TSXV:FW

Stock Analysis Report

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Executive Summary

Flow Capital Corp. operates as an alternative asset investor and advisor in Canada and the United States. More Details


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FW is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: FW's weekly volatility has decreased from 17% to 11% over the past year.


Market Performance


7 Day Return

-2.7%

FW

1.4%

CA Capital Markets

0.7%

CA Market


1 Year Return

28.6%

FW

2.6%

CA Capital Markets

-2.0%

CA Market

Return vs Industry: FW exceeded the Canadian Capital Markets industry which returned 3.3% over the past year.

Return vs Market: FW exceeded the Canadian Market which returned -1.8% over the past year.


Shareholder returns

FWIndustryMarket
7 Day-2.7%1.4%0.7%
30 Day-2.7%13.4%5.3%
90 Day38.5%13.2%4.0%
1 Year28.6%28.6%4.9%2.6%1.6%-2.0%
3 Yearn/a38.0%28.4%10.2%-0.5%
5 Yearn/a69.7%48.2%44.5%22.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Flow Capital undervalued compared to its fair value and its price relative to the market?

0.65x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FW's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FW's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: FW is unprofitable, so we can't compare its PE Ratio to the CA Capital Markets industry average.

PE vs Market: FW 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 FW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FW is good value based on its PB Ratio (0.7x) compared to the CA Capital Markets industry average (1.3x).


Next Steps

Future Growth

How is Flow Capital forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

42.7%

Forecasted Diversified Financials 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 Flow Capital 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 Flow Capital performed over the past 5 years?

-21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FW is currently unprofitable.

Growing Profit Margin: FW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FW is unprofitable, and losses have increased over the past 5 years at a rate of 21.5% per year.

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

Earnings vs Industry: FW is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (27.4%).


Return on Equity

High ROE: FW has a negative Return on Equity (-48.62%), as it is currently unprofitable.


Next Steps

Financial Health

How is Flow Capital's financial position?


Financial Position Analysis

Short Term Liabilities: FW's short term assets (CA$14.2M) exceed its short term liabilities (CA$9.9M).

Long Term Liabilities: FW's short term assets (CA$14.2M) exceed its long term liabilities (CA$7.0M).


Debt to Equity History and Analysis

Debt Level: FW's debt to equity ratio (74.3%) is considered high.

Reducing Debt: FW's debt to equity ratio has increased from 33.1% to 74.3% over the past 5 years.


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: Whilst unprofitable FW has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FW is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 66.6% per year.


Next Steps

Dividend

What is Flow Capital current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if FW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FW is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FW'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?

1.9yrs

Average management tenure


CEO

Alex Baluta (55 yo)

1.92yrs

Tenure

CA$255,490

Compensation

Mr. Alexander William Baluta, also known as Alex, serves as Director at Flow Capital Corp. since June 9, 2020. Mr. Baluta has been Chief Executive Officer at Flow Capital Corp. since December 4, 2018 and i...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD195.55K) is about average for companies of similar size in the Canadian market ($USD165.33K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Baluta
President1.92yrsCA$255.49k0.23%
CA$ 26.6k
Valerie Hull
Vice President of Financeno dataCA$165.49kno data
Gaurav Singh
Chief Financial Officer0.58yrno datano data
Steven Parry
2.58yrsCA$231.26kno data

1.9yrs

Average Tenure

Experienced Management: FW's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Alexander Baluta
President1.92yrsCA$255.49k0.23%
CA$ 26.6k
Alan Torrie
Independent Director2.42yrsCA$50.00k1.52%
CA$ 177.5k
Vernon Lobo
Independent Chair2.42yrsCA$120.83k6.69%
CA$ 781.8k
Gordon McMillan
Independent Director3.58yrsCA$40.00k4.87%
CA$ 568.8k
Catherine McLeod-Seltzer
Independent Director2.42yrsCA$45.00k1.85%
CA$ 216.4k
Michael Zych
Independent Director0.58yrno data3.61%
CA$ 422.0k

2.4yrs

Average Tenure

56yo

Average Age

Experienced Board: FW's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FW insiders have bought more shares than they have sold 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

Flow Capital Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Flow Capital Corp.
  • Ticker: FW
  • Exchange: TSXV
  • Founded:
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CA$11.689m
  • Shares outstanding: 32.47m
  • Website: https://www.flowcap.com

Number of Employees


Location

  • Flow Capital Corp.
  • Three Bentall Centre
  • Suite 2600
  • Vancouver
  • British Columbia
  • V7X 1L3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FWTSXV (TSX Venture Exchange)YesNew Common StockCACADJun 2018
AHFC.FOTCPK (Pink Sheets LLC)YesNew Common StockUSUSDJun 2018

Biography

Flow Capital Corp. operates as an alternative asset investor and advisor in Canada and the United States. It offers revenue-linked, venture debt, and other cash flow-oriented investments to businesses; and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 00:13
End of Day Share Price2020/11/20 00:00
Earnings2020/09/30
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.