Alikem Limited (AKE.CA) Stock Fundamental Analysis
TSX:AKE - Toronto Stock Exchange - AU0000193666 - Common Stock - Currency: CAD
AKE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 806 industry peers in the Metals & Mining industry. AKE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. AKE is evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make AKE suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year AKE was profitable.
AKE had a positive operating cash flow in the past year.
In multiple years AKE reported negative net income over the last 5 years.
In multiple years AKE reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of AKE (8.47%) is better than 94.81% of its industry peers.
Looking at the Return On Equity, with a value of 12.98%, AKE belongs to the top of the industry, outperforming 95.04% of the companies in the same industry.
AKE has a Return On Invested Capital of 12.94%. This is amongst the best in the industry. AKE outperforms 97.76% of its industry peers.
AKE had an Average Return On Invested Capital over the past 3 years of 6.50%. This is significantly below the industry average of 12.40%.
The 3 year average ROIC (6.50%) for AKE is below the current ROIC(12.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.47% | ||
| ROE | 12.98% | ||
| ROIC | 12.94% |
ROA(3y)3.62%
ROA(5y)2.24%
ROE(3y)4.75%
ROE(5y)2.86%
ROIC(3y)6.5%
ROIC(5y)N/A
1.3 Margins
AKE's Profit Margin of 36.57% is amongst the best of the industry. AKE outperforms 98.58% of its industry peers.
In the last couple of years the Profit Margin of AKE has grown nicely.
AKE has a better Operating Margin (72.27%) than 99.76% of its industry peers.
AKE has a better Gross Margin (84.30%) than 99.29% of its industry peers.
In the last couple of years the Gross Margin of AKE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 72.27% | ||
| PM (TTM) | 36.57% | ||
| GM | 84.3% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y27.05%
GM growth 3Y136.76%
GM growth 5Y26.6%
2. Health
2.1 Basic Checks
AKE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AKE has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, AKE has more shares outstanding
AKE has a better debt/assets ratio than last year.
2.2 Solvency
AKE has an Altman-Z score of 2.56. This is not the best score and indicates that AKE is in the grey zone with still only limited risk for bankruptcy at the moment.
AKE has a Altman-Z score (2.56) which is in line with its industry peers.
AKE has a debt to FCF ratio of 1.28. This is a very positive value and a sign of high solvency as it would only need 1.28 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.28, AKE belongs to the top of the industry, outperforming 95.28% of the companies in the same industry.
AKE has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
AKE has a worse Debt to Equity ratio (0.08) than 67.06% of its industry peers.
Although AKE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.48
WACC8.75%
2.3 Liquidity
A Current Ratio of 2.52 indicates that AKE has no problem at all paying its short term obligations.
AKE's Current ratio of 2.52 is in line compared to the rest of the industry. AKE outperforms 50.06% of its industry peers.
A Quick Ratio of 2.23 indicates that AKE has no problem at all paying its short term obligations.
AKE has a Quick ratio (2.23) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.94% over the past year.
Measured over the past years, AKE shows a very strong growth in Earnings Per Share. The EPS has been growing by 142.97% on average per year.
AKE shows a strong growth in Revenue. In the last year, the Revenue has grown by 62.19%.
The Revenue has been growing by 133.56% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)28.94%
EPS 3YN/A
EPS 5Y142.97%
EPS Q2Q%-9.87%
Revenue 1Y (TTM)62.19%
Revenue growth 3Y150.24%
Revenue growth 5Y133.56%
Sales Q2Q%15.2%
3.2 Future
The Earnings Per Share is expected to grow by 0.91% on average over the next years.
Based on estimates for the next years, AKE will show a quite strong growth in Revenue. The Revenue will grow by 8.16% on average per year.
EPS Next Y-17.91%
EPS Next 2Y-1.44%
EPS Next 3Y12.46%
EPS Next 5Y0.91%
Revenue Next Year-5.44%
Revenue Next 2Y4.69%
Revenue Next 3Y11.08%
Revenue Next 5Y8.16%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.53, the valuation of AKE can be described as very reasonable.
Based on the Price/Earnings ratio, AKE is valued cheaply inside the industry as 94.57% of the companies are valued more expensively.
AKE is valuated cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.57 indicates a reasonable valuation of AKE.
Based on the Price/Forward Earnings ratio, AKE is valued cheaply inside the industry as 92.21% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.21. AKE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.53 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
95.16% of the companies in the same industry are more expensive than AKE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.7 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
AKE has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AKE's earnings are expected to grow with 12.46% in the coming years.
PEG (NY)N/A
PEG (5Y)0.07
EPS Next 2Y-1.44%
EPS Next 3Y12.46%
5. Dividend
5.1 Amount
No dividends for AKE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:AKE (12/21/2023, 7:00:00 PM)
8.86
-0.05 (-0.56%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners21.93%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.68B
Analysts78.1
Price Target12.46 (40.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
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)-3.36%
PT rev (3m)-18.73%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-25.58%
EPS NY rev (3m)-39.68%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-19.99%
Revenue NY rev (3m)-28.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.53 | ||
| Fwd PE | 11.57 | ||
| P/S | 3.55 | ||
| P/FCF | 16.7 | ||
| P/OCF | 5.42 | ||
| P/B | 1.26 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.93
EY10.5%
EPS(NY)0.77
Fwd EY8.64%
FCF(TTM)0.53
FCFY5.99%
OCF(TTM)1.63
OCFY18.45%
SpS2.5
BVpS7.03
TBVpS5.96
PEG (NY)N/A
PEG (5Y)0.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.47% | ||
| ROE | 12.98% | ||
| ROCE | 18.29% | ||
| ROIC | 12.94% | ||
| ROICexc | 15.63% | ||
| ROICexgc | 18.01% | ||
| OM | 72.27% | ||
| PM (TTM) | 36.57% | ||
| GM | 84.3% | ||
| FCFM | 21.25% |
ROA(3y)3.62%
ROA(5y)2.24%
ROE(3y)4.75%
ROE(5y)2.86%
ROIC(3y)6.5%
ROIC(5y)N/A
ROICexc(3y)7.8%
ROICexc(5y)N/A
ROICexgc(3y)9.02%
ROICexgc(5y)N/A
ROCE(3y)9.19%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y27.05%
GM growth 3Y136.76%
GM growth 5Y26.6%
F-Score8
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.28 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 44.23% | ||
| Interest Coverage | -62.06 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 58.11% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 2.56 |
F-Score8
WACC8.75%
ROIC/WACC1.48
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)64.83%
Cap/Sales(5y)84.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)28.94%
EPS 3YN/A
EPS 5Y142.97%
EPS Q2Q%-9.87%
EPS Next Y-17.91%
EPS Next 2Y-1.44%
EPS Next 3Y12.46%
EPS Next 5Y0.91%
Revenue 1Y (TTM)62.19%
Revenue growth 3Y150.24%
Revenue growth 5Y133.56%
Sales Q2Q%15.2%
Revenue Next Year-5.44%
Revenue Next 2Y4.69%
Revenue Next 3Y11.08%
Revenue Next 5Y8.16%
EBIT growth 1Y87.27%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-19.97%
EBIT Next 3Y10.39%
EBIT Next 5Y7.54%
FCF growth 1Y42.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y79.1%
OCF growth 3YN/A
OCF growth 5YN/A