OTCPK:KTEL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


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

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


Market Performance


7 Day Return

17.5%

KTEL

-0.9%

US Wireless Telecom

-2.4%

US Market


1 Year Return

n/a

KTEL

31.2%

US Wireless Telecom

12.0%

US Market

Return vs Industry: Insufficient data to determine how KTEL performed against the US Wireless Telecom industry.

Return vs Market: Insufficient data to determine how KTEL performed against the US Market.


Shareholder returns

KTELIndustryMarket
7 Day17.5%-0.9%-2.4%
30 Day-1.1%-5.8%-6.5%
90 Day-8.9%4.0%8.4%
1 Yearn/a31.8%31.2%14.5%12.0%
3 Yearn/a52.6%49.0%34.8%25.8%
5 Yearn/a118.4%108.4%82.1%61.6%

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 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: KTEL ($0.15) is trading below our estimate of fair value ($2.23)

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


Price To Earnings Ratio

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

PE vs Market: KTEL 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 KTEL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KTEL is overvalued based on its PB Ratio (4.1x) compared to the US Wireless Telecom industry average (2.4x).


Next Steps

Future Growth

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

40.8%

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 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 theOTC Markets Website. If you are looking for more of a qualitative research into the company, you can access KonaTel's filings and announcementshere.
  • Explore growth companies in the Telecom industry.

Past Performance

How has KonaTel performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KTEL is currently unprofitable.

Growing Profit Margin: KTEL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KTEL is unprofitable, but has reduced losses over the past 5 years at a rate of 11.5% per year.

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

Earnings vs Industry: KTEL is unprofitable, making it difficult to compare its past year earnings growth to the Wireless Telecom industry (14.3%).


Return on Equity

High ROE: KTEL has a negative Return on Equity (-29.79%), as it is currently unprofitable.


Next Steps

Financial Health

How is KonaTel's financial position?


Financial Position Analysis

Short Term Liabilities: KTEL's short term assets ($1.1M) do not cover its short term liabilities ($1.5M).

Long Term Liabilities: KTEL's short term assets ($1.1M) exceed its long term liabilities ($363.0K).


Debt to Equity History and Analysis

Debt Level: KTEL's debt to equity ratio (32.9%) is considered satisfactory.

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


Balance Sheet


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: Whilst unprofitable KTEL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: KTEL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 56.5% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if KTEL'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 KTEL'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?

2.8yrs

Average management tenure


CEO

David McEwen (59 yo)

2.58yrs

Tenure

US$227,089

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

Compensation vs Market: David's total compensation ($USD227.09K) is below average for companies of similar size in the US market ($USD606.53K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David McEwen
Chairman2.58yrsUS$227.09k33.18%
$ 2.0m
Brian Riffle
Chief Financial Officer2.75yrsUS$41.11kno data
Charles Schneider
Chief Executive Officer of KonaTel Nevada4yrsUS$200.00kno data
Paul LaPier
Secretary & VP of Finance0.42yrUS$127.57kno data
J. Riner
Vice President of Operations-KonaTel Nevada4.08yrsUS$33.37kno data
Joshua Ploude
Chief Executive Officer of Apeiron Systemsno datano data15.48%
$ 927.4k

2.8yrs

Average Tenure

60yo

Average Age

Experienced Management: KTEL's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David McEwen
Chairman2.58yrsUS$227.09k33.18%
$ 2.0m
Jeffrey Pearl
Independent Director1.92yrsUS$24.00k0.25%
$ 14.7k
Robert Beaty
Independent Director2.58yrsUS$24.00k0.25%
$ 14.7k

2.6yrs

Average Tenure

56yo

Average Age

Experienced Board: KTEL's board of directors are not considered experienced ( 2.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: KonaTel, Inc.
  • Ticker: KTEL
  • Exchange: OTCPK
  • Founded: 1984
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$5.990m
  • 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 Analysis2020/09/26 05:35
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.