (Nasdaq Capital Market)YesClass A Common StockUSUSDMay 2013

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 01:06
End of Day Share Price2019/09/17 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.