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| Income Statement | 12/31/17 | 3/31/18 | 6/30/18 | 9/30/18 | 12/31/18 | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | 132.44 | 133.54 | 139.61 | 143.5 | 170.23 | 136 | 138.77 | 136.17 | 160.9 | 151.35 | 206.73 | 193.92 | 205.99 |
| Other Revenues | 0.02 | 0.02 | 0.02 | 0.01 | |||||||||
| Total Revenues | 132.47 | 133.57 | 139.63 | 143.51 | 170.23 | 136 | 138.77 | 136.17 | 160.9 | 151.35 | 206.73 | 193.92 | 205.99 |
| % Change YoY | 25.10% | 27.20% | 20.20% | 24.70% | 28.50% | 1.80% | -0.60% | -5.10% | -5.50% | 11.30% | 49.00% | 42.40% | 28.00% |
| Cost of Goods Sold | -20.87 | -25.53 | -29.44 | -33.12 | -38.82 | -36.34 | -36.44 | -38.2 | -44.23 | -40.38 | -47.76 | -43.95 | -46.72 |
| Gross Profit | 111.6 | 108.04 | 110.19 | 110.38 | 131.42 | 99.66 | 102.33 | 97.97 | 116.67 | 110.97 | 158.97 | 149.97 | 159.26 |
| % Change YoY | 26.80% | 23.80% | 13.50% | 18.00% | 17.80% | -7.80% | -7.10% | -11.20% | -11.20% | 11.30% | 55.30% | 53.10% | 36.50% |
| % Gross Margins | 84.20% | 80.90% | 78.90% | 76.90% | 77.20% | 73.30% | 73.70% | 71.90% | 72.50% | 73.30% | 76.90% | 77.30% | 77.30% |
| Selling General & Admin Expenses | -51.88 | -46.76 | -50.98 | -51.66 | -57.13 | -59.11 | -60.78 | -62.04 | -63.11 | -65.47 | -74.9 | -70.6 | -74.44 |
| R&D Expenses | -8.22 | -12.07 | -12.34 | -14.43 | -17.75 | -17.31 | -19.13 | -20.28 | -21.32 | -21.32 | -22.88 | -24.74 | -26.65 |
| Other Operating Expenses | -60.1 | -58.84 | -63.32 | -66.09 | -74.88 | -76.42 | -79.91 | -82.32 | -84.42 | -86.8 | -97.78 | -95.34 | -101.09 |
| Operating Income | 51.5 | 49.2 | 46.87 | 44.29 | 56.54 | 23.24 | 22.43 | 15.65 | 32.25 | 24.17 | 61.19 | 54.62 | 58.17 |
| % Change YoY | 24.30% | 42.00% | 12.40% | 31.20% | 9.80% | -52.80% | -52.20% | -64.70% | -43.00% | 4.00% | 172.80% | 249.00% | 80.40% |
| % Operating Margins | 38.90% | 36.80% | 33.60% | 30.90% | 33.20% | 17.10% | 16.20% | 11.50% | 20.00% | 16.00% | 29.60% | 28.20% | 28.20% |
| Interest Expense | -0.89 | -0.59 | -0.65 | -0.67 | -0.76 | -0.71 | -0.65 | -0.59 | -0.57 | -0.47 | -0.46 | -0.1 | -0.1 |
| Interest And Investment Income | 0.11 | 0.05 | 0.04 | 0.08 | 0.07 | 0.05 | 0.05 | 0.04 | 0.03 | 0.01 | 0.03 | 0.01 | |
| Currency Exchange Gains (Loss) | -0.96 | -0.04 | -0.1 | -0.15 | -0.04 | -0.22 | -0.14 | -0.03 | -0.07 | -0.23 | |||
| Other Non Operating Income (Expenses) | |||||||||||||
| EBT Excl. Unusual Items | 50.72 | 48.66 | 46.26 | 42.75 | 55.74 | 22.5 | 21.68 | 15.08 | 31.5 | 23.59 | 60.7 | 54.49 | 57.86 |
| Merger & Restructuring Charges | -2.5 | ||||||||||||
| Gain (Loss) On Sale Of Investments | |||||||||||||
| Insurance Settlements | |||||||||||||
| Legal Settlements | |||||||||||||
| Other Unusual Items | |||||||||||||
| EBT Incl. Unusual Items | 50.72 | 48.66 | 46.26 | 42.75 | 53.24 | 22.5 | 21.68 | 15.08 | 31.5 | 23.59 | 60.7 | 54.49 | 57.86 |
| Income Tax Expense | -10.52 | -1.62 | -0.74 | -9.34 | -10.58 | -6.74 | -7.69 | -5.93 | -11.16 | -7.1 | -8.98 | 9.49 | -11.38 |
