STEPPE GOLD LTD (STGO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STGO - CA85913R2063 - Common Stock
2.37 CAD
+0.1 (+4.41%)
STGO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 820 industry peers in the Metals & Mining industry. While STGO has a great profitability rating, 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.
- In multiple years STGO reported negative net income over the last 5 years.
- STGO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- STGO's Return On Assets of 11.99% is amongst the best of the industry. STGO outperforms 94.39% of its industry peers.
- The Return On Equity of STGO (30.95%) is better than 97.20% of its industry peers.
- STGO has a better Return On Invested Capital (14.13%) 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
- Looking at the Profit Margin, with a value of 29.28%, STGO belongs to the top of the industry, outperforming 96.46% of the companies in the same industry.
- The Operating Margin of STGO (41.82%) is better than 97.56% of its industry peers.
- With an excellent Gross Margin value of 49.74%, STGO belongs to the best 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
- Compared to 1 year ago, STGO has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.98 indicates that STGO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- STGO has a Altman-Z score (2.98) which is comparable to the rest of the 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.
- A Debt/Equity ratio of 1.25 is on the high side and indicates that STGO has dependencies on debt 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 | 2.98 |
ROIC/WACC1.3
WACC10.88%
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.
- With a Quick ratio value of 1.69, STGO perfoms like the industry average, outperforming 51.10% of the companies in the same industry.
| 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.
- STGO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -27.72%.
- 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
- The Earnings Per Share is expected to grow by 177.75% on average over the next years. This is a very strong growth
- STGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 104.49% yearly.
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
- The Price/Earnings ratio is 9.48, which indicates a very decent valuation of STGO.
- 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 28.82, STGO is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 3.15, 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. STGO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 3.15 |
4.2 Price Multiples
- STGO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. STGO is cheaper than 98.54% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, STGO is valued cheaper than 94.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.15 | ||
| EV/EBITDA | 4.82 |
4.3 Compensation for Growth
- STGO'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 STGO 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%.