The company reports a large amount of sales growth of 21% y/y with a gross profit ratio of 13%. Last year, annual sales were equal to $251. 568 million:
WSTG does not report large EBITDA growth. However, the company’s EBITDA ratio is positive and equal to 2%. In my opinion, when more investors get to know the financial statistics of WSTG, the stock demand will increase. The EBITDA growth is negative because the cost of sales increased a 22%. Administrative expenses increased a 11%, which reduces WSTG’s EBITDA.
Balance Sheet As Of 2020-12-31
With an assets to liabilities ratio of more than 1x, WSTG’s balance sheet looks stable. In Q4, the total amount of assets was equal to $165 million, with total liabilities of $120 million. WSTG shows $29 million in cash and cash equivalents. In my experience, the company is cash rich. In my experience, market participants will appreciate it. Furthermore, Wayside Technology Group Inc has positive working capital, which traders will like. It means that WSTG can cover its short-term liabilities when they come due.
WSTG’s short term debt is less significant than the company’s cash and cash equivalents. In my opinion, Wayside Technology Group Inc may not have to worry about any liquidity risk. In my opinion, WSTG is cheap. Moreover, notice that the cash per share is equal to $6, and the stock price is $25. 25. WSTG’s debt to equity ratio is below 2x. Therefore, the debt level appears to be under control. Note that Wayside Technology Group Inc reports net debt of $-26 million.
Quarterly Results For The Quarter Ended 2020-12-31
In Q4 WSTG reported quarterly sales of $71 million, and gross profit of $10 million. The gross profit ratio was equal to 14%. In addition, WSTG is profitable, which is favorable. Wayside Technology Group Inc released positive quarterly EBITDA of $3.749 million. The numbers seem beneficial. WSTG also showed positive net income of $2.527 million. Taking this into account, many money managers will most likely have a look at WSTG.
Valuation and Risks
Wayside Technology Group Inc has a market capitalization of $111 million. The enterprise value is equal to $53 million. With forward sales of $251 million, WSTG sells at less than 2x forward sales. In my opinion, money managers will most likely believe that Wayside Technology Group Inc is cheap. Institutional shareholders PUNCH & ASSOCIATES INVESTMENT MANAGEMENT, INC. , MORGAN STANLEY, and ROYAL BANK OF CANADA are Wayside Technology Group Inc investors.
The following WSTG’s insiders acquired or sold equity recently.WSTG’s traders will most likely study this information:
+In 2021-03-04, director DiBattiste Carol acquired equity of WSTG.
+In 2021-02-23, officer: Chief Marketing Officer Bass Charles Edward sold stock of WSTG.
+In 2021-02-23, officer: Chief Marketing Officer Bass Charles Edward acquired equity of WSTG.
Wayside Technology Group, Inc. engages in the distribution of software developed by others through resellers indirectly to customers. The company is headquartered in Eatontown, New Jersey and currently employs 153 full-time employees.
If you see an error, please contact the editor. We don’t own WSTG’s shares, and this is our opinion. We do not offer a recommendation to buy or sell any stock.