| Earnings From Continuing Operations | 40.2 | 47.04 | 45.52 | 33.41 | 42.66 | 15.76 | 13.99 | 9.15 | 20.33 | 16.49 | 51.73 | 63.97 | 46.47 |
| Net Income to Company | 40.2 | 47.04 | 45.52 | 33.41 | 42.66 | 15.76 | 13.99 | 9.15 | 20.33 | 16.49 | 51.73 | 63.97 | 46.47 |
| Net Income | 40.2 | 47.04 | 45.52 | 33.41 | 42.66 | 15.76 | 13.99 | 9.15 | 20.33 | 16.49 | 51.73 | 63.97 | 46.47 |
| Net Income to Common Incl Extra Items | 40.2 | 47.04 | 45.52 | 33.41 | 42.66 | 15.76 | 13.99 | 9.15 | 20.33 | 16.49 | 51.73 | 63.97 | 46.47 |
| % Net Income to Common Incl Extra Items Margins | 30.30% | 35.20% | 32.60% | 23.30% | 25.10% | 11.60% | 10.10% | 6.70% | 12.60% | 10.90% | 25.00% | 33.00% | 22.60% |
| Net Income to Common Excl. Extra Items | 40.2 | 47.04 | 45.52 | 33.41 | 42.66 | 15.76 | 13.99 | 9.15 | 20.33 | 16.49 | 51.73 | 63.97 | 46.47 |
| % Net Income to Common Excl. Extra Items Margins | 30.30% | 35.20% | 32.60% | 23.30% | 25.10% | 11.60% | 10.10% | 6.70% | 12.60% | 10.90% | 25.00% | 33.00% | 22.60% |
| Supplementary Data: | |||||||||||||
| Diluted EPS Excl Extra Items | 2.15 | 2.54 | 2.41 | 1.75 | 2.3 | 0.87 | 0.79 | 0.52 | 1.14 | 0.91 | 2.73 | 3.3 | 2.35 |
| % Change YoY | 33.40% | 39.60% | 40.90% | -29.70% | 7.10% | -65.70% | -67.20% | -70.30% | -50.60% | 4.60% | 245.60% | 534.60% | 106.70% |
| Weighted Average Diluted Shares Outstanding | 18.7 | 18.51 | 18.91 | 19.05 | 18.58 | 18.02 | 17.81 | 17.44 | 17.92 | 18.19 | 18.93 | 19.41 | 19.71 |
| % Change YoY | 3.70% | 1.90% | 4.30% | 2.70% | -0.60% | -2.70% | -5.80% | -8.40% | -3.50% | 1.00% | 6.30% | 11.30% | 9.90% |
| Weighted Average Basic Shares Outstanding | 17.48 | 17.64 | 18.02 | 18.16 | 17.98 | 17.55 | 17.29 | 17.14 | 17.06 | 17.06 | 17.23 | 17.83 | 18.27 |
| % Change YoY | 2.70% | 4.40% | 6.40% | 6.40% | 2.90% | -0.50% | -4.00% | -5.60% | -5.10% | -2.80% | -0.30% | 4.00% | 7.00% |
| Basic EPS | 2.3 | 2.67 | 2.53 | 1.84 | 2.37 | 0.9 | 0.81 | 0.53 | 1.19 | 0.97 | 3 | 3.59 | 2.54 |
| EBITDA | 56.89 | 54.54 | 52.15 | 50.54 | 63.77 | 30.28 | 29.46 | 22.73 | 38.97 | 30.76 | 67.74 | 61.08 | 64.54 |
| % Change YoY | 21.90% | 36.80% | 10.70% | 29.00% | 12.10% | -44.50% | -43.50% | -55.00% | -38.90% | 1.60% | 129.90% | 168.70% | 65.60% |
| EBITDAR | 55.47 | 53.05 | 51.74 | 31.38 | 30.76 | 23.93 | 31.96 | 69.04 | 62.38 | ||||
| R&D Expense | 12.02 | 12.07 | 12.34 | 14.43 | 17.75 | 17.31 | 19.13 | 20.28 | 21.32 | 21.32 | 22.88 | 24.74 | 26.65 |
| Selling and Marketing Expense | 25.2 | 25.75 | 25.79 | 26.74 | 33.8 | 32.88 | 33.24 | 33.06 | 35.05 | 37 | 41.88 | 41.75 | 46.11 |
| General and Administrative Expense | 22.87 | 21.02 | 25.19 | 24.92 | 23.33 | 26.23 | 27.54 | 28.98 | 28.06 | 28.47 | 33.02 | 28.86 | 28.33 |
| Effective Tax Rate % | 20.70% | 3.30% | 1.60% | 21.80% | 19.90% | 30.00% | 35.50% | 39.30% | 35.40% | 30.10% | 14.80% | -17.40% | 19.70% |
As you can see, its revenue is growing quite good and the management has said that they expect the growth to continue.
