NextSource Materials, Inc. (NEXT) 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

Amerigo Resources Ltd.

Talon Metals Corp.

Lucara Diamond Corp.

Sherritt International Corp.

NextSource Materials, Inc.

Arizona Sonoran Copper Co., Inc.

Fireweed Metals Corp.

Canada Nickel Co., Inc.

F3 Uranium Corp.

Zentek Ltd.

Consolidated Uranium, Inc.

Why is NextSource Materials, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 20.97% and Operating profit at -226.87% over the last 5 years

The company has declared negative results for the last 8 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CAD -33.01 MM
PRE-TAX PROFIT(Q) At CAD -9.51 MM has Fallen at -91.92%
NET PROFIT(Q) At CAD -10.05 MM has Fallen at -97.09%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 65.96%, its profits have fallen by -109.4%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is NextSource Materials, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

NextSource Materials, Inc.

65.96%

8.47

102.31%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.97%

EBIT Growth (5y)

-226.87%

EBIT to Interest (avg)

-5.50

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

0.01

Tax Ratio

1.74%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.60

EV to EBIT

-3.50

EV to EBITDA

-3.53

EV to Capital Employed

1.35

EV to Sales

77.84

PEG Ratio

Dividend Yield

ROCE (Latest)

-38.49%

ROE (Latest)

-82.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

5What is working for the Company

NET SALES(9M)

At CAD 0.96 MM has Grown at 158.65%

NET PROFIT(HY)

Higher at CAD -23.13 MM

-31What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD -33.01 MM

PRE-TAX PROFIT(Q)

At CAD -9.51 MM has Fallen at -91.92%

NET PROFIT(Q)

At CAD -10.05 MM has Fallen at -97.09%

ROCE(HY)

Lowest at -77.43%

RAW MATERIAL COST(Y)

Grown by 1,250.12% (YoY

INTEREST(Q)

Highest at CAD 1.94 MM

Here's what is working for NextSource Materials, Inc.

Net Sales

At CAD 0.96 MM has Grown at 158.65%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Here's what is not working for NextSource Materials, Inc.

Pre-Tax Profit

At CAD -9.51 MM has Fallen at -91.92%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -10.05 MM has Fallen at -97.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD -33.01 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Interest

At CAD 1.94 MM has Grown at 11.68%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest

Highest at CAD 1.94 MM

in the last five periods and Increased by 11.68% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Raw Material Cost

Grown by 1,250.12% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales