NasdaqGS:WIFI

Stock Analysis Report

Executive Summary

Boingo Wireless, Inc., together with its subsidiaries, provides wireless connectivity solutions for smartphones, tablets, laptops, wearables, and other wireless-enabled consumer devices worldwide.

Rewards

Trading at 94.5% below its fair value

Earnings are forecast to grow 57.2% per year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WIFI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.0%

WIFI

-2.9%

US Wireless Telecom

-2.7%

US Market


1 Year Return

-48.7%

WIFI

1.3%

US Wireless Telecom

21.2%

US Market

Return vs Industry: WIFI underperformed the US Wireless Telecom industry which returned 1.7% over the past year.

Return vs Market: WIFI underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

WIFIIndustryMarket
7 Day-8.0%-2.9%-2.7%
30 Day9.4%0.7%0.09%
90 Day22.8%-5.7%6.9%
1 Year-48.7%-48.7%2.8%1.3%23.8%21.2%
3 Year1.0%1.0%-2.6%-6.3%48.1%38.6%
5 Year43.3%43.3%68.2%54.7%72.5%53.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WIFI ($11.47) is trading below our estimate of fair value ($209.13)

Significantly Below Fair Value: WIFI is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WIFI is overvalued based on its PB Ratio (5.3x) compared to the US Wireless Telecom industry average (2.3x).


Next Steps

Future Growth

How is Boingo Wireless forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

58.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WIFI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: WIFI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WIFI's is expected to become profitable in the next 3 years.

Revenue vs Market: WIFI's revenue (5.5% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: WIFI's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Boingo Wireless performed over the past 5 years?

25.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WIFI is currently unprofitable.

Growing Profit Margin: WIFI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WIFI is unprofitable, but has reduced losses over the past 5 years at a rate of 25.1% per year.

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

Earnings vs Industry: WIFI is unprofitable, making it difficult to compare its past year earnings growth to the Wireless Telecom industry (-39.1%).


Return on Equity

High ROE: WIFI has a negative Return on Equity (-4.84%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Boingo Wireless's financial position?


Financial Position Analysis

Short Term Liabilities: WIFI's short term assets ($145.2M) do not cover its short term liabilities ($156.4M).

Long Term Liabilities: WIFI's short term assets ($145.2M) do not cover its long term liabilities ($353.9M).


Debt to Equity History and Analysis

Debt Level: WIFI's debt to equity ratio (170%) is considered high.

Reducing Debt: WIFI had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: WIFI's debt is not covered by short term assets (assets are 0.9x 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: WIFI has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if WIFI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage7.1%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate WIFI'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 WIFI's dividends per share have been stable in the past.

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

1.7yrs

Average management tenure


CEO

Mike Finley (58yo)

0.8yrs

Tenure

US$195,893

Compensation

Mr. Michael J. Finley, also known as Mike, serves as Member of Board of Governors at 3G Americas, LLC. Mr. Finley serves as Senior Vice President at Global Business Development at Qualcomm. He has been Chi ...


Management Age and Tenure

1.7yrs

Average Tenure

56yo

Average Age

Experienced Management: WIFI's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

6.4yrs

Average Tenure

58.5yo

Average Age

Experienced Board: WIFI's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$150,22416 Sep 19
Derek Peterson
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares10,715
Max PriceUS$14.02
BuyUS$110,00015 Aug 19
Michael Finley
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares10,000
Max PriceUS$11.00
SellUS$253,14220 May 19
Derek Peterson
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares11,628
Max PriceUS$21.77
SellUS$113,60003 May 19
Peter Hovenier
EntityIndividual
Role
Chief Financial Officer
CFO, Treasurer & Secretary
Shares5,000
Max PriceUS$22.72

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.6%.


Management Team

  • Bruce Crair (63yo)

    Senior VP/GM of Military Business Unit

    • Tenure: 1.7yrs
  • Pete Hovenier (51yo)

    CFO, Treasurer & Secretary

    • Tenure: 7.2yrs
    • Compensation: US$669.24k
  • Tom Tracey (56yo)

    Senior Vice President of Operations

    • Tenure: 0.7yrs
    • Compensation: US$793.24k
  • Lauren De La Fuente (56yo)

    Vice President of Marketing & Communications

    • Bethany Ellis

      Senior Vice President of Human Resources

      • Tenure: 1.7yrs
    • Mike Finley (58yo)

      CEO & Director

      • Tenure: 0.8yrs
      • Compensation: US$195.89k
    • Doug Lodder

      Senior Vice President of Carrier Services

      • Dawn Callahan (49yo)

        Chief Marketing Officer

        • Tenure: 5.9yrs
        • Compensation: US$802.75k
      • Derek Peterson (48yo)

        Chief Technology Officer

        • Tenure: 6yrs
        • Compensation: US$825.34k
      • Kim Orlando

        Associate - Addo Communications


        Board Members

        • Dave Hagan (58yo)

          Director

          • Tenure: 15.2yrs
          • Compensation: US$1.17m
        • Lance Rosenzweig (56yo)

          Chairman of the Board

          • Tenure: 0.8yrs
          • Compensation: US$280.62k
        • Marc Geller (73yo)

          Member of Advisory Board

          • Compensation: US$174.12k
        • Chuck Davis (58yo)

          Independent Director

          • Tenure: 8.4yrs
          • Compensation: US$190.89k
        • Terry Jones (71yo)

          Independent Director

          • Tenure: 6.6yrs
          • Compensation: US$197.89k
        • David Farber

          Member of Advisory Board

          • Maury Austin (61yo)

            Independent Director

            • Tenure: 3.6yrs
            • Compensation: US$197.39k
          • Mike O'Dell

            Member of Advisory Board

            • Mike Finley (58yo)

              CEO & Director

              • Tenure: 0.8yrs
              • Compensation: US$195.89k
            • Michele Choka (59yo)

              Independent Director

              • Tenure: 1.1yrs
              • Compensation: US$3.29k

            Company Information

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


            Key Information

            • Name: Boingo Wireless, Inc.
            • Ticker: WIFI
            • Exchange: NasdaqGS
            • Founded: 2001
            • Industry: Wireless Telecommunication Services
            • Sector: Telecom
            • Market Cap: US$525.069m
            • Shares outstanding: 44.16m
            • Website: https://www.boingo.com

            Number of Employees


            Location

            • Boingo Wireless, Inc.
            • 10960 Wilshire Boulevard
            • 23rd Floor
            • Los Angeles
            • California
            • 90024
            • United States

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            WIFINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2011
            9BIDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2011

            Biography

            Boingo Wireless, Inc., together with its subsidiaries, provides wireless connectivity solutions for smartphones, tablets, laptops, wearables, and other wireless-enabled consumer devices worldwide. The company offers distributed antenna systems and small cell networks at managed and operated locations; high-speed Wi-Fi services for residential consumers on military bases and at multifamily properties; and wholesale Wi-Fi services to network operators, device manufacturers, technology companies, enterprise software and services companies, venue operators, and financial services companies, as well as retail Internet access services. It serves largest carriers, telecommunications service providers, global consumer brands, and property owners, as well as troops stationed at military bases and Internet savvy consumers. The company was formerly known as Project Mammoth, Inc. and changed its name to Boingo Wireless, Inc. in October 2001. Boingo Wireless, Inc. was founded in 2001 and is headquartered in Los Angeles, California. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/27 00:35
            End of Day Share Price2020/01/24 00:00
            Earnings2019/09/30
            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.