STEPPE GOLD LTD (STGO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STGO - CA85913R2063 - Common Stock
2.36 CAD
-0.01 (-0.42%)
STGO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 820 industry peers in the Metals & Mining industry. STGO scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on STGO. These ratings could make STGO a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- In the past year STGO was profitable.
- In the past year STGO had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: STGO reported negative net income in multiple years.
- STGO had a positive operating cash flow in 4 of the past 5 years.
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 better Return On Equity (30.95%) than 97.20% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.13%, STGO belongs to the top of the industry, outperforming 96.22% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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.
- Looking at the Operating Margin, with a value of 41.82%, STGO belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
- STGO has a better Gross Margin (49.74%) than 95.73% of its industry peers.
- STGO's Gross Margin has improved in the last couple of years.
| 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.
- STGO has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for STGO has been increased compared to 5 years ago.
- STGO has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.99 indicates that STGO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of STGO (2.99) 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.
- The Debt to FCF ratio of STGO (12.67) is better than 89.76% of its industry peers.
- A Debt/Equity ratio of 1.25 is on the high side and indicates that STGO has dependencies on debt financing.
- STGO has a worse Debt to Equity ratio (1.25) than 73.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 12.67 | ||
| Altman-Z | 2.99 |
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.
- With a decent Current ratio value of 2.80, STGO is doing good in the industry, outperforming 60.85% of the companies in the same industry.
- A Quick Ratio of 1.69 indicates that STGO should not have too much problems paying 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.
- Looking at the last year, STGO shows a very negative growth in Revenue. The Revenue has decreased by -27.72% in the last year.
- 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.
- Based on estimates for the next years, STGO will show a very strong growth in Revenue. The Revenue will grow by 104.49% on average per year.
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 9.44, the valuation of STGO can be described as very reasonable.
- Based on the Price/Earnings ratio, STGO is valued cheaper than 96.95% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, STGO is valued rather cheaply.
- The Price/Forward Earnings ratio is 3.16, which indicates a rather cheap valuation of STGO.
- 98.78% of the companies in the same industry are more expensive than STGO, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, STGO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 3.16 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STGO indicates a rather cheap valuation: STGO is cheaper than 98.66% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, STGO is valued cheaply inside the industry as 94.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.29 | ||
| EV/EBITDA | 4.85 |
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.
- The excellent profitability rating of STGO may justify a higher PE ratio.
- STGO's earnings are expected to grow with 177.75% in the coming years. This may justify a more expensive valuation.
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%.