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WECOMMERCE HOLDINGS LTD (WE.CA) Stock Fundamental Analysis

TSX-V:WE - TSX Venture Exchange - CA94847U1030 - Common Stock - Currency: CAD

3.99  -0.02 (-0.5%)

Fundamental Rating

2

Taking everything into account, WE scores 2 out of 10 in our fundamental rating. WE was compared to 63 industry peers in the Software industry. WE may be in some trouble as it scores bad on both profitability and health. WE is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

In the past year WE has reported negative net income.
WE had a positive operating cash flow in the past year.
WE.CA Yearly Net Income VS EBIT VS OCF VS FCFWE.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 0 10M -10M -20M

1.2 Ratios

WE has negative profitability rations, so we won't be analyzing them here.
Industry RankSector Rank
ROA N/A
ROE N/A
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
WE.CA Yearly ROA, ROE, ROICWE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 -5 -10 -15 -20 -25

1.3 Margins

The Profit Margin and Operating Margin and Gross Margin are not available for WE so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
WE.CA Yearly Profit, Operating, Gross MarginsWE.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 -10 -20 -30 -40

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3

2. Health

2.1 Basic Checks

WE does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, WE has more shares outstanding
The debt/assets ratio for WE has been reduced compared to a year ago.
WE.CA Yearly Shares OutstandingWE.CA Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 10M 20M 30M 40M
WE.CA Yearly Total Debt VS Total AssetsWE.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 50M 100M 150M

2.2 Solvency

Based on the Altman-Z score of 1.58, we must say that WE is in the distress zone and has some risk of bankruptcy.
WE has a Altman-Z score of 1.58. This is in the better half of the industry: WE outperforms 63.75% of its industry peers.
The Debt to FCF ratio of WE is 4.62, which is a neutral value as it means it would take WE, 4.62 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.62, WE is doing good in the industry, outperforming 75.00% of the companies in the same industry.
WE has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
WE has a Debt to Equity ratio (0.38) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 4.62
Altman-Z 1.58
ROIC/WACCN/A
WACC9.38%
WE.CA Yearly LT Debt VS Equity VS FCFWE.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 0 20M 40M 60M 80M 100M

2.3 Liquidity

WE has a Current Ratio of 0.90. This is a bad value and indicates that WE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of WE (0.90) is comparable to the rest of the industry.
A Quick Ratio of 0.90 indicates that WE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.90, WE is in line with its industry, outperforming 45.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.9
Quick Ratio 0.9
WE.CA Yearly Current Assets VS Current LiabilitesWE.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 10M 20M 30M

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4

3. Growth

3.1 Past

WE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -1946.79%.
WE shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.63%.
EPS 1Y (TTM)-1946.79%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-900%
Revenue 1Y (TTM)25.63%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.58%

3.2 Future

Based on estimates for the next years, WE will show a very strong growth in Earnings Per Share. The EPS will grow by 41.72% on average per year.
The Revenue is expected to grow by 19.69% on average over the next years. This is quite good.
EPS Next Y83.85%
EPS Next 2Y41.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year19.83%
Revenue Next 2Y19.69%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

WE.CA Yearly Revenue VS EstimatesWE.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 20M 40M 60M
WE.CA Yearly EPS VS EstimatesWE.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 0 -0.2 -0.4

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3

4. Valuation

4.1 Price/Earnings Ratio

WE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for WE. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
WE.CA Price Earnings VS Forward Price EarningsWE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 -40

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WE indicates a somewhat cheap valuation: WE is cheaper than 68.75% of the companies listed in the same industry.
WE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WE is cheaper than 86.25% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.35
EV/EBITDA 38.8
WE.CA Per share dataWE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2

4.3 Compensation for Growth

A more expensive valuation may be justified as WE's earnings are expected to grow with 41.72% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.72%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for WE!.
Industry RankSector Rank
Dividend Yield N/A

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WECOMMERCE HOLDINGS LTD

TSX-V:WE (8/24/2023, 7:00:00 PM)

3.99

-0.02 (-0.5%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners4.5%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap166.04M
Analysts45.71
Price Target4.97 (24.56%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-216.74%
Min EPS beat(2)-292.16%
Max EPS beat(2)-141.33%
EPS beat(4)1
Avg EPS beat(4)-144.15%
Min EPS beat(4)-292.16%
Max EPS beat(4)26.47%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.5%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)9.61%
Revenue beat(4)1
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)9.61%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 3.43
P/FCF 16.35
P/OCF 15.8
P/B 1.48
P/tB N/A
EV/EBITDA 38.8
EPS(TTM)-0.6
EYN/A
EPS(NY)-0.1
Fwd EYN/A
FCF(TTM)0.24
FCFY6.12%
OCF(TTM)0.25
OCFY6.33%
SpS1.16
BVpS2.7
TBVpS-1.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 4.62
Debt/EBITDA 8.1
Cap/Depr 2.8%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.9
Quick Ratio 0.9
Altman-Z 1.58
F-Score4
WACC9.38%
ROIC/WACCN/A
Cap/Depr(3y)2.13%
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1946.79%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-900%
EPS Next Y83.85%
EPS Next 2Y41.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)25.63%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.58%
Revenue Next Year19.83%
Revenue Next 2Y19.69%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-1578.88%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year214.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y30.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y31.36%
OCF growth 3YN/A
OCF growth 5YN/A