OTCPK:TRAG.F

Stock Analysis Report

Executive Summary

TeraGo Inc., together with its subsidiaries, provides connectivity, colocation, and enterprise infrastructure cloud services for businesses primarily in Canada.

Snowflake

Fundamentals

Imperfect balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:TRAG.F

-0.6%

US Telecom

-0.3%

US Market


1 Year Return

n/a

OTCPK:TRAG.F

6.1%

US Telecom

3.4%

US Market

No trading data on TRAG.F.

No trading data on TRAG.F.


Share holder returns

TRAG.FIndustryMarket
7 Day0%-0.6%-0.3%
30 Day-4.0%1.3%2.9%
90 Dayn/a1.3%2.1%
1 Yearn/a11.7%6.1%5.7%3.4%
3 Yearn/a1.3%-13.4%45.8%36.2%
5 Year85.2%85.2%23.1%-4.9%58.9%41.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

4x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

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

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


Price Based on Value of Assets

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


Next Steps

Future Growth

How is TeraGo expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

-21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

TeraGo's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

TeraGo is not considered high growth as it is expected to be loss making for the next 1-3 years.

TeraGo's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Unable to compare TeraGo's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare TeraGo's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if TeraGo will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has TeraGo performed over the past 5 years?

-24.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

TeraGo does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

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

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


Return on Equity

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


Return on Capital Employed

It is difficult to establish if TeraGo improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

  • Explore strong past performing companies in the telecom industry.

Financial Health

How is TeraGo's financial position?


Financial Position Analysis

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

TeraGo's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

TeraGo's level of debt (72.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (42.5% vs 72.8% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x 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 TeraGo has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making TeraGo has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 65.7% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

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

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

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


Current Payout to Shareholders

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

2.1yrs

Average management tenure


CEO

Tony Ciciretto

2.8yrs

Tenure

CA$786,699

Compensation

Mr. Antonio P. Ciciretto, also known as Tony, has been the Chief Executive Officer and President at Terago Inc. since September 30, 2016 and TeraGo Networks Inc. since October 6, 2016. Mr. Ciciretto is res ...


CEO Compensation Analysis

Tony's remuneration is about average for companies of similar size in United States of America.

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


Management Age and Tenure

2.1yrs

Average Tenure

The tenure for the TeraGo management team is about average.


Board Age and Tenure

3.1yrs

Average Tenure

The tenure for the TeraGo board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • David Charron

    Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: CA$475.60k
  • Tony Ciciretto

    President

    • Tenure: 2.8yrs
    • Compensation: CA$786.70k
  • Mark Lau

    VP of Legal

    • Tenure: 4.9yrs
    • Compensation: CA$308.83k
  • Duncan McGregor

    Vice President of Operations & Engineering

    • Tenure: 2.1yrs
    • Compensation: CA$396.85k
  • Candice Levy

    Director of Human Resources

  • Geoff Kereluik

    Vice President of Sales

  • Blake Wetzel

    Chief Revenue Officer

    • Tenure: 0.1yrs

Board Members

  • Rich Brekka (54yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$51.81k
  • Jim Sanger

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$54.78k
  • Gary Sherlock

    Director

    • Tenure: 3.1yrs
    • Compensation: CA$68.64k
  • Matt Gerber

    Chair of the Board

    • Tenure: 2.1yrs
    • Compensation: CA$128.39k
  • Tony Ciciretto

    President

    • Tenure: 3.1yrs
    • Compensation: CA$786.70k
  • Michael Martin

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$58.75k
  • Laurel Buckner

    Director

    • Tenure: 1.1yrs
    • Compensation: CA$25.28k

Company Information

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


Key Information

  • Name: TeraGo Inc.
  • Ticker: TRAG.F
  • Exchange: OTCPK
  • Founded: 2000
  • Industry: alternative carriers
  • Sector: telecom
  • Market Cap: CA$183.702m
  • Listing Market Cap: CA$140.352m
  • Shares outstanding: 16.59m
  • Website: Click here

Number of Employees


Location

  • TeraGo Inc.
  • 55 Commerce Valley Drive West
  • Suite 800
  • Thornhill
  • Ontario
  • L3T 7V9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TGOTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2007
TRAG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2007

Biography

TeraGo Inc., together with its subsidiaries, provides connectivity, colocation, and enterprise infrastructure cloud services for businesses primarily in Canada. The company owns and operates a carrier-grad ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/19 00:37
End of Day Share Price2019/06/24 00:00
Earnings2019/03/31
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.