The Second Cup Ltd. operates as a specialty coffee retailer in Canada. More Details
Imperfect balance sheet and overvalued.
Share Price & News
How has Second Cup's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SCU's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: SCU underperformed the Canadian Hospitality industry which returned -28.5% over the past year.
Return vs Market: SCU underperformed the Canadian Market which returned -7.8% over the past year.
Price Volatility Vs. Market
How volatile is Second Cup's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 months ago | Simply Wall StIntroducing Second Cup (TSE:SCU), The Stock That Tanked 81%
5 months ago | Simply Wall StHere's Why We're Not At All Concerned With Second Cup's (TSE:SCU) Cash Burn Situation
6 months ago | Simply Wall StDo Directors Own The Second Cup Ltd (TSE:SCU) Shares?
Is Second Cup undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate SCU's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate SCU's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: SCU is unprofitable, so we can't compare its PE Ratio to the CA Hospitality industry average.
PE vs Market: SCU 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 SCU's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: SCU is good value based on its PB Ratio (0.7x) compared to the CA Hospitality industry average (1x).
How is Second Cup forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Consumer Services 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 Second Cup 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.
- Take a look at our analysis of SCU’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Second Cup competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Consumer Services industry.
How has Second Cup performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SCU is currently unprofitable.
Growing Profit Margin: SCU is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: SCU is unprofitable, but has reduced losses over the past 5 years at a rate of 19.7% per year.
Accelerating Growth: Unable to compare SCU's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: SCU is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-6.7%).
Return on Equity
High ROE: SCU has a negative Return on Equity (-31.52%), as it is currently unprofitable.
How is Second Cup's financial position?
Financial Position Analysis
Short Term Liabilities: SCU's short term assets (CA$11.8M) do not cover its short term liabilities (CA$24.7M).
Long Term Liabilities: SCU's short term assets (CA$11.8M) do not cover its long term liabilities (CA$65.6M).
Debt to Equity History and Analysis
Debt Level: SCU's debt to equity ratio (0.2%) is considered satisfactory.
Reducing Debt: SCU's debt to equity ratio has reduced from 44.9% to 0.2% over the past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: SCU has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: SCU has less than a year of cash runway if free cash flow continues to grow at historical rates of 8.3% each year.
What is Second Cup current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SCU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SCU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SCU's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SCU's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: SCU is not paying a notable dividend for the Canadian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SCU's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Steven J. Pelton, Sr., also known as Steve, is Chief Executive Officer and President of The Second Cup Ltd since June 5, 2019 and serves as its Non-Independent Director since June 5, 2019. Mr. Pelton s ...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD401.40K) is above average for companies of similar size in the Canadian market ($USD176.89K).
Compensation vs Earnings: Insufficient data to compare Steve's compensation with company performance.
|Chief Financial Officer||3.25yrs||CA$260.96k||0.23% |
|Vice President of Operations||0.92yr||no data||no data|
|Vice President of Marketing & Innovation||0.67yr||no data||no data|
|Vice President of People||1yr||no data||no data|
Experienced Management: SCU's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
|Independent Chairman||6.75yrs||CA$150.00k||no data|
|Independent Director||3.08yrs||CA$25.00k||0.55% |
|Independent Director||6.75yrs||CA$25.00k||0.30% |
|Independent Director||6.75yrs||CA$30.00k||0.57% |
|Independent Director||1.08yrs||CA$12.35k||no data|
|Independent Director||3.08yrs||CA$25.00k||0.55% |
|Non-Independent Director||2.5yrs||CA$78.01k||0.13% |
Experienced Board: SCU's board of directors are considered experienced (3.1 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.6%.
The Second Cup Ltd's company bio, employee growth, exchange listings and data sources
- Name: The Second Cup Ltd
- Ticker: SCU
- Exchange: TSX
- Founded: 1975
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: CA$20.624m
- Shares outstanding: 22.92m
- Website: https://www.secondcup.com
Number of Employees
- The Second Cup Ltd
- 6303 Airport Road
- 2nd Floor
- L4V 1R8
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SCU||TSX (The Toronto Stock Exchange)||Yes||Common Shares||CA||CAD||Dec 2004|
|SCUP.F||OTCPK (Pink Sheets LLC)||Yes||Common Shares||US||USD||Dec 2004|
The Second Cup Ltd. operates as a specialty coffee retailer in Canada. The company offers coffee products and beverages. As of December 28, 2019, it operated approximately 212 franchised and 32 company own ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/09/24 05:30|
|End of Day Share Price||2020/09/23 00:00|
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.