One negative is that, STMP has no debt at all(as you can tell from the interest expense row). One would have expected them to load up on those sweet sweet low interest debt like every other company. But STMP management is highly conservative(that's why they are avoiding guidance, I suppose).
Some of its products have mixed reviews online. But ShipStation and its recent product portfolio have good reviews.
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While some of its products have outdated stacks, they are heavily upgrading their software stack. 1M paid subscribers reached already(churn is low). And with a 77% gross margin, it literally prints money. With net income coming at close to 24%.
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They also serve all the major -commerce players. *Amazon, eBay, Facebook, Google, Etsy, Walmart, Shopify, BigCommerce, Wix, Magento, Square, WooCommerce and others. We integrate with all of the major small business e-commerce tools and accounting software, such as QuickBooks, NetSuite, SAP, Volusion, ChannelAdvisor and others. We integrate with fulfillment solutions, such as Fulfillment by Amazon, ShipBob and others. And we integrate with ERP and CRM solutions, warehouse management solutions and transportation management solutions. In e-commerce generally, the strength of our partnership network for shipping is unmatched.* -from the latest earnings call.
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Note: their exists alternatives(even a partially free one), but they don't integrate well with all providers and doesn't have all the solutions, and as a business customer, not having all the cost savings opportunity is not having an opportunity at all.
While when they terminated their deal with USPS the stock dropped heavily, the current COVID crisis proved that the management was right all along and this was the right choice for them.
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STMP is expanding internationally, and its international expansion is being hugely underrated IMO.
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Stock is highly volatile, especially surrounding earnings, this I see as a positive for the Reddit gamblers. But the negative is its low volume.
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It has 90% institutional ownership. STMP could also double its repurchase program up to $120M till August. Very low short interest(no short sq ueeze for you).
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Although I don't trust Glassdoor much. CEO has 90% approval. Negative reviews don't point to too much flaws other than the usual staff. But they have a low diversity score.
And although employees say that they feel like a family, as a result of this, there seems to be some conflicts between STMP lifers and the newer employees.
Management's COVID handling is also praised.
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As a kinda SAAS company, I don't see why you can't invest in it. Especially, when there's rumour of rebranding on the cards.
Also, it's not ATH, unlike some of the other ticker that gets frequently discussed. CHART
Not to mention, Alexa web rank shows alnost all the various stamps website growing hugely in traffic in the last 90 days.
For the people confused wth this company does. Here's all the details you would need.
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Also, to add. IMO, long term trend is that more and more sales is gonna go digital and a big portion of this could be filled by small and medium enterprises who would use Shopify, Amazon etc channels to make their sales. STMP simplifies their work and saves them money in shipping and other stuffs like no other company. I would say, this makes them in just the right place in the right time. So, I would say, it's a long hold(a buy it and forget it stock)
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Bearish case: Company executives seem to always dump their shares when they receive options (I know they gotta eat, but still). This is diluting and neutralising the buyback.
Other alternatives could develop that could challenge its position. While they are not doing now, it is still good practice to remember that it is not impossible.
This stock is not for the faint of heart.
Management also seems to be ultra conservative, always preserving cash and stuff. While it is fine for a Japanese company. US stocks tend to get discounted if management does this sort of stuff(think BRK.B).
I hope this helped you discover this ticker and you could do further due diligence on it to make sure if it aligns with your investment goals.
Disclaimer: This is not investment advice. I am long STMP.
Submitted March 18, 2021 at 01:54PM by nafizzaki https://ift.tt/3eUY2Pu
