Executive Summary
Reservoir Capital Corp. is a principal investment firm. More Details
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
Undervalued with excellent balance sheet.
Share Price & News
How has Reservoir Capital's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: Insufficient data to determine REO's volatility over the past 3 months.
Volatility Over Time: Insufficient data to determine REO's volatility change over the past year.
Market Performance
7 Day Return
-15.5%
REO
4.3%
CA Renewable Energy
-0.2%
CA Market
1 Year Return
-50.0%
REO
63.8%
CA Renewable Energy
2.4%
CA Market
Return vs Industry: REO underperformed the Canadian Renewable Energy industry which returned 63.8% over the past year.
Return vs Market: REO underperformed the Canadian Market which returned 2.4% over the past year.
Shareholder returns
| REO | Industry | Market | |
|---|---|---|---|
| 7 Day | -15.5% | 4.3% | -0.2% |
| 30 Day | 11.1% | 9.2% | 2.8% |
| 90 Day | -28.6% | 27.6% | 15.1% |
| 1 Year | -50.0%-50.0% | 70.3%63.8% | 6.1%2.4% |
| 3 Year | n/a | 156.4%122.0% | 14.7%3.8% |
| 5 Year | n/a | 250.9%174.7% | 62.6%37.5% |
Long-Term Price Volatility Vs. Market
How volatile is Reservoir Capital's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Reservoir Capital Corp.'s (CSE:REO) Business And Shares Still Trailing The Market2 years ago | Simply Wall St
Could The Reservoir Capital Corp. (CNSX:REO) Ownership Structure Tell Us Something Useful?Valuation
Is Reservoir Capital undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: REO (CA$2.5) is trading below our estimate of fair value (CA$11.92)
Significantly Below Fair Value: REO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: REO is good value based on its PE Ratio (10.9x) compared to the CA Renewable Energy industry average (20.5x).
PE vs Market: REO is good value based on its PE Ratio (10.9x) compared to the Canadian market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate REO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: REO is good value based on its PB Ratio (0.4x) compared to the CA Renewable Energy industry average (2.6x).
Next Steps
Future Growth
How is Reservoir Capital forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
28.5%
Forecasted Utilities 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 Reservoir Capital 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 whether Reservoir Capital is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Reservoir Capital competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Utilities industry.
Past Performance
How has Reservoir Capital performed over the past 5 years?
48.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: REO has high quality earnings.
Growing Profit Margin: REO's current net profit margins (53.3%) are lower than last year .
Past Earnings Growth Analysis
Earnings Trend: REO has become profitable over the past 5 years, growing earnings by 48.6% per year.
Accelerating Growth: REO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: REO had negative earnings growth (-55.2%) over the past year, making it difficult to compare to the Renewable Energy industry average (20.7%).
Return on Equity
High ROE: REO's Return on Equity (3.9%) is considered low.
Next Steps
Financial Health
How is Reservoir Capital's financial position?
Financial Position Analysis
Short Term Liabilities: REO's short term assets (CA$1.5M) exceed its short term liabilities (CA$1.2M).
Long Term Liabilities: REO's short term assets (CA$1.5M) exceed its long term liabilities (CA$40.0K).
Debt to Equity History and Analysis
Debt Level: REO's debt to equity ratio (0.6%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if REO's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: REO's debt is well covered by operating cash flow (532.5%).
Interest Coverage: REO's interest payments on its debt are well covered by EBIT (893.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Reservoir Capital current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate REO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate REO'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 REO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if REO'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 REO'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?
2.3yrs
Average board tenure
CEO
Lewis Reford (59 yo)
4.42yrs
Tenure
CA$100,000
Compensation
Mr. Lewis T. Reford had been the Chief Executive Officer at Reservoir Capital Corp. since August 29, 2016 and had been its Director January 20, 2011. Mr. Reford had been President at Reservoir Capital Corp...
CEO Compensation Analysis
Compensation vs Market: Lewis's total compensation ($USD78.38K) is below average for companies of similar size in the Canadian market ($USD152.60K).
Compensation vs Earnings: Lewis's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 2.33yrs | CA$375.00k | 6.43% CA$ 925.0k | |
| CEO & Director | 4.42yrs | CA$100.00k | 0.19% CA$ 27.2k | |
| Independent Director | 2.33yrs | CA$20.00k | no data | |
| Independent Director | 2.33yrs | CA$20.00k | 0.38% CA$ 54.1k | |
| Independent Director | 1.33yrs | CA$6.48k | no data |
2.3yrs
Average Tenure
54yo
Average Age
Experienced Board: REO's board of directors are not considered experienced ( 2.3 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 been diluted in the past year, with total shares outstanding growing by 8.7%.
Top Shareholders
Company Information
Reservoir Capital Corp.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Reservoir Capital Corp.
- Ticker: REO
- Exchange: CNSX
- Founded: 2006
- Industry: Renewable Electricity
- Sector: Utilities
- Market Cap: CA$14.384m
- Shares outstanding: 5.75m
- Website: https://www.reservoircapitalcorp.com
Location
- Reservoir Capital Corp.
- 595 Howe Street
- 10th Floor
- Vancouver
- British Columbia
- V6C 2T5
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RSER.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Sep 2018 |
| REO | CNSX (Canadian National Stock Exchange) | Yes | Common Shares | CA | CAD | Sep 2018 |
Biography
Reservoir Capital Corp. is a principal investment firm. The firm is focused on renewable energy and concentrates on operational power projects located in emerging markets. It prefers to hold a minority sta...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/25 23:30 |
| End of Day Share Price | 2021/01/19 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.