OTCPK:TWER

Stock Analysis Report

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.

Snowflake

Fundamentals

Mediocre balance sheet with weak fundamentals.

Risks

  • Towerstream has significant price volatility in the past 3 months.
  • Towerstream is not covered by any analysts.

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


Market Performance


7 Day Return

-12.6%

OTCPK:TWER

1.5%

US Telecom

1.1%

US Market


1 Year Return

-73.7%

OTCPK:TWER

6.9%

US Telecom

2.1%

US Market

TWER underperformed the Telecom industry which returned 8.4% over the past year.

TWER underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

TWERIndustryMarket
7 Day-12.6%1.5%1.1%
30 Day-12.6%5.9%3.7%
90 Day44.3%9.0%2.3%
1 Year-73.7%-73.7%12.6%6.9%4.4%2.1%
3 Year-99.2%-99.2%17.5%0.4%47.0%37.4%
5 Year-100.0%-100.0%33.7%3.1%61.6%43.8%

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 based on future cash flows and its price relative to the stock 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

  • Take a look at our analysis of TWER’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • 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 expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.9%

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

  • Take a look at our analysis of TWER’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Towerstream's filings and announcements here.
  • Explore growth companies in the Telecom industry.

Past Performance

How has Towerstream performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Towerstream does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

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

Unable to compare Towerstream'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 Towerstream has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

It is difficult to establish if Towerstream 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 Towerstream improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to its liabilities exceeding its assets.


Next Steps

Financial Health

How is Towerstream's financial position?


Financial Position Analysis

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

Towerstream's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Towerstream has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Towerstream's debt level has increased considering it has negative shareholder equity.


Balance Sheet

High level of physical assets or inventory.

Towerstream has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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.

Towerstream has sufficient cash runway for 1.4 years based on current free cash flow.

Towerstream has sufficient cash runway for 1.1 years if free cash flow continues to reduce at historical rates of -70.3% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

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

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

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


Current Payout to Shareholders

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

2.7yrs

Average management tenure


CEO

Ernie Ortega (54yo)

2.7yrs

Tenure

US$460,835

Compensation

Mr. Ernest Ortega, also known as Ernie, has been Chief Executive Officer of Towerstream Corporation since January 24, 2017. He serves as Member of Advisory Board at Connected2Fiber, Inc. Mr. Ortega served  ...


CEO Compensation Analysis

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

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


Management Age and Tenure

2.7yrs

Average Tenure

The tenure for the Towerstream management team is about average.


Board Age and Tenure

19.8yrs

Average Tenure

56yo

Average Age

The average tenure for the Towerstream board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Ernie Ortega (54yo)

    Chief Executive Officer

    • Tenure: 2.7yrs
    • Compensation: US$460.84k
  • Philip Urso (60yo)

    Founder & Chairman

    • Tenure: 19.8yrs
    • Compensation: US$60.06k
  • Jason Dennis

    Director of Marketing & Sales Operations

    • Tenure: 0yrs
  • Mike Connors

    Senior Vice President of Operations

    • Tenure: 0.5yrs

Board Members

  • Bill Bush (54yo)

    Director

    • Tenure: 12.7yrs
    • Compensation: US$60.06k
  • Philip Urso (60yo)

    Founder & Chairman

    • Tenure: 19.8yrs
    • Compensation: US$60.06k
  • Howard Haronian (56yo)

    Director

    • Tenure: 19.8yrs
    • Compensation: US$60.06k

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$327.359k
  • Shares outstanding: 394.41k
  • 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 Analysis2019/09/17 00:04
End of Day Share Price2019/09/13 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.