OTCPK:NORS.B

Stock Analysis Report

North State Telecommunications

Executive Summary

North State Telecommunications Corporation, together with its subsidiaries, operates in the telecommunications, data center, and information technologies services industries in North Carolina.

Snowflake

Fundamentals

Good value with mediocre balance sheet.

Share Price & News

How has North State Telecommunications's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.9%

NORS.B

0.6%

US Telecom

0.07%

US Market


1 Year Return

4.3%

NORS.B

8.4%

US Telecom

8.9%

US Market

Return vs Industry: NORS.B underperformed the US Telecom industry which returned 8.4% over the past year.

Return vs Market: NORS.B underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

NORS.BIndustryMarket
7 Day-0.9%0.6%0.07%
30 Day1.7%0.6%-0.3%
90 Day5.3%10.7%-1.6%
1 Year14.3%4.3%14.1%8.4%11.3%8.9%
3 Year38.7%7.1%28.0%9.3%46.3%36.8%
5 Year37.4%-12.4%40.7%8.4%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is North State Telecommunications 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: NORS.B ($60) is trading below our estimate of fair value ($292.61)

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


Price To Earnings Ratio

PE vs Industry: NORS.B is good value based on its PE Ratio (13.2x) compared to the Telecom industry average (16x).

PE vs Market: NORS.B is good value based on its PE Ratio (13.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NORS.B is overvalued based on its PB Ratio (1.5x) compared to the US Telecom industry average (1.5x).


Next Steps

Future Growth

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

-2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NORS.B's earnings are forecast to decline over the next 3 years (-2.2% per year).

Earnings vs Market: NORS.B's earnings are forecast to decline over the next 3 years (-2.2% per year).

High Growth Earnings: NORS.B's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if NORS.B's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if NORS.B's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has North State Telecommunications performed over the past 5 years?

10.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NORS.B's earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: NORS.B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NORS.B had negative earnings growth (-48.7%) over the past year, making it difficult to compare to the Telecom industry average (-23%).


Return on Equity

High ROE: NORS.B's Return on Equity (11.3%) is considered low.


Return on Assets

ROA vs Industry: NORS.B has a higher Return on Assets than the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: NORS.B's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is North State Telecommunications's financial position?


Financial Position Analysis

Short Term Liabilities: NORS.B's short term assets ($26.8M) exceeds its short term liabilities ($22.1M)

Long Term Liabilities: NORS.B's short term assets (26.8M) do not cover its long term liabilities (126.4M)


Debt to Equity History and Analysis

Debt Level: NORS.B's debt to equity ratio (53.4%) is considered high

Reducing Debt: NORS.B's debt to equity ratio has increased from 40.7% to 53.4% over the past 5 years.

Debt Coverage: NORS.B's debt is well covered by operating cash flow (55.7%).

Interest Coverage: NORS.B's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: NORS.B's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is North State Telecommunications's current dividend yield, its reliability and sustainability?

8.00%

Current Dividend Yield


Dividend Yield vs Market

company8.0%marketbottom25%1.4%markettop25%3.7%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NORS.B's dividend (8%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NORS.B's dividend (8%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: Whilst dividend payments have been stable, NORS.B has been paying a dividend for less than 10 years.

Growing Dividend: NORS.B has only been paying a dividend for 7 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (106%), NORS.B's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of North State Telecommunications's salary, the management and board of directors tenure and is there insider trading?


CEO

North State Telecommunications has no CEO, or we have no data on them.


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


    Board Members

      Company Information

      North State Telecommunications Corporation's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: North State Telecommunications Corporation
      • Ticker: NORS.B
      • Exchange: OTCPK
      • Founded: 1895
      • Industry: Integrated Telecommunication Services
      • Sector: Telecom
      • Market Cap: US$142.774m
      • Shares outstanding: 2.26m
      • Website: https://www.northstate.net

      Location

      • North State Telecommunications Corporation
      • 4100 Mendenhall Oaks Parkway
      • Suite 300
      • High Point
      • North Carolina
      • 27265
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      NORS.BOTCPK (Pink Sheets LLC)Class B Non-Voting StockUSUSDJun 1992
      NORS.AOTCPK (Pink Sheets LLC)YesClass A Voting StockUSUSDFeb 1993

      Biography

      North State Telecommunications Corporation, together with its subsidiaries, operates in the telecommunications, data center, and information technologies services industries in North Carolina. The company  ...


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2019/10/22 23:38
      End of Day Share Price2019/10/22 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.