FORACO INTERNATIONAL SA (FAR.CA) Stock Fundamental Analysis
TSX:FAR - Toronto Stock Exchange - FR0010492199 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to FAR. FAR was compared to 797 industry peers in the Metals & Mining industry. FAR has an excellent profitability rating, but there are some minor concerns on its financial health. FAR may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
FAR had positive earnings in the past year.
In the past year FAR had a positive cash flow from operations.
Each year in the past 5 years FAR has been profitable.
FAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FAR (8.70%) is better than 92.72% of its industry peers.
Looking at the Return On Equity, with a value of 24.74%, FAR belongs to the top of the industry, outperforming 96.36% of the companies in the same industry.
FAR has a better Return On Invested Capital (14.50%) than 96.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FAR is significantly above the industry average of 12.25%.
The last Return On Invested Capital (14.50%) for FAR is well below the 3 year average (22.41%), which needs to be investigated, but indicates that FAR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.7% | ||
| ROE | 24.74% | ||
| ROIC | 14.5% |
ROA(3y)10.16%
ROA(5y)9.57%
ROE(3y)33.28%
ROE(5y)39.16%
ROIC(3y)22.41%
ROIC(5y)17%
1.3 Margins
With an excellent Profit Margin value of 7.56%, FAR belongs to the best of the industry, outperforming 91.47% of the companies in the same industry.
FAR's Profit Margin has improved in the last couple of years.
FAR has a Operating Margin of 12.09%. This is amongst the best in the industry. FAR outperforms 89.96% of its industry peers.
In the last couple of years the Operating Margin of FAR has grown nicely.
With an excellent Gross Margin value of 19.89%, FAR belongs to the best of the industry, outperforming 87.70% of the companies in the same industry.
In the last couple of years the Gross Margin of FAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.09% | ||
| PM (TTM) | 7.56% | ||
| GM | 19.89% |
OM growth 3Y17.46%
OM growth 5Y22.04%
PM growth 3Y-10.36%
PM growth 5Y77.65%
GM growth 3Y7.37%
GM growth 5Y6.58%
2. Health
2.1 Basic Checks
FAR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
FAR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FAR has more shares outstanding
The debt/assets ratio for FAR is higher compared to a year ago.
2.2 Solvency
FAR has an Altman-Z score of 2.77. This is not the best score and indicates that FAR is in the grey zone with still only limited risk for bankruptcy at the moment.
FAR has a Altman-Z score of 2.77. This is comparable to the rest of the industry: FAR outperforms 58.22% of its industry peers.
FAR has a debt to FCF ratio of 4.10. This is a neutral value as FAR would need 4.10 years to pay back of all of its debts.
FAR's Debt to FCF ratio of 4.10 is amongst the best of the industry. FAR outperforms 91.59% of its industry peers.
A Debt/Equity ratio of 0.92 indicates that FAR is somewhat dependend on debt financing.
FAR has a Debt to Equity ratio of 0.92. This is in the lower half of the industry: FAR underperforms 75.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.61
WACC9.03%
2.3 Liquidity
A Current Ratio of 1.39 indicates that FAR should not have too much problems paying its short term obligations.
The Current ratio of FAR (1.39) is comparable to the rest of the industry.
A Quick Ratio of 0.93 indicates that FAR may have some problems paying its short term obligations.
FAR's Quick ratio of 0.93 is in line compared to the rest of the industry. FAR outperforms 43.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
FAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.60%.
The Earnings Per Share has been growing by 94.39% on average over the past years. This is a very strong growth
Looking at the last year, FAR shows a very negative growth in Revenue. The Revenue has decreased by -24.37% in the last year.
Measured over the past years, FAR shows a small growth in Revenue. The Revenue has been growing by 7.40% on average per year.
EPS 1Y (TTM)-33.6%
EPS 3Y-8.89%
EPS 5Y94.39%
EPS Q2Q%-82.95%
Revenue 1Y (TTM)-24.37%
Revenue growth 3Y2.85%
Revenue growth 5Y7.4%
Sales Q2Q%-28.64%
3.2 Future
FAR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.99% yearly.
Based on estimates for the next years, FAR will show a small growth in Revenue. The Revenue will grow by 3.81% on average per year.
EPS Next Y2.84%
EPS Next 2Y14.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.39%
Revenue Next 2Y3.81%
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.
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
A Price/Earnings ratio of 6.57 indicates a rather cheap valuation of FAR.
96.99% of the companies in the same industry are more expensive than FAR, based on the Price/Earnings ratio.
