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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Avino Silver & Gold Mines Ltd.

Integra Resources Corp.

Majestic Gold Corp.

Sailfish Royalty Corp.

Mawson Gold Ltd.

Montage Gold Corp.

Emerita Resources Corp.

Troilus Gold Corp.

West Red Lake Gold Mines Ltd.

Liberty Gold 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 49.81 MM
NET SALES(Q) Highest at CAD 27.95 MM
RAW MATERIAL COST(Y) Fallen by 0.45% (YoY)

With ROE of 17.31%, it has a very attractive valuation with a 1.26 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 100.00%, its profits have risen by 25.2% ; the PEG ratio of the company is 0.3

Market Beating Performance

The stock has generated a return of 100.00% in the last 1 year, much higher than market (S&P/TSX 60) returns of 18.73%

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.

100.0%

3.22

81.83%

S&P/TSX 60

19.1%

1.23

15.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.08%

EBIT Growth (5y)

21.28%

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

1.26

EV to EBIT

2.80

EV to EBITDA

2.03

EV to Capital Employed

1.59

EV to Sales

0.98

PEG Ratio

0.29

Dividend Yield

ROCE (Latest)

56.60%

ROE (Latest)

17.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 49.81 MM

NET SALES(Q)

Highest at CAD 27.95 MM

RAW MATERIAL COST(Y)

Fallen by 0.45% (YoY

CASH AND EQV(HY)

Highest at CAD 299.74 MM

OPERATING PROFIT(Q)

Highest at CAD 15.45 MM

PRE-TAX PROFIT(Q)

Highest at CAD 12.42 MM

NET PROFIT(Q)

Highest at CAD 4.38 MM

EPS(Q)

Highest at CAD 0

-3What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 10,197.07

DEBTORS TURNOVER RATIO(HY)

Lowest at 21.21%

Here's what is working for Majestic Gold Corp.

Net Sales

Highest at CAD 27.95 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Operating Cash Flow

Highest at CAD 49.81 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Operating Profit

Highest at CAD 15.45 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Pre-Tax Profit

Highest at CAD 12.42 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 4.38 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 0

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Cash and Eqv

Highest at CAD 299.74 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.45% (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 Coverage Ratio

Lowest at 10,197.07

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 21.21%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio