CAPSTONE COPPER CORP (CS.CA) Stock Fundamental Analysis
TSX:CS - Toronto Stock Exchange - CA14071L1085 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to CS. CS was compared to 801 industry peers in the Metals & Mining industry. While CS has a great profitability rating, there are quite some concerns on its financial health. CS is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
In the past year CS was profitable.
In the past year CS had a positive cash flow from operations.
Of the past 5 years CS 4 years were profitable.
In the past 5 years CS always reported a positive cash flow from operatings.
1.2 Ratios
CS has a Return On Assets of 1.22%. This is amongst the best in the industry. CS outperforms 86.39% of its industry peers.
CS has a better Return On Equity (2.65%) than 87.89% of its industry peers.
CS has a Return On Invested Capital of 2.45%. This is amongst the best in the industry. CS outperforms 89.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CS is significantly below the industry average of 24.98%.
The last Return On Invested Capital (2.45%) for CS is above the 3 year average (1.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.22% | ||
| ROE | 2.65% | ||
| ROIC | 2.45% |
ROA(3y)0.61%
ROA(5y)3.18%
ROE(3y)1.11%
ROE(5y)5.45%
ROIC(3y)1.34%
ROIC(5y)3.44%
1.3 Margins
CS has a better Profit Margin (4.52%) than 90.76% of its industry peers.
In the last couple of years the Profit Margin of CS has declined.
Looking at the Operating Margin, with a value of 12.90%, CS belongs to the top of the industry, outperforming 91.01% of the companies in the same industry.
CS's Operating Margin has improved in the last couple of years.
The Gross Margin of CS (15.67%) is better than 87.02% of its industry peers.
In the last couple of years the Gross Margin of CS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.9% | ||
| PM (TTM) | 4.52% | ||
| GM | 15.67% |
OM growth 3Y-32.62%
OM growth 5Y23.43%
PM growth 3Y-43.37%
PM growth 5YN/A
GM growth 3Y-33.56%
GM growth 5Y5.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CS is destroying value.
CS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CS has been increased compared to 5 years ago.
CS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that CS is in the distress zone and has some risk of bankruptcy.
CS has a Altman-Z score of 1.10. This is comparable to the rest of the industry: CS outperforms 50.94% of its industry peers.
CS has a debt to FCF ratio of 105.96. This is a negative value and a sign of low solvency as CS would need 105.96 years to pay back of all of its debts.
The Debt to FCF ratio of CS (105.96) is better than 88.64% of its industry peers.
CS has a Debt/Equity ratio of 0.51. This is a neutral value indicating CS is somewhat dependend on debt financing.
CS's Debt to Equity ratio of 0.51 is on the low side compared to the rest of the industry. CS is outperformed by 72.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 105.96 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.32
WACC7.79%
2.3 Liquidity
A Current Ratio of 1.17 indicates that CS should not have too much problems paying its short term obligations.
CS has a Current ratio (1.17) which is comparable to the rest of the industry.
A Quick Ratio of 0.86 indicates that CS may have some problems paying its short term obligations.
With a Quick ratio value of 0.86, CS perfoms like the industry average, outperforming 41.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 466.67% over the past year.
CS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -46.87% yearly.
The Revenue has grown by 32.81% in the past year. This is a very strong growth!
The Revenue has been growing by 30.74% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)466.67%
EPS 3Y-46.87%
EPS 5YN/A
EPS Q2Q%200%
Revenue 1Y (TTM)32.81%
Revenue growth 3Y26.25%
Revenue growth 5Y30.74%
Sales Q2Q%56.91%
3.2 Future
CS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.25% yearly.
CS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.20% yearly.
EPS Next Y239.9%
EPS Next 2Y165.99%
EPS Next 3Y113.56%
EPS Next 5Y42.25%
Revenue Next Year33.26%
Revenue Next 2Y25.61%
Revenue Next 3Y21.49%
Revenue Next 5Y15.2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 46.53, which means the current valuation is very expensive for CS.
Compared to the rest of the industry, the Price/Earnings ratio of CS indicates a rather cheap valuation: CS is cheaper than 87.02% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. CS is valued rather expensively when compared to this.
CS is valuated cheaply with a Price/Forward Earnings ratio of 7.93.
Based on the Price/Forward Earnings ratio, CS is valued cheaper than 93.88% of the companies in the same industry.
CS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.53 | ||
| Fwd PE | 7.93 |
4.2 Price Multiples
CS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CS is cheaper than 92.01% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CS is valued cheaply inside the industry as 89.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 239.56 | ||
| EV/EBITDA | 8.47 |
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.
