OTCPK:AKOM

Stock Analysis Report

Executive Summary

Aerkomm Inc., together with its subsidiaries, focuses on providing in-flight entertainment and connectivity solutions in the Asian Pacific region.

Snowflake

Fundamentals

Excellent balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

23.9%

AKOM

1.4%

US Wireless Telecom

0.4%

US Market


1 Year Return

-14.0%

AKOM

3.3%

US Wireless Telecom

6.9%

US Market

Return vs Industry: AKOM underperformed the US Wireless Telecom industry which returned 3.3% over the past year.

Return vs Market: AKOM underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

AKOMIndustryMarket
7 Day23.9%1.4%0.4%
30 Day-9.2%-0.5%-1.1%
90 Day87.9%-2.9%-0.5%
1 Year-14.0%-14.0%4.5%3.3%9.3%6.9%
3 Yearn/a35.0%30.1%45.8%36.4%
5 Yearn/a51.8%38.1%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

2.9x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate AKOM's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate AKOM's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AKOM is overvalued based on its PB Ratio (2.9x) compared to the US Wireless Telecom industry average (2x).


Next Steps

Future Growth

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

15.8%

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 Aerkomm 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.


Next Steps

  • Examine Aerkomm's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Aerkomm's filings and announcements here.
  • Explore growth companies in the Telecom industry.

Past Performance

How has Aerkomm performed over the past 5 years?

-51.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AKOM is unprofitable, and losses have increased over the past 5 years at a rate of -51.5% per year.

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

Earnings vs Industry: AKOM is unprofitable, making it difficult to compare its past year earnings growth to the Wireless Telecom industry (7.7%).


Return on Equity

High ROE: AKOM has a negative Return on Equity (-19.52%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: AKOM is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AKOM is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Aerkomm's financial position?


Financial Position Analysis

Short Term Liabilities: AKOM's short term assets ($11.8M) exceeds its short term liabilities ($10.0M)

Long Term Liabilities: AKOM's short term assets (11.8M) exceeds its long term liabilities (121.1K)


Debt to Equity History and Analysis

Debt Level: AKOM's debt to equity ratio (0.5%) is considered satisfactory

Reducing Debt: Insufficient data to determine if AKOM's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: AKOM has a low level of unsold assets or inventory.

Debt Coverage by Assets: AKOM's debt is covered by short term assets (assets are 48.491670x 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: AKOM has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: AKOM has sufficient cash runway for 1.259545 years if free cash flow continues to reduce at historical rates of -28.4% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage8.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if AKOM's dividends per share have been stable in the past.

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

2.2yrs

Average management tenure


CEO

Jeffrey Wun (53yo)

1.8yrs

Tenure

US$160,000

Compensation

Mr. Jeffrey Wun has been President and Chief Executive Officer at Aerkomm Inc. since December 31, 2017. Mr. Wun served as Treasurer and Secretary of Aerkomm Inc. from December 28, 2016 to February 13, 2017 ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Jeffrey's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Jeffrey's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.2yrs

Average Tenure

58yo

Average Age

Experienced Management: AKOM's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

55yo

Average Age

Experienced Board: AKOM's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Y. Kuo (64yo)

    CFO & Treasurer

    • Tenure: 2.5yrs
    • Compensation: US$100.00k
  • Jeffrey Wun (53yo)

    CEO, President & Chairman

    • Tenure: 1.8yrs
    • Compensation: US$160.00k
  • Jan-Yung Lin (58yo)

    Secretary & Director

    • Tenure: 2.7yrs
  • Louis Giordimaina

    Chief Operating Officer of Aviation

    • Tenure: 1.4yrs

Board Members

  • Jeffrey Wun (53yo)

    CEO, President & Chairman

    • Tenure: 1.8yrs
    • Compensation: US$160.00k
  • Jan-Yung Lin (58yo)

    Secretary & Director

    • Tenure: 2.7yrs
  • Colin Lim (55yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$250.22k
  • Raymond Choy (38yo)

    Director

    • Tenure: 1.8yrs
  • Albert Hsu (44yo)

    Director

    • Tenure: 1.8yrs
  • James Busuttil (60yo)

    Director

    • Tenure: 1.8yrs
  • Richmond Akumiah (65yo)

    Director

    • Tenure: 1.1yrs

Company Information

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


Key Information

  • Name: Aerkomm Inc.
  • Ticker: AKOM
  • Exchange: OTCPK
  • Founded:
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$129.995m
  • Shares outstanding: 9.54m
  • Website: https://www.aerkomm.com

Number of Employees


Location

  • Aerkomm Inc.
  • 923 Incline Way #39
  • Incline Village
  • Nevada
  • 89451
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AKOMOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMar 2017
AKOMENXTPA (Euronext Paris)YesCommon StockFREURMar 2017

Biography

Aerkomm Inc., together with its subsidiaries, focuses on providing in-flight entertainment and connectivity solutions in the Asian Pacific region. It intends to provide airline passengers with broadband in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:47
End of Day Share Price2019/10/18 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.