STEPPE GOLD LTD (STGO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STGO - CA85913R2063 - Common Stock
2.3 CAD
+0.1 (+4.55%)
We assign a fundamental rating of 6 out of 10 to STGO. STGO was compared to 820 industry peers in the Metals & Mining industry. While STGO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. STGO may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make STGO a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- STGO had positive earnings in the past year.
- In the past year STGO had a positive cash flow from operations.
- In multiple years STGO reported negative net income over the last 5 years.
- Of the past 5 years STGO 4 years had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 11.99%, STGO belongs to the best of the industry, outperforming 94.39% of the companies in the same industry.
- STGO has a Return On Equity of 30.95%. This is amongst the best in the industry. STGO outperforms 97.20% of its industry peers.
- The Return On Invested Capital of STGO (14.13%) is better than 96.22% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for STGO is significantly above the industry average of 12.04%.
- The last Return On Invested Capital (14.13%) for STGO is well below the 3 year average (25.06%), which needs to be investigated, but indicates that STGO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.99% | ||
| ROE | 30.95% | ||
| ROIC | 14.13% |
ROA(3y)20.72%
ROA(5y)8.42%
ROE(3y)66.83%
ROE(5y)-23.79%
ROIC(3y)25.06%
ROIC(5y)N/A
1.3 Margins
- STGO's Profit Margin of 29.28% is amongst the best of the industry. STGO outperforms 96.46% of its industry peers.
- STGO's Operating Margin of 41.82% is amongst the best of the industry. STGO outperforms 97.56% of its industry peers.
- Looking at the Gross Margin, with a value of 49.74%, STGO belongs to the top of the industry, outperforming 95.73% of the companies in the same industry.
- In the last couple of years the Gross Margin of STGO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.82% | ||
| PM (TTM) | 29.28% | ||
| GM | 49.74% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.44%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- STGO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for STGO has been increased compared to 1 year ago.
- Compared to 5 years ago, STGO has more shares outstanding
- STGO has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.94 indicates that STGO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.94, STGO perfoms like the industry average, outperforming 47.44% of the companies in the same industry.
- STGO has a debt to FCF ratio of 12.67. This is a negative value and a sign of low solvency as STGO would need 12.67 years to pay back of all of its debts.
- STGO has a better Debt to FCF ratio (12.67) than 89.76% of its industry peers.
- STGO has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of STGO (1.25) is worse than 73.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 12.67 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.3
WACC10.88%
2.3 Liquidity
- A Current Ratio of 2.80 indicates that STGO has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.80, STGO is in the better half of the industry, outperforming 60.85% of the companies in the same industry.
- STGO has a Quick Ratio of 1.69. This is a normal value and indicates that STGO is financially healthy and should not expect problems in meeting its short term obligations.
- STGO has a Quick ratio of 1.69. This is comparable to the rest of the industry: STGO outperforms 51.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.8 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
- STGO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.23%.
- Looking at the last year, STGO shows a very negative growth in Revenue. The Revenue has decreased by -27.72% in the last year.
- Measured over the past years, STGO shows a very strong growth in Revenue. The Revenue has been growing by 94.93% on average per year.
EPS 1Y (TTM)-42.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-57.76%
Revenue 1Y (TTM)-27.72%
Revenue growth 3Y94.93%
Revenue growth 5YN/A
Sales Q2Q%-21.25%
3.2 Future
- Based on estimates for the next years, STGO will show a very strong growth in Earnings Per Share. The EPS will grow by 177.75% on average per year.
- The Revenue is expected to grow by 104.49% on average over the next years. This is a very strong growth
EPS Next Y514.29%
EPS Next 2Y177.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year240.18%
Revenue Next 2Y104.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 8.85, the valuation of STGO can be described as very reasonable.
- STGO's Price/Earnings ratio is rather cheap when compared to the industry. STGO is cheaper than 96.95% of the companies in the same industry.
- When comparing the Price/Earnings ratio of STGO to the average of the S&P500 Index (27.21), we can say STGO is valued rather cheaply.
- A Price/Forward Earnings ratio of 3.03 indicates a rather cheap valuation of STGO.
- Based on the Price/Forward Earnings ratio, STGO is valued cheaper than 98.78% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of STGO to the average of the S&P500 Index (25.98), we can say STGO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.85 | ||
| Fwd PE | 3.03 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STGO is valued cheaply inside the industry as 98.66% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of STGO indicates a rather cheap valuation: STGO is cheaper than 94.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.97 | ||
| EV/EBITDA | 4.61 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- STGO has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as STGO's earnings are expected to grow with 177.75% in the coming years.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y177.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- STGO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
STEPPE GOLD LTD / STGO.CA FAQ
What is the fundamental rating for STGO stock?
ChartMill assigns a fundamental rating of 6 / 10 to STGO.CA.
What is the valuation status for STGO stock?
ChartMill assigns a valuation rating of 10 / 10 to STEPPE GOLD LTD (STGO.CA). This can be considered as Undervalued.
What is the profitability of STGO stock?
STEPPE GOLD LTD (STGO.CA) has a profitability rating of 8 / 10.
Can you provide the financial health for STGO stock?
The financial health rating of STEPPE GOLD LTD (STGO.CA) is 5 / 10.
Can you provide the dividend sustainability for STGO stock?
The dividend rating of STEPPE GOLD LTD (STGO.CA) is 0 / 10 and the dividend payout ratio is 0%.