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Otelco

Nasdaq:OTEL
Snowflake Description

Good value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
OTEL
Nasdaq
$28M
Market Cap
  1. Home
  2. US
  3. Telecom
Company description

Otelco Inc. provides a range of telecommunications services on a retail and wholesale basis. The last earnings update was 109 days ago. More info.


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OTEL Share Price and Events
7 Day Returns
-
NasdaqCM:OTEL
0%
US Telecom
0.1%
US Market
1 Year Returns
-48.4%
NasdaqCM:OTEL
13.5%
US Telecom
19.3%
US Market
OTEL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Otelco (OTEL) - -9% -28.7% -48.4% 28.5% 67%
US Telecom 0% -2% 0.2% 13.5% -0.6% 7.5%
US Market 0.1% 1.7% 9% 19.3% 39.9% 54.1%
1 Year Return vs Industry and Market
  • OTEL underperformed the Telecom industry which returned 13.5% over the past year.
  • OTEL underperformed the Market in United States of America which returned 19.3% over the past year.
Price Volatility
OTEL
Industry
5yr Volatility vs Market

OTEL Value

 Is Otelco undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Otelco to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Otelco.

NasdaqCM:OTEL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:OTEL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.36
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.363 (1 + (1- 21%) (249.24%))
1.051
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.051 * 5.44%)
7.46%

Discounted Cash Flow Calculation for NasdaqCM:OTEL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Otelco is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqCM:OTEL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.46%)
2020 8.21 Est @ -2.42% 7.64
2021 8.12 Est @ -1.17% 7.03
2022 8.09 Est @ -0.3% 6.52
2023 8.12 Est @ 0.31% 6.09
2024 8.18 Est @ 0.74% 5.71
2025 8.26 Est @ 1.04% 5.37
2026 8.37 Est @ 1.25% 5.06
2027 8.48 Est @ 1.4% 4.77
2028 8.61 Est @ 1.5% 4.51
2029 8.75 Est @ 1.57% 4.26
Present value of next 10 years cash flows $56.00
NasdaqCM:OTEL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $8.75 × (1 + 1.74%) ÷ (7.46% – 1.74%)
$155.63
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $155.63 ÷ (1 + 7.46%)10
$75.81
NasdaqCM:OTEL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $56.00 + $75.81
$131.81
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $131.81 / 3.41
$38.64
NasdaqCM:OTEL Discount to Share Price
Calculation Result
Value per share (USD) From above. $38.64
Current discount Discount to share price of $8.35
= -1 x ($8.35 - $38.64) / $38.64
78.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Otelco is available for.
Intrinsic value
>50%
Share price is $8.35 vs Future cash flow value of $38.64
Current Discount Checks
For Otelco to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Otelco's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Otelco's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Otelco's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Otelco's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:OTEL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $2.36
NasdaqCM:OTEL Share Price ** NasdaqCM (2020-02-21) in USD $8.35
United States of America Telecom Industry PE Ratio Median Figure of 15 Publicly-Listed Telecom Companies 16.28x
United States of America Market PE Ratio Median Figure of 2,894 Publicly-Listed Companies 18.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Otelco.

NasdaqCM:OTEL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:OTEL Share Price ÷ EPS (both in USD)

= 8.35 ÷ 2.36

3.54x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Otelco is good value based on earnings compared to the US Telecom industry average.
  • Otelco is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Otelco's expected growth come at a high price?
Raw Data
NasdaqCM:OTEL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.54x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United States of America Telecom Industry PEG Ratio Median Figure of 7 Publicly-Listed Telecom Companies 1.82x
United States of America Market PEG Ratio Median Figure of 1,995 Publicly-Listed Companies 1.63x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Otelco, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Otelco's assets?
Raw Data
NasdaqCM:OTEL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $4.90
NasdaqCM:OTEL Share Price * NasdaqCM (2020-02-21) in USD $8.35
United States of America Telecom Industry PB Ratio Median Figure of 31 Publicly-Listed Telecom Companies 1.51x
United States of America Market PB Ratio Median Figure of 5,103 Publicly-Listed Companies 1.8x
NasdaqCM:OTEL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:OTEL Share Price ÷ Book Value per Share (both in USD)

= 8.35 ÷ 4.90

1.7x

* Primary Listing of Otelco.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Otelco is overvalued based on assets compared to the US Telecom industry average.
X
Value checks
We assess Otelco's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. Otelco has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

