tiprankstipranks
Trending News
More News >
Renoworks Software (TSE:RW)
:RW
Canadian Market

Renoworks Software (RW) AI Stock Analysis

Compare
2 Followers

Top Page

TS

Renoworks Software

(RW)

Rating:62Neutral
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 (RW) vs. iShares MSCI Canada ETF (EWC)

Renoworks Software Business Overview & Revenue Model

Company DescriptionRenoWorks 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 MoneyRenoworks 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
45
Neutral
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
30
Negative
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
50
Neutral
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
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
6.71M6.29M5.94M5.55M5.13M4.26M
Gross Profit
4.81M4.43M3.79M3.49M3.46M2.93M
EBIT
-477.79K-438.94K-1.39M-537.14K242.08K-555.57K
EBITDA
-192.14K-470.62K-1.23M-480.87K268.24K-499.76K
Net Income Common Stockholders
-215.44K-497.77K-1.32M-608.96K123.58K-686.10K
Balance SheetCash, Cash Equivalents and Short-Term Investments
385.33K645.55K704.08K1.19M523.55K500.75K
Total Assets
1.16M1.67M1.79M2.21M1.53M1.39M
Total Debt
221.96K0.000.00297.37K466.54K537.10K
Net Debt
-163.37K-645.55K-704.08K-891.98K-57.01K36.35K
Total Liabilities
1.36M1.87M1.56M1.64M1.33M1.40M
Stockholders Equity
-202.09K-195.19K232.72K571.78K203.58K-10.94K
Cash FlowFree Cash Flow
437.56K-59.88K-1.22M48.50K169.82K-413.00K
Operating Cash Flow
446.72K-52.83K-1.18M93.93K181.52K-391.65K
Investing Cash Flow
-1.66K-6.30K-11.56K-140.43K-11.71K-21.34K
Financing Cash Flow
-13.69K600.00710.79K712.29K-147.01K528.41K

Renoworks Software Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.36
Price Trends
50DMA
0.27
Positive
100DMA
0.27
Positive
200DMA
0.26
Positive
Market Momentum
MACD
0.03
Positive
RSI
60.53
Neutral
STOCH
40.74
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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSKXS
73
Outperform
C$5.56B402.422.32%15.14%-31.45%
TSTCS
71
Outperform
C$598.64M198.184.56%0.82%2.61%46.26%
TSSYZ
68
Neutral
C$206.53M-3.13%0.43%-13.99%-421.95%
67
Neutral
$1.10B34.9941.12%20.52%246.69%
TSRW
62
Neutral
C$14.65M45.00136.37%10.33%
62
Neutral
$11.80B10.37-7.29%2.91%7.39%-7.96%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:RW
Renoworks Software
0.36
0.16
80.00%
TSE:DCBO
Docebo
36.97
-15.39
-29.39%
TSE:KXS
Kinaxis Inc
198.11
48.44
32.36%
TSE:TCS
TECSYS Inc. J
40.35
8.02
24.81%
TSE:SYZ
Sylogist
9.26
-0.40
-4.14%

Renoworks Software Corporate Events

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Renoworks Expands Visualizer Offerings and Corrects Revenue Figures
Positive
Apr 28, 2025

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.

Business Operations and StrategyFinancial Disclosures
Renoworks Software Achieves Profitability with Strong 2024 Financial Results
Positive
Apr 15, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.