ScoreWhy is SouthGobi Resources Ltd. ?
1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.77 times
2
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 -29.90%, its profits have fallen by -89%
3
Underperformed the market in the last 1 year
- Even though the market (S&P/TSX 60) has generated returns of 26.52% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -29.90% returns
Real-Time Research ReportHow 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 Miscellaneous)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is SouthGobi Resources Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
SouthGobi Resources Ltd.
-100.0%
-0.30
160.95%
S&P/TSX 60
26.52%
1.87
14.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
49.46%
EBIT Growth (5y)
24.45%
EBIT to Interest (avg)
1.20
Debt to EBITDA (avg)
3.13
Net Debt to Equity (avg)
-2.60
Sales to Capital Employed (avg)
4.71
Tax Ratio
31.77%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.05%
ROCE (avg)
60.27%
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
-0.83
EV to EBIT
8.00
EV to EBITDA
3.87
EV to Capital Employed
2.93
EV to Sales
0.53
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
36.61%
ROE (Latest)
Negative BV
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Dow Theory
Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 6.09 times
-18What is not working for the Company
PRE-TAX PROFIT(Q)
At CAD -11.5 MM has Fallen at -196.05%
NET PROFIT(Q)
At CAD -12.3 MM has Fallen at -253.41%
OPERATING CASH FLOW(Y)
Lowest at CAD 105.56 MM
RAW MATERIAL COST(Y)
Grown by 90.43% (YoY
CASH AND EQV(HY)
Lowest at CAD 10.78 MM
Here's what is working for SouthGobi Resources Ltd.
Inventory Turnover Ratio
Highest at 6.09 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for SouthGobi Resources Ltd.
Pre-Tax Profit
At CAD -11.5 MM has Fallen at -196.05%
over average net sales of the previous four periods of CAD 11.97 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CAD MM)
Net Profit
At CAD -12.3 MM has Fallen at -253.41%
over average net sales of the previous four periods of CAD 8.02 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CAD MM)
Operating Cash Flow
Lowest at CAD 105.56 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CAD MM)
Cash and Eqv
Lowest at CAD 10.78 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Raw Material Cost
Grown by 90.43% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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