CAPSTONE COPPER CORP (CS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CS - CA14071L1085 - Common Stock
15.74 CAD
+0.17 (+1.09%)
Taking everything into account, CS scores 7 out of 10 in our fundamental rating. CS was compared to 820 industry peers in the Metals & Mining industry. CS scores excellent on profitability, but there are some minor concerns on its financial health. CS is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
- In the past year CS was profitable.
- CS had a positive operating cash flow in the past year.
- Of the past 5 years CS 4 years were profitable.
- CS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of CS (4.46%) is better than 89.27% of its industry peers.
- CS has a Return On Equity of 9.36%. This is amongst the best in the industry. CS outperforms 90.49% of its industry peers.
- CS has a better Return On Invested Capital (3.42%) than 90.61% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CS is significantly below the industry average of 12.04%.
- The last Return On Invested Capital (3.42%) for CS is above the 3 year average (1.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.46% | ||
| ROE | 9.36% | ||
| ROIC | 3.42% |
ROA(3y)0.61%
ROA(5y)3.18%
ROE(3y)1.11%
ROE(5y)5.45%
ROIC(3y)1.34%
ROIC(5y)3.44%
1.3 Margins
- Looking at the Profit Margin, with a value of 14.67%, CS belongs to the top of the industry, outperforming 93.05% of the companies in the same industry.
- CS's Profit Margin has declined in the last couple of years.
- The Operating Margin of CS (15.96%) is better than 91.10% of its industry peers.
- In the last couple of years the Operating Margin of CS has grown nicely.
- The Gross Margin of CS (18.53%) is better than 88.05% of its industry peers.
- In the last couple of years the Gross Margin of CS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.96% | ||
| PM (TTM) | 14.67% | ||
| GM | 18.53% |
OM growth 3Y-32.62%
OM growth 5Y23.43%
PM growth 3Y-43.37%
PM growth 5YN/A
GM growth 3Y-33.56%
GM growth 5Y5.61%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CS is destroying value.
- Compared to 1 year ago, CS has more shares outstanding
- CS has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CS has an improved debt to assets ratio.
2.2 Solvency
- CS has an Altman-Z score of 2.03. This is not the best score and indicates that CS is in the grey zone with still only limited risk for bankruptcy at the moment.
- CS has a Altman-Z score (2.03) which is comparable to the rest of the industry.
- The Debt to FCF ratio of CS is 8.56, which is on the high side as it means it would take CS, 8.56 years of fcf income to pay off all of its debts.
- CS has a Debt to FCF ratio of 8.56. This is amongst the best in the industry. CS outperforms 90.24% of its industry peers.
- CS has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
- CS's Debt to Equity ratio of 0.47 is on the low side compared to the rest of the industry. CS is outperformed by 70.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 8.56 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.37
WACC9.32%
2.3 Liquidity
- A Current Ratio of 1.15 indicates that CS should not have too much problems paying its short term obligations.
- CS has a Current ratio of 1.15. This is comparable to the rest of the industry: CS outperforms 43.29% of its industry peers.
- A Quick Ratio of 0.79 indicates that CS may have some problems paying its short term obligations.
- CS has a worse Quick ratio (0.79) than 61.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- CS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 114.29%, which is quite impressive.
- Measured over the past years, CS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -46.87% on average per year.
- CS shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.88%.
- The Revenue has been growing by 30.74% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)114.29%
EPS 3Y-46.87%
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)40.88%
Revenue growth 3Y26.25%
Revenue growth 5Y30.74%
Sales Q2Q%42.68%
3.2 Future
- CS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 59.22% yearly.
- The Revenue is expected to grow by 21.09% on average over the next years. This is a very strong growth
EPS Next Y171.23%
EPS Next 2Y184.99%
EPS Next 3Y118.31%
EPS Next 5Y59.22%
Revenue Next Year38.66%
Revenue Next 2Y30.03%
Revenue Next 3Y23.43%
Revenue Next 5Y21.09%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 74.95, CS can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, CS is valued cheaper than 87.07% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.82. CS is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 15.74, the valuation of CS can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CS indicates a rather cheap valuation: CS is cheaper than 92.07% of the companies listed in the same industry.
- CS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.95 | ||
| Fwd PE | 15.74 |
4.2 Price Multiples
- CS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CS is cheaper than 95.00% of the companies in the same industry.
- CS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CS is cheaper than 93.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.18 | ||
| EV/EBITDA | 12.32 |
4.3 Compensation for Growth
- CS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of CS may justify a higher PE ratio.
- CS's earnings are expected to grow with 118.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y184.99%
EPS Next 3Y118.31%
5. Dividend
5.1 Amount
- No dividends for CS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CAPSTONE COPPER CORP / CS.CA FAQ
What is the ChartMill fundamental rating of CAPSTONE COPPER CORP (CS.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to CS.CA.
What is the valuation status of CAPSTONE COPPER CORP (CS.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to CAPSTONE COPPER CORP (CS.CA). This can be considered as Undervalued.
What is the profitability of CS stock?
CAPSTONE COPPER CORP (CS.CA) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for CS stock?
The Price/Earnings (PE) ratio for CAPSTONE COPPER CORP (CS.CA) is 74.95 and the Price/Book (PB) ratio is 2.64.
What is the financial health of CAPSTONE COPPER CORP (CS.CA) stock?
The financial health rating of CAPSTONE COPPER CORP (CS.CA) is 4 / 10.