ALKANE RESOURCES LTD (ALK.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ALK - AU000000ALK9 - Common Stock
1.52 CAD
+0.01 (+0.66%)
Overall ALK gets a fundamental rating of 5 out of 10. We evaluated ALK against 820 industry peers in the Metals & Mining industry. ALK has an excellent profitability rating, but there are concerns on its financial health. ALK is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- ALK had positive earnings in the past year.
- Each year in the past 5 years ALK has been profitable.
- In the past 5 years ALK always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.56%, ALK belongs to the top of the industry, outperforming 86.83% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 3.61%, ALK belongs to the top of the industry, outperforming 87.32% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 3.18%, ALK belongs to the best of the industry, outperforming 90.12% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ALK is below the industry average of 12.04%.
- The last Return On Invested Capital (3.18%) for ALK is well below the 3 year average (7.87%), which needs to be investigated, but indicates that ALK had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 3.61% | ||
| ROIC | 3.18% |
ROA(3y)6.82%
ROA(5y)12.76%
ROE(3y)9.81%
ROE(5y)16.93%
ROIC(3y)7.87%
ROIC(5y)10.31%
1.3 Margins
- ALK's Profit Margin of 12.59% is amongst the best of the industry. ALK outperforms 92.80% of its industry peers.
- ALK's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 18.66%, ALK belongs to the top of the industry, outperforming 91.95% of the companies in the same industry.
- In the last couple of years the Operating Margin of ALK has declined.
- The Gross Margin of ALK (21.58%) is better than 89.02% of its industry peers.
- ALK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.66% | ||
| PM (TTM) | 12.59% | ||
| GM | 21.58% |
OM growth 3Y-16.71%
OM growth 5Y-8.28%
PM growth 3Y-33.37%
PM growth 5Y-6.46%
GM growth 3Y-17.24%
GM growth 5Y-12.55%
2. Health
2.1 Basic Checks
- ALK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ALK has more shares outstanding
- The number of shares outstanding for ALK has been increased compared to 5 years ago.
- ALK has a worse debt/assets ratio than last year.
2.2 Solvency
- ALK has an Altman-Z score of 4.09. This indicates that ALK is financially healthy and has little risk of bankruptcy at the moment.
- ALK has a Altman-Z score (4.09) which is in line with its industry peers.
- A Debt/Equity ratio of 0.01 indicates that ALK is not too dependend on debt financing.
- ALK has a Debt to Equity ratio (0.01) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.09 |
ROIC/WACC0.29
WACC11.08%
2.3 Liquidity
- ALK has a Current Ratio of 1.70. This is a normal value and indicates that ALK is financially healthy and should not expect problems in meeting its short term obligations.
- ALK has a Current ratio of 1.70. This is comparable to the rest of the industry: ALK outperforms 48.54% of its industry peers.
- ALK has a Quick Ratio of 1.14. This is a normal value and indicates that ALK is financially healthy and should not expect problems in meeting its short term obligations.
- ALK has a Quick ratio (1.14) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
- ALK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 86.51%, which is quite impressive.
- ALK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.86% yearly.
- ALK shows a strong growth in Revenue. In the last year, the Revenue has grown by 51.66%.
- Measured over the past years, ALK shows a very strong growth in Revenue. The Revenue has been growing by 29.32% on average per year.
EPS 1Y (TTM)86.51%
EPS 3Y-22.63%
EPS 5Y17.86%
EPS Q2Q%N/A
Revenue 1Y (TTM)51.66%
Revenue growth 3Y16.72%
Revenue growth 5Y29.32%
Sales Q2Q%N/A
3.2 Future
- ALK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.64% yearly.
- Based on estimates for the next years, ALK will show a very strong growth in Revenue. The Revenue will grow by 21.00% on average per year.
EPS Next Y102.27%
EPS Next 2Y55.12%
EPS Next 3Y36.3%
EPS Next 5Y9.64%
Revenue Next Year195.23%
Revenue Next 2Y76.49%
Revenue Next 3Y46.19%
Revenue Next 5Y21%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 30.40, the valuation of ALK can be described as expensive.
- 91.10% of the companies in the same industry are more expensive than ALK, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of ALK to the average of the S&P500 Index (27.25), we can say ALK is valued inline with the index average.
- The Price/Forward Earnings ratio is 9.82, which indicates a very decent valuation of ALK.
- Based on the Price/Forward Earnings ratio, ALK is valued cheaper than 94.39% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ALK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.4 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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 decent profitability rating of ALK may justify a higher PE ratio.
- ALK's earnings are expected to grow with 36.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)1.7
EPS Next 2Y55.12%
EPS Next 3Y36.3%
5. Dividend
5.1 Amount
- ALK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ALKANE RESOURCES LTD / ALK.CA FAQ
What is the ChartMill fundamental rating of ALKANE RESOURCES LTD (ALK.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ALK.CA.
Can you provide the valuation status for ALKANE RESOURCES LTD?
ChartMill assigns a valuation rating of 6 / 10 to ALKANE RESOURCES LTD (ALK.CA). This can be considered as Fairly Valued.
How profitable is ALKANE RESOURCES LTD (ALK.CA) stock?
ALKANE RESOURCES LTD (ALK.CA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ALKANE RESOURCES LTD (ALK.CA) stock?
The Price/Earnings (PE) ratio for ALKANE RESOURCES LTD (ALK.CA) is 30.4 and the Price/Book (PB) ratio is 2.4.