TSXV:ROI

Stock Analysis Report

Executive Summary

Route1 Inc. provides industrial-grade data intelligence, user authentication, and ultra-secure mobile workforce solutions to the government, military, and private sectors in the United States and Canada.

Snowflake

Fundamentals

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has Route1's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

16.7%

ROI

-0.1%

CA Software

0.1%

CA Market


1 Year Return

-22.2%

ROI

18.8%

CA Software

1.6%

CA Market

Return vs Industry: ROI underperformed the Canadian Software industry which returned 18.8% over the past year.

Return vs Market: ROI underperformed the Canadian Market which returned 1.6% over the past year.


Shareholder returns

ROIIndustryMarket
7 Day16.7%-0.1%0.1%
30 Day-1.4%-2.7%-2.9%
90 Day-30.0%1.6%-1.4%
1 Year-22.2%-22.2%20.7%18.8%5.2%1.6%
3 Year-30.0%-30.0%72.4%68.3%13.8%3.7%
5 Year-22.2%-22.2%155.3%147.9%25.3%7.2%

Price Volatility Vs. Market

How volatile is Route1's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Route1 undervalued compared to its fair value and its price relative to the market?

15.36x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate ROI's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate ROI's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: ROI is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate ROI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ROI is overvalued based on its PB Ratio (15.4x) compared to the CA Software industry average (2.5x).


Next Steps

Future Growth

How is Route1 forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.5%

Forecasted Software 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 Route1 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 Route1 performed over the past 5 years?

-57.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ROI is unprofitable, and losses have increased over the past 5 years at a rate of -57.7% per year.

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

Earnings vs Industry: ROI is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (23.6%).


Return on Equity

High ROE: ROI has a negative Return on Equity (-144.47%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ROI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ROI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Route1's financial position?


Financial Position Analysis

Short Term Liabilities: ROI's short term assets (CA$6.2M) do not cover its short term liabilities (CA$8.6M)

Long Term Liabilities: ROI's short term assets (6.2M) exceeds its long term liabilities (2.8M)


Debt to Equity History and Analysis

Debt Level: ROI's debt to equity ratio (218.2%) is considered high

Reducing Debt: Insufficient data to determine if ROI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ROI's debt is well covered by operating cash flow (38.5%).

Interest Coverage: ROI is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: ROI's debt is covered by short term assets (assets are 3.339590x debt).


Next Steps

Dividend

What is Route1's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if ROI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ROI'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 ROI'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 Route1's salary, the management and board of directors tenure and is there insider trading?

8.7yrs

Average management tenure


CEO

Tony Busseri (50yo)

9.7yrs

Tenure

CA$335,000

Compensation

Mr. Tony P. Busseri has been the Chief Executive Officer of Route1 Inc. since February 26, 2010 and served as its President. Mr. Busseri is Consultant in the waste management industry. He served as Executi ...


CEO Compensation Analysis

Compensation vs. Market: Tony's total compensation ($USD0.00) is too low to compare against companies of similar size in the Canadian market ($USD121.84K).

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


Management Age and Tenure

8.7yrs

Average Tenure

Experienced Management: ROI's management team is seasoned and experienced (8.7 years average tenure).


Board Age and Tenure

8.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: ROI's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCA$4,58831 Jul 19
Michael Harris
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares9,499.9
Max PriceCA$0.48
BuyCA$3,08731 Jul 19
David Fraser
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,390.8
Max PriceCA$0.48
BuyCA$5,13831 Jul 19
Edward Reeder
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,276
Max PriceCA$0.50
BuyCA$2,83331 Jul 19
John Marino
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,666
Max PriceCA$0.50
BuyCA$3,45020 Jun 19
Tony Busseri
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares6,900
Max PriceCA$0.50
BuyCA$3,19614 May 19
Edward Reeder
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,055.5
Max PriceCA$0.79
BuyCA$4,16703 May 19
Edward Reeder
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,944.4
Max PriceCA$0.60
BuyCA$2,75003 May 19
David Fraser
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,583.3
Max PriceCA$0.60
BuyCA$2,50002 May 19
John Marino
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,166.6
Max PriceCA$0.60
BuyCA$3,75002 May 19
Michael Harris
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares6,250
Max PriceCA$0.60
BuyCA$2,01905 Feb 19
John Marino
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,562.5
Max PriceCA$0.79
BuyCA$3,75005 Feb 19
Michael Harris
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares4,687.5
Max PriceCA$0.80
BuyCA$2,75005 Feb 19
David Fraser
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,437.5
Max PriceCA$0.80
BuyCA$2,75007 Nov 18
David Fraser
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$0.55
BuyCA$2,88807 Nov 18
John Marino
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,250
Max PriceCA$0.55
BuyCA$3,75007 Nov 18
Michael Harris
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares6,818.1
Max PriceCA$0.55

Ownership Breakdown


Management Team

  • Tony Busseri (50yo)

    CEO & Director

    • Tenure: 9.7yrs
    • Compensation: CA$335.00k
  • Peter Chodos

    Executive VP

    • Tenure: 10.1yrs
    • Compensation: CA$250.00k
  • Brian Levett

    Corporate Secretary

    • Tenure: 0yrs
  • Yamian Quintero

    Executive VP & CTO

    • Tenure: 8.7yrs
    • Compensation: CA$294.94k

Board Members

  • Tony Busseri (50yo)

    CEO & Director

    • Tenure: 9.7yrs
    • Compensation: CA$335.00k
  • Michael Doolan (67yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: CA$50.00k
  • Mike Harris (74yo)

    Independent Chairman

    • Tenure: 10.1yrs
    • Compensation: CA$75.00k
  • Peter Chodos

    Executive VP

    • Tenure: 10.1yrs
    • Compensation: CA$250.00k
  • Barry West

    Director

    • Tenure: 0.2yrs
  • David Fraser (62yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: CA$55.00k
  • Edward Reeder

    Independent Director

    • Tenure: 1.1yrs
  • John Marino

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: CA$76.31k

Company Information

Route1 Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Route1 Inc.
  • Ticker: ROI
  • Exchange: TSXV
  • Founded: 2004
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: CA$12.817m
  • Shares outstanding: 36.62m
  • Website: https://www.route1.com

Location

  • Route1 Inc.
  • 8 King Street East
  • Suite 600
  • Toronto
  • Ontario
  • M5C 1B5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ROITSXV (TSX Venture Exchange)YesCommon SharesCACADApr 1994
ROIU.DOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 1994

Biography

Route1 Inc. provides industrial-grade data intelligence, user authentication, and ultra-secure mobile workforce solutions to the government, military, and private sectors in the United States and Canada. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:56
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.