Recipe Unlimited
Market Cap
CA$975.7m
Last Updated
2021/02/25 23:24 UTC
Data Sources
Company Financials +
Executive Summary
Recipe Unlimited Corporation operates as a multi-branded restaurant, catering, and food manufacturing company that franchises and operates restaurant brands. More Details
Rewards
Risk Analysis
Snowflake Analysis
Concerning outlook with worrying balance sheet.
Similar Companies
Share Price & News
How has Recipe Unlimited's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RECP is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: RECP's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
1.2%
RECP
4.7%
CA Hospitality
0.4%
CA Market
1 Year Return
5.2%
RECP
-2.4%
CA Hospitality
11.1%
CA Market
Return vs Industry: RECP exceeded the Canadian Hospitality industry which returned -5.3% over the past year.
Return vs Market: RECP underperformed the Canadian Market which returned 10.1% over the past year.
Shareholder returns
| RECP | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.2% | 4.7% | 0.4% |
| 30 Day | 0.8% | 3.4% | 3.2% |
| 90 Day | 4.5% | 4.6% | 7.3% |
| 1 Year | 6.8%5.2% | 1.1%-2.4% | 15.2%11.1% |
| 3 Year | -21.8%-25.5% | 14.0%4.1% | 24.7%12.9% |
| 5 Year | -26.9%-32.6% | 71.4%51.9% | 60.1%35.9% |
Long-Term Price Volatility Vs. Market
How volatile is Recipe Unlimited's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Reflecting on Recipe Unlimited's (TSE:RECP) Share Price Returns Over The Last Three Years1 month ago | Simply Wall St
Have Insiders Been Selling Recipe Unlimited Corporation (TSE:RECP) Shares?2 months ago | Simply Wall St
Do Institutions Own Recipe Unlimited Corporation (TSE:RECP) Shares?Valuation
Is Recipe Unlimited undervalued compared to its fair value and its price relative to the market?
3.78x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: RECP (CA$17.51) is trading above our estimate of fair value (CA$10.09)
Significantly Below Fair Value: RECP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RECP is unprofitable, so we can't compare its PE Ratio to the CA Hospitality industry average.
PE vs Market: RECP 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 RECP's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: RECP is overvalued based on its PB Ratio (3.8x) compared to the CA Hospitality industry average (1.3x).
Next Steps
Future Growth
How is Recipe Unlimited forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
12.6%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if RECP's forecast earnings growth is above the savings rate (1.5%).
Earnings vs Market: Insufficient data to determine if RECP's earnings are forecast to grow faster than the Canadian market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RECP's revenue (12.6% per year) is forecast to grow faster than the Canadian market (8.3% per year).
High Growth Revenue: RECP's revenue (12.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RECP's Return on Equity is forecast to be low in 3 years time (17.8%).
Next Steps
Past Performance
How has Recipe Unlimited performed over the past 5 years?
-30.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RECP is currently unprofitable.
Growing Profit Margin: RECP is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: RECP is unprofitable, and losses have increased over the past 5 years at a rate of 30% per year.
Accelerating Growth: Unable to compare RECP's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: RECP is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-19.4%).
Return on Equity
High ROE: RECP has a negative Return on Equity (-30.07%), as it is currently unprofitable.
Next Steps
Financial Health
How is Recipe Unlimited's financial position?
Financial Position Analysis
Short Term Liabilities: RECP's short term assets (CA$246.0M) do not cover its short term liabilities (CA$414.2M).
Long Term Liabilities: RECP's short term assets (CA$246.0M) do not cover its long term liabilities (CA$1.5B).
Debt to Equity History and Analysis
Debt Level: RECP's debt to equity ratio (213.2%) is considered high.
Reducing Debt: RECP's debt to equity ratio has increased from 33.4% to 213.2% over the past 5 years.
Debt Coverage: RECP's debt is well covered by operating cash flow (33.1%).
