OTCPK:KTEL

Stock Analysis Report

Executive Summary

KonaTel, Inc. provides cellular products and services to individual and business customers in various retail and wholesale markets in the United States.

Snowflake

Fundamentals

Adequate balance sheet with weak fundamentals.

Risks

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

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:KTEL

-1.0%

US Wireless Telecom

-0.02%

US Market


1 Year Return

-49.3%

OTCPK:KTEL

5.3%

US Wireless Telecom

1.6%

US Market

KTEL underperformed the Wireless Telecom industry which returned 6.5% over the past year.

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


Share holder returns

KTELIndustryMarket
7 Day0%-1.0%-0.02%
30 Day0.3%2.0%2.7%
90 Day1.3%-1.0%1.4%
1 Year-49.3%-49.3%6.5%5.3%3.8%1.6%
3 Yearn/a33.5%28.3%45.2%35.8%
5 Yearn/a41.2%27.1%61.8%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

2.81x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

KonaTel's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

KonaTel's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

KonaTel 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 KonaTel, we can't assess if its growth is good value.


Price Based on Value of Assets

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


Next Steps

Future Growth

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

14.6%

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 KonaTel 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 KonaTel'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 KonaTel's filings and announcements here.
  • Explore growth companies in the Telecom industry.

Past Performance

How has KonaTel performed over the past 5 years?

67.4%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

KonaTel does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.

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

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


Return on Equity

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


Return on Capital Employed

It is difficult to establish if KonaTel 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 KonaTel's financial position?


Financial Position Analysis

KonaTel's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

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


Debt to Equity History and Analysis

KonaTel's level of debt (13.3%) compared to net worth is satisfactory (less than 40%).

Unable to establish if KonaTel's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.3x 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.

Whilst loss making KonaTel has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making KonaTel has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 7.8% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

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

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

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


Current Payout to Shareholders

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

2.2yrs

Average management tenure


CEO

David McEwen (58yo)

1.6yrs

Tenure

US$21,373

Compensation

Mr. David Sean McEwen has been the Chairman, President and Chief Executive Officer of KonaTel, Inc. since February 2018. From 2011 to 2013, Mr. McEwen consulted with multiple international Mobile virtual n ...


CEO Compensation Analysis

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

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


Management Age and Tenure

2.2yrs

Average Tenure

58yo

Average Age

The tenure for the KonaTel management team is about average.


Board Age and Tenure

1.6yrs

Average Tenure

55yo

Average Age

The average tenure for the KonaTel 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

  • David McEwen (58yo)

    Chairman

    • Tenure: 1.6yrs
    • Compensation: US$21.37k
  • Matt Atkinson (37yo)

    Secretary

    • Tenure: 2.2yrs
    • Compensation: US$1.56k
  • Brian Riffle (58yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: US$28.55k
  • J. Riner (65yo)

    Vice President of Operations-KonaTel Nevada

    • Tenure: 3.1yrs
    • Compensation: US$178.75k
  • Charles Schneider (52yo)

    Chief Executive Officer of KonaTel Nevada

    • Tenure: 3yrs
    • Compensation: US$206.25k

Board Members

  • Jeffrey Pearl (55yo)

    Independent Director

    • Tenure: 0.9yrs
  • Terry Addington (66yo)

    Director

    • Tenure: 1.6yrs
  • David McEwen (58yo)

    Chairman

    • Tenure: 1.6yrs
    • Compensation: US$21.37k
  • Mark Savage (52yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$1.56k
  • Bob Beaty (49yo)

    Director

    • Tenure: 1.6yrs

Company Information

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


Key Information

  • Name: KonaTel, Inc.
  • Ticker: KTEL
  • Exchange: OTCPK
  • Founded:
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$6.185m
  • Shares outstanding: 40.69m
  • Website: https://www.konatel.com

Number of Employees


Location

  • KonaTel, Inc.
  • 13601 Preston Road
  • Suite E816
  • Dallas
  • Texas
  • 75240
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KTELOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2017

Biography

KonaTel, Inc. provides cellular products and services to individual and business customers in various retail and wholesale markets in the United States. It operates through four segments: Hosted Services,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 01:02
End of Day Share Price2019/08/21 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.