CS has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CS's earnings are expected to grow with 113.56% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y165.99%
EPS Next 3Y113.56%
5. Dividend
5.1 Amount
No dividends for CS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CS (5/23/2025, 7:00:00 PM)
6.98
+0.19 (+2.8%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners30.49%
Inst Owner ChangeN/A
Ins Owners2.66%
Ins Owner ChangeN/A
Market Cap5.32B
Analysts83.85
Price Target11.62 (66.48%)
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)0
Avg EPS beat(2)-52.9%
Min EPS beat(2)-79.29%
Max EPS beat(2)-26.52%
EPS beat(4)0
Avg EPS beat(4)-39.89%
Min EPS beat(4)-79.29%
Max EPS beat(4)-16.97%
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)1
Avg Revenue beat(2)-5.83%
Min Revenue beat(2)-13.64%
Max Revenue beat(2)1.98%
Revenue beat(4)1
Avg Revenue beat(4)-6.28%
Min Revenue beat(4)-13.64%
Max Revenue beat(4)1.98%
Revenue beat(8)2
Avg Revenue beat(8)-4.87%
Revenue beat(12)4
Avg Revenue beat(12)0.17%
Revenue beat(16)7
Avg Revenue beat(16)1.81%
PT rev (1m)-6.79%
PT rev (3m)-9.47%
EPS NQ rev (1m)-5.86%
EPS NQ rev (3m)-13.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.32%
Revenue NQ rev (1m)3.74%
Revenue NQ rev (3m)3.65%
Revenue NY rev (1m)1.51%
Revenue NY rev (3m)-1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.53 | ||
| Fwd PE | 7.93 | ||
| P/S | 2.15 | ||
| P/FCF | 239.56 | ||
| P/OCF | 8.11 | ||
| P/B | 1.26 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 8.47 |
EPS(TTM)0.15
EY2.15%
EPS(NY)0.88
Fwd EY12.62%
FCF(TTM)0.03
FCFY0.42%
OCF(TTM)0.86
OCFY12.32%
SpS3.25
BVpS5.54
TBVpS5.54
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.22% | ||
| ROE | 2.65% | ||
| ROCE | 3.9% | ||
| ROIC | 2.45% | ||
| ROICexc | 2.6% | ||
| ROICexgc | 2.6% | ||
| OM | 12.9% | ||
| PM (TTM) | 4.52% | ||
| GM | 15.67% | ||
| FCFM | 0.9% |
ROA(3y)0.61%
ROA(5y)3.18%
ROE(3y)1.11%
ROE(5y)5.45%
ROIC(3y)1.34%
ROIC(5y)3.44%
ROICexc(3y)1.38%
ROICexc(5y)3.97%
ROICexgc(3y)1.38%
ROICexgc(5y)3.97%
ROCE(3y)2.11%
ROCE(5y)5.36%
ROICexcg growth 3Y-48.8%
ROICexcg growth 5Y18.97%
ROICexc growth 3Y-48.8%
ROICexc growth 5Y18.97%
OM growth 3Y-32.62%
OM growth 5Y23.43%
PM growth 3Y-43.37%
PM growth 5YN/A
GM growth 3Y-33.56%
GM growth 5Y5.61%
F-Score7
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 105.96 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 124.8% | ||
| Cap/Sales | 25.55% | ||
| Interest Coverage | 4.9 | ||
| Cash Conversion | 79.23% | ||
| Profit Quality | 19.83% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.1 |
F-Score7
WACC7.79%
ROIC/WACC0.32
Cap/Depr(3y)239.93%
Cap/Depr(5y)196.04%
Cap/Sales(3y)39.01%
Cap/Sales(5y)31.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)466.67%
EPS 3Y-46.87%
EPS 5YN/A
EPS Q2Q%200%
EPS Next Y239.9%
EPS Next 2Y165.99%
EPS Next 3Y113.56%
EPS Next 5Y42.25%
Revenue 1Y (TTM)32.81%
Revenue growth 3Y26.25%
Revenue growth 5Y30.74%
Sales Q2Q%56.91%
Revenue Next Year33.26%
Revenue Next 2Y25.61%
Revenue Next 3Y21.49%
Revenue Next 5Y15.2%
EBIT growth 1Y2174.17%
EBIT growth 3Y-14.94%
EBIT growth 5Y61.37%
EBIT Next Year245.3%
EBIT Next 3Y85.19%
EBIT Next 5Y49.63%
FCF growth 1Y102.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y378.5%
OCF growth 3Y-10.35%
OCF growth 5Y33.82%