Route1 Inc (ROI) AI Stock Analysis

• Market Cap: C$3.19M
• Dividend Yield: N/A
• Average Volume (3M): 14.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.95
• Revenue Growth: -17.46%
• EPS Growth: 69.11%
• Country: CA
• Employees: 30
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): <0.01
• Shares Outstanding: 42,497,154
• 10 Day Avg. Volume: 6,500
• 30 Day Avg. Volume: 14,768
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: C$0.06 ▲(3.33% Upside)

Route1 Inc's overall stock score is primarily impacted by its significant financial challenges, including declining revenues and negative equity. Technical analysis indicates bearish momentum, further weighing down the score. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield, contributing to a low overall score.

Positive Factors

Recurring Revenue Model

The company's focus on long-term contracts ensures a stable revenue stream, reducing volatility and providing financial predictability.

Cash Flow Improvement

Improved cash flow generation enhances financial flexibility and supports ongoing operations, crucial for long-term sustainability.

Cybersecurity Focus

Operating in the growing cybersecurity sector positions the company to benefit from increasing demand for data protection and compliance solutions.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market competitiveness or product demand, potentially affecting long-term growth prospects.

High Leverage

High leverage and negative equity can strain financial resources, limiting the company's ability to invest in growth and innovation.

Persistent Losses

Ongoing losses highlight operational inefficiencies and may hinder the company's ability to achieve profitability and financial stability.

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 generates revenue through the sale of its proprietary software solutions and services, which are designed to protect data and provide secure access to networks. The company often engages in long-term contracts with governmental agencies and large enterprises, which provide a steady stream of recurring revenue. Key revenue streams include software licensing fees, subscription services for ongoing support and updates, and consulting services for implementation and integration. Additionally, Route1 may benefit from partnerships with other technology providers that enhance its service offerings and expand its market reach, 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	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: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ROI, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.08, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.16 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MBO	46 Neutral	C$2.19M	-0.62	―	―	155678.40%	-1772.63%
ISFT	45 Neutral	C$4.48M	-17.39	―	―	10.05%	-93.75%
ISGI	41 Neutral	C$1.71M	―	―	―	-6.02%	30.91%
ROI	41 Neutral	C$3.19M	―	―	―	-17.46%	69.11%

Route1 Inc Corporate Events

Route1 Inc. Secures Shareholder Approval for Key Proposals at Annual Meeting

Route1 Inc. announced the approval of all shareholder proposals at its annual general and special meeting, including the re-election of directors, the appointment of auditors, re-approval of its long-term incentive plan, and a forthcoming name change. These decisions are expected to impact the company’s strategic direction and market positioning, potentially affecting stakeholders by reinforcing leadership continuity and corporate governance.

Route1 Inc. Seeks Extension for Private Placement and Announces New Interim CFO

Route1 Inc. has applied for a 30-day extension for price protection related to its non-brokered private placement of units, aiming to complete further subscriptions for the final tranche of the offering. The proceeds from this offering will be used to develop Route1’s Actionable Business Intelligence software application. Additionally, the company has appointed Jerry Iwanski as Interim CFO, replacing Tony Busseri, who remains President and CEO. Route1 is also set to release an AI operations co-pilot in early 2026, designed to optimize parking operations through advanced machine learning, enhancing capabilities like event-aware staffing and predictive compliance sweeps.

Route1 Inc. Completes First Tranche of Private Placement to Fund AI Development

Route1 Inc. has successfully closed the first tranche of its non-brokered private placement, raising approximately C$234,250. The proceeds will be used to develop Route1’s Actionable Business Intelligence software application, including an AI operations co-pilot designed to optimize parking operations. This development aims to enhance the company’s market position by providing advanced capabilities in parking management, potentially benefiting stakeholders through improved operational efficiency and data-driven decision-making.

Route1 Inc. Launches Private Placement to Fund AI Development

Route1 Inc. has announced a non-brokered private placement to raise approximately C$500,000, which will be used to develop its Actionable Business Intelligence software application. This initiative is part of their broader strategy to enhance their AI operations co-pilot, which aims to optimize parking operations through advanced machine learning and secure data management, potentially strengthening their market position in the technology sector.

Route1 Inc. Prepares for Annual Meeting Amid Postal Delays

Route1 Inc. has announced the availability of materials for its upcoming annual general and special meeting, scheduled for December 4, 2025, in Toronto. Due to postal delays caused by labor action, shareholders are advised to vote electronically or by phone. The meeting will address several key issues, including the election of directors, reappointment of auditors, and a potential company name change. The company emphasizes online access to meeting materials to ensure timely participation.

Route1 Inc. Enhances ABI Software with New Revenue and Parking Capabilities

Route1 Inc. has announced the release of version 3.5 of its Actionable Business Intelligence (ABI) software, which now includes features such as Actionable Revenue Opportunity Indicators and a Parking Survey Capability. These updates are designed to help users uncover missed revenue opportunities, optimize pricing strategies, and reduce reliance on third-party providers by leveraging existing ALPR technology. Additionally, Route1 plans to introduce an AI Co-Pilot in early 2026 to further enhance parking operations through advanced machine learning, offering capabilities like event-aware staffing and predictive compliance sweeps.