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RDL

Redline Communications Group TSX:RDL Stock Report

Last Price

CA$0.88

Market Cap

CA$15.1m

7D

0%

1Y

51.7%

Updated

15 May, 2022

Data

Company Financials
RDL fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

RDL Stock Overview

Redline Communications Group Inc., together with its subsidiaries, develops broadband fixed wireless base stations, subscriber stations, and network management systems for point-to-point and point-to-multipoint applications for commercial end-users.

Redline Communications Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Redline Communications Group
Historical stock prices
Current Share PriceCA$0.88
52 Week HighCA$0.98
52 Week LowCA$0.35
Beta0.76
1 Month Change0%
3 Month Change8.64%
1 Year Change51.72%
3 Year Change-42.11%
5 Year Change-41.33%
Change since IPO-96.56%

Recent News & Updates

Shareholder Returns

RDLCA CommunicationsCA Market
7D0%6.7%-3.0%
1Y51.7%-4.5%4.2%

Return vs Industry: RDL exceeded the Canadian Communications industry which returned -4.5% over the past year.

Return vs Market: RDL exceeded the Canadian Market which returned 4.2% over the past year.

Price Volatility

Is RDL's price volatile compared to industry and market?
RDL volatility
RDL Average Weekly Movement15.5%
Communications Industry Average Movement8.5%
Market Average Movement9.6%
10% most volatile stocks in CA Market16.4%
10% least volatile stocks in CA Market4.2%

Stable Share Price: RDL is more volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: RDL's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of Canadian stocks.

About the Company

FoundedEmployeesCEOWebsite
1999102Richard Yoonhttps://www.rdlcom.com

Redline Communications Group Inc., together with its subsidiaries, develops broadband fixed wireless base stations, subscriber stations, and network management systems for point-to-point and point-to-multipoint applications for commercial end-users. It operates through Hardware and Software, Professional Services and 3rd Party Equipment, and Maintenance and Support segments. The company offers Ellipse, a series of base stations; Edge and Elte wireless terminals; Enterprise, a wireless customer premise equipment; RAS-Elite, a portable auto-acquire outdoor wireless solution; RAS-Extend, a mechanical auto tracking system; RDL-3000 connect series of remote terminals; PoE, an industrial grade power injector; and FlexCore, an EPC software.

Redline Communications Group Fundamentals Summary

How do Redline Communications Group's earnings and revenue compare to its market cap?
RDL fundamental statistics
Market CapUS$11.72m
Earnings (TTM)-US$5.83m
Revenue (TTM)US$20.11m

0.6x

P/S Ratio

-2.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RDL income statement (TTM)
RevenueUS$20.11m
Cost of RevenueUS$8.69m
Gross ProfitUS$11.43m
Other ExpensesUS$17.26m
Earnings-US$5.83m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.34
Gross Margin56.81%
Net Profit Margin-29.00%
Debt/Equity Ratio130.6%

How did RDL perform over the long term?

See historical performance and comparison

Valuation

Is Redline Communications Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


2.74x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RDL's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate RDL's fair value for valuation analysis.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RDL is overvalued based on its PB Ratio (2.7x) compared to the CA Communications industry average (2.6x).


Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


45.9%

Forecasted Tech 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 Redline Communications Group 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.


Past Performance

How has Redline Communications Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-21.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RDL is currently unprofitable.

Growing Profit Margin: RDL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RDL is unprofitable, and losses have increased over the past 5 years at a rate of 21.4% per year.

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

Earnings vs Industry: RDL is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (38.2%).


Return on Equity

High ROE: RDL has a negative Return on Equity (-136.35%), as it is currently unprofitable.


Financial Health

How is Redline Communications Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: RDL's short term assets ($17.7M) exceed its short term liabilities ($6.6M).

Long Term Liabilities: RDL's short term assets ($17.7M) exceed its long term liabilities ($8.7M).


Debt to Equity History and Analysis

Debt Level: RDL has more cash than its total debt.

Reducing Debt: RDL's debt to equity ratio has increased from 10.4% to 130.6% 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: RDL has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: RDL has sufficient cash runway for 1.8 years if free cash flow continues to reduce at historical rates of 13.5% each year.


Dividend

What is Redline Communications Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if RDL's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RDL has not reported any payouts.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average board tenure


CEO

Richard Yoon

0.67

Tenure

Mr. Richard Yoon serves as s President, Chief Executive Officer and Director at Redline Communications Group Inc. since September 13, 2021. He brings executive management experience along with his wireless...


Board Members

Experienced Board: RDL's board of directors are not considered experienced ( 1.5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Redline Communications Group Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Redline Communications Group Inc.
  • Ticker: RDL
  • Exchange: TSX
  • Founded: 1999
  • Industry: Communications Equipment
  • Sector: Tech
  • Implied Market Cap: CA$15.150m
  • Shares outstanding: 17.22m
  • Website: https://www.rdlcom.com

Number of Employees


Location

  • Redline Communications Group Inc.
  • 302 Town Centre Boulevard
  • 4th Floor
  • Markham
  • Ontario
  • L3R 0E8
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/15 00:00
End of Day Share Price2022/05/13 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.