OTCPK:TWER

Stock Analysis Report

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Executive Summary

Towerstream Corporation, together with its subsidiaries, provides fixed wireless broadband services over a wireless network transmitting over regulated and unregulated radio spectrum to commercial customers in the United States. More Details


Snowflake Analysis

Excellent balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

TWER

1.4%

US Telecom

1.8%

US Market


1 Year Return

-67.1%

TWER

-10.2%

US Telecom

14.2%

US Market

Return vs Industry: TWER underperformed the US Telecom industry which returned -10.2% over the past year.

Return vs Market: TWER underperformed the US Market which returned 14.2% over the past year.


Shareholder returns

TWERIndustryMarket
7 Day0%1.4%1.8%
30 Day-8.0%0.03%0.04%
90 Day-74.4%2.3%9.8%
1 Year-67.1%-67.1%-5.6%-10.2%16.7%14.2%
3 Year-96.6%-96.6%9.6%-6.1%41.6%32.2%
5 Year-100.0%-100.0%33.5%3.6%90.9%69.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Towerstream undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Towerstream is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Towerstream has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Examine Towerstream'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.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don't know where to start, we recommend reading through Towerstream regulatory filings here.
  • Explore potentially undervalued companies in the Telecom industry.

Future Growth

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

8.3%

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 Towerstream 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

Past Performance

How has Towerstream performed over the past 5 years?

9.8%

Historical Telecom annual earnings growth


Earnings and Revenue History

Quality Earnings: Insufficient data to determine if TWER has high quality earnings.

Growing Profit Margin: Insufficient data to determine if TWER's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if TWER's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare TWER's past year earnings growth to its 5-year average.

Earnings vs Industry: Insufficient data to determine if TWER's earnings growth over the past year exceeded the Telecom industry average.


Return on Equity

High ROE: TWER has a negative Return on Equity (0%), as it is currently unprofitable.


Next Steps

Financial Health

How is Towerstream's financial position?


Financial Position Analysis

Short Term Liabilities: Insufficient data to determine if TWER's short term assets cover its short term liabilities.

Long Term Liabilities: TWER has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: TWER is debt free.

Reducing Debt: TWER has no debt compared to 5 years ago when its debt to equity ratio was 0.1%.

Debt Coverage: TWER has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TWER has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

3.7yrs

Average management tenure


CEO

Ernie Ortega (55 yo)

3.67yrs

Tenure

US$460,835

Compensation

Mr. Ernest Ortega, also known as Ernie, has been Chief Executive Officer of Towerstream Corporation since January 24, 2017. Mr. Ortega serves as Interim Chief Executive Officer of GTT Communications, Inc. ...


CEO Compensation Analysis

Compensation vs Market: Ernie's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD594.44K).

Compensation vs Earnings: Insufficient data to compare Ernie's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Philip Urso
Founder & Chairman20.75yrsUS$60.06k0.17%
$ 227.7
Ernest Ortega
Chief Executive Officer3.67yrsUS$460.84kno data
Michael Connors
Senior Vice President of Operations1.5yrsno datano data
Jason Dennis
Director of Marketing & Sales Operationsno datano datano data

3.7yrs

Average Tenure

Experienced Management: TWER's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Philip Urso
Founder & Chairman20.75yrsUS$60.06k0.17%
$ 227.7
William Bush
Independent Director13.67yrsUS$60.06k0.0045%
$ 6.2
Howard Haronian
Independent Director20.75yrsUS$60.06k0.12%
$ 166.3

20.8yrs

Average Tenure

57yo

Average Age

Experienced Board: TWER's board of directors are seasoned and experienced ( 20.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 51.3%.


Top Shareholders

Company Information

Towerstream Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Towerstream Corporation
  • Ticker: TWER
  • Exchange: OTCPK
  • Founded: 1999
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: US$137.220k
  • Shares outstanding: 596.61k
  • Website: https://www.towerstream.com

Number of Employees


Location

  • Towerstream Corporation
  • Tech 3 Building
  • 76 Hammarlund Way
  • Middletown
  • Rhode Island
  • 2842
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TWEROTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 2007

Biography

Towerstream Corporation, together with its subsidiaries, provides fixed wireless broadband services over a wireless network transmitting over regulated and unregulated radio spectrum to commercial customer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 05:52
End of Day Share Price2020/09/15 00:00
Earnings2018/12/31
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.