Executive Summary
RenoWorks Software Inc. develops and distributes digital visualization software for the renovation and new home construction sectors in the United States, Canada, and Europe. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and overvalued.
Share Price & News
How has RenoWorks Software's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RW is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 12% a week.
Volatility Over Time: RW's weekly volatility (12%) has been stable over the past year.
Market Performance
7 Day Return
4.0%
RW
4.8%
CA Software
-0.2%
CA Market
1 Year Return
57.6%
RW
44.5%
CA Software
1.4%
CA Market
Return vs Industry: RW exceeded the Canadian Software industry which returned 44.5% over the past year.
Return vs Market: RW exceeded the Canadian Market which returned 1.4% over the past year.
Shareholder returns
| RW | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.0% | 4.8% | -0.2% |
| 30 Day | 5.1% | 5.7% | 2.8% |
| 90 Day | 38.7% | 29.1% | 12.4% |
| 1 Year | 57.6%57.6% | 45.1%44.5% | 5.0%1.4% |
| 3 Year | 103.9%103.9% | 76.9%73.1% | 13.4%2.7% |
| 5 Year | 92.6%92.6% | 177.2%168.1% | 59.7%35.2% |
Long-Term Price Volatility Vs. Market
How volatile is RenoWorks Software's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Estimating The Intrinsic Value Of RenoWorks Software Inc. (CVE:RW)1 month ago | Simply Wall St
How Does RenoWorks Software's (CVE:RW) CEO Pay Compare With Company Performance?3 months ago | Simply Wall St
Are Insiders Buying RenoWorks Software Inc. (CVE:RW) Stock?Valuation
Is RenoWorks Software undervalued compared to its fair value and its price relative to the market?
16.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RW (CA$0.52) is trading below our estimate of fair value (CA$0.62)
Significantly Below Fair Value: RW is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: RW is unprofitable, so we can't compare its PE Ratio to the CA Software industry average.
PE vs Market: RW 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 RW's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: RW is overvalued based on its PB Ratio (73.1x) compared to the CA Software industry average (7.7x).
Next Steps
Future Growth
How is RenoWorks Software forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
27.3%
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 RenoWorks Software 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
- Examine RenoWorks Software's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- RenoWorks Software competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Software industry.
Past Performance
How has RenoWorks Software performed over the past 5 years?
-7.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RW is currently unprofitable.
Growing Profit Margin: RW is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: RW is unprofitable, and losses have increased over the past 5 years at a rate of 7.6% per year.
Accelerating Growth: Unable to compare RW's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: RW is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (25.3%).
Return on Equity
High ROE: RW has a negative Return on Equity (-21.44%), as it is currently unprofitable.
Next Steps
Financial Health
How is RenoWorks Software's financial position?
Financial Position Analysis
Short Term Liabilities: RW's short term assets (CA$1.5M) exceed its short term liabilities (CA$1.1M).
Long Term Liabilities: RW's short term assets (CA$1.5M) exceed its long term liabilities (CA$341.9K).
Debt to Equity History and Analysis
Debt Level: RW's debt to equity ratio (17.4%) is considered satisfactory.
Reducing Debt: RW's debt to equity ratio has reduced from 57.8% to 17.4% 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 RW has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: RW is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 15.4% per year.
Next Steps
Dividend
What is RenoWorks Software current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate RW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate RW'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 RW's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if RW'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 RW'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?
4.4yrs
Average management tenure
CEO
Doug Vickerson
14.67yrs
Tenure
CA$182,293
Compensation
Mr. Doug Vickerson has been the Chief Executive Officer of Renoworks Software Inc. since May 26, 2006. Mr. Vickerson served as the Chief Financial Officer from February 26, 2008 to September 1, 2011. Mr. V...
CEO Compensation Analysis
Compensation vs Market: Doug's total compensation ($USD143.25K) is about average for companies of similar size in the Canadian market ($USD152.85K).
Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Independent Chairman | 19yrs | CA$6.04k | 6.05% CA$ 1.1m | |
| CEO & Director | 14.67yrs | CA$182.29k | 7.74% CA$ 1.4m | |
| Chief Financial Officer | 4.42yrs | CA$137.47k | no data | |
| Vice President of Operations | 3.75yrs | no data | no data |
4.4yrs
Average Tenure
Experienced Management: RW's management team is considered experienced (4.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Independent Chairman | 19yrs | CA$6.04k | 6.05% CA$ 1.1m | |
| CEO & Director | 14.67yrs | CA$182.29k | 7.74% CA$ 1.4m | |
| Independent Director | 17yrs | CA$8.86k | 14.42% CA$ 2.5m | |
| Independent Director | 19yrs | CA$11.74k | 14.09% CA$ 2.5m |
18.0yrs
Average Tenure
Experienced Board: RW's board of directors are seasoned and experienced ( 18 years average tenure).
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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
RenoWorks Software Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: RenoWorks Software Inc.
- Ticker: RW
- Exchange: TSXV
- Founded: NaN
- Industry: Application Software
- Sector: Software
- Market Cap: CA$17.573m
- Shares outstanding: 36.61m
- Website: https://www.renoworks.com
Location
- RenoWorks Software Inc.
- 2721 Hopewell Place NE
- Calgary
- Alberta
- T1Y 7J7
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RW | TSXV (TSX Venture Exchange) | Yes | Common Shares | CA | CAD | Dec 2000 |
| ROWK.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Dec 2000 |
Biography
RenoWorks Software Inc. develops and distributes digital visualization software for the renovation and new home construction sectors in the United States, Canada, and Europe. The company provides Renoworks...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/22 23:58 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.