ALPHAMIN RESOURCES CORP (AFM.CA) Stock Fundamental Analysis
TSX-V:AFM - TSX Venture Exchange - MU0456S00006 - Common Stock - Currency: CAD
We assign a fundamental rating of 8 out of 10 to AFM. AFM was compared to 802 industry peers in the Metals & Mining industry. AFM gets an excellent profitability rating and is at the same time showing great financial health properties. AFM is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make AFM suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
AFM had positive earnings in the past year.
In the past year AFM had a positive cash flow from operations.
Of the past 5 years AFM 4 years were profitable.
Each year in the past 5 years AFM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AFM (17.44%) is better than 96.51% of its industry peers.
The Return On Equity of AFM (30.21%) is better than 97.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 26.90%, AFM belongs to the top of the industry, outperforming 99.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AFM is in line with the industry average of 24.51%.
The 3 year average ROIC (23.24%) for AFM is below the current ROIC(26.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.44% | ||
| ROE | 30.21% | ||
| ROIC | 26.9% |
ROA(3y)15.72%
ROA(5y)11.13%
ROE(3y)25.6%
ROE(5y)17.84%
ROIC(3y)23.24%
ROIC(5y)21.08%
1.3 Margins
With an excellent Profit Margin value of 19.09%, AFM belongs to the best of the industry, outperforming 94.89% of the companies in the same industry.
In the last couple of years the Profit Margin of AFM has remained more or less at the same level.
With an excellent Operating Margin value of 40.94%, AFM belongs to the best of the industry, outperforming 98.00% of the companies in the same industry.
AFM's Operating Margin has declined in the last couple of years.
The Gross Margin of AFM (46.89%) is better than 95.14% of its industry peers.
AFM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.94% | ||
| PM (TTM) | 19.09% | ||
| GM | 46.89% |
OM growth 3Y-4.95%
OM growth 5YN/A
PM growth 3Y11.8%
PM growth 5Y0.85%
GM growth 3Y-4.25%
GM growth 5Y2%
2. Health
2.1 Basic Checks
AFM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, AFM has more shares outstanding
The number of shares outstanding for AFM has been increased compared to 5 years ago.
AFM has a better debt/assets ratio than last year.
2.2 Solvency
AFM has an Altman-Z score of 4.43. This indicates that AFM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.43, AFM is doing good in the industry, outperforming 66.83% of the companies in the same industry.
AFM has a debt to FCF ratio of 0.55. This is a very positive value and a sign of high solvency as it would only need 0.55 years to pay back of all of its debts.
AFM has a better Debt to FCF ratio (0.55) than 95.39% of its industry peers.
AFM has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
AFM has a worse Debt to Equity ratio (0.18) than 65.21% of its industry peers.
Even though the debt/equity ratio score it not favorable for AFM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 4.43 |
ROIC/WACC2.65
WACC10.15%
2.3 Liquidity
A Current Ratio of 1.14 indicates that AFM should not have too much problems paying its short term obligations.
AFM has a Current ratio of 1.14. This is comparable to the rest of the industry: AFM outperforms 44.64% of its industry peers.
A Quick Ratio of 0.77 indicates that AFM may have some problems paying its short term obligations.
AFM's Quick ratio of 0.77 is on the low side compared to the rest of the industry. AFM is outperformed by 60.72% of its industry peers.
AFM does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
AFM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 111.65%, which is quite impressive.
The Earnings Per Share has been growing by 67.68% on average over the past years. This is a very strong growth
Looking at the last year, AFM shows a very strong growth in Revenue. The Revenue has grown by 83.01%.
AFM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 80.94% yearly.
EPS 1Y (TTM)111.65%
EPS 3Y27.76%
EPS 5Y67.68%
EPS Q2Q%1936.36%
Revenue 1Y (TTM)83.01%
Revenue growth 3Y14.37%
Revenue growth 5Y80.94%
Sales Q2Q%186.2%
3.2 Future
The Earnings Per Share is expected to grow by 35.25% on average over the next years. This is a very strong growth
AFM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.39% yearly.
EPS Next Y18.79%
EPS Next 2Y35.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.23%
Revenue Next 2Y6.39%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
AFM is valuated reasonably with a Price/Earnings ratio of 8.36.
Compared to the rest of the industry, the Price/Earnings ratio of AFM indicates a rather cheap valuation: AFM is cheaper than 95.51% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AFM to the average of the S&P500 Index (28.10), we can say AFM is valued rather cheaply.