Interest Coverage: RECP is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is Recipe Unlimited current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate RECP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate RECP'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 RECP's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if RECP's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: RECP is not paying a notable dividend for the Canadian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of RECP'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?
5.4yrs
Average management tenure
CEO
Frank Hennessey (56 yo)
2.75yrs
Tenure
CA$920,000
Compensation
Mr. Frank Hennessey has been Chief Executive Officer of Cara Operations Ltd since May 10, 2018. Mr. Hennessey served as the Chief Executive Officer and President of Imvescor Restaurant Group Inc. since Sep...
CEO Compensation Analysis
Compensation vs Market: Frank's total compensation ($USD735.13K) is below average for companies of similar size in the Canadian market ($USD1.18M).
Compensation vs Earnings: Insufficient data to compare Frank's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 2.75yrs | CA$920.00k | no data | |
| Chief Financial Officer | 7.33yrs | CA$710.00k | 0.047% CA$ 457.7k | |
| VP, General Counsel & Secretary | no data | no data | no data | |
| Chief People Officer | 2.08yrs | no data | no data | |
| Executive VP | no data | no data | no data | |
| Senior Vice President of Casual Dining Division | 12.42yrs | CA$459.41k | no data | |
| Senior Vice President of Landing & Bier Markt | 5.58yrs | CA$283.16k | no data | |
| President of Milestones Restaurants Inc | no data | no data | no data | |
| Chief Development Officer & President of Family Dining Division | 6.42yrs | CA$724.48k | no data | |
| President of FranWorks | 4.25yrs | no data | no data | |
| President of Keg Restaurants Ltd. | 1.67yrs | no data | no data | |
| President of St-Hubert Bar-B-Q Ltd. | 5.42yrs | no data | 0.012% CA$ 120.4k |
5.4yrs
Average Tenure
56.5yo
Average Age
Experienced Management: RECP's management team is seasoned and experienced (5.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 7.33yrs | CA$85.00k | 0.038% CA$ 372.2k | |
| Independent Director | 7.92yrs | CA$95.00k | 0.057% CA$ 558.4k | |
| Independent Director | 9.08yrs | CA$85.00k | 0.044% CA$ 427.7k | |
| Vice Chairman | 2.75yrs | CA$750.00k | 0% CA$ 0 | |
| Chairman Emeritus of Kelsey’s International Inc | no data | no data | no data | |
| Independent Director | 5.83yrs | CA$85.00k | no data | |
| Chairman of the Board | 1.17yrs | no data | 0.0080% CA$ 77.9k | |
| Independent Director | 5.83yrs | CA$85.00k | no data | |
| Independent Director | 2.75yrs | CA$85.00k | no data |
5.8yrs
Average Tenure
58yo
Average Age
Experienced Board: RECP's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RECP 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
Recipe Unlimited Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Recipe Unlimited Corporation
- Ticker: RECP
- Exchange: TSX
- Founded: 1883
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: CA$975.734m
- Shares outstanding: 56.37m
- Website: https://www.recipeunlimited.com
Number of Employees
Location
- Recipe Unlimited Corporation
- 199 Four Valley Drive
- Vaughan
- Ontario
- L4K 0B8
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RECP | TSX (The Toronto Stock Exchange) | Yes | Subordinate Voting Shares | CA | CAD | Apr 2015 |
| 305 | DB (Deutsche Boerse AG) | Yes | Subordinate Voting Shares | DE | EUR | Apr 2015 |
| RCPU.F | OTCPK (Pink Sheets LLC) | Yes | Subordinate Voting Shares | US | USD | Apr 2015 |
Biography
Recipe Unlimited Corporation operates as a multi-branded restaurant, catering, and food manufacturing company that franchises and operates restaurant brands. The company operates through four segments: Cor...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/25 23:24 |
| End of Day Share Price | 2021/02/25 00:00 |
| Earnings | 2020/09/27 |
| Annual Earnings | 2019/12/29 |
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.