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Reservoir Capital

Market Cap

CA$10.1m

Last Updated

2021/09/17 22:12 UTC

Data Sources

Company Financials

Executive Summary

Reservoir Capital Corp. is a principal investment firm. More Details


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

0%

REO

-2.5%

CA Renewable Energy

-0.2%

CA Market


1 Year Return

-51.8%

REO

18.7%

CA Renewable Energy

29.1%

CA Market

Return vs Industry: REO underperformed the Canadian Renewable Energy industry which returned 18.7% over the past year.

Return vs Market: REO underperformed the Canadian Market which returned 29.1% over the past year.


Shareholder returns

REOIndustryMarket
7 Day0%-2.5%-0.2%
30 Day0%2.0%1.8%
90 Day-37.1%3.1%2.9%
1 Year-51.8%-51.8%22.5%18.7%33.0%29.1%
3 Yearn/a118.8%91.4%33.0%20.5%
5 Yearn/a138.1%87.3%51.6%29.3%

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

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$1.76) is trading below our estimate of fair value (CA$13.4)

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 (8.3x) compared to the Canadian Renewable Energy industry average (10.6x).

PE vs Market: REO is good value based on its PE Ratio (8.3x) compared to the Canadian market (13x).


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 (0.3x) compared to the CA Renewable Energy industry average (2.5x).


Future Growth

How is Reservoir Capital forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

60.0%

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.


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 (-25.1%).


Return on Equity

High ROE: REO's Return on Equity (3.9%) is considered low.


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


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?

3.0yrs

Average board tenure


CEO

Lewis Reford (60 yo)

5.08yrs

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: 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 increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

Experienced Board: REO's board of directors are considered experienced (3 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

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


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$10.126m
  • 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


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/17 22:12
End of Day Share Price2021/08/05 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.