TeraGo, Inc. (TGO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

TELUS Corp.

BCE, Inc.

Uniserve Communications Corp.

TeraGo, Inc.

Why is TeraGo, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -11.29% and Operating profit at -241.29% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 7.56 times

The company has declared Negative results for the last 13 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CAD 0.01 MM
ROCE(HY) Lowest at -322.49%
CASH AND EQV(HY) Lowest at CAD 4.02 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -60.18%, its profits have fallen by -9%

Below par performance in long term as well as near term

Along with generating -60.18% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is TeraGo, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

TeraGo, Inc.

-24.2%

-0.94

63.90%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-11.18%

EBIT Growth (5y)

-203.49%

EBIT to Interest (avg)

-1.92

Debt to EBITDA (avg)

7.56

Net Debt to Equity (avg)

18.08

Sales to Capital Employed (avg)

0.72

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.89%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-8.02

EV to EBIT

-10.55

EV to EBITDA

24.06

EV to Capital Employed

2.34

EV to Sales

2.65

PEG Ratio

Dividend Yield

ROCE (Latest)

-22.14%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 14.56 times

RAW MATERIAL COST(Y)

Fallen by -1.2% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -1,110.95 %

PRE-TAX PROFIT(Q)

Highest at CAD -2.37 MM

NET PROFIT(Q)

Highest at CAD -2.37 MM

EPS(Q)

Highest at CAD -0.12

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD -0.11 MM

INTEREST(HY)

At CAD 4.59 MM has Grown at 40.63%

ROCE(HY)

Lowest at -755.68%

CASH AND EQV(HY)

Lowest at CAD 3.22 MM

Here's what is working for TeraGo, Inc.

Debtors Turnover Ratio

Highest at 14.56 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Pre-Tax Profit

Highest at CAD -2.37 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD -2.37 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD -0.12

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Lowest at -1,110.95 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -1.2% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for TeraGo, Inc.

Interest

At CAD 4.59 MM has Grown at 40.63%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Cash Flow

Lowest at CAD -0.11 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Cash and Eqv

Lowest at CAD 3.22 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents