Route1 Inc (ROI) AI Stock Analysis

• Market Cap: C$3.40M
• Dividend Yield: N/A
• Average Volume (3M): 41.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: -16.97%
• EPS Growth: -3.06%
• Country: CA
• Employees: 30
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 42,497,154
• 10 Day Avg. Volume: 82,312
• 30 Day Avg. Volume: 41,580
• PEG Ratio: 0.12
• Price to Book (P/B): -5.54
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 2.39
• 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: 47 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Route1 Inc's stock score is primarily impacted by its poor financial performance, characterized by declining revenues and negative equity. While technical indicators show bullish momentum, the overbought RSI suggests caution. The negative P/E ratio highlights valuation concerns, further weighing down the overall score.

Positive Factors

Strategic Partnerships

Partnerships with government and enterprise clients enhance market credibility and provide a steady revenue stream, strengthening competitive positioning.

Recurring Revenue Model

The recurring revenue model through subscriptions and long-term contracts provides stability and predictability in cash flows, supporting long-term business sustainability.

Cash Generation

Improved cash generation indicates better operational efficiency, providing the company with more flexibility to invest in growth and manage debt.

Negative Factors

Persistent Losses

Ongoing losses and negative profit margins highlight operational inefficiencies, which could hinder the company's ability to achieve profitability and long-term viability.

Negative Equity

Negative equity reflects financial distress and high leverage, posing risks to solvency and limiting the company's ability to secure financing for growth.

Declining Revenue

Declining revenue indicates challenges in market demand or competitive positioning, which could impact the company's ability to sustain operations and grow.

Route1 Inc Business Overview & Revenue Model

Company Description

Route1 Inc. provides data security and user authentication, data acquisition and analytics, data visualization technology solutions in the United States and Canada. The company offers MobiKEY, a desktop secure remote access solution; DerivID, a credentials solution for PIV and CAC that validates the identity of mobile users; and MobiNET and DEFIMNET, which are universal identity management and service delivery platforms. It also provides ActionPLAN that captures and interprets the data in the form of actionable work orders to deliver real time and quantitative industrial process data and analytics to help pinpoint the exact sources of unplanned downtime; ScreenSTOP, an intelligent in-motion screen masking solution to reduce operator distraction for forklifts; and AutoVu, an automatic license plate recognition system to locate vehicles of interest and enforce parking restrictions. In addition, the company offers rugged devices, such as laptops and notebooks, tablets, handhelds and scanners, printers, vehicle docking stations and mounts, WiFi networks, mobile wireless, mobile antennas and wireless accessories, and mobile video and video accessories, as well as computing, printing and scanning accessories. It serves federal government, manufacturing, financial service, healthcare, manufacturing, parking, and public safety, as well as oil, gas, and utility industries. Route1 Inc. is headquartered in Toronto, Canada.

How the Company Makes Money

Route1 Inc generates revenue through the sale and licensing of its software solutions and hardware products. Key revenue streams include subscription fees for its secure remote access services, sales of identity management and data protection tools, as well as consulting and professional services that assist clients in implementing and managing these technologies. The company also enters strategic partnerships with governmental and enterprise clients, contributing to its earnings through long-term contracts and recurring revenue models. Additionally, Route1 Inc may engage in reseller agreements and collaborations with other technology firms to expand its market reach and enhance its product offerings.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.56M	15.15M	17.58M	22.05M	27.27M	29.71M
Gross Profit	4.77M	5.25M	5.87M	7.58M	10.82M	11.07M
EBITDA	451.86K	354.35K	542.08K	1.02M	1.80M	-224.72K
Net Income	-859.83K	-1.06M	-1.28M	-1.72M	222.21K	-1.71M
Balance Sheet
Total Assets	8.50M	9.38M	9.54M	12.36M	15.10M	14.18M
Cash, Cash Equivalents and Short-Term Investments	64.15K	86.61K	38.35K	78.50K	62.57K	1.14M
Total Debt	3.92M	4.08M	4.62M	4.99M	4.72M	4.09M
Total Liabilities	9.11M	9.76M	8.96M	10.59M	12.37M	12.04M
Stockholders Equity	-609.46K	-383.82K	584.35K	1.77M	2.73M	2.14M
Cash Flow
Free Cash Flow	156.14K	887.52K	218.88K	580.32K	353.39K	-226.36K
Operating Cash Flow	156.13K	887.52K	686.82K	602.27K	1.05M	256.27K
Investing Cash Flow	-111.39K	-27.82K	-467.94K	530.00	-2.20M	-458.06K
Financing Cash Flow	-205.14K	-773.91K	-347.76K	-457.59K	5.50K	1.32M

Route1 Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.06, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.92 is Neutral, neither overbought nor oversold. The STOCH value of 30.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ROI.

Route1 Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$36.80B	11.76	-10.20%	1.85%	8.54%	-7.31%
ROI	47 Neutral	C$3.40M	―	-1057.89%	―	-16.97%	-3.06%
MBO	46 Neutral	C$1.36M	―	43.74%	―	97286.33%	-1167.37%
ISGI	41 Neutral	C$2.56M	―	-356.98%	―	22.92%	65.74%
LQID	―	C$3.25M	―		―	―	―
ISFT	45 Neutral	C$5.61M	―	6.45%	―	11.20%	-76.92%
WHIP	―	C$1.75M	―		―	―	―

Route1 Inc Corporate Events

Route1 Expands ALPR Software Reach with Major U.S. Parking Client

Route1 Inc. announced that a major U.S. parking management company has adopted its ABI software for five end users, boosting Route1’s annual recurring revenue from ALPR support plans and software applications to over $1.2 million. This move strengthens Route1’s position in the parking management sector by offering enhanced visibility and operational insights through its ALPR technology, which aids in optimizing enforcement and monetization strategies.

Route1 Inc. Unveils Advanced Business Intelligence Software for ALPR Data

Route1 Inc. announced the launch of its advanced business intelligence software, Actionable Business Intelligence 3.0, designed to enhance the operational efficiency of automated license plate recognition data for municipalities, universities, and enterprise parking operators. The new software versions, including the latest 3.0.1, provide enhanced capabilities such as integrating data from fixed ALPR cameras, enabling detailed visibility into parking metrics, and optimizing policy enforcement and monetization strategies. These updates are expected to significantly improve decision-making processes, amplify revenue recovery, and enhance urban safety.

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.