ICEsoft Technologies Canada Corp (ISFT) AI Stock Analysis

• Market Cap: C$3.92M
• Dividend Yield: N/A
• Average Volume (3M): 4.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 8.38
• Revenue Growth: 8.58%
• EPS Growth: 66.13%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 67
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 112,116,030
• 10 Day Avg. Volume: 13,398
• 30 Day Avg. Volume: 4,566
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

ICEsoft Technologies Canada Corp exhibits a challenging financial position with high leverage and ongoing profitability issues. While there is positive revenue growth, the financial instability and negative valuation metrics are significant concerns. The technical outlook is moderately positive, providing some optimism. The recent stock option grants are a strategic move to align leadership with long-term goals, offering a positive corporate development. Overall, the stock's score reflects caution due to financial weaknesses, tempered by some technical and strategic positives.

ICEsoft Technologies Canada Corp Business Overview & Revenue Model

Company Description

ICEsoft Technologies Canada Corp (ISFT) is a technology company specializing in providing innovative solutions for web and mobile application development. The company is known for its expertise in Java EE and AJAX technologies, delivering robust and scalable software frameworks and tools to enterprises worldwide. ICEsoft's core products include ICEfaces, a rich internet application framework, and ICEmobile, a solution for developing mobile applications.

How the Company Makes Money

ICEsoft Technologies generates revenue through the licensing of its software products and frameworks. The company offers commercial licenses for its ICEfaces and ICEmobile products, which are used by businesses to enhance their web and mobile application development capabilities. Additionally, ICEsoft may generate income from professional services such as consulting, training, and support offered to help clients implement and optimize its technologies. Partnerships with technology companies and enterprise clients also contribute to its revenue streams by expanding its reach and facilitating the adoption of its solutions in various sectors.

ICEsoft Technologies Canada Corp Financial Statement Overview

Summary

ICEsoft Technologies Canada Corp is experiencing growth in revenue, yet it struggles with profitability and financial stability. The high leverage and negative equity raise concerns about long-term viability. Improving cash flow is necessary to support operations and reduce reliance on external financing. Continued focus on cost management and strategic financial planning is essential to enhance financial health.

Income Statement

The company shows a positive trend in revenue growth with an increase from the previous year. However, it continues to face significant challenges with profitability, as evidenced by negative net income and low EBIT and EBITDA margins. Despite an improvement in gross profit margin, the net profit margin remains negative, highlighting ongoing profitability issues.

Balance Sheet

The balance sheet presents a highly leveraged situation with a negative stockholders' equity and high debt levels. The debt-to-equity ratio cannot be effectively calculated due to negative equity, indicating potential financial instability. The equity ratio is concerning, suggesting the company is heavily reliant on debt financing.

Cash Flow

There is a slight improvement in operating cash flow, but free cash flow remains low, showing limited cash generation ability. The operating cash flow to net income ratio is positive, but the overall cash flow situation indicates liquidity constraints and reliance on financing activities.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.76M	1.50M	1.28M	1.29M	1.41M
	Gross Profit
1.25M	1.01M	950.78K	1.04M	1.41M
	EBIT
-209.33K	-1.15M	-1.07M	-979.44K	-580.16K
	EBITDA
-526.92K	-1.15M	-1.05M	-1.38M	-494.60K
	Net Income Common Stockholders
-690.97K	-1.20M	-1.11M	-1.56M	-839.90K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
70.87K	320.35K	712.51K	167.55K	39.88K
	Total Assets
214.53K	477.90K	840.62K	274.18K	165.28K
	Total Debt
1.08M	744.92K	120.81K	144.80K	1.02M
	Net Debt
1.01M	424.58K	-591.70K	-22.75K	978.19K
	Total Liabilities
3.02M	2.62M	1.75M	1.56M	2.73M
	Stockholders Equity
-2.80M	-2.14M	-913.58K	-1.28M	-2.57M
Cash Flow		Free Cash Flow
-447.66K	-948.46K	-819.73K	-1.01M	-695.26K
	Operating Cash Flow
-447.66K	-943.48K	-809.00K	-1.00M	-695.26K
	Investing Cash Flow
0.00	-4.98K	-10.73K	-1.70K	0.00
	Financing Cash Flow
196.00K	650.17K	1.40M	1.14M	615.85K

ICEsoft Technologies Canada Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ISFT, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 47.32 is Neutral, neither overbought nor oversold. The STOCH value of 56.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ISFT.

ICEsoft Technologies Canada Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCS	74 Outperform	C$663.62M	212.43	4.56%	0.76%	2.61%	46.26%
QIS	70 Outperform	C$68.08M	26.73	8.98%	―	-0.77%	981.25%
KXS	68 Neutral	C$5.28B	157.81	-0.10%	―	14.85%	-105.25%
SYZ	68 Neutral	C$205.83M	―	-1.93%	0.45%	-13.99%	-421.95%
Sector *	60 Neutral	$10.78B	10.47	-6.71%	2.99%	7.58%	-12.08%
ISFT	45 Neutral	C$3.92M	―	6.45%	―	8.58%	66.13%

ICEsoft Technologies Canada Corp Corporate Events

ICEsoft Technologies Reports 2024 Financials and Launches Strategic Review

ICEsoft Technologies Canada Corp. reported a net operating loss of $1,008 on revenues of $1,916,241 for 2024, while achieving 18 consecutive quarters of growth in subscription-based revenues. The company’s Voyent Alert! service is now utilized by over 700 North American communities, maintaining high client retention and competitive win rates. ICEsoft has also initiated a strategic review to explore options for enhancing shareholder value.

Spark’s Take on TSE:ISFT Stock

According to Spark, TipRanks’ AI Analyst, TSE:ISFT is a Underperform.

ICEsoft Technologies is facing significant challenges with profitability and financial stability despite revenue growth. The stock’s technical indicators show positive momentum, but the high RSI and beta suggest caution due to potential volatility. The valuation is unattractive with a negative P/E ratio and no dividend yield, reflecting ongoing financial struggles.

To see Spark’s full report on TSE:ISFT stock, click here.

ICEsoft Technologies Announces Significant Stock Option Grants

ICEsoft Technologies Canada Corp. has announced the issuance of options to purchase 5,500,000 shares of common stock, which are part of the company’s Employee Stock Option Plan. This move grants stock options to key figures within the company, including President and CEO Brian McKinney, along with several directors and observers. The issuance of these stock options indicates a strategic effort to align the interests of the company’s leadership with its long-term performance goals.