OTCPK:FNHI

Stock Analysis Report

Franchise Holdings International

Executive Summary

Franchise Holdings International, Inc., through its subsidiary, designs, manufactures, and distributes truck tonneau covers in Canada and the United States.

Snowflake

Fundamentals

Worrying balance sheet with weak fundamentals.

Risks

  • Franchise Holdings International has significant price volatility in the past 3 months.
  • Franchise Holdings International is not covered by any analysts.

Similar Companies

Share Price & News

How has Franchise Holdings International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.4%

OTCPK:FNHI

1.2%

US Auto Components

-0.3%

US Market


1 Year Return

-16.7%

OTCPK:FNHI

-27.6%

US Auto Components

3.4%

US Market

FNHI outperformed the Auto Components industry which returned -27.6% over the past year.

FNHI underperformed the Market in United States of America which returned 3.4% over the past year.


Share holder returns

FNHIIndustryMarket
7 Day-5.4%1.2%-0.3%
30 Day61.9%0.9%2.9%
90 Day-15.7%-16.0%2.1%
1 Year-16.7%-16.7%-26.5%-27.6%5.7%3.4%
3 Year-86.9%-86.9%11.1%-1.4%45.8%36.2%
5 Yearn/a2.0%-11.6%58.9%41.3%

Price Volatility Vs. Market

How volatile is Franchise Holdings International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Franchise Holdings International undervalued based on future cash flows and its price relative to the stock market?


In this section, we usually try to help investors determine whether Franchise Holdings International is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Franchise Holdings International has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of FNHI’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Franchise Holdings International regulatory filings here.
  • Explore potentially undervalued companies in the automobiles industry.

Future Growth

How is Franchise Holdings International expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.1%

Forecasted Auto Components 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 Franchise Holdings International 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

  • Take a look at our analysis of FNHI’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Franchise Holdings International's filings and announcements here.
  • Explore growth companies in the automobiles industry.

Past Performance

How has Franchise Holdings International performed over the past 5 years?

-9.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Franchise Holdings International does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Franchise Holdings International's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Franchise Holdings International's 1-year growth to the US Auto Components industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Franchise Holdings International has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

It is difficult to establish if Franchise Holdings International has efficiently used its assets last year compared to the US Auto Components industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Franchise Holdings International improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to its liabilities exceeding its assets.


Next Steps

Financial Health

How is Franchise Holdings International's financial position?


Financial Position Analysis

Franchise Holdings International's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Franchise Holdings International has no long term commitments.


Debt to Equity History and Analysis

Franchise Holdings International has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Franchise Holdings International's debt level has increased considering it has negative shareholder equity.


Balance Sheet

High level of physical assets or inventory.

Franchise Holdings International has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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.

Franchise Holdings International has less than a year of cash runway based on current free cash flow.

Franchise Holdings International has less than a year of cash runway if free cash flow continues to reduce at historical rates of -10.9% each year.


Next Steps

Dividend

What is Franchise Holdings International's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Franchise Holdings International's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Franchise Holdings International's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Franchise Holdings International has not reported any payouts.

Unable to verify if Franchise Holdings International's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Franchise Holdings International has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Franchise Holdings International's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Steve Rossi (34yo)

4.7yrs

Tenure

US$36,668

Compensation

Mr. Steven F. Rossi, also known as Steve, has been the Chief Executive Officer, President and Secretary at Franchise Holdings International, Inc. since November 24, 2014. Mr. Rossi founded Truxmart to buil ...


CEO Compensation Analysis

Insufficient data for Steve to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.

Steve's compensation has increased whilst company is loss making.


Board Age and Tenure

1.8yrs

Average Tenure

48.5yo

Average Age

The average tenure for the Franchise Holdings International board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Steve Rossi (34yo)

    President

    • Tenure: 4.7yrs
    • Compensation: $36.67k
  • Lorenzo Rossi (62yo)

    Treasurer & Director

  • Mike Johnston (38yo)

    Chief Financial Officer

    • Tenure: 1.6yrs

Board Members

  • Paul Haber (49yo)

    Director

    • Tenure: 1.8yrs
  • Steve Rossi (34yo)

    President

    • Compensation: $36.67k
  • Lorenzo Rossi (62yo)

    Treasurer & Director

    • Tenure: 4.6yrs
  • Craig Loverock (48yo)

    Director

    • Tenure: 0.3yrs

Company Information

Franchise Holdings International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Franchise Holdings International, Inc.
  • Ticker: FNHI
  • Exchange: OTCPK
  • Founded:
  • Industry: auto parts and equipment
  • Sector: automobiles
  • Market Cap: US$2.773m
  • Shares outstanding: 23.50m
  • Website: Click here

Number of Employees


Location

  • Franchise Holdings International, Inc.
  • 3120 Rutherford Road
  • Suite 414
  • Vaughan
  • Ontario
  • L4K 0B1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FNHIOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2010

Biography

Franchise Holdings International, Inc., through its subsidiary, designs, manufactures, and distributes truck tonneau covers in Canada and the United States. The company offers Worksport Tri Fold, a soft fo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/18 23:50
End of Day Share Price2019/07/18 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.