TSXV:RUM

Stock Analysis Report

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Executive Summary

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


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 is more volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: RUM's weekly volatility has decreased from 24% to 14% over the past year, but is still higher than 75% of Canadian stocks.


Market Performance


7 Day Return

13.0%

RUM

-0.7%

CA Consumer Retailing

2.6%

CA Market


1 Year Return

160.0%

RUM

-3.3%

CA Consumer Retailing

0.5%

CA Market

Return vs Industry: RUM exceeded the Canadian Consumer Retailing industry which returned -3.3% over the past year.

Return vs Market: RUM exceeded the Canadian Market which returned 0.5% over the past year.


Shareholder returns

RUMIndustryMarket
7 Day13.0%-0.7%2.6%
30 Day23.8%0.1%13.3%
90 Day52.9%-1.0%6.0%
1 Year160.0%160.0%-2.0%-3.3%4.2%0.5%
3 Year-52.7%-52.7%26.8%15.9%13.0%2.0%
5 Year-56.7%-56.7%35.2%20.5%49.8%26.8%

Long-Term 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

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$0.13) is trading below our estimate of fair value (CA$8.15)

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 (4.1x) compared to the CA Consumer Retailing industry average (14.8x).

PE vs Market: RUM is good value based on its PE Ratio (4.1x) compared to the Canadian market (15.6x).


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 (0.9x) compared to the CA Consumer Retailing industry average (2.4x).


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?

4.9%

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

Past Performance

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

36.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RUM has high quality earnings.

Growing Profit Margin: RUM's current net profit margins (2.8%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: RUM has become profitable over the past 5 years, growing earnings by 36.1% 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 (-48%) over the past year, making it difficult to compare to the Consumer Retailing industry average (16.7%).


Return on Equity

High ROE: RUM's Return on Equity (19.7%) is considered low.


Next Steps

Financial Health

How is Rocky Mountain Liquor's financial position?


Financial Position Analysis

Short Term Liabilities: RUM's short term assets (CA$6.2M) do not cover its short term liabilities (CA$8.2M).

Long Term Liabilities: RUM's short term assets (CA$6.2M) do not cover its long term liabilities (CA$10.6M).


Debt to Equity History and Analysis

Debt Level: RUM's debt to equity ratio (90.2%) is considered high.

Reducing Debt: RUM's debt to equity ratio has reduced from 169.9% to 90.2% over the past 5 years.

Debt Coverage: RUM's debt is well covered by operating cash flow (65.9%).

Interest Coverage: RUM's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Rocky Mountain Liquor 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?

6.5yrs

Average board tenure


CEO

Allison Radford (41 yo)

1.58yrs

Tenure

CA$181,406

Compensation

Mrs. Allison Radford (Alternate name-Allison Marie Byrne) served as Chief Operating Officer of Rocky Mountain Liquor Inc. since February 2009 to May 2019 and has been its Chief Executive Officer since Apri...


CEO Compensation Analysis

Compensation vs Market: Allison's total compensation ($USD139.75K) is about average for companies of similar size in the Canadian market ($USD165.53K).

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


Board Members

NamePositionTenureCompensationOwnership
Peter Byrne
Executive Chairman & President1.58yrsCA$143.04k18.56%
CA$ 1.1m
Allison Radford
CEO & Director1.58yrsCA$181.41k3.34%
CA$ 198.1k
Frank Coleman
Independent Lead Director1.58yrsCA$21.00k0.58%
CA$ 34.5k
Robert Normandeau
Independent Director13yrsCA$20.00k0.11%
CA$ 6.3k

6.5yrs

Average Tenure

56.5yo

Average Age

Experienced Board: RUM's board of directors are considered experienced (6.5 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.


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$5.936m
  • Shares outstanding: 47.49m
  • Website: https://www.ruminvestor.com

Location

  • Rocky Mountain Liquor Inc.
  • 11478 149 Street
  • Edmonton
  • Alberta
  • T5M 1W7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RUMTSXV (TSX Venture Exchange)YesCommon SharesCACADDec 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 i...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 23:55
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.