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FORACO INTERNATIONAL SA (FAR.CA) Stock Fundamental Analysis

TSX:FAR - Toronto Stock Exchange - FR0010492199 - Common Stock - Currency: CAD

2.4  +0.04 (+1.69%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to FAR. FAR was compared to 832 industry peers in the Metals & Mining industry. FAR has an excellent profitability rating, but there are some minor concerns on its financial health. FAR is cheap, but on the other hand it scores bad on growth. With these ratings, FAR could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

10

1. Profitability

1.1 Basic Checks

In the past year FAR was profitable.
FAR had a positive operating cash flow in the past year.
Each year in the past 5 years FAR has been profitable.
Each year in the past 5 years FAR had a positive operating cash flow.
FAR.CA Yearly Net Income VS EBIT VS OCF VS FCFFAR.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M 40M 60M

1.2 Ratios

With an excellent Return On Assets value of 10.17%, FAR belongs to the best of the industry, outperforming 94.24% of the companies in the same industry.
Looking at the Return On Equity, with a value of 30.83%, FAR belongs to the top of the industry, outperforming 97.32% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.34%, FAR belongs to the best of the industry, outperforming 98.66% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FAR is significantly above the industry average of 11.94%.
The last Return On Invested Capital (20.34%) for FAR is above the 3 year average (19.19%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 10.17%
ROE 30.83%
ROIC 20.34%
ROA(3y)11.23%
ROA(5y)7.2%
ROE(3y)42.38%
ROE(5y)32.65%
ROIC(3y)19.19%
ROIC(5y)13.79%
FAR.CA Yearly ROA, ROE, ROICFAR.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

1.3 Margins

FAR's Profit Margin of 8.42% is amongst the best of the industry. FAR outperforms 92.91% of its industry peers.
In the last couple of years the Profit Margin of FAR has grown nicely.
With an excellent Operating Margin value of 15.63%, FAR belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
In the last couple of years the Operating Margin of FAR has grown nicely.
Looking at the Gross Margin, with a value of 22.46%, FAR belongs to the top of the industry, outperforming 88.35% of the companies in the same industry.
FAR's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 15.63%
PM (TTM) 8.42%
GM 22.46%
OM growth 3Y29.47%
OM growth 5Y96.77%
PM growth 3Y56.4%
PM growth 5YN/A
GM growth 3Y11.2%
GM growth 5Y15.82%
FAR.CA Yearly Profit, Operating, Gross MarginsFAR.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

6

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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for FAR has been increased compared to 5 years ago.
FAR has a better debt/assets ratio than last year.
FAR.CA Yearly Shares OutstandingFAR.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
FAR.CA Yearly Total Debt VS Total AssetsFAR.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

2.2 Solvency

An Altman-Z score of 3.02 indicates that FAR is not in any danger for bankruptcy at the moment.
FAR's Altman-Z score of 3.02 is fine compared to the rest of the industry. FAR outperforms 60.51% of its industry peers.
The Debt to FCF ratio of FAR is 4.53, which is a neutral value as it means it would take FAR, 4.53 years of fcf income to pay off all of its debts.
FAR's Debt to FCF ratio of 4.53 is amongst the best of the industry. FAR outperforms 91.43% of its industry peers.
A Debt/Equity ratio of 0.97 indicates that FAR is somewhat dependend on debt financing.
The Debt to Equity ratio of FAR (0.97) is worse than 82.20% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF 4.53
Altman-Z 3.02
ROIC/WACC1.85
WACC11%
FAR.CA Yearly LT Debt VS Equity VS FCFFAR.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M 150M

2.3 Liquidity

A Current Ratio of 1.43 indicates that FAR should not have too much problems paying its short term obligations.
FAR has a Current ratio of 1.43. This is comparable to the rest of the industry: FAR outperforms 44.18% of its industry peers.
FAR has a Quick Ratio of 1.01. This is a normal value and indicates that FAR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.01, FAR is in line with its industry, outperforming 40.16% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.43
Quick Ratio 1.01
FAR.CA Yearly Current Assets VS Current LiabilitesFAR.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M

3

3. Growth

3.1 Past

The earnings per share for FAR have decreased strongly by -18.07% in the last year.
FAR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 78.77% yearly.
FAR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.35%.
FAR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.51% yearly.
EPS 1Y (TTM)-18.07%
EPS 3Y78.77%
EPS 5YN/A
EPS Q2Q%-27.56%
Revenue 1Y (TTM)-13.35%
Revenue growth 3Y21.35%
Revenue growth 5Y15.51%
Sales Q2Q%-18.31%

3.2 Future

FAR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.12% yearly.
The Revenue is expected to decrease by -5.33% on average over the next years.
EPS Next Y-25.44%
EPS Next 2Y-3.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-20.68%
Revenue Next 2Y-5.33%
Revenue Next 3YN/A
Revenue Next 5YN/A

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.
FAR.CA Yearly Revenue VS EstimatesFAR.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
FAR.CA Yearly EPS VS EstimatesFAR.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0.2 -0.2

8

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 6.32, the valuation of FAR can be described as very cheap.
FAR's Price/Earnings ratio is rather cheap when compared to the industry. FAR is cheaper than 95.85% of the companies in the same industry.
FAR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.12.
FAR is valuated cheaply with a Price/Forward Earnings ratio of 4.64.
FAR's Price/Forward Earnings ratio is rather cheap when compared to the industry. FAR is cheaper than 97.32% of the companies in the same industry.
FAR is valuated cheaply when we compare the Price/Forward Earnings ratio to 94.77, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 6.32
Fwd PE 4.64
FAR.CA Price Earnings VS Forward Price EarningsFAR.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

96.52% 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 cheaper than 96.92% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.47
EV/EBITDA 3.39
FAR.CA Per share dataFAR.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

4.3 Compensation for Growth

The excellent profitability rating of FAR may justify a higher PE ratio.
A cheap valuation may be justified as FAR's earnings are expected to decrease with -3.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.12%
EPS Next 3YN/A

5

5. Dividend

5.1 Amount

FAR has a Yearly Dividend Yield of 3.71%.
FAR's Dividend Yield is rather good when compared to the industry average which is at 7.68. FAR pays more dividend than 98.13% of the companies in the same industry.
FAR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 3.71%

5.2 History

FAR has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
FAR.CA Yearly Dividends per shareFAR.CA Yearly Dividends per shareYearly Dividends per share 2024 0.01 0.02 0.03 0.04 0.05

5.3 Sustainability

16.91% of the earnings are spent on dividend by FAR. This is a low number and sustainable payout ratio.
DP16.91%
EPS Next 2Y-3.12%
EPS Next 3YN/A
FAR.CA Yearly Income VS Free CF VS DividendFAR.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10M -10M 20M 30M
FAR.CA Dividend Payout.FAR.CA Dividend Payout, showing the Payout Ratio.FAR.CA Dividend Payout.PayoutRetained Earnings

FORACO INTERNATIONAL SA

TSX:FAR (2/7/2025, 7:00:00 PM)

2.4

+0.04 (+1.69%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)10-30 2024-10-30/bmo
Earnings (Next)02-27 2025-02-27
Inst Owners5.03%
Inst Owner ChangeN/A
Ins Owners1.39%
Ins Owner ChangeN/A
Market Cap238.20M
Analysts85
Price Target4.41 (83.75%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.71%
Yearly Dividend0
Dividend Growth(5Y)N/A
DP16.91%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.17%
Min EPS beat(2)-27.39%
Max EPS beat(2)27.06%
EPS beat(4)2
Avg EPS beat(4)-3.05%
Min EPS beat(4)-70.3%
Max EPS beat(4)58.42%
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)-19.23%
Min Revenue beat(2)-22.18%
Max Revenue beat(2)-16.27%
Revenue beat(4)0
Avg Revenue beat(4)-11.22%
Min Revenue beat(4)-22.18%
Max Revenue beat(4)-2.58%
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)-7.65%
EPS NQ rev (1m)-20%
EPS NQ rev (3m)-55.56%
EPS NY rev (1m)-2.3%
EPS NY rev (3m)-8.6%
Revenue NQ rev (1m)-28.54%
Revenue NQ rev (3m)-28.54%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-8.21%
Valuation
Industry RankSector Rank
PE 6.32
Fwd PE 4.64
P/S 0.52
P/FCF 7.47
P/OCF 4
P/B 1.9
P/tB 6.6
EV/EBITDA 3.39
EPS(TTM)0.38
EY15.83%
EPS(NY)0.52
Fwd EY21.54%
FCF(TTM)0.32
FCFY13.39%
OCF(TTM)0.6
OCFY25%
SpS4.61
BVpS1.26
TBVpS0.36
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 10.17%
ROE 30.83%
ROCE 29.14%
ROIC 20.34%
ROICexc 23.23%
ROICexgc 38.19%
OM 15.63%
PM (TTM) 8.42%
GM 22.46%
FCFM 6.96%
ROA(3y)11.23%
ROA(5y)7.2%
ROE(3y)42.38%
ROE(5y)32.65%
ROIC(3y)19.19%
ROIC(5y)13.79%
ROICexc(3y)23.23%
ROICexc(5y)16.49%
ROICexgc(3y)42.22%
ROICexgc(5y)29.9%
ROCE(3y)26.24%
ROCE(5y)18.9%
ROICexcg growth 3Y60.96%
ROICexcg growth 5Y132.06%
ROICexc growth 3Y60.43%
ROICexc growth 5Y133.38%
OM growth 3Y29.47%
OM growth 5Y96.77%
PM growth 3Y56.4%
PM growth 5YN/A
GM growth 3Y11.2%
GM growth 5Y15.82%
F-Score5
Asset Turnover1.21
Health
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF 4.53
Debt/EBITDA 1.24
Cap/Depr 104.02%
Cap/Sales 6.04%
Interest Coverage 5.46
Cash Conversion 60.66%
Profit Quality 82.73%
Current Ratio 1.43
Quick Ratio 1.01
Altman-Z 3.02
F-Score5
WACC11%
ROIC/WACC1.85
Cap/Depr(3y)111.32%
Cap/Depr(5y)96.6%
Cap/Sales(3y)6.67%
Cap/Sales(5y)6.51%
Profit Quality(3y)72.89%
Profit Quality(5y)271.88%
High Growth Momentum
Growth
EPS 1Y (TTM)-18.07%
EPS 3Y78.77%
EPS 5YN/A
EPS Q2Q%-27.56%
EPS Next Y-25.44%
EPS Next 2Y-3.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-13.35%
Revenue growth 3Y21.35%
Revenue growth 5Y15.51%
Sales Q2Q%-18.31%
Revenue Next Year-20.68%
Revenue Next 2Y-5.33%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-23.53%
EBIT growth 3Y57.11%
EBIT growth 5Y127.28%
EBIT Next Year-6.18%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y234.08%
FCF growth 3Y18.92%
FCF growth 5YN/A
OCF growth 1Y68.32%
OCF growth 3Y21.73%
OCF growth 5Y58.21%