OTEL Future Performance

 How is Otelco expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 Otelco 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.3%
Expected Telecom industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Otelco expected to grow at an attractive rate?
  • Unable to compare Otelco's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Otelco's earnings growth to the United States of America market average as no estimate data is available.
  • Unable to compare Otelco's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:OTEL Future Growth Rates Data Sources
Data Point Source Value (per year)
United States of America Telecom Industry Earnings Growth Rate Market Cap Weighted Average 9.3%
United States of America Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:OTEL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:OTEL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 63 17 8
2019-06-30 64 19 9
2019-03-31 65 19 10
2018-12-31 66 21 9
2018-09-30 67 20 15
2018-06-30 67 18 14
2018-03-31 68 18 13
2017-12-31 69 18 12
2017-09-30 69 18 6
2017-06-30 69 19 5
2017-03-31 69 18 5
2016-12-31 69 19 5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Otelco is high growth as no earnings estimate data is available.
  • Unable to determine if Otelco is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:OTEL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Otelco Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:OTEL Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 2.36
2019-06-30 2.51
2019-03-31 2.87
2018-12-31 2.79
2018-09-30 4.33
2018-06-30 4.12
2018-03-31 3.72
2017-12-31 3.62
2017-09-30 1.71
2017-06-30 1.57
2017-03-31 1.52
2016-12-31 1.57

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Otelco will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Otelco is trading at Otelco'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Otelco's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Telecom companies here
  3. Otelco's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Otelco's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Otelco has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

OTEL Past Performance

  How has Otelco performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Otelco's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Otelco's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Otelco's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Otelco's 1-year earnings growth is negative, it can't be compared to the US Telecom industry average.
Earnings and Revenue History
Otelco's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Otelco Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:OTEL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 63.38 8.05 10.30
2019-06-30 63.87 8.56 9.97
2019-03-31 65.10 9.75 10.24
2018-12-31 66.07 9.47 10.45
2018-09-30 66.66 14.61 10.08
2018-06-30 67.36 13.87 10.28
2018-03-31 67.87 12.50 10.12
2017-12-31 68.53 12.12 10.15
2017-09-30 68.57 5.68 10.13
2017-06-30 69.01 5.22 10.43
2017-03-31 68.83 5.00 10.44
2016-12-31 68.94 5.15 10.23
2016-09-30 69.83 6.04 10.17
2016-06-30 70.29 6.77 9.74
2016-03-31 70.95 7.10 9.77
2015-12-31 71.10 7.48 9.85
2015-09-30 71.56 6.58 10.49
2015-06-30 72.13 6.12 10.51
2015-03-31 72.73 5.77 10.59
2014-12-31 73.87 5.03 10.91
2014-09-30 75.03 3.89 10.25
2014-06-30 75.59 3.97 10.65
2014-03-31 76.77 112.31 10.12
2013-12-31 78.97 109.14 10.49
2013-09-30 83.52 109.32 10.29
2013-06-30 88.97 108.17 10.49
2013-03-31 94.02 -129.49 11.69

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Otelco made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Otelco used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.
  • Otelco's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Otelco's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Otelco has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

OTEL Health

 How is Otelco's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Otelco's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Otelco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Otelco's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Otelco's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Otelco Company Filings, last reported 4 months ago.

NasdaqCM:OTEL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 16.71 70.08 5.30
2019-06-30 14.83 71.06 5.35
2019-03-31 13.07 72.03 5.48
2018-12-31 10.90 73.01 4.66
2018-09-30 8.56 75.00 3.72
2018-06-30 6.18 78.98 4.24
2018-03-31 3.19 82.95 6.29
2017-12-31 1.51 83.95 3.57
2017-09-30 -5.95 84.89 8.86
2017-06-30 -7.61 88.51 11.27
2017-03-31 -9.21 89.19 10.67
2016-12-31 -10.71 92.93 10.54
2016-09-30 -11.76 93.54 9.33
2016-06-30 -13.00 94.17 8.28
2016-03-31 -14.38 94.80 6.93
2015-12-31 -16.16 99.26 6.88
2015-09-30 -18.08 102.02 5.89
2015-06-30 -20.01 105.09 6.86
2015-03-31 -21.71 109.47 7.72
2014-12-31 -24.01 112.14 5.08
2014-09-30 -25.59 114.39 5.81
2014-06-30 -26.98 117.06 4.81
2014-03-31 -28.29 123.19 6.86
2013-12-31 -29.68 128.63 9.92
2013-09-30 -29.48 131.63 10.35
2013-06-30 -30.95 133.30 11.12
2013-03-31 -143.37 278.83 34.29
  • Otelco's level of debt (419.4%) compared to net worth is high (greater than 40%).
  • Otelco had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is well covered by operating cash flow (24.2%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.8x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Otelco's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Otelco has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