The Price/Forward Earnings ratio is 4.72, which indicates a rather cheap valuation of AFM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AFM indicates a rather cheap valuation: AFM is cheaper than 97.01% of the companies listed in the same industry.
AFM is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 4.72 |
4.2 Price Multiples
98.00% of the companies in the same industry are more expensive than AFM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AFM is valued cheaper than 97.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.29 | ||
| EV/EBITDA | 3.2 |
4.3 Compensation for Growth
AFM'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 AFM may justify a higher PE ratio.
A more expensive valuation may be justified as AFM's earnings are expected to grow with 35.25% in the coming years.
PEG (NY)0.45
PEG (5Y)0.12
EPS Next 2Y35.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AFM has a Yearly Dividend Yield of 13.19%, which is a nice return.
AFM's Dividend Yield is rather good when compared to the industry average which is at 2.90. AFM pays more dividend than 100.00% of the companies in the same industry.
AFM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.19% |
5.2 History
AFM has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
AFM pays out 82.28% of its income as dividend. This is not a sustainable payout ratio.
DP82.28%
EPS Next 2Y35.25%
EPS Next 3YN/A
TSX-V:AFM (5/5/2025, 7:00:00 PM)
0.92
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners4.15%
Inst Owner ChangeN/A
Ins Owners1.45%
Ins Owner ChangeN/A
Market Cap1.18B
Analysts0
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.19% |
Yearly Dividend0.09
Dividend Growth(5Y)N/A
DP82.28%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 4.72 | ||
| P/S | 1.61 | ||
| P/FCF | 6.29 | ||
| P/OCF | 4.62 | ||
| P/B | 2.55 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | 3.2 |
EPS(TTM)0.11
EY11.96%
EPS(NY)0.19
Fwd EY21.16%
FCF(TTM)0.15
FCFY15.89%
OCF(TTM)0.2
OCFY21.65%
SpS0.57
BVpS0.36
TBVpS0.36
PEG (NY)0.45
PEG (5Y)0.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.44% | ||
| ROE | 30.21% | ||
| ROCE | 49.67% | ||
| ROIC | 26.9% | ||
| ROICexc | 28.64% | ||
| ROICexgc | 28.64% | ||
| OM | 40.94% | ||
| PM (TTM) | 19.09% | ||
| GM | 46.89% | ||
| FCFM | 25.64% |
ROA(3y)15.72%
ROA(5y)11.13%
ROE(3y)25.6%
ROE(5y)17.84%
ROIC(3y)23.24%
ROIC(5y)21.08%
ROICexc(3y)32.99%
ROICexc(5y)29.12%
ROICexgc(3y)32.99%
ROICexgc(5y)29.12%
ROCE(3y)41.03%
ROCE(5y)36.55%
ROICexcg growth 3Y-11.02%
ROICexcg growth 5YN/A
ROICexc growth 3Y-11.02%
ROICexc growth 5YN/A
OM growth 3Y-4.95%
OM growth 5YN/A
PM growth 3Y11.8%
PM growth 5Y0.85%
GM growth 3Y-4.25%
GM growth 5Y2%
F-Score7
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.55 | ||
| Debt/EBITDA | 0.23 | ||
| Cap/Depr | 104.01% | ||
| Cap/Sales | 9.3% | ||
| Interest Coverage | 32.39 | ||
| Cash Conversion | 70.04% | ||
| Profit Quality | 134.33% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 4.43 |
F-Score7
WACC10.15%
ROIC/WACC2.65
Cap/Depr(3y)221.05%
Cap/Depr(5y)155.38%
Cap/Sales(3y)21.16%
Cap/Sales(5y)14.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)111.65%
EPS 3Y27.76%
EPS 5Y67.68%
EPS Q2Q%1936.36%
EPS Next Y18.79%
EPS Next 2Y35.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)83.01%
Revenue growth 3Y14.37%
Revenue growth 5Y80.94%
Sales Q2Q%186.2%
Revenue Next Year8.23%
Revenue Next 2Y6.39%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y105.87%
EBIT growth 3Y8.71%
EBIT growth 5YN/A
EBIT Next Year33.42%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y218.17%
FCF growth 3Y4.19%
FCF growth 5YN/A
OCF growth 1Y7819.65%
OCF growth 3Y9.06%
OCF growth 5YN/A