Renoworks Software (RW) AI Stock Analysis

• Market Cap: C$14.65M
• Dividend Yield: N/A
• Average Volume (3M): 54.80K
• Price to Earnings (P/E): 45.0
• Beta (1Y): 1.53
• Revenue Growth: 10.33%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 40,701,300
• 10 Day Avg. Volume: 27,200
• 30 Day Avg. Volume: 54,802
• PEG Ratio: -2.68
• Price to Book (P/B): -57.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.91
• 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

• Rating: 62 Neutral
• Price Target: ―

Renoworks Software's stock score is driven by its strong revenue growth and cash flow improvements, bolstered by positive corporate events. However, the high P/E ratio and negative equity pose significant risks, tempering the overall appeal.

Renoworks Software Business Overview & Revenue Model

Company Description

RenoWorks Software Inc. develops and distributes digital visualization software for the renovation and new home construction sectors in the United States, Canada, and internationally. The company provides Renoworks FastTrack, a platform that helps contractors to reduce and eliminate time-consuming home visits by automatically generating accurate measurement reports, true-to-life visualizations, and interactive 3D models; Renoworks Web visualizer, which enables customers to interact with building products and design their homes from anywhere; and Renoworks Product Configurator that allows customers to design building products, such as windows and doors with detail. It also offers Renoworks Auto-Recognition, which detects roofing, siding, windows, doors, and other products for designing homes; Renoworks Scene Builder, an interactive, engaging, and photo-realistic home visualizer solution to visualize design options and building products; product libraries, which showcases customer's product line; and mobile visualizer apps, as well as other home visualization software products. In addition, the company provides design, analytics, and integrations and application program interface services. It serves manufacturers, material suppliers, contractors and remodelers, marketing agencies, builders, and homeowners. The company is based in Calgary, Canada.

How the Company Makes Money

Renoworks Software generates revenue primarily through the sale of its design and visualization software solutions. The company offers its products on a subscription basis, allowing users to access its suite of tools for a recurring fee. In addition to subscription fees, Renoworks earns revenue from licensing agreements with manufacturers and retailers who integrate Renoworks' visualization technology into their sales and marketing processes. Partnerships with major industry players strengthen its market position and contribute significantly to its revenue. Furthermore, the company may offer customized solutions and consulting services, providing additional income streams.

Renoworks Software Financial Statement Overview

Summary

Renoworks Software shows moderate revenue growth but faces challenges with negative EBIT and EBITDA margins, indicating operational inefficiencies. The balance sheet reveals potential financial instability due to negative stockholders' equity. Despite positive operating cash flow, persistent net losses highlight ongoing financial concerns.

Income Statement

Renoworks Software shows a moderate revenue growth trend with a 6.68% increase over the past year in TTM data. However, the company is facing challenges with negative EBIT and EBITDA margins, indicating operational inefficiencies. The net profit margin remains negative, suggesting ongoing profitability issues.

Balance Sheet

The balance sheet reveals a concerning situation with negative stockholders' equity, indicating potential financial instability. The absence of debt is a positive aspect, but it is overshadowed by negative equity, which suggests an asset deficiency. The equity ratio is not favorable due to the negative equity position.

Cash Flow

The TTM cash flow analysis shows improvement with positive operating and free cash flow, indicating some cash generation ability. The operating cash flow to net income ratio is positive, but the free cash flow to net income ratio is not encouraging due to persistent net losses.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
6.71M	6.29M	5.94M	5.55M	5.13M	4.26M
	Gross Profit
4.81M	4.43M	3.79M	3.49M	3.46M	2.93M
	EBIT
-477.79K	-438.94K	-1.39M	-537.14K	242.08K	-555.57K
	EBITDA
-192.14K	-470.62K	-1.23M	-480.87K	268.24K	-499.76K
	Net Income Common Stockholders
-215.44K	-497.77K	-1.32M	-608.96K	123.58K	-686.10K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
385.33K	645.55K	704.08K	1.19M	523.55K	500.75K
	Total Assets
1.16M	1.67M	1.79M	2.21M	1.53M	1.39M
	Total Debt
221.96K	0.00	0.00	297.37K	466.54K	537.10K
	Net Debt
-163.37K	-645.55K	-704.08K	-891.98K	-57.01K	36.35K
	Total Liabilities
1.36M	1.87M	1.56M	1.64M	1.33M	1.40M
	Stockholders Equity
-202.09K	-195.19K	232.72K	571.78K	203.58K	-10.94K
Cash Flow		Free Cash Flow
437.56K	-59.88K	-1.22M	48.50K	169.82K	-413.00K
	Operating Cash Flow
446.72K	-52.83K	-1.18M	93.93K	181.52K	-391.65K
	Investing Cash Flow
-1.66K	-6.30K	-11.56K	-140.43K	-11.71K	-21.34K
	Financing Cash Flow
-13.69K	600.00	710.79K	712.29K	-147.01K	528.41K

Renoworks Software Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RW, the sentiment is Positive. The current price of 0.36 is above the 20-day moving average (MA) of 0.33, above the 50-day MA of 0.27, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 60.53 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RW.

Renoworks Software Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KXS	73 Outperform	C$5.56B	402.42	2.32%	―	15.14%	-31.45%
TCS	71 Outperform	C$598.64M	198.18	4.56%	0.82%	2.61%	46.26%
SYZ	68 Neutral	C$206.53M	―	-3.13%	0.43%	-13.99%	-421.95%
DCBO	67 Neutral	$1.10B	34.99	41.12%	―	20.52%	246.69%
RW	62 Neutral	C$14.65M	45.00	136.37%	―	10.33%	―
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%

Renoworks Software Corporate Events

Renoworks Expands Visualizer Offerings and Corrects Revenue Figures

Renoworks Software Inc. announced the launch of 15 new enterprise visualizers, expanding its offerings to meet the growing demand for digital visualization solutions in the construction and remodeling markets. The company also corrected its previously reported recurring revenue figures, indicating a 23% increase to $2,764,398. These developments highlight Renoworks’ strategic focus on enhancing customer engagement and expanding its client base across North America, reinforcing its position as a preferred platform for manufacturers and distributors.

Spark’s Take on TSE:RW Stock

According to Spark, TipRanks’ AI Analyst, TSE:RW is a Neutral.

Renoworks Software is on a positive trajectory with strong revenue growth and improving cash flow. However, financial instability due to negative equity and high valuation pose significant risks. Technical indicators show positive momentum, and recent profitability achievements highlight potential for future growth.

To see Spark’s full report on TSE:RW stock, click here.

Renoworks Software Achieves Profitability with Strong 2024 Financial Results

Renoworks Software Inc. reported a strong financial performance for the fiscal year 2024, marked by a 10% revenue growth and a return to profitability with a net profit of $133,058, compared to a net loss in 2023. The company’s strategic initiatives, including expanding its enterprise client base and integrating AI into its platform, have contributed to increased recurring revenue and operational improvements, positioning Renoworks for continued growth in 2025.

Spark’s Take on TSE:RW Stock

According to Spark, TipRanks’ AI Analyst, TSE:RW is a Neutral.

Renoworks Software’s overall performance is moderately weak, primarily due to financial instability and negative profitability margins. While technical indicators show positive momentum, the lack of profitability and unfavorable valuation significantly impact the stock’s appeal.

To see Spark’s full report on TSE:RW stock, click here.