Rocky Mountain Liquor
Market Cap
CA$2.8m
Last Updated
2020/06/04 03:39 UTC
Data Sources
Company Financials
Executive Summary
Rocky Mountain Liquor Inc., through its subsidiary, Andersons Liquor Inc., owns and operates liquor stores in Canada.
Snowflake Analysis
Undervalued with questionable track record.
Share Price & News
How has Rocky Mountain Liquor's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RUM's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
20.0%
RUM
1.4%
CA Consumer Retailing
2.1%
CA Market
1 Year Return
-65.7%
RUM
1.1%
CA Consumer Retailing
-10.3%
CA Market
Return vs Industry: RUM underperformed the Canadian Consumer Retailing industry which returned 1.1% over the past year.
Return vs Market: RUM underperformed the Canadian Market which returned -10.3% over the past year.
Shareholder returns
| RUM | Industry | Market | |
|---|---|---|---|
| 7 Day | 20.0% | 1.4% | 2.1% |
| 30 Day | 33.3% | 4.3% | 5.8% |
| 90 Day | 71.4% | -0.9% | -6.4% |
| 1 Year | -65.7%-65.7% | 2.5%1.1% | -7.3%-10.3% |
| 3 Year | -82.9%-82.9% | 23.0%11.7% | 1.9%-7.6% |
| 5 Year | -76.0%-76.0% | 48.0%31.5% | 18.4%1.0% |
Price Volatility Vs. Market
How volatile is Rocky Mountain Liquor's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Here's Why We Don't Think Rocky Mountain Liquor's (CVE:RUM) Statutory Earnings Reflect Its Underlying Earnings Potential2 months ago | Simply Wall St
Does Rocky Mountain Liquor Inc. (CVE:RUM) Have A Particularly Volatile Share Price?2 months ago | Simply Wall St
Is Rocky Mountain Liquor Inc. (CVE:RUM) Investing Your Capital Efficiently?Valuation
Is Rocky Mountain Liquor 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: RUM (CA$0.06) is trading below our estimate of fair value (CA$2.46)
Significantly Below Fair Value: RUM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RUM is good value based on its PE Ratio (0.7x) compared to the Consumer Retailing industry average (15.5x).
PE vs Market: RUM is good value based on its PE Ratio (0.7x) compared to the Canadian market (13.3x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate RUM's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: RUM is good value based on its PB Ratio (0.5x) compared to the CA Consumer Retailing industry average (1.6x).
Next Steps
Future Growth
How is Rocky Mountain Liquor forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
6.7%
Forecasted Consumer Retailing 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 Rocky Mountain Liquor 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
- Examine whether Rocky Mountain Liquor is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Rocky Mountain Liquor competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Consumer Retailing industry.
Past Performance
How has Rocky Mountain Liquor performed over the past 5 years?
14.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RUM has a large one-off gain of CA$3.4M impacting its March 31 2020 financial results.
Growing Profit Margin: RUM became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: RUM has become profitable over the past 5 years, growing earnings by 14.4% per year.
Accelerating Growth: RUM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: RUM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (36.3%).
Return on Equity
High ROE: Whilst RUM's Return on Equity (62.6%) is outstanding, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Rocky Mountain Liquor's financial position?
Financial Position Analysis
Short Term Liabilities: RUM's short term assets (CA$5.5M) do not cover its short term liabilities (CA$9.7M).
Long Term Liabilities: RUM's short term assets (CA$5.5M) do not cover its long term liabilities (CA$11.4M).
Debt to Equity History and Analysis
Debt Level: RUM's debt to equity ratio (144.2%) is considered high.
Reducing Debt: RUM's debt to equity ratio has reduced from 219.3% to 144.2% over the past 5 years.
Debt Coverage: RUM's debt is well covered by operating cash flow (37.6%).
Interest Coverage: RUM's interest payments on its debt are not well covered by EBIT (0.9x coverage).
Balance Sheet
Next Steps
Dividend
What is Rocky Mountain Liquor's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate RUM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate RUM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if RUM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if RUM'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 RUM'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?
6.1yrs
Average board tenure
CEO
Allison Radford (40yo)
1.17yrs
Tenure
CA$161,369
Compensation
Mrs. Allison Radford (Alternate name-Allison Marie Byrne) served as Chief Operating Officer of Rocky Mountain Liquor Inc. since December 1, 2008 until 2019 and has been its Chief Executive Officer since Ap ...
CEO Compensation Analysis
Compensation vs Market: Allison's total compensation ($USD119.46K) is about average for companies of similar size in the Canadian market ($USD166.01K).
Compensation vs Earnings: Allison's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & President | 1.17yrs | CA$176.37k | 18.53% CA$527.9k | |
| CEO & Director | 1.17yrs | CA$161.37k | 3.34% CA$95.1k | |
| Lead Director | 1.17yrs | CA$24.00k | 0.58% CA$16.5k | |
| Independent Director | 12.58yrs | CA$20.00k | 0.11% CA$3.0k |
6.1yrs
Average Tenure
55.5yo
Average Age
Experienced Board: RUM's board of directors are considered experienced (6.1 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 substantially diluted in the past year, with total shares outstanding growing by 318.1%.
Top Shareholders
Company Information
Rocky Mountain Liquor Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Rocky Mountain Liquor Inc.
- Ticker: RUM
- Exchange: TSXV
- Founded:
- Industry: Food Retail
- Sector: Consumer Retailing
- Market Cap: CA$2.849m
- Shares outstanding: 47.49m
- Website: https://www.ruminvestor.com
Location
- Rocky Mountain Liquor Inc.
- 11478 149 Street
- Edmonton
- Alberta
- T5M 1W7
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RUM | TSXV (TSX Venture Exchange) | Yes | Common Shares | CA | CAD | Dec 2008 |
Biography
Rocky Mountain Liquor Inc., through its subsidiary, Andersons Liquor Inc., owns and operates liquor stores in Canada. Its stores sell beer, wine, spirit, and ready to drink products, as well as ancillary items, such as juice, ice, soft drinks, and giftware. As of April 17, 2020, it owned and operated 28 private liquor stores. Rocky Mountain Liquor Inc. is headquartered in Edmonton, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/04 03:39 |
| End of Day Share Price | 2020/06/03 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.