TSXV:SPP

Stock Analysis Report

Executive Summary

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

Risk Analysis

Has less than 1 year of cash runway

Does not have a meaningful market cap (CA$12M)

Currently unprofitable and not forecast to become profitable over the next 3 years



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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

SPP

0.5%

CA Hospitality

-0.4%

CA Market


1 Year Return

41.7%

SPP

13.1%

CA Hospitality

10.5%

CA Market

Return vs Industry: SPP exceeded the Canadian Hospitality industry which returned 13.1% over the past year.

Return vs Market: SPP exceeded the Canadian Market which returned 10.5% over the past year.


Shareholder returns

SPPIndustryMarket
7 Day0%0.5%-0.4%
30 Day-5.6%6.7%0.8%
90 Day-15.0%19.3%1.7%
1 Year41.7%41.7%14.0%13.1%14.1%10.5%
3 Year30.8%30.8%50.7%46.4%16.1%5.6%
5 Year325.0%325.0%31.4%27.2%41.2%20.4%

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?

66.1%

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

Past Performance

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

45.5%

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, but has reduced losses over the past 5 years at a rate of 45.5% 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 (-12.7%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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

Inventory Level: SPP has a high level of physical assets or inventory.

Debt Coverage by Assets: SPP has negative shareholder equity (liabilities exceed assets) therefore debt is not 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.

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 reduce at historical rates of -17.5% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate SPP's dividend yield against the top 25% of dividend payers, as the company has not reported any 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

Management

What is the CEO of Spot Coffee (Canada)'s salary, the management and board of directors tenure and is there insider trading?

7.5yrs

Average management tenure


CEO

Anton Ayoub 0

7.8yrs

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 ($USD0.00) is below average for companies of similar size in the Canadian market ($USD136.16K).

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


Management Age and Tenure

7.5yrs

Average Tenure

71yo

Average Age

Experienced Management: SPP's management team is seasoned and experienced (7.5 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

Experienced Board: SPP's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: SPP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$1,16229 Nov 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares13,500
Max PriceCA$0.09
BuyCA$3,40029 Nov 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares40,000
Max PriceCA$0.085
BuyCA$90028 Nov 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.09
BuyCA$1,35026 Nov 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares15,000
Max PriceCA$0.09
BuyCA$52222 Nov 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares5,500
Max PriceCA$0.095
BuyCA$1,86022 Nov 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceCA$0.093
BuyCA$90018 Nov 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.09
BuyCA$24,31318 Nov 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares270,150
Max PriceCA$0.09
BuyCA$36015 Nov 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares4,000
Max PriceCA$0.09
BuyCA$1,35014 Nov 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares15,000
Max PriceCA$0.09
BuyCA$1,89013 Nov 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares21,000
Max PriceCA$0.09
BuyCA$1,35012 Nov 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares15,000
Max PriceCA$0.09
BuyCA$5,94011 Nov 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares66,000
Max PriceCA$0.09
BuyCA$3,09008 Nov 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares35,500
Max PriceCA$0.091
BuyCA$3,52008 Nov 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares40,000
Max PriceCA$0.088
BuyCA$51,18007 Nov 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares60,000
Max PriceCA$0.85
BuyCA$17706 Nov 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceCA$0.0088
BuyCA$1,42505 Nov 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares15,000
Max PriceCA$0.095
BuyCA$28501 Nov 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares3,000
Max PriceCA$0.095
BuyCA$28,05001 Nov 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares31,000
Max PriceCA$0.91
BuyCA$1,00030 Oct 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$1,00028 Oct 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$69825 Oct 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares7,000
Max PriceCA$0.10
BuyCA$2,40024 Oct 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares25,000
Max PriceCA$0.096
BuyCA$1,00023 Oct 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$1,50022 Oct 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares15,000
Max PriceCA$0.10
BuyCA$2,27521 Oct 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares25,000
Max PriceCA$0.091
BuyCA$3,49017 Oct 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares40,000
Max PriceCA$0.091
BuyCA$69411 Oct 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares8,000
Max PriceCA$0.094
BuyCA$3,28311 Oct 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares40,000
Max PriceCA$0.085
BuyCA$2,48010 Oct 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares30,000
Max PriceCA$0.088
BuyCA$5,49707 Oct 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares60,000
Max PriceCA$0.10
BuyCA$29303 Oct 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares3,000
Max PriceCA$0.10
BuyCA$1,94802 Oct 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceCA$0.097
BuyCA$52127 Sep 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares5,000
Max PriceCA$0.11
BuyCA$1,05026 Sep 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$1,10025 Sep 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.11
BuyCA$3,01223 Sep 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares30,000
Max PriceCA$0.10
BuyCA$15720 Sep 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares1,500
Max PriceCA$0.10
BuyCA$1,03018 Sep 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$1,05016 Sep 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$51113 Sep 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares5,000
Max PriceCA$0.10
BuyCA$1,05013 Sep 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$1,00009 Sep 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$98004 Sep 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.098
BuyCA$1,42503 Sep 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares15,000
Max PriceCA$0.095
BuyCA$29530 Aug 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares3,000
Max PriceCA$0.10
BuyCA$95030 Aug 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.095
BuyCA$95028 Aug 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.095
BuyCA$1,14027 Aug 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares12,000
Max PriceCA$0.095
BuyCA$1,84026 Aug 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceCA$0.092
BuyCA$1,22523 Aug 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares13,000
Max PriceCA$0.10
BuyCA$1,86023 Aug 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceCA$0.093
BuyCA$3,19522 Aug 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares35,500
Max PriceCA$0.09
BuyCA$1,00021 Aug 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$15716 Aug 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares1,500
Max PriceCA$0.10
BuyCA$1,05015 Aug 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$1,05014 Aug 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.11
BuyCA$41109 Aug 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares4,000
Max PriceCA$0.10
BuyCA$2,26608 Aug 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares22,000
Max PriceCA$0.10
BuyCA$1,00007 Aug 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$2,08006 Aug 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceCA$0.10
BuyCA$84202 Aug 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares8,000
Max PriceCA$0.11
BuyCA$1,05001 Aug 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$1,05031 Jul 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$1,10029 Jul 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.11
BuyCA$86326 Jul 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares8,000
Max PriceCA$0.11
BuyCA$2,06024 Jul 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceCA$0.10
BuyCA$1,60523 Jul 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares15,000
Max PriceCA$0.11
BuyCA$1,40119 Jul 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares11,500
Max PriceCA$0.13
BuyCA$4,14019 Jul 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares34,500
Max PriceCA$0.12
BuyCA$1,00017 Jul 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$1,50016 Jul 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares15,000
Max PriceCA$0.10
BuyCA$20012 Jul 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares2,000
Max PriceCA$0.10
BuyCA$2,00010 Jul 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceCA$0.10
BuyCA$1,05009 Jul 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$1,20008 Jul 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares12,000
Max PriceCA$0.10
BuyCA$25005 Jul 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares2,500
Max PriceCA$0.10
BuyCA$2,50004 Jul 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares25,000
Max PriceCA$0.10
BuyCA$4,00002 Jul 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares40,000
Max PriceCA$0.10
BuyCA$1,19928 Jun 19
Anton Ayoub
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares12,000
Max PriceCA$0.10
BuyCA$1,00028 Jun 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$1,00026 Jun 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$1,00025 Jun 19
John Lorenzo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceCA$0.10
BuyCA$3,50024 Jun 19
John Lorenzo