TSXV:SMS

Stock Analysis Report

Executive Summary

SustainCo Inc., through its subsidiaries, provides infrastructure solutions and services in Canada.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SMS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

SMS

-4.9%

CA Commercial Services

-4.8%

CA Market


1 Year Return

n/a

SMS

29.6%

CA Commercial Services

0.1%

CA Market

Return vs Industry: Insufficient data to determine how SMS performed against the Canadian Commercial Services industry.

Return vs Market: Insufficient data to determine how SMS performed against the Canadian Market.


Shareholder returns

SMSIndustryMarket
7 Day0%-4.9%-4.8%
30 Day0%1.3%-3.2%
90 Dayn/a5.4%-1.0%
1 Yearn/a32.4%29.6%3.3%0.1%
3 Year-54.3%-54.3%48.4%39.3%12.9%2.7%
5 Year-96.0%-96.0%86.1%60.3%29.2%10.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.62x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SMS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SMS's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SMS is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: SMS is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SMS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SMS is good value based on its PB Ratio (0.6x) compared to the CA Commercial Services industry average (1x).


Next Steps

Future Growth

How is SustainCo forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.0%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as SustainCo has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has SustainCo performed over the past 5 years?

61.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMS is currently unprofitable.

Growing Profit Margin: SMS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SMS is unprofitable, but has reduced losses over the past 5 years at a rate of 61.8% per year.

Accelerating Growth: Unable to compare SMS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SMS is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (2.1%).


Return on Equity

High ROE: SMS has a negative Return on Equity (-19.86%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SustainCo's financial position?


Financial Position Analysis

Short Term Liabilities: SMS's short term assets (CA$5.4M) exceed its short term liabilities (CA$4.4M).

Long Term Liabilities: SMS's short term assets (CA$5.4M) exceed its long term liabilities (CA$529.7K).


Debt to Equity History and Analysis

Debt Level: SMS's debt to equity ratio (37.4%) is considered satisfactory.

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


Balance Sheet

Inventory Level: SMS has a low level of unsold assets or inventory.

Debt Coverage by Assets: SMS's debt is covered by short term assets (assets are 7.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SMS has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SMS has less than a year of cash runway if free cash flow continues to grow at historical rates of 62% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.8%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate SMS'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 SMS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SMS'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 SMS'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?

7.6yrs

Average management tenure


CEO

Emlyn David (55yo)

11.5yrs

Tenure

CA$225,000

Compensation

Mr. Emlyn J. David has been Chief Executive Officer, President and Secretary at Sustainco Inc. since August 2008. Mr. David serves as Managing Partner at CanGap Merchant Capital. He previously served as Ch ...


CEO Compensation Analysis

Compensation vs Market: Emlyn's total compensation ($USD169.14K) is about average for companies of similar size in the Canadian market ($USD156.06K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Emlyn David
Chairman11.5yrsCA$225.00k59.98% CA$757.1k
Christopher Hazelton
Chief Financial Officer5.5yrsCA$125.00k2.61% CA$32.9k
Franco Carnevale
COO and Senior VP of Strategic Developments & Communications7.6yrsCA$128.75kno data
Heather Carnduff
Controller of VCI Controls Inc0yrsCA$110.20kno data

7.6yrs

Average Tenure

46yo

Average Age

Experienced Management: SMS's management team is seasoned and experienced (7.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Emlyn David
Chairman11.5yrsCA$225.00k59.98% CA$757.1k
Adam Szweras
Independent Director2.9yrsno data2.03% CA$25.6k
Michael Galloro
Independent Director7.9yrsno data0.0032% CA$40.0

7.6yrs

Average Tenure

47yo

Average Age

Experienced Board: SMS's board of directors are considered experienced (7.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SMS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SustainCo Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SustainCo Inc.
  • Ticker: SMS
  • Exchange: TSXV
  • Founded: 2008
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: CA$1.262m
  • Shares outstanding: 15.78m
  • Website: https://www.sustainco.ca

Number of Employees


Location

  • SustainCo Inc.
  • 1 Royal Gate Boulevard
  • Suite D
  • Vaughan
  • Ontario
  • L4L 8Z7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMSTSXV (TSX Venture Exchange)YesCommon SharesCACADAug 2012

Biography

SustainCo Inc., through its subsidiaries, provides infrastructure solutions and services in Canada. The company develops intelligent building technology, including the integration of disparate building systems for the provision of building automation and controls, HVAC mechanical services, real-time performance monitoring, and energy efficient retrofit and solutions. It also provides heating and cooling solutions for multi-residential and commercial buildings using energy from the earth. In addition, the company offers engineering services, building automation controls, mechanical and electrical installation, performance monitoring, and operations and maintenance services for multi-residential and ICI facilities. SustainCo Inc. was incorporated in 2008 and is based in Vaughan, Canada. The company is a subsidiary of Skyvest Aviation Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:00
End of Day Share Price2020/01/29 00:00
Earnings2019/11/30
Annual Earnings2019/08/31


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.