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

Steppe Gold Ltd.

Integra Resources Corp.

Sailfish Royalty Corp.

Majestic Gold Corp.

Liberty Gold Corp.

West Red Lake Gold Mines Ltd.

Goliath Resources Ltd.

Greenland Resources, Inc.

Fury Gold Mines Ltd.

Lavras Gold Corp.

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 1.53 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 11.11%, 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 buy?

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.

11.11%

1.97

65.74%

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)

36.57%

EBIT Growth (5y)

47.53%

EBIT to Interest (avg)

6.47

Debt to EBITDA (avg)

4.34

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

0.75

Tax Ratio

18.36%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

28.21%

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

1.53

EV to EBIT

1.62

EV to EBITDA

1.47

EV to Capital Employed

1.56

EV to Sales

0.87

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

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

34What is working for the Company

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%

RAW MATERIAL COST(Y)

Fallen by -38.77% (YoY

CASH AND EQV(HY)

Highest at CAD 484.75 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 77.45 times

NET SALES(Q)

At CAD 72.95 MM has Grown at 57.07%

OPERATING PROFIT MARGIN(Q)

Highest at 72.07 %

NET PROFIT(Q)

Highest at CAD 38.32 MM

EPS(Q)

Highest at CAD 0.1

-1What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Steppe Gold Ltd.

Operating Cash Flow

Highest at CAD 200.56 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Pre-Tax Profit

At CAD 50.25 MM has Grown at 167.69%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 38.32 MM has Grown at 180.69%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Debt-Equity Ratio

Lowest at -3.93 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

At CAD 72.95 MM has Grown at 57.07%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit Margin

Highest at 72.07 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at CAD 38.32 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Cash and Eqv

Highest at CAD 484.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 77.45 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -38.77% (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