Mene (TSXV:MENE) - Share price, News & Analysis

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

MENE (CA$0.55) is trading below our estimate of [[fair value]] (CA$0.89)

MENE fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

MENE Stock Overview

Mene Inc. designs, manufactures, and markets 24 karat gold and platinum jewelry in the United States, Canada, Europe, and internationally.

Rewards

Trading at 38.3% below our estimate of its fair value

Risk Analysis

No risks detected for MENE from our risk checks.

Mene Competitors

iFabric

TSX:IFA

CA$38.2m

Unisync

TSX:UNI

CA$45.6m

Canada Goose Holdings

TSX:GOOS

CA$3.1b

Gildan Activewear

TSX:GIL

CA$7.5b

Price History & Performance

Summary of all time highs, changes and price drops for Mene
Historical stock prices
Current Share Price	CA$0.55
52 Week High	CA$1.03
52 Week Low	CA$0.45
Beta	0.44
1 Month Change	-14.06%
3 Month Change	0%
1 Year Change	-29.49%
3 Year Change	-8.33%
5 Year Change	n/a
Change since IPO	-31.25%

Recent News & Updates

Jul 04

Returns At Mene (CVE:MENE) Are On The Way Up

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

May 04

Mene (CVE:MENE) Takes On Some Risk With Its Use Of Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

	MENE	CA Luxury	CA Market
7D	7.8%	4.6%	3.0%
1Y	-29.5%	-23.1%	0.7%

Return vs Industry: MENE underperformed the Canadian Luxury industry which returned -23.1% over the past year.

Return vs Market: MENE underperformed the Canadian Market which returned 0.7% over the past year.

Price Volatility

Is MENE's price volatile compared to industry and market?
MENE volatility
MENE Average Weekly Movement	12.8%
Luxury Industry Average Movement	8.1%
Market Average Movement	10.6%
10% most volatile stocks in CA Market	18.9%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: MENE is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: MENE's weekly volatility (13%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	n/a	Roy Sebag	https://mene.com

Mene Inc. designs, manufactures, and markets 24 karat gold and platinum jewelry in the United States, Canada, Europe, and internationally. It offers charms, chains, bands, earrings, pendants, rings, bracelets, gifts, and medallions under the Mene brand. The company retails its jewelry products directly to consumer through its mene.com website.

Mene Fundamentals Summary

How do Mene's earnings and revenue compare to its market cap?
MENE fundamental statistics
Market Cap	CA$142.08m
Earnings (TTM)	-CA$968.56k
Revenue (TTM)	CA$26.92m

5.3x

P/S Ratio

-147.1x

P/E Ratio

Is MENE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MENE income statement (TTM)
Revenue	CA$26.92m
Cost of Revenue	CA$20.18m
Gross Profit	CA$6.74m
Other Expenses	CA$7.71m
Earnings	-CA$968.56k

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.0037
Gross Margin	25.04%
Net Profit Margin	-3.60%
Debt/Equity Ratio	64.7%

How did MENE perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MENE. This is calculated by dividing MENE's market cap by their current preferred multiple.
What is MENE's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CA$142.08m

MENE 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/Revenue	5.2x
Enterprise Value/EBITDA	243.4x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does MENE's PS Ratio compare to its peers?

MENE PS Ratio vs Peers

The above table shows the PS ratio for MENE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.8x
IFA iFabric	2x	n/a	CA$38.2m
UNI Unisync	0.5x	15.6%	CA$45.6m
GOOS Canada Goose Holdings	2.7x	7.3%	CA$3.1b
GIL Gildan Activewear	1.8x	3.8%	CA$7.5b
MENE Mene	5.3x	n/a	CA$142.1m

Price-To-Sales vs Peers: MENE is expensive based on its Price-To-Sales Ratio (5.3x) compared to the peer average (1.8x).

Price to Earnings Ratio vs Industry

How does MENE's PE Ratio compare vs other companies in the North American Luxury Industry?

Price-To-Sales vs Industry: MENE is expensive based on its Price-To-Sales Ratio (5.3x) compared to the Canadian Luxury industry average (2.4x)

Price to Sales Ratio vs Fair Ratio

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

MENE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	5.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate MENE's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: MENE (CA$0.55) is trading below our estimate of fair value (CA$0.89)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Mene forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.4%

Forecasted Consumer Durables industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mene has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine Mene's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
Mene competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Mene performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

38.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MENE is currently unprofitable.

Growing Profit Margin: MENE is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: MENE is unprofitable, but has reduced losses over the past 5 years at a rate of 38% per year.

Accelerating Growth: Unable to compare MENE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MENE is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (48.3%).

Return on Equity

High ROE: MENE has a negative Return on Equity (-5.7%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Mene's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: MENE's short term assets (CA$27.9M) exceed its short term liabilities (CA$12.9M).

Long Term Liabilities: MENE has no long term liabilities.

Debt to Equity History and Analysis

Debt Level: MENE has more cash than its total debt.

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

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable MENE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MENE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 39.8% per year.

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Dividend

What is Mene 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
Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate MENE'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 MENE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MENE'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 MENE has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure

CEO

Roy Sebag (36 yo)

4.58yrs

Tenure

Mr. Roy Sebag serves as Independent Chairman at Cathedra Bitcoin Inc. (formerly known as Fortress Technologies Inc.) since August 16, 2018 and served as its Interim Chief Executive Officer since September...

Leadership Team

Experienced Management: MENE's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: MENE's board of directors are considered experienced (3.7 years average tenure).

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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/14 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31