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REO

Reservoir Capital CNSX:REO Stock Report

Last Price

CA$1.65

Market Cap

CA$9.5m

7D

0%

1Y

-6.3%

Updated

07 Aug, 2022

Data

Company Financials
REO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

REO Stock Overview

Reservoir Capital Corp. is a principal investment firm.

Reservoir Capital Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Reservoir Capital
Historical stock prices
Current Share PriceCA$1.65
52 Week HighCA$1.80
52 Week LowCA$1.01
Beta0.55
1 Month Change0%
3 Month Change0%
1 Year Change-6.25%
3 Year Change-67.00%
5 Year Changen/a
Change since IPO-58.75%

Recent News & Updates

Apr 05
Investors Will Want Reservoir Capital's (CSE:REO) Growth In ROCE To Persist

Investors Will Want Reservoir Capital's (CSE:REO) Growth In ROCE To Persist

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

REOCA Renewable EnergyCA Market
7D0%-6.4%-0.008%
1Y-6.3%-5.0%-6.6%

Return vs Industry: REO underperformed the Canadian Renewable Energy industry which returned 1.8% over the past year.

Return vs Market: REO underperformed the Canadian Market which returned -2% over the past year.

Price Volatility

Is REO's price volatile compared to industry and market?
REO volatility
REO Average Weekly Movementn/a
Renewable Energy Industry Average Movement3.9%
Market Average Movement9.9%
10% most volatile stocks in CA Market18.1%
10% least volatile stocks in CA Market3.8%

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.

About the Company

FoundedEmployeesCEOWebsite
2006n/aLewis Refordhttps://www.reservoircapitalcorp.com

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 stake in its investments.

Reservoir Capital Fundamentals Summary

How do Reservoir Capital's earnings and revenue compare to its market cap?
REO fundamental statistics
Market CapCA$9.49m
Earnings (TTM)-CA$64.42k
Revenue (TTM)CA$2.56m

3.7x

P/S Ratio

-147.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
REO income statement (TTM)
RevenueCA$2.56m
Cost of RevenueCA$0
Gross ProfitCA$2.56m
Other ExpensesCA$2.63m
Earnings-CA$64.42k

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.011
Gross Margin100.00%
Net Profit Margin-2.51%
Debt/Equity Ratio0.1%

How did REO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is REO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for REO?

Other financial metrics that can be useful for relative valuation.

REO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.7x
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Sales Ratio vs Peers

How does REO's PS Ratio compare to its peers?

REO PS Ratio vs Peers
The above table shows the PS ratio for REO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average11.2x
SOLR Solar Alliance Energy
7.9xn/aCA$26.1m
RE RE Royalties
23.6xn/aCA$30.6m
SPG Spark Power Group
0.2x7.3%CA$60.3m
JPWR.UN Jade Power Trust
3.4xn/aCA$67.6m
REO Reservoir Capital
3.7xn/aCA$9.5m

Price-To-Sales vs Peers: REO is good value based on its Price-To-Sales Ratio (3.7x) compared to the peer average (11.2x).


Price to Earnings Ratio vs Industry

How does REO's PE Ratio compare vs other companies in the CA Renewable Energy Industry?

Price-To-Sales vs Industry: REO is good value based on its Price-To-Sales Ratio (3.7x) compared to the Canadian Renewable Energy industry average (4x)


Price to Sales Ratio vs Fair Ratio

What is REO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

REO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.7x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate REO's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of REO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: REO (CA$1.65) is trading above our estimate of fair value (CA$0.07)

Significantly Below Fair Value: REO is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Reservoir Capital 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


2.2%

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.


Discover growth companies

  • Examine Reservoir Capital'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.
  • Reservoir Capital competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Reservoir Capital 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


48.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: REO is currently unprofitable.

Growing Profit Margin: REO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: REO is unprofitable, but has reduced losses over the past 5 years at a rate of 48.9% per year.

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

Earnings vs Industry: REO is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (4.8%).


Return on Equity

High ROE: REO has a negative Return on Equity (-0.22%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Reservoir Capital's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: REO's short term assets (CA$2.7M) exceed its short term liabilities (CA$1.2M).

Long Term Liabilities: REO's short term assets (CA$2.7M) exceed its long term liabilities (CA$40.0K).


Debt to Equity History and Analysis

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

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 (149.8%).

Interest Coverage: REO's interest payments on its debt are well covered by EBIT (3071.5x coverage).


Balance Sheet


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Dividend

What is Reservoir Capital 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

  • Cash Flow Coverage

Dividend Yield vs Market

Reservoir Capital Dividend Yield vs Market
How does Reservoir Capital dividend yield compare to the market?
SegmentDividend Yield
Company (Reservoir Capital)n/a
Market Bottom 25% (CA)2.0%
Market Top 25% (CA)6.1%
Industry Average (Renewable Energy)3.8%
Analyst forecast in 3 Years (Reservoir Capital)n/a

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.


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 REO has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.9yrs

Average board tenure


CEO

Lewis Reford (61 yo)

11.58yrs

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

Lewis Reford's Compensation vs Reservoir Capital Earnings
How has Lewis Reford's remuneration changed compared to Reservoir Capital's earnings?
DateTotal Comp.SalaryCompany Earnings
Sep 30 2021n/an/a

-CA$64k

Jun 30 2021n/an/a

CA$684k

Mar 31 2021n/an/a

CA$2m

Dec 31 2020CA$100kCA$100k

CA$2m

Sep 30 2020n/an/a

CA$1m

Jun 30 2020n/an/a

CA$1m

Mar 31 2020n/an/a

-CA$98k

Dec 31 2019CA$100kCA$100k

CA$176k

Sep 30 2019n/an/a

CA$3m

Jun 30 2019n/an/a

-CA$2m

Mar 31 2019n/an/a

-CA$1m

Dec 31 2018CA$128kCA$85k

-CA$1m

Sep 30 2018n/an/a

-CA$4m

Jun 30 2018n/an/a

CA$137k

Mar 31 2018n/an/a

CA$142k

Dec 31 2017n/an/a

CA$119k

Compensation vs Market: Insufficient data to establish whether Lewis's total compensation is reasonable compared to companies of similar size in the Canadian market.

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


Board Members

Experienced Board: REO's board of directors are considered experienced (3.9 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.


Ownership Breakdown

What is the ownership structure of REO?
Owner TypeNumber of SharesOwnership Percentage

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

Company Information

Reservoir Capital Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: Reservoir Capital Corp.
  • Ticker: REO
  • Exchange: CNSX
  • Founded: 2006
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Implied Market Cap: CA$9.493m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RSER.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2018
REOCNSX (Canadian National Stock Exchange)YesCommon SharesCACADSep 2018

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/05/10 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.