Renoworks Software (RW) AI Stock Analysis

• Market Cap: C$18.11M
• Dividend Yield: N/A
• Average Volume (3M): 30.60K
• Price to Earnings (P/E): 55.6
• Beta (1Y): 1.60
• Revenue Growth: 10.33%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 40,701,300
• 10 Day Avg. Volume: 20,577
• 30 Day Avg. Volume: 30,603
• PEG Ratio: 0.34
• Price to Book (P/B): 197.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.28
• 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 (RW) is a technology company specializing in visualization and design software for the remodeling and new home construction sectors. The company provides innovative tools that enable homeowners, contractors, builders, and manufacturers to visualize home improvement projects and building materials before making purchasing decisions. Renoworks offers a suite of products that include design and visualization software, web applications, and mobile apps tailored to meet the needs of the home renovation industry.

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 strong revenue growth and improving cash flow, yet faces balance sheet challenges due to negative equity. The recent return to profitability is promising, but financial instability remains a concern.

Income Statement

Renoworks Software has shown consistent revenue growth over the years, with a notable increase of 10.33% from 2023 to 2024. The gross profit margin has remained robust at around 73.75% in 2024, indicating strong core business profitability. However, net profit margins have been negative for several years, only turning positive in 2024 at 1.92%, reflecting past challenges in controlling costs. EBIT and EBITDA margins are improving but still show room for operational efficiency gains.

Balance Sheet

The balance sheet indicates financial instability, with a negative stockholders' equity of -4,362 in 2024, suggesting liabilities exceed assets. The equity ratio is negative, indicating potential solvency issues. The absence of debt in recent years is a positive, but the company has historically struggled with maintaining positive equity, which may pose risks to financial health.

Cash Flow

Renoworks Software has significantly improved its cash flow position, with free cash flow turning positive in 2024 at 882,122, a marked improvement from the negative figures in previous years. The operating cash flow to net income ratio is favorable, suggesting efficient cash generation relative to earnings. This cash flow resilience supports operational sustainability and potential reinvestment opportunities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.94M	6.29M	5.94M	5.55M	5.13M
Gross Profit	5.12M	4.43M	3.79M	3.49M	3.46M
EBITDA	155.14K	-470.62K	-1.23M	-480.87K	268.24K
Net Income	133.06K	-497.77K	-1.32M	-608.96K	123.58K
Balance Sheet
Total Assets	2.64M	1.67M	1.79M	2.21M	1.53M
Cash, Cash Equivalents and Short-Term Investments	1.54M	645.55K	704.08K	1.19M	523.55K
Total Debt	0.00	0.00	0.00	297.37K	466.54K
Total Liabilities	2.65M	1.87M	1.56M	1.64M	1.33M
Stockholders Equity	-4.36K	-195.19K	232.72K	571.78K	203.58K
Cash Flow
Free Cash Flow	882.12K	-59.88K	-1.22M	48.50K	169.82K
Operating Cash Flow	893.82K	-52.83K	-1.18M	93.93K	181.52K
Investing Cash Flow	-2.70K	-6.30K	-11.56K	-140.43K	-11.71K
Financing Cash Flow	0.00	600.00	710.79K	712.29K	-147.01K

Renoworks Software Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.45
• 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:RW, the sentiment is Positive. The current price of 0.45 is above the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.37, and above the 200-day MA of 0.29, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 66.29 is Neutral, neither overbought nor oversold. The STOCH value of 73.89 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
DCBO	77 Outperform	$1.27B	40.48	41.12%	―	20.52%	246.69%
KXS	74 Outperform	C$5.77B	414.99	2.32%	―	15.14%	-31.45%
TCS	71 Outperform	C$546.05M	123.29	6.39%	0.91%	1.75%	139.02%
SYZ	68 Neutral	C$228.98M	―	-3.13%	0.41%	-13.99%	-421.95%
RW	62 Neutral	C$18.11M	55.63	136.37%	―	10.33%	―
Sector *	50 Neutral	C$3.03B	2.50	-63.12%	2.26%	4.49%	-6.07%

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.