The Westaim Corp. (WED) 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

Palisades Goldcorp Ltd.

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Metalla Royalty & Streaming Ltd.

Aimia, Inc.

The Westaim Corp.

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Urbana Corp.

Helios Fairfax Partners Corp.

International Clean Power Dividend Fund

Why is The Westaim Corp. ?

Flat results in Sep 25

INTEREST(9M) At CAD 0.8 MM has Grown at inf%
OPERATING CASH FLOW(Y) Lowest at CAD -75.9 MM
PRE-TAX PROFIT(Q) At CAD -20.69 MM has Fallen at -102.41%

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 -22.58%, its profits have fallen by -204.6%

Underperformed the market in the last 1 year

Even though the market (S&P/TSX 60) has generated returns of 23.72% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.58% returns

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 Finance)

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

Is The Westaim Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

The Westaim Corp.

-22.58%

41.61

29.24%

S&P/TSX 60

23.72%

1.55

15.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.53%

EBIT Growth (5y)

-18.20%

EBIT to Interest (avg)

28.41

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

17.76%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

11.20%

ROE (avg)

10.31%

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

0.88

EV to EBIT

-3.56

EV to EBITDA

-3.82

EV to Capital Employed

0.65

EV to Sales

2.64

PEG Ratio

Dividend Yield

ROCE (Latest)

-18.35%

ROE (Latest)

-6.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

17What is working for the Company

NET PROFIT(HY)

Higher at CAD -16.36 MM

NET SALES(Q)

At CAD 24.61 MM has Grown at 45.83%

RAW MATERIAL COST(Y)

Fallen by -9,029% (YoY

CASH AND EQV(HY)

Highest at CAD 1,313.29 MM

-17What is not working for the Company

INTEREST(9M)

At CAD 0.8 MM has Grown at inf%

OPERATING CASH FLOW(Y)

Lowest at CAD -75.9 MM

PRE-TAX PROFIT(Q)

At CAD -20.69 MM has Fallen at -102.41%

NET PROFIT(Q)

At CAD -16.04 MM has Fallen at -51.76%

Here's what is working for The Westaim Corp.

Net Sales

At CAD 24.61 MM has Grown at 45.83%

over average net sales of the previous four periods of CAD 16.88 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Cash and Eqv

Highest at CAD 1,313.29 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -9,029% (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 2.39 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 2.39 MM has Grown at 44.5%

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 The Westaim Corp.

Interest

At CAD 0.8 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Pre-Tax Profit

At CAD -20.69 MM has Fallen at -102.41%

over average net sales of the previous four periods of CAD -10.22 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -16.04 MM has Fallen at -51.76%

over average net sales of the previous four periods of CAD -10.57 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD -75.9 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)