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Recipe Unlimited Corporation (RECP.CA) Stock Fundamental Analysis

TSX:RECP - Toronto Stock Exchange - CA75622P1045 - Common Stock - Currency: CAD

20.74  +0.02 (+0.1%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to RECP. RECP was compared to 17 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and financial health of RECP have multiple concerns. RECP is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year RECP was profitable.
RECP had a positive operating cash flow in the past year.
RECP.CA Yearly Net Income VS EBIT VS OCF VS FCFRECP.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 0 50M -50M 100M 150M 200M

1.2 Ratios

Industry RankSector Rank
ROA 2.41%
ROE 12.18%
ROIC 5.05%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
RECP.CA Yearly ROA, ROE, ROICRECP.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 0 20 40

1.3 Margins

RECP's Profit Margin has declined in the last couple of years.
In the last couple of years the Operating Margin of RECP has declined.
Industry RankSector Rank
OM 8.68%
PM (TTM) 3.95%
GM N/A
OM growth 3Y-9.66%
OM growth 5Y-16.52%
PM growth 3Y-11.91%
PM growth 5Y-21.83%
GM growth 3YN/A
GM growth 5YN/A
RECP.CA Yearly Profit, Operating, Gross MarginsRECP.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 0 20 40 60

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1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RECP is destroying value.
RECP has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, RECP has an improved debt to assets ratio.
RECP.CA Yearly Shares OutstandingRECP.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 20M 40M 60M
RECP.CA Yearly Total Debt VS Total AssetsRECP.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B

2.2 Solvency

RECP has an Altman-Z score of 0.99. This is a bad value and indicates that RECP is not financially healthy and even has some risk of bankruptcy.
RECP has a debt to FCF ratio of 5.81. This is a neutral value as RECP would need 5.81 years to pay back of all of its debts.
A Debt/Equity ratio of 2.13 is on the high side and indicates that RECP has dependencies on debt financing.
Industry RankSector Rank
Debt/Equity 2.13
Debt/FCF 5.81
Altman-Z 0.99
ROIC/WACC0.66
WACC7.59%
RECP.CA Yearly LT Debt VS Equity VS FCFRECP.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 0.71 indicates that RECP may have some problems paying its short term obligations.
RECP has a Quick Ratio of 0.71. This is a bad value and indicates that RECP is not financially healthy enough and could expect problems in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 0.71
Quick Ratio 0.53
RECP.CA Yearly Current Assets VS Current LiabilitesRECP.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 100M 200M 300M 400M

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 94.59% over the past year.
RECP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.42% yearly.
Looking at the last year, RECP shows a very strong growth in Revenue. The Revenue has grown by 42.14%.
Measured over the past years, RECP shows a quite strong growth in Revenue. The Revenue has been growing by 16.85% on average per year.
EPS 1Y (TTM)94.59%
EPS 3Y-19.81%
EPS 5Y-9.42%
EPS Q2Q%125%
Revenue 1Y (TTM)42.14%
Revenue growth 3Y-5.4%
Revenue growth 5Y16.85%
Sales Q2Q%62.1%

3.2 Future

The Earnings Per Share is expected to grow by 23.62% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.79% on average over the next years.
EPS Next Y25.35%
EPS Next 2Y28.99%
EPS Next 3Y24.21%
EPS Next 5Y23.62%
Revenue Next Year28.4%
Revenue Next 2Y16.79%
Revenue Next 3Y11.46%
Revenue Next 5Y6.79%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
RECP.CA Yearly Revenue VS EstimatesRECP.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B
RECP.CA Yearly EPS VS EstimatesRECP.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 14.40 indicates a correct valuation of RECP.
RECP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
The Price/Forward Earnings ratio is 12.59, which indicates a correct valuation of RECP.
When comparing the Price/Forward Earnings ratio of RECP to the average of the S&P500 Index (21.76), we can say RECP is valued slightly cheaper.
Industry RankSector Rank
PE 14.4
Fwd PE 12.59
RECP.CA Price Earnings VS Forward Price EarningsRECP.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF 7.47
EV/EBITDA 10.56
RECP.CA Per share dataRECP.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 15 20

4.3 Compensation for Growth

RECP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RECP's earnings are expected to grow with 24.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y28.99%
EPS Next 3Y24.21%

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0

5. Dividend

5.1 Amount

RECP does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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Recipe Unlimited Corporation

TSX:RECP (11/1/2022, 7:00:00 PM)

20.74

+0.02 (+0.1%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners8.8%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.22B
Analysts44
Price Target21.54 (3.86%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)30.25%
Min EPS beat(2)-15.97%
Max EPS beat(2)76.47%
EPS beat(4)2
Avg EPS beat(4)26.11%
Min EPS beat(4)-20.63%
Max EPS beat(4)76.47%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)7.98%
Min Revenue beat(2)5.23%
Max Revenue beat(2)10.73%
Revenue beat(4)4
Avg Revenue beat(4)6.86%
Min Revenue beat(4)2.4%
Max Revenue beat(4)10.73%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 14.4
Fwd PE 12.59
P/S 1
P/FCF 7.47
P/OCF 6.2
P/B 3.09
P/tB N/A
EV/EBITDA 10.56
EPS(TTM)1.44
EY6.94%
EPS(NY)1.65
Fwd EY7.94%
FCF(TTM)2.78
FCFY13.39%
OCF(TTM)3.34
OCFY16.12%
SpS20.68
BVpS6.71
TBVpS-7.06
PEG (NY)0.57
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.41%
ROE 12.18%
ROCE N/A
ROIC 5.05%
ROICexc N/A
ROICexgc 10.21%
OM 8.68%
PM (TTM) 3.95%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-36.88%
ROICexcg growth 5Y-16.38%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-9.66%
OM growth 5Y-16.52%
PM growth 3Y-11.91%
PM growth 5Y-21.83%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 2.13
Debt/FCF 5.81
Debt/EBITDA N/A
Cap/Depr 35.04%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 339.7%
Current Ratio 0.71
Quick Ratio 0.53
Altman-Z 0.99
F-Score7
WACC7.59%
ROIC/WACC0.66
Cap/Depr(3y)33.32%
Cap/Depr(5y)56.73%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)94.59%
EPS 3Y-19.81%
EPS 5Y-9.42%
EPS Q2Q%125%
EPS Next Y25.35%
EPS Next 2Y28.99%
EPS Next 3Y24.21%
EPS Next 5Y23.62%
Revenue 1Y (TTM)42.14%
Revenue growth 3Y-5.4%
Revenue growth 5Y16.85%
Sales Q2Q%62.1%
Revenue Next Year28.4%
Revenue Next 2Y16.79%
Revenue Next 3Y11.46%
Revenue Next 5Y6.79%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y20.1%
FCF growth 3Y1.13%
FCF growth 5Y15.81%
OCF growth 1Y9.61%
OCF growth 3Y-1.46%
OCF growth 5Y9.82%