OTEL Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Otelco dividends.
If you bought $2,000 of Otelco shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Otelco's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Otelco's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:OTEL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Telecom Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 4.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1960 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Otelco has not reported any payouts.
  • Unable to verify if Otelco's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Otelco's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Otelco 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.
X
Income/ dividend checks
We assess Otelco's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Otelco afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Otelco has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

OTEL Management

 What is the CEO of Otelco's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Richard Clark
AGE 53
TENURE AS CEO 0.1 years
CEO Bio

Mr. Richard Allen Clark serves as Chief Executive Officer at Otelco Inc. since January 1, 2020. He serves as President at Otelco Inc. since May 1, 2019. He has been Chief Executive Officer and Director of Otelco Inc. since January 1, 2020. He was Executive Vice President and Chief Financial Officer of TVC Albany, Inc., headquartered in Albany, New York and doing business as FirstLight Fiber from December 2016 to September 2018. From October 2013 to December 2016, Mr. Clark served as Executive Vice President and Chief Financial Officer of Oxford Networks (a high-speed data provider) until Oxford was acquired by FirstLight Fiber. Mr. Clark served as Senior Vice President and Chief Financial Officer of WAI Global (a global manufacturer and distributor of automotive aftermarket parts) from February 2011 to September 2013 and as Executive Vice President and Chief Financial Officer of Parts Depot, Inc. (a distributor of auto parts) from November 2005 to February 2011. Mr. Clark served in executive positions from 1995 through 2005 at various companies in financial and operating positions. Mr. Clark began his career at PriceWaterhouseCoopers from 1986 through 1995. He served as Chief Operating Officer at Otelco Inc. since October 15, 2018 until January 1, 2020. He graduated from Husson University in 1986 with a degree in public accounting and is a Certified Public Accountant.

CEO Compensation
  • Insufficient data for Richard to compare compensation growth.
  • Insufficient data for Richard to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Otelco management team in years:

11.5
Average Tenure
67
Average Age
  • The average tenure for the Otelco management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Curtis Garner

TITLE
Secretary & CFO
COMPENSATION
$353K
AGE
72
TENURE
16 yrs

Richard Clark

TITLE
CEO, President & Director
AGE
53
TENURE
0.1 yrs

Trina Bragdon

TITLE
General Counsel
TENURE
6.9 yrs

Jerry Boles

TITLE
Senior VP & Controller
COMPENSATION
$232K
AGE
67
TENURE
21.1 yrs
Board of Directors Tenure

Average tenure and age of the Otelco board of directors in years:

6.7
Average Tenure
57
Average Age
  • The tenure for the Otelco board of directors is about average.
Board of Directors

Stephen McCall

TITLE
Chairman of the Board
COMPENSATION
$98K
AGE
48
TENURE
6.7 yrs

Richard Clark

TITLE
CEO, President & Director
AGE
53
TENURE
0.1 yrs

Howard Haug

TITLE
Independent Director
COMPENSATION
$88K
AGE
68
TENURE
15.2 yrs

Norman Frost

TITLE
Independent Director
COMPENSATION
$82K
AGE
64
TENURE
6.8 yrs

Gary Sugarman

TITLE
Independent Director
COMPENSATION
$79K
AGE
66
TENURE
6.8 yrs

Brian Ross

TITLE
Independent Director
COMPENSATION
$74K
AGE
61
TENURE
6.8 yrs

Dayton Judd

TITLE
Independent Director
AGE
47
TENURE
0.8 yrs

Barbara Dondiego-Stewart

TITLE
Independent Director
AGE
43
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
25. Nov 19 Buy Barbara Dondiego-Stewart Individual 21. Nov 19 21. Nov 19 851 $11.78 $10,025
25. Nov 19 Buy Howard Haug Individual 21. Nov 19 21. Nov 19 92 $11.64 $1,071
25. Nov 19 Buy Norman Frost Individual 21. Nov 19 22. Nov 19 600 $11.71 $6,963
22. Nov 19 Buy Dayton Judd Individual 21. Nov 19 21. Nov 19 860 $11.65 $10,019
22. Nov 19 Buy Ira Sochet Individual 19. Nov 19 19. Nov 19 3,862 $11.75 $45,379
22. Nov 19 Buy Ira Sochet Individual 20. Nov 19 21. Nov 19 3,000 $11.55 $34,525
21. Nov 19 Buy Howard Haug Individual 19. Nov 19 20. Nov 19 653 $11.64 $7,481
19. Nov 19 Buy Howard Haug Individual 15. Nov 19 15. Nov 19 300 $11.67 $3,501
15. Nov 19 Buy Gary Sugarman Individual 14. Nov 19 14. Nov 19 890 $11.25 $10,013
14. Nov 19 Buy Stephen McCall Individual 12. Nov 19 12. Nov 19 900 $11.60 $10,440
18. Sep 19 Buy Ira Sochet Individual 17. Sep 19 18. Sep 19 9,878 $11.75 $115,417
27. Aug 19 Buy Ira Sochet Individual 26. Aug 19 26. Aug 19 53,454 $12.00 $641,448
16. Aug 19 Buy Ira Sochet Individual 14. Aug 19 15. Aug 19 44,993 $11.70 $514,542
31. Jul 19 Buy Ira Sochet Individual 29. Jul 19 30. Jul 19 9,330 $14.73 $137,431
26. Jul 19 Buy Ira Sochet Individual 26. Jul 19 26. Jul 19 17 $14.75 $251
26. Jul 19 Buy Ira Sochet Individual 24. Jul 19 25. Jul 19 9,456 $14.80 $139,871
19. Jul 19 Buy Ira Sochet Individual 17. Jul 19 18. Jul 19 22,497 $14.72 $329,721
17. Jul 19 Buy Ira Sochet Individual 12. Jul 19 15. Jul 19 4,874 $14.65 $70,838
10. Jun 19 Buy Ira Sochet Individual 06. Jun 19 07. Jun 19 67,211 $16.00 $1,072,212
22. May 19 Buy Ira Sochet Individual 22. May 19 22. May 19 7 $15.26 $107
22. May 19 Buy Ira Sochet Individual 20. May 19 21. May 19 27,934 $15.50 $427,994
09. May 19 Buy Ira Sochet Individual 07. May 19 08. May 19 1,343 $17.60 $23,632
02. May 19 Buy Ira Sochet Individual 30. Apr 19 02. May 19 5,819 $17.48 $101,024
26. Apr 19 Buy Ira Sochet Individual 25. Apr 19 25. Apr 19 7,128 $17.30 $123,314
24. Apr 19 Buy Ira Sochet Individual 22. Apr 19 24. Apr 19 31,017 $17.33 $537,011
16. Apr 19 Buy Ira Sochet Individual 15. Apr 19 15. Apr 19 6,518 $17.30 $112,761
10. Apr 19 Buy Ira Sochet Individual 08. Apr 19 10. Apr 19 7,341 $17.20 $125,419
01. Apr 19 Buy Ira Sochet Individual 29. Mar 19 01. Apr 19 20,692 $16.50 $341,319
21. Mar 19 Buy Ira Sochet Individual 20. Mar 19 20. Mar 19 7,508 $15.45 $115,999
18. Mar 19 Buy Ira Sochet Individual 15. Mar 19 18. Mar 19 7,151 $15.41 $110,152
08. Mar 19 Buy Ira Sochet Individual 06. Mar 19 07. Mar 19 60,000 $15.75 $944,750
27. Feb 19 Buy Ira Sochet Individual 26. Feb 19 26. Feb 19 28,120 $16.40 $461,168
X
Management checks
We assess Otelco's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Otelco has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

OTEL News

Simply Wall St News

Is Otelco Inc.'s (NASDAQ:OTEL) ROE Of 58% Impressive?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Otelco: 58% = US$8.6m ÷ US$15m (Based on the trailing twelve months to June 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … The Importance Of Debt To Return On Equity Companies usually need to invest money to grow their profits. … Otelco's Debt And Its 58% ROE It appears that Otelco makes extensive use of debt to improve its returns, because it has a relatively high debt to equity ratio of 4.79.

