+ Watch RLRN
on My Watchlist
A provider of technology for personalizing reading, math and writing practice for pre-kindergarten through senior high schools and districts.
This stock has enormous downward pressure. It is significantly overvalued and conditions are getting worse. Renaissance could easily lose 70% of its lofty market value. This stock is terrible in terms of corporate governance and operating performance. Alternatively, for a great example of a company and a good investment, one should investigate Divestco (Toronto stock exchange DVT, DVTIF.PK).Renaissance's metrics are far too high:1) TEV/EBITDA is a startling 24.42) P/E (diluted) is unbelievably at 513) P/TangBV = 79This is particularly so given it operating metrics (which have been unfailingly trending down year over year):1) Revenue, EBITDA, and NI growth have been negative for 5 of the last 6 years2) EBITDA margin, at 14%, in only 30% of what is was 5 yrs ago.3) NI margin, at 7%, in only 30% of what is was 5 yrs ago.4) ROA is 1/3 of what it was 2 yrs ago (if the trend continues, it will become negative in 2008)Despite the poor performance, the 66% majority shareholders (Mr. & Mrs Paul) paid themselves a 380% dividend payout ratio in 2007 (similar payout in 2004). The dividend payout amounted to $30MM in 2007 and $70MM in 2004, this was in addition to their 1/2 million combined salary. Meanwhile, general investors had negative EPS growth every year of the last 5 years (-50% in 2006). The sept/05 share buyback decided primarily by Mr and Mrs Paul (CEO and Chairman) was a disastrous mistake costing $18/share.
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ratings and Key Statistics provided by Zacks.
SEC Filings and Insider Transactions provided by Edgar Online.
Powered and implemented by Interactive Data Managed Solutions. Terms & Conditions