Stock on Watch: Wayside Technology Group, Inc. (WSTG)

Company Profile:

Wayside Technology Group, Inc. operates as an information technology channel company worldwide. It operates in two segments, Lifeboat Distribution and TechXtend. The company distributes technical software and hardware to corporate and value added resellers, consultants, and systems integrators; and software, hardware, and services for corporations, government organizations, and academic institutions. The company offers a line of products from various publishers of software; and tools for virtualization/cloud computing, security, networking, storage and infrastructure management, application lifecycle management, and other technically sophisticated domains, as well as computer hardware. It markets products through its Websites, local and online seminars, Webinars, and social media, as well as through direct e-mail and printed materials. The company was formerly known as Programmers Paradise, Inc. and changed its name to Wayside Technology Group, Inc. in August 2006. Wayside Technology Group, Inc. was founded in 1982 and is headquartered in Eatontown, New Jersey.

Recent News:

On July 25, 2017, the Board of Directors declared a quarterly dividend of $0.17 per share of its common stock payable August 18, 2017 to shareholders of record on August 11, 2017. For the quarter ended June 30, 2017, the Company recorded a provision for income taxes of $0.6 million. Wayside Technology Group, Inc.’s dividend yield is 5.06 percent and its dividend payout is 50 percent. This compares to a peer median dividend yield of 2.39 percent and a payout level of 37.83 percent.

For the second quarter ended June 30, the company reported net sales decreased 2% to $103.0 million compared to $105.3 million for the same period in 2016. Net income for the quarter ended June 30, 2017 decreased 16% to $1.3 million, compared to $1.5 million during the same period last year.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

WSTG’s strengths can be seen in its better profitability and strong efficiency compared with its peers. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator, RSI (14) stands at 39.50 with positive bias. We rate Wayside Technology Group, Inc. (WSTG) a STRONG BUY.

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