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 Analysis

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

Stable Share Price: TRAG.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

TRAG.F

0.08%

US Telecom

-1.1%

US Market


1 Year Return

-26.1%

TRAG.F

13.1%

US Telecom

17.8%

US Market

Return vs Industry: TRAG.F underperformed the US Telecom industry which returned 13.1% over the past year.

Return vs Market: TRAG.F underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

TRAG.FIndustryMarket
7 Day-0.6%0.08%-1.1%
30 Day-12.3%-1.4%1.5%
90 Day-8.4%0.7%6.6%
1 Year-26.1%-26.1%18.6%13.1%20.2%17.8%
3 Yearn/a17.4%0.3%47.5%38.1%
5 Yearn/a38.4%7.2%71.2%52.4%

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 compared to its fair value and its price relative to the market?

2.77x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TRAG.F ($5.98) is trading above our estimate of fair value ($3.35)

Significantly Below Fair Value: TRAG.F is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TRAG.F is overvalued based on its PB Ratio (2.8x) compared to the US Telecom industry average (1.5x).


Next Steps

Future Growth

How is TeraGo forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-0.02%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TRAG.F's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if TRAG.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TRAG.F's revenue is expected to decline over the next 3 years (-0.02% per year).

High Growth Revenue: TRAG.F's revenue is forecast to decline over the next 3 years (-0.02% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has TeraGo performed over the past 5 years?

-16.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRAG.F is currently unprofitable.

Growing Profit Margin: TRAG.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TRAG.F is unprofitable, and losses have increased over the past 5 years at a rate of -16.8% per year.

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

Earnings vs Industry: TRAG.F is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-19.4%).


Return on Equity

High ROE: TRAG.F has a negative Return on Equity (-14.54%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TeraGo's financial position?


Financial Position Analysis

Short Term Liabilities: TRAG.F's short term assets (CA$12.7M) do not cover its short term liabilities (CA$15.8M).

Long Term Liabilities: TRAG.F's short term assets (CA$12.7M) do not cover its long term liabilities (CA$46.8M).


Debt to Equity History and Analysis

Debt Level: TRAG.F's debt to equity ratio (59.2%) is considered high.

Reducing Debt: TRAG.F's debt to equity ratio has increased from 30.1% to 59.2% over the past 5 years.


Balance Sheet

Inventory Level: TRAG.F has a high level of physical assets or inventory.

Debt Coverage by Assets: TRAG.F's debt is not covered by short term assets (assets are 0.4x 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.

Stable Cash Runway: Whilst unprofitable TRAG.F has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TRAG.F is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -0.5% per year.


Next Steps

Dividend

What is TeraGo'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 TRAG.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Growing Dividend: Insufficient data to determine if TRAG.F'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 TRAG.F'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?

2.7yrs

Average management tenure


CEO

Tony Ciciretto 0

3.4yrs

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

Compensation vs Market: Tony's total compensation ($USD595.37K) is about average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Antonio Ciciretto
President3.4yrsCA$786.70k0.15% CA$151.1k
David Charron
Chief Financial Officer2.4yrsCA$475.60k0.16% CA$165.3k
Duncan McGregor
Vice President of Operations & Engineering2.7yrsCA$396.85kno data
Mark Lau
VP of Legal5.5yrsCA$308.83k0.010% CA$10.5k
Geoffrey Kereluik
Vice President of Sales0yrsno datano data
Candice Levy
Director of Human Resources0yrsno datano data
Blake Wetzel
Chief Revenue Officer0.7yrsno datano data

2.7yrs

Average Tenure

Experienced Management: TRAG.F's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Antonio Ciciretto
President3.4yrsCA$786.70k0.15% CA$151.1k
Richard Brekka
Independent Director6.8yrsCA$51.81k0.0096% CA$9.7k
James Sanger
Independent Director6.8yrsCA$54.78kno data
Gary Sherlock
Independent Director3.7yrsCA$68.64k0.19% CA$189.8k
Matthew Gerber
Chair of the Board2.7yrsCA$128.39k0.33% CA$332.8k
Michael Martin
Independent Director6.8yrsCA$58.75k0.086% CA$86.9k
Laurel Buckner
Independent Director1.7yrsCA$25.28k0.050% CA$50.7k

3.7yrs

Average Tenure

Experienced Board: TRAG.F's board of directors are considered experienced (3.7 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.1%.


Top Shareholders

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$133.023m
  • Listing Market Cap: CA$100.671m
  • Shares outstanding: 16.63m
  • Website: https://www.terago.ca

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-grade multi-protocol label switching enabled wireline and fixed wireless, and Internet protocol communications network that provide Internet access, private interconnection, and data connectivity services. It also offers data connectivity services that allow businesses to connect their various sites within a city or across the company’s geographic footprint through a private virtual local area network; and a range of diverse Ethernet-based services over a wireless connection to customer locations. In addition, the company provides data center colocation services that protect and connect its customers’ valuable information assets; disaster recovery services; and managed hosting solutions. It provides data center services for national government agencies, financial services companies, information technology service providers, content and network service providers, and small and medium businesses. Further, the company offers cloud services, including infrastructure as a service for compute, storage, disaster recovery cloud solutions, and other services to customers in various industry verticals, federal, provincial and municipal governments and agencies, as well as non-profit organizations. The company provides its services through direct and indirect sales channels. TeraGo Inc. was incorporated in 2000 and is headquartered in Thornhill, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 01:41
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
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.