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Redishred Capital Corp (Pre-Merger)
XTSX:KUT

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Redishred Capital Corp (Pre-Merger) Logo
Redishred Capital Corp (Pre-Merger)
XTSX:KUT
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Price: 2.79 CAD 2.57% Market Closed
Updated: Mar 29, 2024

Intrinsic Value

Redishred Capital Corp. owns and operates the PROSHRED brand and business platform in the United States and internationally. [ Read More ]

The intrinsic value of one KUT stock under the Base Case scenario is 4.38 CAD. Compared to the current market price of 2.79 CAD, Redishred Capital Corp (Pre-Merger) is Undervalued by 36%.

Key Points:
KUT Intrinsic Value
Base Case
4.38 CAD
Undervaluation 36%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Redishred Capital Corp (Pre-Merger)

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Fundamental Analysis

Shredding Revenue Up, EBITDA Dips Amid Paper Price Drop
2023-Q3 Earnings Call

Shredding Revenue Up, EBITDA Dips Amid Paper Price Drop

Despite a strong operational quarter, the company saw a 16% decrease in EBITDA due to a significant decline in paper prices, which halved from the previous year. Nevertheless, the shredding revenue grew by 21%, and the EBITDA excluding paper increased by $1 million, marking a 121% rise from the previous quarter. Free cash flow per share was $0.15, with the company showing a robust conversion rate. The company is also making strides in technology investments, including a recent move to Azure and embarking on a journey toward SOC 2 certification to attract more clients. On the horizon, management is focusing on Q4 performance and creating business pipelines for the upcoming quarters.

Financials

Balance Sheet Decomposition
Redishred Capital Corp (Pre-Merger)

Current Assets 14.2m
Cash & Short-Term Investments 3.6m
Receivables 9.7m
Other Current Assets 941k
Non-Current Assets 83.7m
PP&E 25.7m
Intangibles 56.7m
Other Non-Current Assets 1.4m
Current Liabilities 17.6m
Accounts Payable 4.2m
Other Current Liabilities 13.4m
Non-Current Liabilities 31.8m
Long-Term Debt 28.3m
Other Non-Current Liabilities 3.5m
Efficiency

Earnings Waterfall
Redishred Capital Corp (Pre-Merger)

Revenue
64.5m CAD
Cost of Revenue
-39.5m CAD
Gross Profit
25m CAD
Operating Expenses
-20.2m CAD
Operating Income
4.8m CAD
Other Expenses
-5.1m CAD
Net Income
-266k CAD

Free Cash Flow Analysis
Redishred Capital Corp (Pre-Merger)

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
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What is Free Cash Flow?
Fundamental Scores

KUT Profitability Score
Profitability Due Diligence

Redishred Capital Corp (Pre-Merger)'s profitability score is 51/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Years Revenue Growth
Positive Gross Profit
Positive Free Cash Flow
Positive Revenue Growth Forecast
51/100
Profitability
Score

Redishred Capital Corp (Pre-Merger)'s profitability score is 51/100. The higher the profitability score, the more profitable the company is.

KUT Solvency Score
Solvency Due Diligence

Redishred Capital Corp (Pre-Merger)'s solvency score is 35/100. The higher the solvency score, the more solvent the company is.

Low D/E
Long-Term Solvency
Short-Term Solvency
Low Altman Z-Score
35/100
Solvency
Score

Redishred Capital Corp (Pre-Merger)'s solvency score is 35/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

KUT Price Targets Summary
Redishred Capital Corp (Pre-Merger)

Wall Street analysts forecast KUT stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for KUT is 6.3 CAD with a low forecast of 5.56 CAD and a high forecast of 7.35 CAD.

Lowest
Price Target
5.56 CAD
99% Upside
Average
Price Target
6.3 CAD
126% Upside
Highest
Price Target
7.35 CAD
163% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Shareholder Return

KUT Price
Redishred Capital Corp (Pre-Merger)

1M 1M
-2%
6M 6M
-10%
1Y 1Y
-20%
3Y 3Y
-17%
5Y 5Y
-26%
10Y 10Y
+1 295%
Annual Price Range
2.79
52w Low
2.32
52w High
4.33
Price Metrics
Average Annual Return 5.14%
Standard Deviation of Annual Returns 41.69%
Max Drawdown -66%
Shares Statistics
Market Capitalization 51.1m CAD
Shares Outstanding 18 303 100
Percentage of Shares Shorted 0.6%

KUT Return Decomposition
Main factors of price return

What is price return decomposition?

Company Profile

Redishred Capital Corp (Pre-Merger) Logo
Redishred Capital Corp (Pre-Merger)

Country

Canada

Industry

Commercial Services & Supplies

Market Cap

51.1m CAD

Dividend Yield

0%

Description

Redishred Capital Corp. owns and operates the PROSHRED brand and business platform in the United States and internationally. The company is headquartered in Mississauga, Ontario. The firm operates the Proshred system under three business models: franchising in the United States; through direct ownership of shredding trucks and facilities in over six locations in the United States, and licensing internationally. The company operates through three segments: the granting and managing of shredding business franchises under the Proshred trademark (Franchising and licensing); the operation of corporately owned shredding businesses (Corporate locations), and supporting the franchises and corporately owned shredding businesses (Corporate Overhead). The company operates over six Proshred locations directly, including Syracuse, Albany, Milwaukee, New York City, Charlotte and Miami. The company operates over seven Proshred locations in the Middle East, including Doha, Qatar; Dubai and Abu Dhabi, the United Arab Emirates; Riyadh and Jeddah, Saudi Arabia; Beirut, Lebanon, and Muscat, Oman.

Contact

ONTARIO
Mississauga
6505 Mississauga Rd Suite A
+18663795028.0
http://www.redishred.com/

IPO

-

Employees

-

Officers

CEO, President & Director
Mr. Jeffrey I. Hasham CA, CPA
CFO & Corporate Secretary
Mr. Harjit Brar C.A., CPA
Senior Vice President of Finance & Acquisitions
Ms. Katherina M. Pawluk CA, CPA
Vice President of Performance & Operations
Mr. Richard Pepper
Vice President of Technology
Mr. Brian Samson
Vice President of Human Resources
Mr. Jason Ostrout
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VP of Strategic Initiatives & President of PROSCAN® Solutions
Mr. Francesco Marascia M.B.A.
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See Also

Discover More
What is the Intrinsic Value of one KUT stock?

The intrinsic value of one KUT stock under the Base Case scenario is 4.38 CAD.

Is KUT stock undervalued or overvalued?

Compared to the current market price of 2.79 CAD, Redishred Capital Corp (Pre-Merger) is Undervalued by 36%.