FAR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 3.70, which indicates a rather cheap valuation of FAR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FAR indicates a rather cheap valuation: FAR is cheaper than 97.74% of the companies listed in the same industry.
FAR 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 | 6.57 | ||
| Fwd PE | 3.7 |
4.2 Price Multiples
96.86% of the companies in the same industry are more expensive than FAR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FAR is valued cheaply inside the industry as 98.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.99 | ||
| EV/EBITDA | 3.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FAR does not grow enough to justify the current Price/Earnings ratio.
FAR has an outstanding profitability rating, which may justify a higher PE ratio.
FAR's earnings are expected to grow with 14.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.32
PEG (5Y)0.07
EPS Next 2Y14.99%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:FAR (7/11/2025, 7:00:00 PM)
1.84
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners6.93%
Inst Owner ChangeN/A
Ins Owners1.59%
Ins Owner ChangeN/A
Market Cap182.62M
Analysts85
Price Target3.76 (104.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DP12.03%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-29.46%
Min EPS beat(2)-40.59%
Max EPS beat(2)-18.32%
EPS beat(4)1
Avg EPS beat(4)-14.81%
Min EPS beat(4)-40.59%
Max EPS beat(4)27.06%
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)0
Avg Revenue beat(2)-7.15%
Min Revenue beat(2)-7.53%
Max Revenue beat(2)-6.78%
Revenue beat(4)0
Avg Revenue beat(4)-13.19%
Min Revenue beat(4)-22.18%
Max Revenue beat(4)-6.78%
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)0%
PT rev (3m)-9.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.57 | ||
| Fwd PE | 3.7 | ||
| P/S | 0.49 | ||
| P/FCF | 5.99 | ||
| P/OCF | 3.49 | ||
| P/B | 1.61 | ||
| P/tB | 5.53 | ||
| EV/EBITDA | 3.9 |
EPS(TTM)0.28
EY15.22%
EPS(NY)0.5
Fwd EY27.05%
FCF(TTM)0.31
FCFY16.69%
OCF(TTM)0.53
OCFY28.66%
SpS3.74
BVpS1.14
TBVpS0.33
PEG (NY)2.32
PEG (5Y)0.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.7% | ||
| ROE | 24.74% | ||
| ROCE | 20.86% | ||
| ROIC | 14.5% | ||
| ROICexc | 16.68% | ||
| ROICexgc | 27.97% | ||
| OM | 12.09% | ||
| PM (TTM) | 7.56% | ||
| GM | 19.89% | ||
| FCFM | 8.2% |
ROA(3y)10.16%
ROA(5y)9.57%
ROE(3y)33.28%
ROE(5y)39.16%
ROIC(3y)22.41%
ROIC(5y)17%
ROICexc(3y)25.88%
ROICexc(5y)19.63%
ROICexgc(3y)45.3%
ROICexgc(5y)34.54%
ROCE(3y)30.62%
ROCE(5y)23.22%
ROICexcg growth 3Y11.32%
ROICexcg growth 5Y28.72%
ROICexc growth 3Y17.09%
ROICexc growth 5Y32.9%
OM growth 3Y17.46%
OM growth 5Y22.04%
PM growth 3Y-10.36%
PM growth 5Y77.65%
GM growth 3Y7.37%
GM growth 5Y6.58%
F-Score5
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 4.1 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 96.38% | ||
| Cap/Sales | 5.88% | ||
| Interest Coverage | 5.23 | ||
| Cash Conversion | 77.42% | ||
| Profit Quality | 108.55% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 2.77 |
F-Score5
WACC9.03%
ROIC/WACC1.61
Cap/Depr(3y)114.24%
Cap/Depr(5y)104.43%
Cap/Sales(3y)6.52%
Cap/Sales(5y)6.58%
Profit Quality(3y)75.5%
Profit Quality(5y)133.51%
High Growth Momentum
Growth
EPS 1Y (TTM)-33.6%
EPS 3Y-8.89%
EPS 5Y94.39%
EPS Q2Q%-82.95%
EPS Next Y2.84%
EPS Next 2Y14.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-24.37%
Revenue growth 3Y2.85%
Revenue growth 5Y7.4%
Sales Q2Q%-28.64%
Revenue Next Year-2.39%
Revenue Next 2Y3.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-49.61%
EBIT growth 3Y20.81%
EBIT growth 5Y31.07%
EBIT Next Year-10.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-14.25%
FCF growth 3Y-0.24%
FCF growth 5Y5.25%
OCF growth 1Y-22.52%
OCF growth 3Y0.24%
OCF growth 5Y7.3%