Tucows, Inc. relative valuation is OVERVALUED and it has a fundamental analysis score of 81.
Our analysis is based on comparing Tucows, Inc. with the following peers – Web.com Group, Inc., Leaf Group Ltd., Bridgeline Digital, Inc., Wix.com Ltd., Innodata Inc., VeriSign, Inc. and Synacor, Inc. (WEB-US, LFGR-US, BLIN-US, WIX-US, INOD-US, VRSN-US and SYNC-US).
Tucows, Inc. has shown good performance overall, both over the last one year (at 114.34%) as well as over the last month (at 6.67%). Share price performance over the last month, though has been lower than that over the last year. But Tucows, Inc.’s stock has done better than its overall peer group whose performance was -5.62% over the last month.
- Considering peers, relative outperformance over the last year and the last month suggest a leading position.
- It currently trades at a Price/Book ratio of (13.51).
- TCX-US‘s operating performance is relatively good compared to its peers. The market currently does not expect high earnings growth relative to its peers but seems to expect the company to maintain its relatively high rates of return.
- TCX-US has relatively high profit margins while operating with median asset turns.
- Compared with its chosen peers, changes in the company’s annual earnings are better than the changes in its revenue, implying better than median cost control and/or some economies of scale.
- TCX-US‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
- The company’s median gross margin and relatively high pre-tax margins suggest non-differentiated product portfolio but with tight cost control relative to peers.
- While TCX-US‘s revenues in recent years have grown faster than the peer median, the market gives the stock a P/E ratio that is around peer median suggesting that the market has some questions about the company’s long-term strategy.
- The company’s level of capital investment seems appropriate to support the company’s growth.
- TCX-US has the financial and operating capacity to borrow quickly.
- Our analysis rates Tucows, Inc. as OVERVALUED relative to its peers.
Share Price Performance
Considering peers, relative outperformance over the last year and the last month suggest a leading position.
TCX-US‘s share price performance of 114.34% over the last 12 months is above peer median of 26.98%. The 30-day trend in its share price performance of 6.67% is also above the peer median of -5.62% suggesting that this company is a leading performer relative to its peers.
Quadrant label definitions. Hover to know more
Tucows, Inc.’s price of USD 59.20 is greater than CapitalCube’s implied price of USD 41.12. At this level, CapitalCube believes that Tucows, Inc. is overvalued. Over the last 52 week period, the stock has fluctuated between USD 25.78 and USD 63.20.
Valuation & Peer Metrics
A complete list of valuation metrics is available on the company page.
Tucows, Inc. is an Internet services company, which engages in the provision of domain names, email, and other services. It operates through the Domain Services and Network Access Services segments. The Domain Services segment includes wholesale and retail domain name registration services; value added services; and portfolio services. The Network Access Services sells retail mobile phones and services to individuals and small businesses through the Ting website. It also offers services under four brands: OpenSRS, YummyNames, Hover, and Ting. The company was founded in 1993 and is headquartered in Toronto, Canada.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.