TSXV:SPP

Stock Analysis Report

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Executive Summary

SPoT Coffee (Canada) Ltd. designs, builds, operates, and franchises community-oriented cafés in Canada and the United States. More Details


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has Spot Coffee (Canada)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SPP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

SPP

-4.8%

CA Hospitality

-1.2%

CA Market


1 Year Return

-66.7%

SPP

-19.7%

CA Hospitality

-4.5%

CA Market

Return vs Industry: SPP underperformed the Canadian Hospitality industry which returned -28.5% over the past year.

Return vs Market: SPP underperformed the Canadian Market which returned -7.5% over the past year.


Shareholder returns

SPPIndustryMarket
7 Day0%-4.8%-1.2%
30 Day0%2.9%-0.03%
90 Day0%-0.9%0.9%
1 Year-66.7%-66.7%-16.9%-19.7%-1.0%-4.5%
3 Year-79.4%-79.4%-7.8%-15.7%6.4%-4.0%
5 Year-30.0%-30.0%45.2%28.6%34.5%13.8%

Price Volatility Vs. Market

How volatile is Spot Coffee (Canada)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Spot Coffee (Canada) undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Spot Coffee (Canada) is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Spot Coffee (Canada) has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of SPP'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.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don't know where to start, we recommend reading through Spot Coffee (Canada) regulatory filings.
  • Explore potentially undervalued companies in the Consumer Services industry.

Future Growth

How is Spot Coffee (Canada) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

62.7%

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 Spot Coffee (Canada) 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

  • Take a look at our analysis of SPP’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.
  • Spot Coffee (Canada) competitive advantages and company strategy can generally be found in its financial reports archived here.
  • Explore growth companies in the Consumer Services industry.

Past Performance

How has Spot Coffee (Canada) performed over the past 5 years?

-0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPP is currently unprofitable.

Growing Profit Margin: SPP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SPP is unprofitable, and losses have increased over the past 5 years at a rate of 0.6% per year.

Accelerating Growth: Unable to compare SPP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SPP is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-6.7%).


Return on Equity

High ROE: SPP's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Spot Coffee (Canada)'s financial position?


Financial Position Analysis

Short Term Liabilities: SPP has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SPP has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SPP has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SPP's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


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: SPP has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SPP has less than a year of cash runway if free cash flow continues to grow at historical rates of 8.1% each year.


Next Steps

Dividend

What is Spot Coffee (Canada) current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SPP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SPP'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 SPP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SPP'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 SPP's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

  • Explore strong dividend paying companies in the Consumer Services industry.

Management

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

4.7yrs

Average management tenure


CEO

Anton Ayoub

8.5yrs

Tenure

CA$213,720

Compensation

Mr. Anton Ayoub serves as the President of Spot Coffee, Inc. Mr. Ayoub has been the President of Spot Coffee (Canada) Inc. since March 5, 2012 and serves as its Chief Executive Officer. He served as a Mana ...


CEO Compensation Analysis

Compensation vs Market: Anton's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD178.23K).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Lorenzo
Executive Chairmanno dataCA$204.60k7.89%
CA$ 373.9k
Anton Ayoub
CEO, President & Director8.5yrsCA$213.72k1.86%
CA$ 88.1k
Raymond Stapell
Legal Consultant & Director9.83yrsCA$25.00kno data
Randy Koroll
Chief Financial Officer0.25yrno datano data
Dan Hensley
Chief Operating Officerno datano datano data
Tamara Ballanti
Vice President of Human Resources1.08yrsno datano data
Paul Price
Senior Vice President of Franchise Operationsno datano datano data
Paul Bolger
Corporate Secretaryno datano datano data
Robert Burchett
Controller1yrno datano data
Tarek Bizri
Chief Operating Officer of Spot International Limited8.25yrsno datano data

4.7yrs

Average Tenure

72yo

Average Age

Experienced Management: SPP's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Lorenzo
Executive Chairmanno dataCA$204.60k7.89%
CA$ 373.9k
Anton Ayoub
CEO, President & Director8.5yrsCA$213.72k1.86%
CA$ 88.1k
Raymond Stapell
Legal Consultant & Director9.83yrsCA$25.00kno data
Glenn Abadir
Independent Director3.83yrsno datano data
Khaled Ahmed Al-Hamdan
Independent Director5.25yrsno datano data

7.3yrs

Average Tenure

Experienced Board: SPP's board of directors are considered experienced (7.3 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 been diluted in the past year, with total shares outstanding growing by 5.9%.


Top Shareholders

Company Information

Spot Coffee (Canada) Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spot Coffee (Canada) Ltd.
  • Ticker: SPP
  • Exchange: TSXV
  • Founded:
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: CA$4.739m
  • Shares outstanding: 135.41m
  • Website: https://www.spotcoffee.com

Location

  • Spot Coffee (Canada) Ltd.
  • 141 Adelaide Street West
  • Suite 110
  • Toronto
  • Ontario
  • M5H 3L5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPPTSXV (TSX Venture Exchange)YesNew Common SharesCACADJul 2009
SCFF.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDJul 2009
33ODB (Deutsche Boerse AG)YesNew Common SharesDEEURJul 2009

Biography

SPoT Coffee (Canada) Ltd. designs, builds, operates, and franchises community-oriented cafés in Canada and the United States. The company’s cafes provide meals and in-house roasted gourmet coffee. It opera ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 05:32
End of Day Share Price2020/06/22 00:00
Earnings2020/06/30
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.