TSX:FRII

Stock Analysis Report

Executive Summary

Freshii Inc., together with its subsidiaries, develops, franchises, and operates quick-serve restaurants in Canada, the United States, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.

Risks

  • Freshii has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.0%

TSX:FRII

0.3%

CA Hospitality

1.6%

CA Market


1 Year Return

-29.2%

TSX:FRII

-17.4%

CA Hospitality

-0.3%

CA Market

FRII underperformed the Hospitality industry which returned -16.5% over the past year.

FRII underperformed the Market in Canada which returned -0.5% over the past year.


Share holder returns

FRIIIndustryMarket
7 Day3.0%0.3%1.6%
30 Day16.5%6.5%4.1%
90 Day37.2%-2.9%1.1%
1 Year-29.2%-29.2%-16.8%-17.4%3.3%-0.3%
3 Yearn/a22.9%19.6%19.3%8.6%
5 Yearn/a-3.4%-6.2%21.6%4.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Freshii undervalued based on future cash flows and its price relative to the stock market?

2.17x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Freshii's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Freshii's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Freshii is loss making, we can't compare its value to the CA Hospitality industry average.

Freshii is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Freshii, we can't assess if its growth is good value.


Price Based on Value of Assets

Freshii is overvalued based on assets compared to the CA Hospitality industry average.


Next Steps

Future Growth

How is Freshii expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

105.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Freshii's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).

Freshii's earnings are expected to grow significantly at over 20% yearly.

Freshii's revenue growth is positive but not above the Canada market average.

Freshii's earnings growth is expected to exceed the Canada market average.

Freshii's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Freshii will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Freshii performed over the past 5 years?

-28.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Freshii does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Freshii's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Freshii's 1-year growth to the CA Hospitality industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Freshii has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Freshii has efficiently used its assets last year compared to the CA Hospitality industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Freshii improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Freshii's financial position?


Financial Position Analysis

Freshii is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Freshii's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Freshii has no debt.

Freshii currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

Low level of unsold assets.

Freshii has no debt, it does not need to be covered by short term assets.


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.

Whilst loss making Freshii has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Freshii has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 29.6% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Freshii's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Freshii's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Freshii has not reported any payouts.

Unable to verify if Freshii's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Freshii has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Freshii's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Matthew Corrin 0

12.2yrs

Tenure

US$1,685,006

Compensation

Mr. Matthew Corrin founded Freshii Inc. in February 2005 and has been its Chairman and Chief Executive Officer since July 19, 2007. Mr. Corrin founded Freshii USA, Inc. in 2005 and serves as its Chief Exec ...


CEO Compensation Analysis

Matthew's remuneration is higher than average for companies of similar size in Canada.

Matthew's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.9yrs

Average Tenure

The tenure for the Freshii management team is about average.


Board Age and Tenure

2.7yrs

Average Tenure

The average tenure for the Freshii board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Matthew Corrin

    Founder

    • Tenure: 12.2yrs
    • Compensation: US$1.69m
  • Adam Corrin

    COO & Director

    • Tenure: 2.7yrs
    • Compensation: US$600.01k
  • Melissa Gallagher

    Vice President of Marketing

    • Tenure: 2.9yrs
  • Paul Hughes

    Chief Business Development Officer

    • Tenure: 2.3yrs
    • Compensation: US$300.01k
  • Dan Haroun

    Chief Financial Officer

    • Tenure: 0.08yrs

Board Members

  • Jeff Burchell

    Lead Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$100.00k
  • Heather Briant (58yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$100.00k
  • Marc Kielburger

    Director

    • Tenure: 2.7yrs
    • Compensation: US$75.00k
  • Bill Schultz

    Director

    • Tenure: 0.08yrs
  • Matthew Corrin

    Founder

    • Tenure: 12.2yrs
    • Compensation: US$1.69m
  • Michele Romanow (34yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$85.00k
  • Adam Corrin

    COO & Director

    • Tenure: 2.7yrs
    • Compensation: US$600.01k
  • Neil Pasricha

    Director

    • Tenure: 0.6yrs

Company Information

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


Key Information

  • Name: Freshii Inc.
  • Ticker: FRII
  • Exchange: TSX
  • Founded: 2005
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: CA$96.223m
  • Shares outstanding: 31.04m
  • Website: https://www.freshii.com

Number of Employees


Location

  • Freshii Inc.
  • 1027 Yonge Street
  • Toronto
  • Ontario
  • M4W 2L2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRIITSX (The Toronto Stock Exchange)Common SharesCACADJan 2017
FRIITSX (The Toronto Stock Exchange)YesClass A Subordinate Voting SharesCACADJan 2017
3FIDB (Deutsche Boerse AG)YesClass A Subordinate Voting SharesDEEURJan 2017
FRHH.FOTCPK (Pink Sheets LLC)YesClass A Subordinate Voting SharesUSUSDJan 2017

Biography

Freshii Inc., together with its subsidiaries, develops, franchises, and operates quick-serve restaurants in Canada, the United States, and internationally. Its restaurants offer salads, bowls, burritos, wr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 01:15
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/30


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.