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TeraGo Inc. (TSE:TGO)
:TGO
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TeraGo Inc.
(TSX:TGO)
42Neutral
TeraGo Inc. (TGO) vs. S&P 500 (SPY)
Market Cap
C$22.60M
Dividend YieldN/A
Average Volume (3M)16.63K
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue Growth0.50%
EPS Growth0.06%
CountryCA
Employees98
SectorCommunication Services
Sector Strength79
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.67
Shares Outstanding20,002,527
10 Day Avg. Volume39,816
30 Day Avg. Volume16,625
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.79
Price to Cash Flow (P/CF)2.00
P/FCF Ratio2.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
TeraGo Inc. Business Overview & Revenue Model
Company DescriptionTeraGo Inc. (TGO) is a Canadian-based technology company that provides businesses with high-performance wireless connectivity solutions. The company operates in the telecommunications sector, offering services such as internet connectivity, cloud services, colocation, and managed network services. TeraGo primarily serves small to medium-sized enterprises, leveraging its national spectrum licenses and data center facilities to deliver robust and scalable communication solutions.
How the Company Makes MoneyTeraGo Inc. generates revenue through a combination of subscription-based services and one-time installation fees. The company's primary revenue streams include monthly recurring charges for internet connectivity, cloud and data center services, and managed network solutions. TeraGo benefits from long-term contracts with its clients, providing a stable and predictable revenue base. Additionally, the company capitalizes on strategic partnerships with technology providers and maintains a competitive edge through its ownership of exclusive spectrum licenses, which allows it to offer unique wireless solutions in the Canadian market.
TeraGo Inc. Financial Statement Overview
Summary
TeraGo Inc. faces significant financial challenges, with stagnant revenue growth, reduced gross profit margins, and ongoing profitability issues. The balance sheet reveals a high debt-to-equity ratio, signaling financial risk, while cash flow improvements are overshadowed by negative free cash flow growth, highlighting cash flow sustainability concerns.Income Statement
TeraGo Inc.'s TTM revenue growth is stagnant, with only a slight increase compared to the previous year. Gross profit margin has decreased to 63.89% from 73.34%, indicating a decline in cost efficiency. The net profit margin remains negative at -52.27%, reflecting ongoing profitability challenges. EBIT and EBITDA margins are also negative, indicating operational inefficiencies.48
Neutral
Balance Sheet
The company has a high debt-to-equity ratio of 5.60, signaling high leverage and financial risk. Stockholders' equity has dropped significantly, impacting the equity ratio, which is currently at 13.98%. Return on equity is negative, highlighting unprofitable operations relative to shareholder investments.35
Negative
Cash Flow
Operating cash flow has improved but remains low. The free cash flow growth rate is negative, indicating cash flow challenges. The operating cash flow to net income ratio is negative due to persistent net losses, affecting cash flow sustainability.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 26.13M | 26.05M | 27.62M | 43.30M | 45.45M | 48.44M | Gross Profit |
| 16.69M | 19.10M | 20.18M | 32.16M | 35.63M | 38.79M | EBIT |
| -7.79M | -9.30M | -8.96M | -5.15M | -3.27M | -2.16M | EBITDA |
| 1.56M | 496.00K | 603.00K | 3.28M | 11.33M | 13.06M | Net Income Common Stockholders |
| -13.66M | -13.19M | -14.05M | -19.07M | -13.04M | -11.76M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.73M | 4.64M | 7.38M | 5.48M | 5.86M | 8.69M | Total Assets |
| 53.54M | 53.50M | 55.38M | 93.23M | 103.17M | 110.68M | Total Debt |
| 34.19M | 31.93M | 20.50M | 35.91M | 56.16M | 57.23M | Net Debt |
| 31.69M | 27.55M | 14.28M | 30.43M | 50.30M | 48.54M | Total Liabilities |
| 39.57M | 36.16M | 25.78M | 52.97M | 62.30M | 62.57M | Stockholders Equity |
| 13.97M | 17.33M | 29.60M | 40.26M | 40.87M | 48.10M |
| Cash Flow | Free Cash Flow | ||||
| -891.00K | -5.45M | -4.96M | 1.94M | 5.72M | 8.65M | Operating Cash Flow |
| 3.15M | 501.00K | 1.25M | 9.32M | 13.33M | 15.38M | Investing Cash Flow |
| -4.09M | -5.02M | 18.82M | -7.75M | -7.58M | -6.36M | Financing Cash Flow |
| 2.77M | 2.69M | -19.34M | -1.95M | -8.58M | -4.25M |
TeraGo Inc. Technical Analysis
Neutral
1.13
Price Trends
1.20
Negative
1.21
Negative
1.62
Negative
Market Momentum
-0.07
Positive
38.08
Neutral
15.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TGO, the sentiment is Neutral. The current price of 1.13 is above the 20-day moving average (MA) of 1.07, below the 50-day MA of 1.20, and below the 200-day MA of 1.62, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 38.08 is Neutral, neither overbought nor oversold. The STOCH value of 15.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TGO.
