OTCPK:ROWK.F

Stock Analysis Report

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Executive Summary

RenoWorks Software Inc. develops and distributes digital visualization software for the renovation and new home construction sectors in the United States, Canada, and Europe.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has RenoWorks Software's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ROWK.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.4%

ROWK.F

-2.3%

US Software

-0.7%

US Market


1 Year Return

-5.3%

ROWK.F

31.8%

US Software

5.3%

US Market

Return vs Industry: ROWK.F underperformed the US Software industry which returned 31.8% over the past year.

Return vs Market: ROWK.F underperformed the US Market which returned 5.3% over the past year.


Shareholder returns

ROWK.FIndustryMarket
7 Day4.4%-2.3%-0.7%
30 Day2.8%9.0%4.6%
90 Day27.9%23.2%14.0%
1 Year-5.3%-5.3%32.8%31.8%7.6%5.3%
3 Year-21.0%-21.0%143.6%135.3%34.9%26.1%
5 Year-29.9%-29.9%236.6%216.7%62.3%44.7%

Price Volatility Vs. Market

How volatile is RenoWorks Software's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is RenoWorks Software undervalued compared to its fair value and its price relative to the market?


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

Future Growth

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

17.5%

Forecasted Software 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 RenoWorks Software 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 ROWK.F’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 RenoWorks Software's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has RenoWorks Software performed over the past 5 years?

-28.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROWK.F is currently unprofitable.

Growing Profit Margin: ROWK.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ROWK.F is unprofitable, and losses have increased over the past 5 years at a rate of 28.8% per year.

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

Earnings vs Industry: ROWK.F is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (12.3%).


Return on Equity

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


Next Steps

Financial Health

How is RenoWorks Software's financial position?


Financial Position Analysis

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

Long Term Liabilities: ROWK.F 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: ROWK.F has negative shareholder equity, which is a more serious situation than a high debt level.

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


Balance Sheet


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: ROWK.F has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: ROWK.F has sufficient cash runway for 1.2 years if free cash flow continues to reduce at historical rates of 34.8% each year.


Next Steps

Dividend

What is RenoWorks Software current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ROWK.F'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 ROWK.F's dividends per share have been stable in the past.

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


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Doug Vickerson

14.17yrs

Tenure

CA$182,293

Compensation

Mr. Doug Vickerson has been the Chief Executive Officer of Renoworks Software Inc. since May 26, 2006. Mr. Vickerson served as the Chief Financial Officer from February 26, 2008 to September 1, 2011. Mr. V ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD133.86K) is below average for companies of similar size in the US market ($USD618.98K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Greg Martineau
Founder & Independent Chairman18.5yrsCA$6.04k6.05% CA$455.1k
Doug Vickerson
CEO & Director14.17yrsCA$182.29k7.74% CA$582.9k
Deborah Carter-Ross
Chief Financial Officer3.92yrsCA$137.47kno data
Dayton Foster
Vice President of Operations3.25yrsno datano data

3.9yrs

Average Tenure

Experienced Management: ROWK.F's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Greg Martineau
Founder & Independent Chairman18.5yrsCA$6.04k6.05% CA$455.1k
Doug Vickerson
CEO & Director14.17yrsCA$182.29k7.74% CA$582.9k
Robert Schulz
Independent Director16.5yrsCA$8.86k14.42% CA$1.1m
Nairn Nerland
Independent Director18.5yrsCA$11.74k14.09% CA$1.1m

17.5yrs

Average Tenure

Experienced Board: ROWK.F's board of directors are seasoned and experienced ( 17.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ROWK.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

RenoWorks Software Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RenoWorks Software Inc.
  • Ticker: ROWK.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Application Software
  • Sector: Software
  • Market Cap: CA$10.251m
  • Listing Market Cap: CA$7.527m
  • Shares outstanding: 36.61m
  • Website: https://www.renoworks.com

Location

  • RenoWorks Software Inc.
  • 2721 Hopewell Place NE
  • Calgary
  • Alberta
  • T1Y 7J7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RWTSXV (TSX Venture Exchange)YesCommon SharesCACADDec 2000
ROWK.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2000

Biography

RenoWorks Software Inc. develops and distributes digital visualization software for the renovation and new home construction sectors in the United States, Canada, and Europe. The company provides Renoworks FastTrack, a platform that helps contractors to reduce and eliminate time-consuming home visits by automatically generating accurate measurement reports, true-to-life visualizations, and 3D visuals; Web visualizer that enables customers to interact with building products and design their homes from anywhere; and Renoworks Product Configurator that allows customers to design building products, such as windows and doors with detail. It also offers Scene Builder, an interactive, engaging, and photo-realistic home visualizer solution to visualize design options and building products; product libraries, which showcases customer’s product line; and mobile visualizer apps, as well as other home visualization software products. In addition, the company provides design, analytics, and integrations and application program interface services. It serves manufacturers, material suppliers, contractors and remodelers, marketing agencies, builders, and homeowners. The company is based in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 00:52
End of Day Share Price2020/07/09 00:00
Earnings2020/03/31
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.