Simply Wall St -

Have Insiders Been Buying Otelco Inc. (NASDAQ:OTEL) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for Otelco Otelco Insider Transactions Over The Last Year insider Ira Sochet made the biggest insider purchase in the last 12 months. … NasdaqCM:OTEL Recent Insider Trading, August 12th 2019 Insider Ownership of Otelco I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. … Otelco insiders own about US$23m worth of shares (which is 45% of the company).

Simply Wall St -

Introducing Otelco (NASDAQ:OTEL), The Stock That Zoomed 246% In The Last Three Years

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During three years of share price growth, Otelco achieved compound earnings per share growth of 9.6% per year. … Otelco is not the only stock insiders are buying.

Simply Wall St -

Should You Worry About Otelco Inc.'s (NASDAQ:OTEL) CEO Pay Cheque?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … Check out our latest analysis for Otelco How Does Rob Souza's Compensation Compare With Similar Sized Companies? … We examined a group of similar sized companies, with market capitalizations of below US$200m.

Simply Wall St -

Does Otelco Inc. (NASDAQ:OTEL) Have A Good P/E Ratio?

View our latest analysis for Otelco How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Otelco: P/E of 5.57 = $16 ÷ $2.87 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio.

Simply Wall St -

What Type Of Shareholder Owns Otelco Inc.'s (NASDAQ:OTEL)?

As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' Otelco is a smaller company with a market capitalization of US$53m, so it may still be flying under the radar of many institutional investors. … Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. … Insider Ownership Of Otelco The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

How Much Are Otelco Inc. (NASDAQ:OTEL) Insiders Spending On Buying Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for Otelco The Last 12 Months Of Insider Transactions At Otelco Ira Sochet made the biggest insider purchase in the last 12 months. … NasdaqCM:OTEL Recent Insider Trading, May 10th 2019 Otelco is not the only stock that insiders are buying. … When combined with notable insider ownership, these factors suggest Otelco insiders are well aligned, and quite possibly think the share price is too low.

Simply Wall St -

If You Had Bought Otelco (NASDAQ:OTEL) Shares Three Years Ago You'd Have Made 255%

(NASDAQ:OTEL) share price has flown 255% in the last three years. … During three years of share price growth, Otelco achieved compound earnings per share growth of 6.5% per year. … In comparison, the 52% per year gain in the share price outpaces the EPS growth.

Simply Wall St -

Why Otelco Inc.'s (NASDAQ:OTEL) CEO Pay Matters To You

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Rob Souza's Compensation Compare With Similar Sized Companies. … has a market cap of US$54m, and is paying total annual CEO compensation of US$543k.

Simply Wall St -

What Can We Make Of Otelco Inc.’s (NASDAQ:OTEL) High Return On Capital?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

OTEL Company Info

Description

Otelco Inc. provides a range of telecommunications services on a retail and wholesale basis. The company offers local services, including voice lines that provide local dial tone and calling features, such as caller identification, call waiting, call forwarding, and voicemail; long distance services; billing and collection services for other carriers under contract; and directory advertising services. It also provides network access services comprising the origination, transportation, and termination of calls of long distance, wireless, and other interexchange carriers; digital high-speed data lines and ancillary services, such as Web hosting and computer virus protection; and basic, digital, high-definition, digital video recording, video on demand, and pay per view cable television services. In addition, it offers Internet protocol television; wireless security systems and system monitoring services; and private/hybrid cloud hosting services, as well as consulting and professional IT engineering services for mission-critical software applications for small and mid-sized companies. Further, the company rents fiber to transport data and other telecommunications services. It primarily serves business and residential customers residing in and adjacent to the exchanges in Alabama, Maine, Massachusetts, Missouri, Vermont, and West Virginia; and business customers in Maine and New Hampshire. As of March 6, 2019, it operated approximately 99,000 voice and data access lines. The company was founded in 1998 and is based in Oneonta, Alabama.

Details
Name: Otelco Inc.
OTEL
Exchange: NasdaqCM
Founded: 1998
$28,480,974
3,410,936
Website: http://www.otelco.com
Address: Otelco Inc.
505 Third Avenue East,
Oneonta,
Alabama, 35121,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM OTEL Class A Common Stock Nasdaq Capital Market US USD 28. May 2013
Number of employees
Current staff
Staff numbers
202
Otelco employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/02/22 03:07
End of day share price update: 2020/02/21 00:00
Last earnings filing: 2019/11/05
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.