Steppe Gold Ltd. (STGO) 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

Sailfish Royalty Corp.

Steppe Gold Ltd.

Integra Resources Corp.

Majestic Gold Corp.

Liberty Gold Corp.

West Red Lake Gold Mines Ltd.

Goliath Resources Ltd.

Lavras Gold Corp.

Greenland Resources, Inc.

Fury Gold Mines Ltd.

Emerita Resources Corp.

Why is Steppe Gold Ltd. ?

High Management Efficiency with a high ROCE of 28.21%

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 28.21%

Healthy long term growth as Net Sales has grown by an annual rate of 36.57% and Operating profit at 47.53%

With a growth in Net Profit of 178.31%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CAD 200.56 MM
DEBT-EQUITY RATIO (HY) Lowest at -3.93 %
PRE-TAX PROFIT(Q) At CAD 50.25 MM has Grown at 167.69%

With ROE of 41.91%, it has a attractive valuation with a 1.44 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 15.79%, its profits have risen by 45.6% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Steppe Gold Ltd. 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 Steppe Gold Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Steppe Gold Ltd.

1.61%

2.27

67.18%

S&P/TSX 60

20.36%

2.51

12.02%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

36.57%

EBIT Growth (5y)

47.53%

EBIT to Interest (avg)

5.77

Debt to EBITDA (avg)

4.23

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

0.59

Tax Ratio

46.47%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

37.98%

ROE (avg)

80.64%

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

1.44

EV to EBIT

1.52

EV to EBITDA

1.38

EV to Capital Employed

1.46

EV to Sales

0.81

PEG Ratio

0.08

Dividend Yield

ROCE (Latest)

96.18%

ROE (Latest)

41.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

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

17What is working for the Company

PRE-TAX PROFIT(Q)

At CAD 54.04 MM has Grown at 214.15%

OPERATING CASH FLOW(Y)

Highest at CAD 217.86 MM

NET SALES(Q)

At CAD 85.62 MM has Grown at 91.27%

RAW MATERIAL COST(Y)

Fallen by -49.48% (YoY

NET PROFIT(9M)

Higher at CAD 67.87 MM

CASH AND EQV(HY)

Highest at CAD 429.07 MM

OPERATING PROFIT MARGIN(Q)

Highest at 74.68 %

-8What is not working for the Company

INTEREST(Q)

At CAD 3.89 MM has Grown at 18.21%

NET PROFIT(Q)

Lowest at CAD -0.98 MM

EPS(Q)

Lowest at CAD -0

Here's what is working for Steppe Gold Ltd.

Pre-Tax Profit

At CAD 54.04 MM has Grown at 214.15%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Sales

At CAD 85.62 MM has Grown at 91.27%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Operating Cash Flow

Highest at CAD 217.86 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 Margin

Highest at 74.68 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at CAD 429.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -49.48% (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

Depreciation

Highest at CAD 8.81 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Depreciation

At CAD 8.81 MM has Grown at 162.93%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CAD MM)

Here's what is not working for Steppe Gold Ltd.

Net Profit

At CAD -0.98 MM has Fallen at -107.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 3.89 MM has Grown at 18.21%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Profit

Lowest at CAD -0.98 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD -0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

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