RenoWorks Software Inc.

OTCPK:ROWK.F Stock Report

Market Cap: US$8.9m

RenoWorks Software Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: ROWK.F ($0.16) is trading below our estimate of fair value ($0.75)

Significantly Below Fair Value: ROWK.F is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for ROWK.F?

Key metric: As ROWK.F is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ROWK.F. This is calculated by dividing ROWK.F's market cap by their current revenue.
What is ROWK.F's PS Ratio?
PS Ratio1.8x
SalesCA$6.71m
Market CapCA$12.40m

Price to Sales Ratio vs Peers

How does ROWK.F's PS Ratio compare to its peers?

The above table shows the PS ratio for ROWK.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.8x
BLIN Bridgeline Digital
0.7x5.5%US$11.4m
INTV Integrated Ventures
1.8xn/aUS$8.8m
LVWD LiveWorld
0.6xn/aUS$6.8m
LCFY Locafy
3.9xn/aUS$9.3m
ROWK.F RenoWorks Software
1.8xn/aUS$12.4m

Price-To-Sales vs Peers: ROWK.F is expensive based on its Price-To-Sales Ratio (1.8x) compared to the peer average (1.8x).


Price to Sales Ratio vs Industry

How does ROWK.F's PS Ratio compare vs other companies in the US Software Industry?

80 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.6x-23.2%US$2.07b
PGY Pagaya Technologies
0.7x15.8%US$645.96m
XPER Xperi
0.8x1.8%US$387.78m
0.5x1.1%US$371.08m
ROWK.F 1.8xIndustry Avg. 5.3xNo. of Companies80PS048121620+
80 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ROWK.F is good value based on its Price-To-Sales Ratio (1.8x) compared to the US Software industry average (5.3x).


Price to Sales Ratio vs Fair Ratio

What is ROWK.F'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.

ROWK.F PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.8x
Fair PS Ration/a

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


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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