Rocky Mountain Liquor (TSXV:RUM) - Share price, News & Analysis

RUM fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

RUM Stock Overview

Rocky Mountain Liquor Inc., through its subsidiary, Andersons Liquor Inc., owns and operates liquor stores in Alberta, Canada.

Rewards

Trading at 86% below our estimate of its fair value

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (CA$8M)

Profit margins (2.3%) are lower than last year (3.5%)

Rocky Mountain Liquor Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Rocky Mountain Liquor
Historical stock prices
Current Share Price	CA$0.17
52 Week High	CA$0.23
52 Week Low	CA$0.13
Beta	1.93
1 Month Change	-2.78%
3 Month Change	-12.50%
1 Year Change	2.94%
3 Year Change	-22.22%
5 Year Change	-53.33%
Change since IPO	-90.00%

Recent News & Updates

May 06

Rocky Mountain Liquor (CVE:RUM) Shareholders Will Want The ROCE Trajectory To Continue

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to...

Shareholder Returns

	RUM	CA Consumer Retailing	CA Market
7D	6.1%	-2.7%	-0.7%
1Y	2.9%	26.9%	5.2%

Return vs Industry: RUM underperformed the Canadian Consumer Retailing industry which returned 27.1% over the past year.

Return vs Market: RUM underperformed the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is RUM's price volatile compared to industry and market?
RUM volatility
RUM Average Weekly Movement	10.9%
Consumer Retailing Industry Average Movement	4.1%
Market Average Movement	9.8%
10% most volatile stocks in CA Market	16.9%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: RUM is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: RUM's weekly volatility (11%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	n/a	Scott Morrow	https://www.ruminvestor.com

Rocky Mountain Liquor Inc., through its subsidiary, Andersons Liquor Inc., owns and operates liquor stores in Alberta, Canada. Its stores sell beer, wine, spirit, and ready to drink liquor products, as well as ancillary items, such as juice, ice, soft drinks, and giftware. As of April 14, 2022, it owned and operated 26 private liquor stores.

Rocky Mountain Liquor Fundamentals Summary

How do Rocky Mountain Liquor's earnings and revenue compare to its market cap?
RUM fundamental statistics
Market Cap	CA$8.37m
Earnings (TTM)	CA$1.02m
Revenue (TTM)	CA$43.94m

8.2x

P/E Ratio

0.2x

P/S Ratio

Is RUM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RUM income statement (TTM)
Revenue	CA$43.94m
Cost of Revenue	CA$34.07m
Gross Profit	CA$9.87m
Other Expenses	CA$8.85m
Earnings	CA$1.02m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.021
Gross Margin	22.46%
Net Profit Margin	2.32%
Debt/Equity Ratio	58.8%

How did RUM perform over the long term?

See historical performance and comparison

Valuation

Is Rocky Mountain Liquor undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: RUM (CA$0.18) is trading below our estimate of fair value (CA$1.25)

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 Price-To-Earnings Ratio (8.2x) compared to the Canadian Consumer Retailing industry average (14.2x).

PE vs Market: RUM is good value based on its Price-To-Earnings Ratio (8.2x) compared to the Canadian market (11.3x).

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 Price-To-Book Ratio (1.1x) compared to the CA Consumer Retailing industry average (2.5x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.7%

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.

Past Performance

How has Rocky Mountain Liquor performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

61.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RUM has high quality earnings.

Growing Profit Margin: RUM's current net profit margins (2.3%) are lower than last year (3.5%).

Past Earnings Growth Analysis

Earnings Trend: RUM has become profitable over the past 5 years, growing earnings by 61.8% per year.

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

Earnings vs Industry: RUM had negative earnings growth (-40.4%) over the past year, making it difficult to compare to the Consumer Retailing industry average (10.7%).

Return on Equity

High ROE: RUM's Return on Equity (12.8%) is considered low.

Financial Health

How is Rocky Mountain Liquor's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: RUM's short term assets (CA$6.0M) exceed its short term liabilities (CA$5.5M).

Long Term Liabilities: RUM's short term assets (CA$6.0M) do not cover its long term liabilities (CA$12.6M).

Debt to Equity History and Analysis

Debt Level: RUM's net debt to equity ratio (58.4%) is considered high.

Reducing Debt: RUM's debt to equity ratio has reduced from 704.1% to 58.8% over the past 5 years.

Debt Coverage: RUM's debt is well covered by operating cash flow (65.6%).

Interest Coverage: RUM's interest payments on its debt are not well covered by EBIT (1.9x coverage).

Balance Sheet

Dividend

What is Rocky Mountain Liquor current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RUM has not reported any payouts.

Discover strong dividend paying companies

Management

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

13.4yrs

Average board tenure

CEO

Scott Morrow

0.083

Tenure

Mr. Scott A. Morrow serves as Chief Executive Officer of Rocky Mountain Liquor Inc. since April 04, 2022. He served as the Chief Operating Officer of Alcanna Inc. (formerly Liquor Stores NA Ltd) from Febru...

Board Members

Experienced Board: RUM's board of directors are seasoned and experienced ( 13.4 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31