TeraGo Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | C$7.96B | 10.66 | 38.85% | 3.84% | 3.76% | 14.27% | |
75 Outperform | $2.64B | 8.03 | 10.84% | 5.65% | 0.21% | -6.81% | |
67 Neutral | $30.63B | 30.32 | 6.26% | 7.80% | 0.67% | 15.00% | |
64 Neutral | C$570.62M | ― | -6.14% | 3.58% | 9.94% | -147.16% | |
61 Neutral | $27.30B | 165.70 | 1.80% | 13.43% | -1.07% | -92.15% | |
58 Neutral | $26.33B | 3.17 | -10.68% | 4.33% | 2.16% | -43.07% | |
42 Neutral | C$22.60M | ― | -119.27% | ― | 0.50% | 0.06% |
* Communication Services Sector Average
Performance Comparison
TSE:TGO
TeraGo Inc.
1.13
-0.81
-41.75%
TSE:T
Telus
20.23
-0.03
-0.16%
TSE:BCE
BCE
29.61
-10.83
-26.78%
TSE:CCA
Cogeco Communications
62.53
9.56
18.06%
TSE:QBR.B
Quebecor
34.42
6.04
21.27%
TSE:RAY.A
Stingray Digit SV
8.39
1.00
13.53%
TeraGo Inc. Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: 4.63% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook for TeraGo, highlighted by improved financial metrics, a significant new contract, and increased revenue and cash flow. However, challenges remain, particularly regarding the net loss and the need to refinance debt. Despite these challenges, the company's strategic efforts appear to be yielding positive results.Highlights
Improved Financial Metrics
Gross margin increased by 1.2%, customer churn reduced by 31%, adjusted EBITDA rose by 2.8%, ARPA grew by 8.1%, and cash flow from operations increased by 56%.
Major Contract Acquisition
Secured a multimillion-dollar agreement with a major Canadian retailer to enhance their applications and network infrastructure using TeraGo's advanced Managed Fixed Wireless Internet and SD-WAN solutions.
Revenue Growth
Total revenues for Q3 2024 were $6.54 million, compared to $6.49 million in Q3 2023, driven by increased sales bookings and lower customer churn.
Increased Cash Generation
Generated $1.1 million in cash from operations in Q3 2024, compared to $0.7 million in the same period in 2023.
Lowlights
Net Loss
Net loss for Q3 2024 was $3.3 million compared to a net loss of $3.1 million in Q3 2023, influenced by higher interest costs.
Debt Refinancing Challenge
All debt reclassified to short-term due to maturity in September 2025, requiring active management efforts to refinance at potentially lower interest rates.
Company Guidance
During the TeraGo Q3 2024 earnings call, the company provided several key performance metrics indicating positive financial and operational trends. The gross margin improved by 1.2%, with a significant 31% reduction in customer churn and a 2.8% rise in adjusted EBITDA. Average Revenue Per Account (ARPA) increased by 8.1% to $1,221 compared to the previous year, while cash flow from operations surged by 56%. Total revenues for the quarter reached $6.54 million, a slight increase from $6.49 million in Q3 2023, largely due to increased sales bookings and decreased churn. Although the net loss widened slightly to $3.3 million from $3.1 million the previous year, the company generated $1.1 million in cash from operations, up from $0.7 million in the same period of 2023. The company also highlighted a multi-million dollar agreement with a major Canadian retailer, expected to boost revenue in the coming year, reflecting a robust sales pipeline and strategic focus on mid-market and large-scale customers.TeraGo Inc. Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
TERAGO Expands Credit Facility and Strengthens Market Position
Positive
Apr 1, 2025
TERAGO Inc. has amended its Credit and Guaranty Agreement with CrowdOut Capital and Cymbria Corporation, increasing its secured debt facility from $19 million to $21 million, funded by Cymbria. This amendment, alongside the issuance of 800,000 common share purchase warrants to Cymbria, reflects confidence in TERAGO’s strategic position in the 5G and Fixed Wireless Access markets, potentially enhancing its market opportunities and innovation capabilities.
Business Operations and StrategyFinancial Disclosures
TERAGO Inc. Reports Strong 2024 Financial Results Amid Strategic Growth
Positive
Mar 27, 2025
TERAGO Inc. reported strong financial results for the fourth quarter and full year 2024, highlighting a successful smart growth strategy and operational improvements. The company achieved a 16.9% increase in Adjusted EBITDA and a 5.2% growth in ARPA for the year, alongside a significant rise in cash flows from operations. Despite a net loss for the year, TERAGO improved profitability through lower operational expenses and better margins on new customer deals. The company anticipates continued momentum in MRR bookings, contributing to long-term value creation for stakeholders.
Business Operations and StrategyFinancial Disclosures
TERAGO Inc. Announces Conference Call for Q4 and Fiscal 2024 Financial Results
Neutral
Mar 12, 2025
TERAGO Inc. announced it will host a conference call on March 27, 2025, to discuss its fourth quarter and fiscal 2024 financial results, which will be released on March 26, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and future operations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.