New Risk • Nov 10
New major risk - Revenue and earnings growth Earnings have declined by 3.3% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 3.3% per year over the past 5 years. Market cap is less than US$10m (€666.2k market cap, or US$770.5k). New Risk • Jun 19
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of French stocks, typically moving 10% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-€2.1m free cash flow). Share price has been highly volatile over the past 3 months (10% average weekly change). Market cap is less than US$10m (€2.18m market cap, or US$2.51m). Reported Earnings • May 05
Full year 2024 earnings released Full year 2024 results: Revenue: €6.75m (down 27% from FY 2023). Net loss: €2.58m (loss widened 163% from FY 2023). Duyuru • Feb 23
Roctool to Unveil Its Compact 25 Kw and 50 Kw Air-Cooled Generators ROCTOOL announced that each partner will present a distinct material, demonstrating unique advantages in composite manufacturing: Yuho (Stand 6N107) will present their newest nonwoven, recycled carbon fiber, manufactured without needling. Hayate®?)-ST enhances surface quality by reducing spring back effects.coTechnilin (Stand 5C59) will showcase its advanced combination of natural fibers and thermoplastic resins. The unveiling of their new "Linstetik" material range highlights a product that combines structural performance, innovative design, and sustainability. High-Performance Solutions for Advanced Manufacturing: Roctool's LIT™? system offers a range of key advantages: Out-Of-Autoclave (OOA) processing, Short cycle times, Low energy consumption with optimized tooling thickness configurations, Patented induction heating technologies, Suitable for high-temperature materials, Turnkey solutions, Advanced thermal simulation, Compatibility with a wide range of tooling materials: nickel, steel, INVAR®? A class surface quality. New Risk • Jan 16
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 49% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-€2.2m free cash flow). Share price has been highly volatile over the past 3 months (18% average weekly change). Shareholders have been substantially diluted in the past year (49% increase in shares outstanding). Market cap is less than US$10m (€3.12m market cap, or US$3.21m). Duyuru • May 22
RocTool S.A., Annual General Meeting, Jun 26, 2024 RocTool S.A., Annual General Meeting, Jun 26, 2024. Location: savoie technolac, le bourget du lac France New Risk • May 19
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 50% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (10% average weekly change). Shareholders have been substantially diluted in the past year (50% increase in shares outstanding). Market cap is less than US$10m (€6.87m market cap, or US$7.46m). Reported Earnings • May 05
Full year 2023 earnings released Full year 2023 results: Revenue: €9.68m (up 2.6% from FY 2022). Net loss: €979.0k (loss widened 210% from FY 2022). New Risk • Oct 13
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of French stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Market cap is less than US$10m (€7.38m market cap, or US$7.75m). Duyuru • Jul 23
RocTool S.A. to Report First Half, 2023 Results on Oct 12, 2023 RocTool S.A. announced that they will report first half, 2023 results on Oct 12, 2023 Valuation Update With 7 Day Price Move • Apr 20
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to €2.77, the stock trades at a trailing P/E ratio of 21.9x. Average trailing P/E is 18x in the Machinery industry in France. Total returns to shareholders of 51% over the past three years. Valuation Update With 7 Day Price Move • Nov 21
Investor sentiment deteriorated over the past week After last week's 25% share price decline to €3.24, the stock trades at a trailing P/E ratio of 25.6x. Average trailing P/E is 19x in the Machinery industry in France. Total loss to shareholders of 16% over the past three years. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 3 highly experienced directors. No independent directors (6 non-independent directors). Director Vincent Bazi was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Sep 30
First half 2022 earnings released: EPS: €0 (vs €0 in 1H 2021) First half 2022 results: EPS: €0 (in line with 1H 2021). Revenue: €4.13m (up 40% from 1H 2021). Net income: €80.0k (up €1.28m from 1H 2021). Profit margin: 1.9% (up from net loss in 1H 2021). The move to profitability was primarily driven by higher revenue. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 3 highly experienced directors. No independent directors (6 non-independent directors). Director Vincent Bazi was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Mar 17
Full year 2021 earnings: Revenues miss analyst expectations Full year 2021 results: Revenue: €8.24m (up 25% from FY 2020). Net loss: €704.2k (loss narrowed 73% from FY 2020). Revenue missed analyst estimates by 15%. Reported Earnings • Sep 16
First half 2021 earnings released The company reported a solid first half result with reduced losses, improved revenues and improved control over expenses. First half 2021 results: Revenue: €3.05m (up 16% from 1H 2020). Net loss: €1.20m (loss narrowed 27% from 1H 2020). Reported Earnings • Apr 17
Full year 2020 earnings released The company reported a soft full year result with weaker revenues and control over costs, although losses reduced. Full year 2020 results: Revenue: €6.85m (down 8.7% from FY 2019). Net loss: €2.60m (loss narrowed 2.7% from FY 2019). Is New 90 Day High Low • Feb 15
New 90-day high: €2.92 The company is up 36% from its price of €2.14 on 17 November 2020. The French market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 3.0% over the same period. Is New 90 Day High Low • Jan 20
New 90-day high: €2.74 The company is up 47% from its price of €1.86 on 22 October 2020. The French market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 28% over the same period. Is New 90 Day High Low • Dec 22
New 90-day low: €1.72 The company is down 17% from its price of €2.08 on 22 September 2020. The French market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 8.0% over the same period. Is New 90 Day High Low • Nov 02
New 90-day low: €1.77 The company is down 28% from its price of €2.46 on 04 August 2020. The French market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is down 16% over the same period. Is New 90 Day High Low • Oct 08
New 90-day low: €1.91 The company is down 29% from its price of €2.70 on 10 July 2020. The French market is flat over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is down 2.0% over the same period. Reported Earnings • Sep 23
First half earnings released Over the last 12 months the company has reported total losses of €2.60m, with losses narrowing by 14% from the prior year. Total revenue was €6.42m over the last 12 months, down 15% from the prior year.