OTCPK:RTON

Stock Analysis Report

Executive Summary

Right On Brands, Inc., a health and wellness company, manufactures, sells, markets, and retails a line of hemp enhanced snack foods.

Risk Analysis

Earnings have declined by -60.69% per year over past 5 years

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Makes less than USD$1m in revenue ($369K)

+ 3 more risks


Snowflake Analysis

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

How has Right On Brands's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RTON's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.1%

RTON

-1.6%

US Specialty Retail

-1.2%

US Market


1 Year Return

-98.1%

RTON

20.3%

US Specialty Retail

22.3%

US Market

Return vs Industry: RTON underperformed the US Specialty Retail industry which returned 23.7% over the past year.

Return vs Market: RTON underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

RTONIndustryMarket
7 Day9.1%-1.6%-1.2%
30 Day9.1%-0.5%1.6%
90 Day-20.0%4.3%8.8%
1 Year-98.1%-98.1%22.2%20.3%25.0%22.3%
3 Year-99.9%-99.9%45.2%37.8%49.9%40.3%
5 Year-99.1%-99.1%50.1%37.3%77.6%58.0%

Price Volatility Vs. Market

How volatile is Right On Brands's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Right On Brands undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Right On Brands is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Right On Brands 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 RTON’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 Right On Brands regulatory filings here.
  • Explore potentially undervalued companies in the Retail industry.

Future Growth

How is Right On Brands forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.4%

Forecasted Retail 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 Right On Brands 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 RTON’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 Right On Brands's filings and announcements here.
  • Explore growth companies in the Retail industry.

Past Performance

How has Right On Brands performed over the past 5 years?

-60.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RTON is currently unprofitable.

Growing Profit Margin: RTON is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RTON is unprofitable, and losses have increased over the past 5 years at a rate of -60.7% per year.

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

Earnings vs Industry: RTON is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (4.5%).


Return on Equity

High ROE: RTON's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Right On Brands's financial position?


Financial Position Analysis

Short Term Liabilities: RTON has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: RTON has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: RTON has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: RTON's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: RTON has a high level of physical assets or inventory.

Debt Coverage by Assets: RTON 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.

Stable Cash Runway: RTON has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: RTON has less than a year of cash runway if free cash flow continues to reduce at historical rates of -62.5% each year


Next Steps

Dividend

What is Right On Brands's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate RTON's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RTON's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RTON'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 RTON's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Right On Brands's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Jerry Grisaffi (74yo)

0.3yrs

Tenure

0

Mr. Jerome A. Grisaffi, also known as Jerry, serves as Chairman of the Board and Chief Executive Officer of Right On Brands, Inc. since September 10, 2019. He Co-Founded Rocky Mountain High Brands, Inc. an ...


Management Age and Tenure

1.4yrs

Average Tenure

56yo

Average Age

Experienced Management: RTON's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

63yo

Average Age

Experienced Board: RTON's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

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 been substantially diluted in the past year, with total shares outstanding growing by 81.6%.


Management Team

  • Ashok Patel (63yo)

    President & Director

    • Tenure: 1.6yrs
    • Compensation: US$827.14k
  • Jerry Grisaffi (74yo)

    Chairman & CEO

    • Tenure: 0.3yrs
  • Daniel Crawford (27yo)

    Secretary & Treasurer

    • Tenure: 1.4yrs
    • Compensation: US$19.12k
  • A. Youssefyeh (49yo)

    CFO & Director

    • Tenure: 1.6yrs
    • Compensation: US$275.71k
  • Vic Morrison

    Executive Vice President of Corporate Development

    • Tenure: 1.2yrs

Board Members

  • Ashok Patel (63yo)

    President & Director

    • Tenure: 1.6yrs
    • Compensation: US$827.14k
  • Jerry Grisaffi (74yo)

    Chairman & CEO

    • Tenure: 0.3yrs
  • A. Youssefyeh (49yo)

    CFO & Director

    • Tenure: 1.6yrs
    • Compensation: US$275.71k

Company Information

Right On Brands, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Right On Brands, Inc.
  • Ticker: RTON
  • Exchange: OTCPK
  • Founded: 2011
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$824.734k
  • Shares outstanding: 687.28m
  • Website: https://rightonbrands.com

Number of Employees


Location

  • Right On Brands, Inc.
  • 3235 Skyline Drive
  • Suite 127
  • Carrollton
  • Texas
  • 75006
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RTONOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 2014

Biography

Right On Brands, Inc., a health and wellness company, manufactures, sells, markets, and retails a line of hemp enhanced snack foods. It offers Humbly Hemp snack bars; ENDO Water, a wellness drink; ENDO Drops, a daily cannabidiol supplementation; ENDO Ease, a topical pain relief product; and ENDO Mist, an oil infused into a superfood blend with other essential oils and superfoods. The company was formerly known as HealthTalk Live, Inc. and changed its name to Right On Brands, Inc. in August 2017. Right On Brands, Inc. was founded in 2011 and is headquartered in Carrollton, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/27 00:57
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.