Redishred Capital Corp (Pre-Merger)
XTSX:KUT
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%.
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
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.
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 |
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)
What is Free Cash Flow?
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.
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.
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)
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.
Shareholder Return
KUT Price
Redishred Capital Corp (Pre-Merger)
Average Annual Return | 5.14% |
Standard Deviation of Annual Returns | 41.69% |
Max Drawdown | -66% |
Market Capitalization | 51.1m CAD |
Shares Outstanding | 18 303 100 |
Percentage of Shares Shorted | 0.6% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
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
IPO
Employees
Officers
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%.