ALPHAMIN RESOURCES CORP (AFM.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:AFM - MU0456S00006 - Common Stock
1.46 CAD
+0.04 (+2.82%)
Taking everything into account, AFM scores 8 out of 10 in our fundamental rating. AFM was compared to 820 industry peers in the Metals & Mining industry. AFM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AFM is evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make AFM suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year AFM was profitable.
- AFM had a positive operating cash flow in the past year.
- Of the past 5 years AFM 4 years were profitable.
- In the past 5 years AFM always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 21.41%, AFM belongs to the best of the industry, outperforming 96.59% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 33.14%, AFM belongs to the top of the industry, outperforming 97.44% of the companies in the same industry.
- The Return On Invested Capital of AFM (29.42%) is better than 99.51% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AFM is significantly above the industry average of 12.04%.
- The last Return On Invested Capital (29.42%) for AFM is above the 3 year average (23.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.41% | ||
| ROE | 33.14% | ||
| ROIC | 29.42% |
ROA(3y)15.72%
ROA(5y)11.13%
ROE(3y)25.6%
ROE(5y)17.84%
ROIC(3y)23.24%
ROIC(5y)21.08%
1.3 Margins
- AFM has a better Profit Margin (20.81%) than 94.15% of its industry peers.
- In the last couple of years the Profit Margin of AFM has remained more or less at the same level.
- AFM's Operating Margin of 41.44% is amongst the best of the industry. AFM outperforms 97.44% of its industry peers.
- AFM's Operating Margin has declined in the last couple of years.
- AFM has a Gross Margin of 47.87%. This is amongst the best in the industry. AFM outperforms 95.12% of its industry peers.
- AFM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.44% | ||
| PM (TTM) | 20.81% | ||
| GM | 47.87% |
OM growth 3Y-4.95%
OM growth 5YN/A
PM growth 3Y11.8%
PM growth 5Y0.85%
GM growth 3Y-4.25%
GM growth 5Y2%
2. Health
2.1 Basic Checks
- AFM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- AFM has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for AFM has been increased compared to 5 years ago.
- The debt/assets ratio for AFM has been reduced compared to a year ago.
2.2 Solvency
- AFM has an Altman-Z score of 6.95. This indicates that AFM is financially healthy and has little risk of bankruptcy at the moment.
- With a Altman-Z score value of 6.95, AFM perfoms like the industry average, outperforming 56.71% of the companies in the same industry.
- AFM has a debt to FCF ratio of 0.27. This is a very positive value and a sign of high solvency as it would only need 0.27 years to pay back of all of its debts.
- AFM has a Debt to FCF ratio of 0.27. This is amongst the best in the industry. AFM outperforms 95.24% of its industry peers.
- A Debt/Equity ratio of 0.09 indicates that AFM is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.09, AFM is doing worse than 62.44% of the companies in the same industry.
- Even though the debt/equity ratio score it not favorable for AFM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.27 | ||
| Altman-Z | 6.95 |
ROIC/WACC2.79
WACC10.56%
2.3 Liquidity
- A Current Ratio of 1.77 indicates that AFM should not have too much problems paying its short term obligations.
- AFM's Current ratio of 1.77 is in line compared to the rest of the industry. AFM outperforms 49.63% of its industry peers.
- AFM has a Quick Ratio of 1.18. This is a normal value and indicates that AFM is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of AFM (1.18) is comparable to the rest of the industry.
- AFM does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 58.39% over the past year.
- AFM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 67.68% yearly.
- Looking at the last year, AFM shows a very strong growth in Revenue. The Revenue has grown by 31.48%.
- Measured over the past years, AFM shows a very strong growth in Revenue. The Revenue has been growing by 80.94% on average per year.
EPS 1Y (TTM)58.39%
EPS 3Y27.76%
EPS 5Y67.68%
EPS Q2Q%-8.33%
Revenue 1Y (TTM)31.48%
Revenue growth 3Y14.37%
Revenue growth 5Y80.94%
Sales Q2Q%33.54%
3.2 Future
- Based on estimates for the next years, AFM will show a very strong growth in Earnings Per Share. The EPS will grow by 38.08% on average per year.
- Based on estimates for the next years, AFM will show a small growth in Revenue. The Revenue will grow by 5.17% on average per year.
EPS Next Y18.79%
EPS Next 2Y38.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.68%
Revenue Next 2Y5.17%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- AFM is valuated correctly with a Price/Earnings ratio of 12.17.
- Based on the Price/Earnings ratio, AFM is valued cheaper than 96.10% of the companies in the same industry.
- When comparing the Price/Earnings ratio of AFM to the average of the S&P500 Index (28.60), we can say AFM is valued rather cheaply.
- With a Price/Forward Earnings ratio of 4.72, the valuation of AFM can be described as very cheap.
- AFM's Price/Forward Earnings ratio is rather cheap when compared to the industry. AFM is cheaper than 98.05% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of AFM to the average of the S&P500 Index (25.83), we can say AFM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 4.72 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AFM is valued cheaply inside the industry as 98.78% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, AFM is valued cheaply inside the industry as 99.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.68 | ||
| EV/EBITDA | 4.44 |
4.3 Compensation for Growth
- AFM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- AFM has an outstanding profitability rating, which may justify a higher PE ratio.
- AFM's earnings are expected to grow with 38.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.65
PEG (5Y)0.18
EPS Next 2Y38.08%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- AFM has a Yearly Dividend Yield of 5.93%, which is a nice return.
- AFM's Dividend Yield is rather good when compared to the industry average which is at 0.56. AFM pays more dividend than 99.63% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, AFM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
5.2 History
- AFM has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
- 100.14% of the earnings are spent on dividend by AFM. This is not a sustainable payout ratio.
DP100.14%
EPS Next 2Y38.08%
EPS Next 3YN/A
ALPHAMIN RESOURCES CORP / AFM.CA FAQ
Can you provide the ChartMill fundamental rating for ALPHAMIN RESOURCES CORP?
ChartMill assigns a fundamental rating of 8 / 10 to AFM.CA.
What is the valuation status of ALPHAMIN RESOURCES CORP (AFM.CA) stock?
ChartMill assigns a valuation rating of 9 / 10 to ALPHAMIN RESOURCES CORP (AFM.CA). This can be considered as Undervalued.
How profitable is ALPHAMIN RESOURCES CORP (AFM.CA) stock?
ALPHAMIN RESOURCES CORP (AFM.CA) has a profitability rating of 9 / 10.
What are the PE and PB ratios of ALPHAMIN RESOURCES CORP (AFM.CA) stock?
The Price/Earnings (PE) ratio for ALPHAMIN RESOURCES CORP (AFM.CA) is 12.17 and the Price/Book (PB) ratio is 3.79.
How sustainable is the dividend of ALPHAMIN RESOURCES CORP (AFM.CA) stock?
The dividend rating of ALPHAMIN RESOURCES CORP (AFM.CA) is 4 / 10 and the dividend payout ratio is 100.14%.