TSXV:RM

Stock Analysis Report

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Executive Summary

Routemaster Capital Inc. operates as a tier 2 investment issuer in Canada.


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

RM

0.8%

CA Capital Markets

1.9%

CA Market


1 Year Return

-20.0%

RM

1.6%

CA Capital Markets

-12.0%

CA Market

Return vs Industry: RM underperformed the Canadian Capital Markets industry which returned 1.6% over the past year.

Return vs Market: RM underperformed the Canadian Market which returned -12% over the past year.


Shareholder returns

RMIndustryMarket
7 Day0%0.8%1.9%
30 Day-11.1%7.9%3.5%
90 Day33.3%-5.6%-10.5%
1 Year-20.0%-20.0%6.5%1.6%-8.9%-12.0%
3 Year-65.2%-65.2%20.3%4.4%-0.1%-9.4%
5 Year-73.3%-73.3%35.3%6.0%14.7%-2.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Routemaster Capital is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Routemaster Capital 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 RM’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 Routemaster Capital regulatory filings.
  • Explore potentially undervalued companies in the Diversified Financials industry.

Future Growth

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

7.1%

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 Routemaster 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

  • Take a look at our analysis of RM’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.
  • Routemaster Capital competitive advantages and company strategy can generally be found in its financial reports archived here.
  • Explore growth companies in the Diversified Financials industry.

Past Performance

How has Routemaster Capital performed over the past 5 years?

-53.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RM is currently unprofitable.

Growing Profit Margin: RM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RM is unprofitable, and losses have increased over the past 5 years at a rate of -53.1% per year.

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

Earnings vs Industry: RM is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (-5.4%).


Return on Equity

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


Next Steps

Financial Health

How is Routemaster Capital's financial position?


Financial Position Analysis

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

Long Term Liabilities: RM 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: RM is debt free.

Reducing Debt: RM'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: RM has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: RM has sufficient cash runway for 2.4 years if free cash flow continues to grow at historical rates of 12.5% each year.


Next Steps

Dividend

What is Routemaster Capital's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if RM'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 RM'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?

1.4yrs

Average management tenure


CEO

Fred Leigh (63yo)

0.17

Tenure

CA$30,000

Compensation

Mr. Frederic W.R. Leigh, also known as Fred, serves as Chairman and Director of EarthRenew Inc. since April 15, 2020. He serves as President, Chief Executive Officer and Director at Routemaster Capital Inc ...


CEO Compensation Analysis

Compensation vs Market: Fred's total compensation ($USD21.75K) is below average for companies of similar size in the Canadian market ($USD157.33K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Frederic Leigh
President0.17yrCA$30.00k8.99% CA$149.4k
Ryan Ptolemy
Chief Financial Officer10.58yrsCA$30.00kno data
Kenny Choi
Corporate Secretary1.42yrsno datano data
Bob Cinq-Mars
Processing Consultantno datano datano data

1.4yrs

Average Tenure

43yo

Average Age

Experienced Management: RM's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Frederic Leigh
President0.17yrCA$30.00k8.99% CA$149.4k
Tito Gandhi
Independent Director3.75yrsno datano data
William Steers
Independent Director2.17yrsno datano data

2.2yrs

Average Tenure

63yo

Average Age

Experienced Board: RM's board of directors are not considered experienced ( 2.2 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Routemaster Capital Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Routemaster Capital Inc.
  • Ticker: RM
  • Exchange: TSXV
  • Founded:
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CA$1.661m
  • Shares outstanding: 41.51m
  • Website: https://www.routemastercapital.com

Location

  • Routemaster Capital Inc.
  • 65 Queen Street West
  • 8th Floor
  • Toronto
  • Ontario
  • M5H 2M5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1988
RMJRDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
RDNA.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988

Biography

Routemaster Capital Inc. operates as a tier 2 investment issuer in Canada. It engages in the acquisition of equity, debt, or other securities of publicly traded companies, private companies, or other entities. The company was formerly known as Rodinia Lithium Inc. and changed its name to Routemaster Capital Inc. in August 2016. Routemaster Capital Inc. is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 02:02
End of Day Share Price2020/05/20 00:00
Earnings2020/03/31
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.