TSXV:KUT

Stock Analysis Report

Executive Summary

RediShred Capital Corp., through its subsidiaries, provides onsite shredding services under the Proshred brand in the United States and internationally.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has RediShred Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KUT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.8%

KUT

-1.4%

CA Commercial Services

11.7%

CA Market


1 Year Return

-45.7%

KUT

-12.3%

CA Commercial Services

-26.0%

CA Market

Return vs Industry: KUT underperformed the Canadian Commercial Services industry which returned -10.3% over the past year.

Return vs Market: KUT underperformed the Canadian Market which returned -25.5% over the past year.


Shareholder returns

KUTIndustryMarket
7 Day12.8%-1.4%11.7%
30 Day-37.1%-29.1%-21.9%
90 Day-51.1%-28.3%-26.6%
1 Year-45.7%-45.7%-10.5%-12.3%-23.6%-26.0%
3 Year-10.2%-10.2%1.6%-5.0%-15.8%-23.6%
5 Year450.0%450.0%21.0%4.5%-3.5%-17.8%

Price Volatility Vs. Market

How volatile is RediShred Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RediShred Capital undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KUT (CA$0.44) is trading below our estimate of fair value (CA$1.25)

Significantly Below Fair Value: KUT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KUT is poor value based on its PE Ratio (17.3x) compared to the Commercial Services industry average (16.4x).

PE vs Market: KUT is poor value based on its PE Ratio (17.3x) compared to the Canadian market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: KUT is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: KUT is overvalued based on its PB Ratio (1.1x) compared to the CA Commercial Services industry average (0.9x).


Next Steps

Future Growth

How is RediShred Capital forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

40.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KUT's forecast earnings growth (40.9% per year) is above the savings rate (1.4%).

Earnings vs Market: KUT's earnings (40.9% per year) are forecast to grow faster than the Canadian market (7.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KUT's revenue (16.1% per year) is forecast to grow faster than the Canadian market (3.9% per year).

High Growth Revenue: KUT's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KUT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has RediShred Capital performed over the past 5 years?

37.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KUT has high quality earnings.

Growing Profit Margin: KUT's current net profit margins (8.7%) are lower than last year (17.5%).


Past Earnings Growth Analysis

Earnings Trend: KUT's earnings have grown significantly by 37.6% per year over the past 5 years.

Accelerating Growth: KUT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KUT had negative earnings growth (-26.4%) over the past year, making it difficult to compare to the Commercial Services industry average (-19.4%).


Return on Equity

High ROE: KUT's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is RediShred Capital's financial position?


Financial Position Analysis

Short Term Liabilities: KUT's short term assets (CA$18.9M) exceed its short term liabilities (CA$5.7M).

Long Term Liabilities: KUT's short term assets (CA$18.9M) exceed its long term liabilities (CA$10.1M).


Debt to Equity History and Analysis

Debt Level: KUT's debt to equity ratio (32.5%) is considered satisfactory.

Reducing Debt: KUT had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: KUT's debt is well covered by operating cash flow (43.5%).

Interest Coverage: KUT's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet

Inventory Level: KUT has a high level of physical assets or inventory.

Debt Coverage by Assets: KUT's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is RediShred Capital's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KUT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate KUT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KUT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KUT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KUT's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average management tenure


CEO

Jeff Hasham (47yo)

8.92s

Tenure

CA$330,980

Compensation

Mr. Jeffrey I. Hasham, also known as Jeff, CPA, CA has been the Chief Executive Officer and President of RediShred Capital Corp. since April 1, 2011 and January 15, 2014 respectively and serves as its Secr ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD235.18K) is above average for companies of similar size in the Canadian market ($USD158.04K).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Hasham
CEO, President & Director8.92yrsCA$330.98k1.0% CA$344.2k
Katherina Pawluk
CFO & Secretary8.92yrsCA$227.43k0.019% CA$6.7k
Ronald Gable
Senior Vice President of Performance & Operations4.33yrsCA$168.56kno data
Jack Pulkinen
Senior VP of Corporate Development3.42yrsCA$161.21kno data
Francesco Marascia
Vice President of Marketingno datano datano data

6.6yrs

Average Tenure

Experienced Management: KUT's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Hasham
CEO, President & Director8.92yrsCA$330.98k1.0% CA$344.2k
James Lawley
Independent Director13.42yrsCA$7.00k2.66% CA$920.2k
Robert Kay
Independent Director10.25yrsCA$8.00k2.88% CA$994.9k
Robert Richardson
Independent Director13.42yrsCA$9.00k2.56% CA$885.6k
Robert Crozier
Independent Chairman of the Board1.42yrsCA$12.00k2.71% CA$936.1k
Mark MacMillan
Non-Independent Director13.42yrsCA$9.50k2.07% CA$713.8k
Phillip Gaunce
Independent Director13.42yrsCA$14.00k1.78% CA$615.0k
Brad Foster
Independent Director12.75yrsCA$15.00k0.99% CA$342.1k

13.1yrs

Average Tenure

56.5yo

Average Age

Experienced Board: KUT's board of directors are seasoned and experienced ( 13.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 36.5%.


Top Shareholders

Company Information

RediShred Capital Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RediShred Capital Corp.
  • Ticker: KUT
  • Exchange: TSXV
  • Founded: 2006
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: CA$34.540m
  • Shares outstanding: 78.50m
  • Website: https://www.proshred.com/redishred

Location

  • RediShred Capital Corp.
  • 6505 Mississauga Road
  • Suite A
  • Mississauga
  • Ontario
  • L5N 1A6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KUTTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 2007
RDCP.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2007

Biography

RediShred Capital Corp., through its subsidiaries, provides onsite shredding services under the Proshred brand in the United States and internationally. The company grants and manages shredding business franchises under the Proshred trademark; operates in corporate shredding businesses; and supports the franchises. RediShred Capital Corp. was incorporated in 2006 and is headquartered in Mississauga, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:12
End of Day Share Price2020/03/27 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.