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CMM

Capricorn Metals ASX:CMM Stock Report

Last Price

AU$3.43

Market Cap

AU$1.3b

7D

-2.3%

1Y

82.0%

Updated

27 Jun, 2022

Data

Company Financials +
CMM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance3/6
Financial Health4/6
Dividends0/6

CMM Stock Overview

Capricorn Metals Ltd explores for, evaluates, and develops mineral properties in Australia and Madagascar.

Capricorn Metals Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Capricorn Metals
Historical stock prices
Current Share PriceAU$3.43
52 Week HighAU$4.85
52 Week LowAU$1.74
Beta0.58
1 Month Change-3.11%
3 Month Change-14.46%
1 Year Change81.96%
3 Year Change670.79%
5 Year Change746.91%
Change since IPO154.07%

Recent News & Updates

Shareholder Returns

CMMAU Metals and MiningAU Market
7D-2.3%-5.9%1.4%
1Y82.0%-12.4%-11.3%

Return vs Industry: CMM exceeded the Australian Metals and Mining industry which returned -12.4% over the past year.

Return vs Market: CMM exceeded the Australian Market which returned -11.3% over the past year.

Price Volatility

Is CMM's price volatile compared to industry and market?
CMM volatility
CMM Average Weekly Movement7.3%
Metals and Mining Industry Average Movement11.4%
Market Average Movement9.7%
10% most volatile stocks in AU Market16.3%
10% least volatile stocks in AU Market4.2%

Stable Share Price: CMM is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CMM's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2006n/aKim Masseyhttps://capmetals.com.au

Capricorn Metals Ltd explores for, evaluates, and develops mineral properties in Australia and Madagascar. It holds a 100% interest in the Karlawinda gold project located in the Pilbara region of Western Australia. The company was formerly known as Malagasy Minerals Limited and changed its name to Capricorn Metals Limited in February 2016.

Capricorn Metals Fundamentals Summary

How do Capricorn Metals's earnings and revenue compare to its market cap?
CMM fundamental statistics
Market CapAU$1.27b
Earnings (TTM)AU$49.40m
Revenue (TTM)AU$125.81m

25.8x

P/E Ratio

10.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CMM income statement (TTM)
RevenueAU$125.81m
Cost of RevenueAU$64.62m
Gross ProfitAU$61.19m
Other ExpensesAU$11.79m
EarningsAU$49.40m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.13
Gross Margin48.64%
Net Profit Margin39.26%
Debt/Equity Ratio36.6%

How did CMM perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CMM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CMM?

Other financial metrics that can be useful for relative valuation.

CMM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue10.9x
Enterprise Value/EBITDA19.7x
PEG Ratio2.7x

Price to Earnings Ratio vs Peers

How does CMM's PE Ratio compare to its peers?

CMM PE Ratio vs Peers
The above table shows the PE ratio for CMM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average67.7x
EMR Emerald Resources
208.6xn/aAU$679.4m
WAF West African Resources
6.6x3.4%AU$1.3b
GOR Gold Road Resources
32.9x21.5%AU$1.2b
CYL Catalyst Metals
22.8xn/aAU$125.0m
CMM Capricorn Metals
25.8x9.4%AU$1.3b

Price-To-Earnings vs Peers: CMM is good value based on its Price-To-Earnings Ratio (25.8x) compared to the peer average (67.7x).


Price to Earnings Ratio vs Industry

How does CMM's PE Ratio compare vs other companies in the AU Metals and Mining Industry?

Price-To-Earnings vs Industry: CMM is expensive based on its Price-To-Earnings Ratio (25.8x) compared to the Australian Metals and Mining industry average (9x)


Price to Earnings Ratio vs Fair Ratio

What is CMM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CMM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.8x
Fair PE Ratio16.4x

Price-To-Earnings vs Fair Ratio: CMM is expensive based on its Price-To-Earnings Ratio (25.8x) compared to the estimated Fair Price-To-Earnings Ratio (16.4x).


Share Price vs Fair Value

What is the Fair Price of CMM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CMM (A$3.43) is trading below our estimate of fair value (A$10.43)

Significantly Below Fair Value: CMM is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: CMM is poor value based on its PEG Ratio (2.7x)


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Future Growth

How is Capricorn Metals forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMM's forecast earnings growth (9.4% per year) is above the savings rate (1.8%).

Earnings vs Market: CMM's earnings (9.4% per year) are forecast to grow faster than the Australian market (6% per year).

High Growth Earnings: CMM's earnings are forecast to grow, but not significantly.

Revenue vs Market: CMM's revenue (20.5% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: CMM's revenue (20.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CMM's Return on Equity is forecast to be high in 3 years time (20.7%)


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Past Performance

How has Capricorn Metals performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CMM has a high level of non-cash earnings.

Growing Profit Margin: CMM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CMM has become profitable over the past 5 years, growing earnings by 16% per year.

Accelerating Growth: CMM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CMM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (57.3%).


Return on Equity

High ROE: CMM's Return on Equity (24.1%) is considered high.


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Financial Health

How is Capricorn Metals's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CMM's short term assets (A$62.1M) exceed its short term liabilities (A$60.7M).

Long Term Liabilities: CMM's short term assets (A$62.1M) do not cover its long term liabilities (A$121.7M).


Debt to Equity History and Analysis

Debt Level: CMM's net debt to equity ratio (21.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CMM's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CMM's debt is well covered by operating cash flow (64.3%).

Interest Coverage: CMM's interest payments on its debt are well covered by EBIT (13.3x coverage).


Balance Sheet


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Dividend

What is Capricorn Metals's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.33%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CMM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CMM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CMM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CMM's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CMM has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Kim Massey

2.75yrs

Tenure

AU$1,479,563

Compensation

Mr. Kim Massey, B.Com, CA, serves as an Independent Non-Executive Director at DiscovEx Resources Limited since March 11, 2021. He serves as Chief Executive Officer of Capricorn Metals Ltd since September 1...


CEO Compensation Analysis

Compensation vs Market: Kim's total compensation ($USD1.03M) is about average for companies of similar size in the Australian market ($USD1.04M).

Compensation vs Earnings: Kim's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CMM's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: CMM's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.2%.


Top Shareholders

Company Information

Capricorn Metals Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: Capricorn Metals Ltd
  • Ticker: CMM
  • Exchange: ASX
  • Founded: 2006
  • Industry: Gold
  • Sector: Materials
  • Implied Market Cap: AU$1.275b
  • Shares outstanding: 371.58m
  • Website: https://capmetals.com.au

Number of Employees


Location

  • Capricorn Metals Ltd
  • 28 Ord Street
  • Level 1
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.