Route1 Inc (ROI) AI Stock Analysis

• Market Cap: C$2.55M
• Dividend Yield: N/A
• Average Volume (3M): 9.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -21.60%
• EPS Growth: 1.49%
• Country: CA
• Employees: 30
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 42,497,154
• 10 Day Avg. Volume: 17,000
• 30 Day Avg. Volume: 9,217
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Route1 Inc's stock score is primarily impacted by its weak financial performance, with significant challenges in revenue and profitability, and high leverage. Technical analysis offers a mixed outlook, while valuation metrics are negative, reflecting ongoing losses. However, recent corporate events provide a potential avenue for future growth, slightly mitigating the financial concerns.

Route1 Inc Business Overview & Revenue Model

Company Description

Route1 Inc (ROI) is a technology company specializing in secure data delivery and identity management solutions. The company provides a suite of products and services designed to enhance data security and streamline secure access to sensitive information across various industries, including government, financial services, and healthcare. Its core offerings include identity management, authentication, and data protection technologies that enable organizations to protect their critical data assets.

How the Company Makes Money

Route1 Inc generates revenue primarily through the sale of its security and data protection software solutions. Key revenue streams include licensing fees for its software products, subscription-based services for ongoing access to its secure data delivery platforms, and professional services such as consulting and implementation support. The company also forms strategic partnerships with other technology providers to expand its market reach and enhance its product offerings, contributing to its overall earnings.

Route1 Inc Financial Statement Overview

Summary

Route1 Inc is facing significant financial challenges. The income statement indicates declining revenues and persistent losses, while the balance sheet reflects high leverage and negative equity, pointing to financial instability. Although there is some improvement in cash flow generation, the company needs to address its profitability and leverage issues to achieve financial sustainability.

Income Statement

Route1 Inc's income statement reveals a challenging financial position. The company has experienced declining revenue, with a TTM revenue of $15.15 million compared to $17.58 million in the previous year, indicating a negative growth rate. The gross profit margin stands at 31.67% for the TTM, which shows a decrease from the previous year. Net income remains negative, resulting in a negative net profit margin, and the EBIT and EBITDA margins are also weak, indicating ongoing operational challenges.

Balance Sheet

The balance sheet reflects financial instability with a negative stockholders' equity of -$383,819 in the TTM, down from positive equity in prior years, suggesting significant financial distress. The debt-to-equity ratio is unfavorable due to the negative equity, reflecting high leverage and potential solvency issues. The equity ratio is also negative, further highlighting the company's reliance on debt financing.

Cash Flow

The cash flow statement shows some positive aspects, with an increase in free cash flow to $872,539 in the TTM from $218,878 in the previous year, indicating improved cash generation. However, the operating cash flow to net income ratio is distorted due to the negative net income. Despite challenges, the company has managed to generate positive operating cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.15M	17.58M	22.05M	27.27M	29.71M
Gross Profit	4.32M	5.87M	7.58M	10.82M	11.07M
EBITDA	354.35K	542.08K	1.02M	1.80M	-224.72K
Net Income	-1.06M	-1.28M	-1.72M	222.21K	-1.71M
Balance Sheet
Total Assets	9.38M	9.54M	12.36M	15.10M	14.18M
Cash, Cash Equivalents and Short-Term Investments	86.61K	38.35K	78.50K	62.57K	1.14M
Total Debt	4.08M	4.62M	4.99M	4.72M	4.09M
Total Liabilities	9.76M	8.96M	10.59M	12.37M	12.04M
Stockholders Equity	-383.82K	584.35K	1.77M	2.73M	2.14M
Cash Flow
Free Cash Flow	887.52K	218.88K	580.32K	353.39K	-226.36K
Operating Cash Flow	887.52K	686.82K	602.27K	1.05M	256.27K
Investing Cash Flow	-27.82K	-467.94K	530.00	-2.20M	-458.06K
Financing Cash Flow	-773.91K	-347.76K	-457.59K	5.50K	1.32M

Route1 Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ROI, the sentiment is Neutral. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.07, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.12 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ROI.

Route1 Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	50 Neutral	C$3.12B	5.24	-48.85%	9.09%	2.15%	-10.29%
ROI	48 Neutral	C$2.55M	―	-1057.89%	―	-21.60%	1.49%
MBO	46 Neutral	C$1.50M	―	43.74%	―	-67.05%	-43.16%
ISFT	45 Neutral	C$5.61M	―	6.45%	―	8.58%	66.13%
ISGI	41 Neutral	C$5.12M	―	-356.98%	―	33.05%	73.39%

Route1 Inc Corporate Events

Route1 Inc. Expands Revenue Streams with Strategic Business Moves

Route1 Inc. has announced several strategic business updates, including the monetization of its Employee Retention Credits (ERCs) and the introduction of a parking revenue sharing model with a smart parking partner. The company sold a portion of its ERCs to a private equity fund, which could potentially lead to further sales if legislative changes occur. Additionally, Route1 has launched its Actionable Business Intelligence software for its Automated License Plate Recognition clients, aiming to enhance parking operations and customer experience. This move is expected to expand Route1’s recurring revenue model and strengthen its market position in the smart parking industry.

Route1 Inc. to Launch Advanced Business Intelligence Platform for ALPR Data

Route1 Inc. announced the upcoming launch of its advanced business intelligence platform designed to optimize automated license plate recognition (ALPR) data. This new platform, set to be released in June 2025, aims to transform high-volume ALPR telemetry into actionable insights for municipalities, universities, and enterprise parking operators. The platform will enhance operational visibility and decision-making through predictive analytics, enabling users to optimize enforcement strategies and improve urban safety. The phased rollout will include additional features such as integrated mapping and data from fixed ALPR cameras, further expanding its capabilities.