NasdaqCM:TEUM

Stock Analysis Report

Executive Summary

Pareteum Corporation operates a communications cloud services platform in Europe and internationally.

Snowflake

Fundamentals

High growth potential with adequate balance sheet.

Risks

  • Pareteum has significant price volatility in the past 3 months.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.4%

NasdaqCM:TEUM

-0.5%

US Telecom

0.8%

US Market


1 Year Return

-32.5%

NasdaqCM:TEUM

7.0%

US Telecom

1.9%

US Market

TEUM underperformed the Telecom industry which returned 7% over the past year.

TEUM underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

TEUMIndustryMarket
7 Day-5.4%-0.5%0.8%
30 Day-39.4%5.8%3.4%
90 Day-25.7%8.9%2.1%
1 Year-32.5%-32.5%12.6%7.0%4.2%1.9%
3 Year-52.8%-52.8%17.6%0.6%46.7%37.2%
5 Year-92.0%-92.0%34.6%3.7%62.3%44.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Pareteum 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

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

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


Price Based on Earnings

Pareteum is loss making, we can't compare its value to the US Telecom industry average.

Pareteum is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

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


Price Based on Value of Assets

Pareteum is good value based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Pareteum expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

152.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Pareteum's revenue is expected to grow significantly at over 20% yearly.

Pareteum's earnings are expected to grow significantly at over 20% yearly.

Pareteum's revenue growth is expected to exceed the United States of America market average.

Pareteum's earnings growth is expected to exceed the United States of America market average.

Pareteum's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Pareteum performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Pareteum does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Pareteum's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Pareteum's 1-year growth to the US Telecom industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Pareteum has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Pareteum has efficiently used its assets last year compared to the US Telecom industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Pareteum improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Pareteum's financial position?


Financial Position Analysis

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

Pareteum's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Pareteum's level of debt (13.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (44.8% vs 13.6% today).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.3x 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.

Pareteum has less than a year of cash runway based on current free cash flow.

Unable to confirm if Pareteum has at least 1 year of cash runway based on growing free cash flows without relevant data.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

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

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

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


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Pareteum 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 Pareteum's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Hal Turner (68yo)

0.3yrs

Tenure

US$5,281,843

Compensation

Mr. Robert H. Turner, also known as Hal, has been an Executive Chairman at Pareteum Corporation (formerly Elephant Talk Communications Corp) since November 16, 2015 and is its Chief Executive Officer since ...


CEO Compensation Analysis

Hal's remuneration is higher than average for companies of similar size in United States of America.

Hal's compensation has increased whilst company is loss making.


Management Age and Tenure

0.9yrs

Average Tenure

53yo

Average Age

The average tenure for the Pareteum management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

63.5yo

Average Age

The average tenure for the Pareteum board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Patricia Hume (62yo)

    Chief Marketing Officer

    • Tenure: 0.6yrs
  • Hal Turner (68yo)

    Founder

    • Tenure: 0.3yrs
    • Compensation: US$5.28m
  • Denis McCarthy (44yo)

    Chief Operating Officer

    • Tenure: 0.3yrs
    • Compensation: US$354.19k
  • Bart Weijermars

    Chief Executive Officer of EMEA

    • Tenure: 0.9yrs
  • Rob Mumby

    Chief Revenue Officer

    • Tenure: 1.9yrs
  • Laura Thomas (63yo)

    Vice President of Corporate Development

    • Tenure: 0.8yrs
    • Compensation: US$211.95k
  • Vic Bozzo (51yo)

    Co-Founder & Chief Commercial Officer

    • Tenure: 0yrs
    • Compensation: US$2.16m
  • Alex Korff (37yo)

    Corporate Secretary

    • Tenure: 1.8yrs
    • Compensation: US$438.90k
  • Ted O'Donnell (53yo)

    Chief Financial Officer

    • Tenure: 2.7yrs
    • Compensation: US$437.95k
  • Michael Bloom

    Investor Relations Officer

    • Tenure: 0yrs

Board Members

  • Gary Griffiths (69yo)

    Member of Advisory Board

    • Tenure: 0.6yrs
  • Hal Turner (68yo)

    Founder

    • Tenure: 0.3yrs
    • Compensation: US$5.28m
  • Yves Van Sante (59yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$324.95k
  • Francisco Ros (68yo)

    Member of Strategic Advisory Board

    • Tenure: 1.5yrs
    • Compensation: US$16.35k
  • Manjot Mann

    Member of Strategic Advisory Board

    • Tenure: 1.5yrs
  • Luis Jimenez-Tuñon (40yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: US$380.01k
  • Rob Lippert (56yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$19.90k

Company Information

Pareteum Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pareteum Corporation
  • Ticker: TEUM
  • Exchange: NasdaqCM
  • Founded:
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$214.787m
  • Shares outstanding: 112.45m
  • Website: https://www.pareteum.com

Number of Employees


Location

  • Pareteum Corporation
  • 1185 Avenue of the Americas
  • 37th Floor
  • New York
  • New York
  • 10036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TEUMNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJan 2002
7ET1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 2002
0US7LSE (London Stock Exchange)YesCommon StockGBUSDJan 2002

Biography

Pareteum Corporation operates a communications cloud services platform in Europe and internationally. Its platform provides mobility, messaging, and security services and applications, with a single-sign-o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:34
End of Day Share Price2019/09/18 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.