STEPPE GOLD LTD (STGO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STGO - CA85913R2063 - Common Stock
2.37 CAD
+0.07 (+3.04%)
Overall STGO gets a fundamental rating of 6 out of 10. We evaluated STGO against 820 industry peers in the Metals & Mining industry. STGO scores excellent on profitability, but there are some minor concerns on its financial health. STGO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes STGO very considerable 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
- The Return On Assets of STGO (11.99%) is better than 94.39% of its industry peers.
- Looking at the Return On Equity, with a value of 30.95%, STGO belongs to the top of the industry, outperforming 97.20% of the companies in the same industry.
- The Return On Invested Capital of STGO (14.13%) is better than 96.22% of its industry peers.
- STGO had an Average Return On Invested Capital over the past 3 years of 25.06%. This 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
- 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.
- STGO has a Operating Margin of 41.82%. This is amongst the best in the industry. STGO outperforms 97.56% of its industry peers.
- STGO has a Gross Margin of 49.74%. This is amongst the best in the industry. STGO outperforms 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.
- The number of shares outstanding for STGO has been increased compared to 1 year ago.
- STGO has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, STGO has a worse debt to assets ratio.
2.2 Solvency
- STGO has an Altman-Z score of 2.93. This is not the best score and indicates that STGO is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.93, STGO is in line with its industry, outperforming 47.56% of the companies in the same 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.
- 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 | 2.93 |
ROIC/WACC1.3
WACC10.87%
2.3 Liquidity
- A Current Ratio of 2.80 indicates that STGO has no problem at all paying its short term obligations.
- STGO has a better Current ratio (2.80) than 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
- 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.
- STGO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 94.93% yearly.
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 9.48, the valuation of STGO can be described as reasonable.
- Based on the Price/Earnings ratio, STGO is valued cheaply inside the industry as 96.95% of the companies are valued more expensively.
- STGO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
- Based on the Price/Forward Earnings ratio of 3.14, the valuation of STGO can be described as very cheap.
- Based on the Price/Forward Earnings ratio, STGO is valued cheaply inside the industry as 98.78% of the companies are valued more expensively.
- STGO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 3.14 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STGO is valued cheaper than 98.66% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of STGO indicates a rather cheap valuation: STGO is cheaper than 94.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.07 | ||
| EV/EBITDA | 4.55 |
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.
- 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
- 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%.