STEPPE GOLD LTD (STGO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STGO - CA85913R2063 - Common Stock
2.27 CAD
-0.03 (-1.3%)
Overall STGO gets a fundamental rating of 6 out of 10. We evaluated STGO against 820 industry peers in the Metals & Mining industry. STGO has an excellent profitability rating, but there are some minor concerns on its financial health. STGO is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make STGO a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- In the past year STGO was profitable.
- STGO had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: STGO reported negative net income in multiple years.
- Of the past 5 years STGO 4 years had a positive operating cash flow.
1.2 Ratios
- STGO has a better Return On Assets (11.99%) than 94.39% of its industry peers.
- The Return On Equity of STGO (30.95%) is better than 97.20% of its industry peers.
- STGO's Return On Invested Capital of 14.13% is amongst the best of the industry. STGO outperforms 96.22% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for STGO is significantly above the industry average of 12.04%.
- The 3 year average ROIC (25.06%) for STGO is well above the current ROIC(14.13%). The reason for the recent decline needs to be investigated.
| 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
- The Profit Margin of STGO (29.28%) is better than 96.46% of its industry peers.
- STGO has a better Operating Margin (41.82%) than 97.56% of its industry peers.
- STGO has a better Gross Margin (49.74%) than 95.73% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STGO is creating value.
- The number of shares outstanding for STGO has been increased compared to 1 year ago.
- The number of shares outstanding for STGO has been increased compared to 5 years ago.
- The debt/assets ratio for STGO is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.93 indicates that STGO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- STGO has a Altman-Z score (2.93) which is comparable to the rest of the industry.
- The Debt to FCF ratio of STGO is 12.67, which is on the high side as it means it would take STGO, 12.67 years of fcf income to pay off 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.
- Looking at the Debt to Equity ratio, with a value of 1.25, STGO is doing worse than 73.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 12.67 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.3
WACC10.89%
2.3 Liquidity
- STGO has a Current Ratio of 2.80. This indicates that STGO is financially healthy and has no problem in meeting its short term obligations.
- STGO's Current ratio of 2.80 is fine compared to the rest of the industry. STGO outperforms 60.85% of its industry peers.
- 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's Quick ratio of 1.69 is in line compared 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
- The earnings per share for STGO have decreased strongly by -42.23% in the last year.
- The Revenue for STGO has decreased by -27.72% in the past year. This is quite bad
- The Revenue has been growing by 94.93% on average over the past years. This is a very strong growth!
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
- Based on the Price/Earnings ratio of 9.08, the valuation of STGO can be described as 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.
- STGO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 3.01, the valuation of STGO can be described as very cheap.
- Based on the Price/Forward Earnings ratio, STGO is valued cheaper than 98.78% of the companies in the same industry.
- STGO is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.08 | ||
| Fwd PE | 3.01 |
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.
- STGO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STGO is cheaper than 94.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.67 | ||
| EV/EBITDA | 4.55 |
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
- No dividends for STGO!.
| 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%.