CNSX:TRIP

Stock Analysis Report

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Executive Summary

Red Light Holland Corp. engages in the production, cultivation, and sale of magic truffles to the legal recreational market in the Netherlands. More Details


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

How has Red Light Holland's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRIP is more volatile than 90% of Canadian stocks over the past 3 months, typically moving +/- 32% a week.

Volatility Over Time: TRIP's weekly volatility has increased from 23% to 32% over the past year.


Market Performance


7 Day Return

-32.3%

TRIP

-2.0%

CA Tobacco

-0.8%

CA Market


1 Year Return

n/a

TRIP

3.8%

CA Tobacco

12.5%

CA Market

Return vs Industry: Insufficient data to determine how TRIP performed against the Canadian Tobacco industry.

Return vs Market: Insufficient data to determine how TRIP performed against the Canadian Market.


Shareholder returns

TRIPIndustryMarket
7 Day-32.3%-2.0%-0.8%
30 Day-35.1%-7.6%2.1%
90 Day200.0%7.7%5.8%
1 Yearn/a13.4%3.8%16.6%12.5%
3 Yearn/a-15.6%-31.2%23.1%11.4%
5 Yearn/a-6.7%-29.3%56.4%32.8%

Long-Term Price Volatility Vs. Market

How volatile is Red Light Holland's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Red Light Holland undervalued compared to its fair value and its price relative to the market?

10.08x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: TRIP is unprofitable, so we can't compare its PE Ratio to the XX Tobacco industry average.

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


Price to Book Ratio

PB vs Industry: TRIP is overvalued based on its PB Ratio (10.1x) compared to the XN Tobacco industry average (7.2x).


Next Steps

Future Growth

How is Red Light Holland forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.5%

Forecasted Food, Beverage & Tobacco 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 Red Light Holland 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 Red Light Holland performed over the past 5 years?

-72.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRIP is currently unprofitable.

Growing Profit Margin: TRIP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TRIP is unprofitable, and losses have increased over the past 5 years at a rate of 72.8% per year.

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

Earnings vs Industry: TRIP is unprofitable, making it difficult to compare its past year earnings growth to the Tobacco industry (2.5%).


Return on Equity

High ROE: TRIP has a negative Return on Equity (-8.73%), as it is currently unprofitable.


Next Steps

Financial Health

How is Red Light Holland's financial position?


Financial Position Analysis

Short Term Liabilities: TRIP's short term assets (CA$12.1M) exceed its short term liabilities (CA$588.9K).

Long Term Liabilities: TRIP's short term assets (CA$12.1M) exceed its long term liabilities (CA$86.3K).


Debt to Equity History and Analysis

Debt Level: TRIP's debt to equity ratio (0.6%) is considered satisfactory.

Reducing Debt: TRIP had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


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: TRIP has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: TRIP has sufficient cash runway for 1.7 years if free cash flow continues to reduce at historical rates of 77.2% each year.


Next Steps

Dividend

What is Red Light Holland current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

0.8yrs

Average management tenure


CEO

Todd Shapiro (45 yo)

0.83

Tenure

Mr. Todd Michael Shapiro serves as Director at Datametrex AI Limited since May 25, 2020. He is Chief Executive Officer of Red Light Holland Corp since May 25, 2020 and its Director since May 22, 2020. He s...


Leadership Team

NamePositionTenureCompensationOwnership
Todd Shapiro
CEO & Chairman0.83yrno data2.92%
CA$ 3.7m
Hans Derix
President0.83yrno datano data
Kyle Appleby
Chief Financial Officer0.83yrno data0.15%
CA$ 190.0k
Tony Clement
Senior Advisor of Advisory Board0.75yrno datano data
Karim Rashid
Head of Design0.25yrno datano data
Shimshon Posen
Corporate Secretary0.75yrno datano data
Frederick Vance
Chief Compliance Officer & VP of Northern Securities Incno dataCA$175.00kno data

0.8yrs

Average Tenure

45yo

Average Age

Experienced Management: TRIP's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Todd Shapiro
CEO & Chairman0.83yrno data2.92%
CA$ 3.7m
Binyomin Posen
Independent Director2yrsno data0.051%
CA$ 63.3k
Ann Barnes
Independent Director0.83yrno data1.32%
CA$ 1.6m
Brad Lamb
Independent Director0.67yrno data0.96%
CA$ 1.2m
Joseph Geraci
Member of Advisory Board0.75yrno datano data
Bruce Linton
Chairman of Advisory Boardno datano datano data
Graham Pechenik
Senior Advisor of Advisory Board0.25yrno datano data

0.8yrs

Average Tenure

Experienced Board: TRIP's board of directors are not considered experienced ( 0.8 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: TRIP only recently listed within the past 12 months, with total shares outstanding growing by 38594.5% in the past year..


Top Shareholders

Company Information

Red Light Holland Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Red Light Holland Corp.
  • Ticker: TRIP
  • Exchange: CNSX
  • Founded: 1982
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: CA$125.188m
  • Shares outstanding: 329.44m
  • Website: https://www.redlighttruffles.com

Location

  • Red Light Holland Corp.
  • 1 Adelaide Street East
  • Suite 801
  • Toronto
  • Ontario
  • M5C 2V9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRIPCNSX (Canadian National Stock Exchange)YesShare CapitalCACADMay 2020
4YXDB (Deutsche Boerse AG)YesShare CapitalDEEURMay 2020
TRUF.FOTCPK (Pink Sheets LLC)YesShare CapitalUSUSDMay 2020

Biography

Red Light Holland Corp. engages in the production, cultivation, and sale of magic truffles to the legal recreational market in the Netherlands. It sells its products under the iMicrodose brand name through...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 23:56
End of Day Share Price2021/03/04 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


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.