OTCPK:CUEN

Stock Analysis Report

Executive Summary

Cuentas Inc., through its subsidiaries, provides telecommunications, mobility, and remittance solutions to the unbanked, underbanked, and underserved communities in the United States and internationally.

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-23.6%

CUEN

-0.3%

US Telecom

0.06%

US Market


1 Year Return

162.5%

CUEN

13.5%

US Telecom

19.4%

US Market

Return vs Industry: CUEN exceeded the US Telecom industry which returned 13.5% over the past year.

Return vs Market: CUEN exceeded the US Market which returned 19.4% over the past year.


Shareholder returns

CUENIndustryMarket
7 Day-23.6%-0.3%0.06%
30 Day-29.8%-1.6%1.1%
90 Day23.9%-0.1%8.9%
1 Year162.5%162.5%19.1%13.5%21.9%19.4%
3 Year-57.6%-57.6%17.2%0.08%48.9%39.3%
5 Yearn/a38.6%7.3%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


In this section, we usually try to help investors determine whether Cuentas is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Cuentas has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of CUEN’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Cuentas regulatory filings here.
  • Explore potentially undervalued companies in the Telecom industry.

Future Growth

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

9.5%

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 Cuentas 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

  • Take a look at our analysis of CUEN’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • 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 Cuentas's filings and announcements here.
  • Explore growth companies in the Telecom industry.

Past Performance

How has Cuentas performed over the past 5 years?

20.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CUEN is currently unprofitable.

Growing Profit Margin: CUEN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CUEN is unprofitable, but has reduced losses over the past 5 years at a rate of 20.4% per year.

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

Earnings vs Industry: CUEN is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-23.8%).


Return on Equity

High ROE: CUEN's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cuentas's financial position?


Financial Position Analysis

Short Term Liabilities: CUEN has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CUEN has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CUEN has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CUEN's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: CUEN has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: CUEN has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: CUEN has less than a year of cash runway if free cash flow continues to grow at historical rates of 4.6% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if CUEN'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 CUEN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Arik Maimon (43yo)

5.1yrs

Tenure

US$592,984

Compensation

Mr. Arik Maimon is the Founder of Cuentas Inc. (formerly known as Next Group Holdings, Inc.) and has been its Chief Executive Officer since January 2015. Mr. Maimon is Chairman of Cuentas Inc. Mr. Maimon i ...


CEO Compensation Analysis

Compensation vs Market: Arik's total compensation ($USD592.98K) is about average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Arik's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Arik Maimon
Co-Founder5.1yrsUS$592.98k6.42% $1.9m
Michael De Prado
Co-Founder0yrsUS$232.00k3.88% $1.1m
Ran Daniel
Chief Financial Officer1.3yrsUS$46.51k0.71% $210.0k
Adiv Baruch
Chief Strategy Officer & Director3.8yrsUS$110.00k0.47% $140.0k
Sylwin Grinman
Chief Operating Officer0.5yrsno datano data

2.1yrs

Average Tenure

49.5yo

Average Age

Experienced Management: CUEN's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Arik Maimon
Co-Founder5.1yrsUS$592.98k6.42% $1.9m
Michael De Prado
Co-Founder0yrsUS$232.00k3.88% $1.1m
Adiv Baruch
Chief Strategy Officer & Director3.8yrsUS$110.00k0.47% $140.0k
Richard Berman
Independent Director1.4yrsno data0.71% $210.0k
Orlando Taddeo
Director0yrsno datano data
Yochanon Bruk
Director0.2yrsno datano data

1.4yrs

Average Tenure

48yo

Average Age

Experienced Board: CUEN's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 71.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Cuentas Inc.
  • Ticker: CUEN
  • Exchange: OTCPK
  • Founded:
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$29.526m
  • Shares outstanding: 7.03m
  • Website: https://www.cuentas.com

Number of Employees


Location

  • Cuentas Inc.
  • 19 West Flagler Street
  • Suite 507
  • Miami
  • Florida
  • 33130
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CUENOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 2016

Biography

Cuentas Inc., through its subsidiaries, provides telecommunications, mobility, and remittance solutions to the unbanked, underbanked, and underserved communities in the United States and internationally. The company markets and distributes prepaid and general purpose reloadable prepaid debit cards under the NextCALA brand; and designs, develops, produces, markets, and provides HD video platforms, call processing engines, and telephony networks; and payment remittance services. It also provides mobile phones; and domestic and international long distance prepaid voice, text, and data mobile phone services under the NextMobile360 brand. In addition, the company offers international long distance Voice over Internet Protocol telephony services; and sells Sony PlayStation, Microsoft Xbox Live, and Nexon Karma digital content. Cuentas Inc. is headquartered in Miami, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:55
End of Day Share Price2020/02/18 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.