TSXV:ROI

Stock Analysis Report

Executive Summary

Route1 Inc. provides security and identity management solutions to businesses, government, and military enterprises worldwide.

Snowflake

Fundamentals

Excellent balance sheet with weak fundamentals.

Risks

  • Route1 has significant price volatility in the past 3 months.
  • Route1 is not covered by any analysts.

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

-8.3%

TSXV:ROI

3.2%

CA Software

0.07%

CA Market


1 Year Return

57.1%

TSXV:ROI

2.7%

CA Software

-2.8%

CA Market

ROI outperformed the Software industry which returned 2.6% over the past year.

ROI outperformed the Market in Canada which returned -3.3% over the past year.


Share holder returns

ROIIndustryMarket
7 Day-8.3%3.2%0.07%
30 Day0%2.9%-1.1%
90 Day-21.4%8.8%-0.4%
1 Year57.1%57.1%4.4%2.7%0.5%-2.8%
3 Year37.5%37.5%96.9%92.0%22.5%11.5%
5 Year22.2%22.2%182.0%173.2%16.9%0.9%

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 based on future cash flows and its price relative to the stock market?

23.24x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Route1 to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Route1 to establish if it is available at substantial discount.


Price Based on Earnings

Route1 is loss making, we can't compare its value to the CA Software industry average.

Route1 is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Route1, we can't assess if its growth is good value.


Price Based on Value of Assets

Route1 is overvalued based on assets compared to the CA Software industry average.


Next Steps

Future Growth

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

5.4%

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?

-49.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Route1 does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Route1's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Route1's 1-year growth to the CA Software industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Route1 has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Route1 has efficiently used its assets last year compared to the CA Software industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Route1 improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Route1's financial position?


Financial Position Analysis

Route1's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Route1's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Route1 has no debt.

Route1 has not taken on any debt in the past 5 years.

Route1 has no debt, it does not need to be covered by operating cash flow.

Route1 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Route1 has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Route1's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Route1's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Route1 has not reported any payouts.

Unable to verify if Route1's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Route1 has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Route1's salary, the management and board of directors tenure and is there insider trading?

8.3yrs

Average management tenure


CEO

Tony Busseri (49yo)

9.3yrs

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

Tony's remuneration is higher than average for companies of similar size in Canada.

Tony's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

8.3yrs

Average Tenure

The average tenure for the Route1 management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.8yrs

Average Tenure

63.5yo

Average Age

The tenure for the Route1 board of directors is about average.


Insider Trading

More shares have been bought than sold by Route1 insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyCA$3,19614 May 19
Edward Reeder
EntityIndividual
Role
Member of the Board of Directors
Shares40,555
Max PriceCA$0.079
BuyCA$2,75003 May 19
David Fraser
EntityIndividual
Role
Member of the Board of Directors
Shares45,833
Max PriceCA$0.06
BuyCA$4,16703 May 19
Edward Reeder
EntityIndividual
Role
Member of the Board of Directors
Shares69,444
Max PriceCA$0.06
BuyCA$3,75002 May 19
Michael Harris
EntityIndividual
Role
Chairman of the Board
Shares62,500
Max PriceCA$0.06
BuyCA$2,50002 May 19
John Marino
EntityIndividual
Role
Member of the Board of Directors
Shares41,666
Max PriceCA$0.06
BuyCA$2,01905 Feb 19
John Marino
EntityIndividual
Role
Member of the Board of Directors
Shares25,625
Max PriceCA$0.079
BuyCA$3,75005 Feb 19
Michael Harris
EntityIndividual
Role
Chairman of the Board
Shares46,875
Max PriceCA$0.08
BuyCA$2,75005 Feb 19
David Fraser
EntityIndividual
Role
Member of the Board of Directors
Shares34,375
Max PriceCA$0.08
BuyCA$3,75007 Nov 18
Michael Harris
EntityIndividual
Role
Chairman of the Board
Shares68,181
Max PriceCA$0.055
BuyCA$2,88807 Nov 18
John Marino
EntityIndividual
Role
Member of the Board of Directors
Shares52,500
Max PriceCA$0.055
BuyCA$2,75007 Nov 18
David Fraser
EntityIndividual
Role
Member of the Board of Directors
Shares50,000
Max PriceCA$0.055
BuyCA$2,88703 Aug 18
John Marino
EntityIndividual
Role
Member of the Board of Directors
Shares52,500
Max PriceCA$0.055
BuyCA$3,74403 Aug 18
Michael Harris
EntityIndividual
Role
Chairman of the Board
Shares71,591
Max PriceCA$0.052
BuyCA$2,74603 Aug 18
David Fraser
EntityIndividual
Role
Member of the Board of Directors
Shares52,500
Max PriceCA$0.052
BuyCA$2,50003 Aug 18
Mark Boensel
EntityIndividual
Shares45,454
Max PriceCA$0.055

Ownership Breakdown


Management Team

  • Tony Busseri (49yo)

    CEO & Director

    • Tenure: 9.3yrs
    • Compensation: CA$335.00k
  • Peter Chodos

    Executive VP

    • Tenure: 2.8yrs
    • Compensation: CA$250.00k
  • Brian Levett

    Corporate Secretary

  • Yamian Quintero

    Executive VP & CTO

    • Tenure: 8.3yrs
    • Compensation: CA$294.94k

Board Members

  • Tony Busseri (49yo)

    CEO & Director

    • Tenure: 9.8yrs
    • Compensation: CA$335.00k
  • Michael Doolan (66yo)

    Independent Director

    • Tenure: 14.0yrs
    • Compensation: CA$50.00k
  • Mike Harris (73yo)

    Chairman

    • Tenure: 9.8yrs
    • Compensation: CA$75.00k
  • Peter Chodos

    Executive VP

    • Tenure: 9.8yrs
    • Compensation: CA$250.00k
  • David Fraser (61yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: CA$55.00k
  • Edward Reeder

    Director

    • Tenure: 0.8yrs
  • John Marino

    Director

    • Tenure: 2.3yrs
    • 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$19.998m
  • Shares outstanding: 363.59m
  • Website: Click here

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ROITSXV (TSX Venture Exchange)YesCommon SharesCACADJan 1970
3R6DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1970
ROIU.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1970

Biography

Route1 Inc. provides security and identity management solutions to businesses, government, and military enterprises worldwide. The company offers MobiKEY, a desktop secure remote access solution; MobiENCRY ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/14 23:55
End of Day Share Price2019/06/14 00:00
Earnings2019/03/31
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.