Majestic Gold Corp. (MJS) 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

Avino Silver & Gold Mines Ltd.

Integra Resources Corp.

Sailfish Royalty Corp.

Majestic Gold Corp.

Mawson Gold Ltd.

Montage Gold Corp.

Troilus Gold Corp.

Liberty Gold Corp.

West Red Lake Gold Mines Ltd.

Emerita Resources Corp.

Azimut Exploration, Inc.

Why is Majestic Gold Corp. ?

High Management Efficiency with a high ROE of 16.94%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 32.28

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CAD 37.47 MM
RAW MATERIAL COST(Y) Fallen by -6.71% (YoY)
CASH AND EQV(HY) Highest at CAD 286.76 MM

With ROE of 16.03%, it has a attractive valuation with a 1.01 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 31.82%, its profits have risen by 3.5% ; the PEG ratio of the company is 1.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Majestic Gold Corp. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

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

Is Majestic Gold Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Majestic Gold Corp.

31.82%

2.90

79.13%

S&P/TSX 60

21.87%

1.42

15.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.97%

EBIT Growth (5y)

12.91%

EBIT to Interest (avg)

32.28

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.69

Sales to Capital Employed (avg)

0.54

Tax Ratio

31.41%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

66.16%

ROE (avg)

16.94%

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

1.01

EV to EBIT

1.85

EV to EBITDA

1.32

EV to Capital Employed

1.02

EV to Sales

0.64

PEG Ratio

1.81

Dividend Yield

ROCE (Latest)

55.28%

ROE (Latest)

16.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 37.47 MM

RAW MATERIAL COST(Y)

Fallen by -6.71% (YoY

CASH AND EQV(HY)

Highest at CAD 286.76 MM

-14What is not working for the Company

INTEREST(HY)

At CAD 0.71 MM has Grown at 265.85%

NET PROFIT(HY)

At CAD 5.29 MM has Grown at -34.84%

ROCE(HY)

Lowest at 7.2%

DEBT-EQUITY RATIO (HY)

Highest at -56.21 %

Here's what is working for Majestic Gold Corp.

Operating Cash Flow

Highest at CAD 37.47 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Cash and Eqv

Highest at CAD 286.76 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -6.71% (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

Here's what is not working for Majestic Gold Corp.

Interest

At CAD 0.71 MM has Grown at 265.85%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Profit

At CAD 5.29 MM has Grown at -34.84%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Debt-Equity Ratio

Highest at -56.21 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio