Amerigo Resources Ltd. (ARG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Discovery Silver Corp.

Amerigo Resources Ltd.

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Largo Inc.

Northern Dynasty Minerals Ltd.

Nouveau Monde Graphite, Inc.

Frontier Lithium, Inc.

Lithium Ionic Corp.

Premium Nickel Resources Ltd.

Alpha Lithium Corp.

Consolidated Uranium, Inc.

Why is Amerigo Resources Ltd. ?

Company has a low Debt to Equity ratio (avg) at times

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CAD 54.61 MM
INTEREST COVERAGE RATIO(Q) Highest at 3,932.79
INVENTORY TURNOVER RATIO(HY) Highest at 21.45%

With ROE of 17.24%, it has a very attractive valuation with a 2.77 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 44.07%, its profits have risen by 36.5% ; the PEG ratio of the company is 0.4

Majority shareholders : FIIs

Consistent Returns over the last 3 years

Along with generating 44.07% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Amerigo Resources Ltd. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Amerigo Resources Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Amerigo Resources Ltd.

139.47%

9.75

35.27%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.47%

EBIT Growth (5y)

45.53%

EBIT to Interest (avg)

11.74

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

1.54

Tax Ratio

46.15%

Dividend Payout Ratio

46.02%

Pledged Shares

Institutional Holding

0.09%

ROCE (avg)

31.19%

ROE (avg)

14.96%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.42

EV to EBIT

9.38

EV to EBITDA

6.83

EV to Capital Employed

7.80

EV to Sales

2.52

PEG Ratio

0.20

Dividend Yield

ROCE (Latest)

83.13%

ROE (Latest)

31.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 5,207.14

DEBT-EQUITY RATIO (HY)

Lowest at -22.28 %

RAW MATERIAL COST(Y)

Fallen by -55.29% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 26.69 times

DIVIDEND PER SHARE(HY)

Highest at CAD 14.17

NET SALES(Q)

Highest at CAD 72.27 MM

OPERATING PROFIT(Q)

Highest at CAD 24.09 MM

OPERATING PROFIT MARGIN(Q)

Highest at 33.34 %

PRE-TAX PROFIT(Q)

Highest at CAD 14.97 MM

-1What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Amerigo Resources Ltd.

Interest Coverage Ratio

Highest at 5,207.14 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at -22.28 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at CAD 72.27 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 24.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 33.34 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 14.97 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Inventory Turnover Ratio

Highest at 26.69 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at CAD 14.17

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -55.29% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales