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Net Element Inc (NETE) Stock Fundamental Analysis

NASDAQ:NETE - Nasdaq -

13.09  +1.04 (+8.63%)

After market: 13 -0.09 (-0.69%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to NETE. NETE was compared to 283 industry peers in the Software industry. Both the profitability and financial health of NETE have multiple concerns. NETE shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

In the past year NETE has reported negative net income.
NETE Yearly Net Income VS EBIT VS OCF VS FCFNETE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 0 -5M -10M

1.2 Ratios

Industry RankSector Rank
ROA -8.72%
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
NETE Yearly ROA, ROE, ROICNETE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 -100 -200 -300

1.3 Margins

Industry RankSector Rank
OM -3.42%
PM (TTM) -2.88%
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
NETE Yearly Profit, Operating, Gross MarginsNETE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 0 10 -10 -20 -30

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1

2. Health

2.1 Basic Checks

The number of shares outstanding for NETE has been increased compared to 1 year ago.
NETE has a better debt/assets ratio than last year.
NETE Yearly Shares OutstandingNETE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 1M 2M 3M 4M
NETE Yearly Total Debt VS Total AssetsNETE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 10M 20M 30M

2.2 Solvency

NETE has an Altman-Z score of -3.91. This is a bad value and indicates that NETE is not financially healthy and even has some risk of bankruptcy.
A Debt/Equity ratio of 1.37 is on the high side and indicates that NETE has dependencies on debt financing.
Industry RankSector Rank
Debt/Equity 1.37
Debt/FCF N/A
Altman-Z -3.91
ROIC/WACCN/A
WACCN/A
NETE Yearly LT Debt VS Equity VS FCFNETE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 0 5M -5M 10M

2.3 Liquidity

A Current Ratio of 1.19 indicates that NETE should not have too much problems paying its short term obligations.
NETE has a Quick Ratio of 1.19. This is a normal value and indicates that NETE is financially healthy and should not expect problems in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 1.19
NETE Yearly Current Assets VS Current LiabilitesNETE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 5M 10M 15M

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7

3. Growth

3.1 Past

NETE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 81.82%, which is quite impressive.
The Revenue has grown by 47.91% in the past year. This is a very strong growth!
Measured over the past years, NETE shows a quite strong growth in Revenue. The Revenue has been growing by 10.31% on average per year.
EPS 1Y (TTM)81.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%162.5%
Revenue 1Y (TTM)47.91%
Revenue growth 3Y3.04%
Revenue growth 5Y10.31%
Sales Q2Q%142.68%

3.2 Future

NETE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 59.00% yearly.
The Revenue is expected to grow by 55.36% on average over the next years. This is a very strong growth
EPS Next Y126.19%
EPS Next 2Y74.18%
EPS Next 3Y60.18%
EPS Next 5Y59%
Revenue Next Year108.57%
Revenue Next 2Y52.39%
Revenue Next 3Y53.85%
Revenue Next 5Y55.36%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
NETE Yearly Revenue VS EstimatesNETE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
NETE Yearly EPS VS EstimatesNETE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -5 -10 -15 -20

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2

4. Valuation

4.1 Price/Earnings Ratio

NETE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 17.11, the valuation of NETE can be described as rather expensive.
When comparing the Price/Forward Earnings ratio of NETE to the average of the S&P500 Index (22.70), we can say NETE is valued slightly cheaper.
Industry RankSector Rank
PE N/A
Fwd PE 17.11
NETE Price Earnings VS Forward Price EarningsNETE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 -40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA -171.16
NETE Per share dataNETE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

NETE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NETE's earnings are expected to grow with 60.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y74.18%
EPS Next 3Y60.18%

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0

5. Dividend

5.1 Amount

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

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Net Element Inc

NASDAQ:NETE (11/4/2021, 8:00:02 PM)

After market: 13 -0.09 (-0.69%)

13.09

+1.04 (+8.63%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners0.32%
Inst Owner Change-96.87%
Ins Owners246.43%
Ins Owner Change0%
Market Cap78.10M
Analysts82.86
Price Target23.46 (79.22%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 17.11
P/S 0.76
P/FCF N/A
P/OCF N/A
P/B 11.49
P/tB N/A
EV/EBITDA -171.16
EPS(TTM)-0.24
EYN/A
EPS(NY)0.77
Fwd EY5.84%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS17.25
BVpS1.14
TBVpSN/A
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -8.72%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM -3.42%
PM (TTM) -2.88%
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 3Y0%
ROICexcg growth 5Y0%
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-Score6
Asset Turnover3.03
Health
Industry RankSector Rank
Debt/Equity 1.37
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.19
Quick Ratio 1.19
Altman-Z -3.91
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
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)81.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%162.5%
EPS Next Y126.19%
EPS Next 2Y74.18%
EPS Next 3Y60.18%
EPS Next 5Y59%
Revenue 1Y (TTM)47.91%
Revenue growth 3Y3.04%
Revenue growth 5Y10.31%
Sales Q2Q%142.68%
Revenue Next Year108.57%
Revenue Next 2Y52.39%
Revenue Next 3Y53.85%
Revenue Next 5Y55.36%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A