TSXV:ERL.H

Stock Analysis Report

Executive Summary

Earl Resources Limited does not have significant operations.

Snowflake

Fundamentals

Excellent balance sheet with weak fundamentals.

Risks

  • Earl Resources is not covered by any analysts.

Share Price & News

How has Earl Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

TSXV:ERL.H

1.7%

CA Capital Markets

-0.04%

CA Market


1 Year Return

-3.7%

TSXV:ERL.H

3.8%

CA Capital Markets

-4.8%

CA Market

ERL.H underperformed the Capital Markets industry which returned -1.5% over the past year.

ERL.H underperformed the Market in Canada which returned -2.2% over the past year.


Share holder returns

ERL.HIndustryMarket
7 Day0%1.7%-0.04%
30 Day0%4.4%-2.5%
90 Day0%5.5%-2.7%
1 Year-3.7%-3.7%8.8%3.8%-1.4%-4.8%
3 Yearn/a40.1%22.4%14.3%4.2%
5 Yearn/a15.9%-8.1%13.0%-2.9%

Price Volatility Vs. Market

How volatile is Earl Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Earl Resources undervalued based on future cash flows and its price relative to the stock market?

266.39x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Earl Resources to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Earl Resources to establish if it is available at substantial discount.


Price Based on Earnings

Earl Resources is loss making, we can't compare its value to the CA Capital Markets industry average.

Earl Resources is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Earl Resources, we can't assess if its growth is good value.


Price Based on Value of Assets

Earl Resources is overvalued based on assets compared to the CA Capital Markets industry average.


Next Steps

Future Growth

How is Earl Resources expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.9%

Forecasted Diversified Financials 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 Earl Resources 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.


Next Steps

Past Performance

How has Earl Resources performed over the past 5 years?

-9.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earl Resources does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Earl Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Earl Resources's 1-year growth to the CA Capital Markets industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Earl Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Earl Resources has efficiently used its assets last year compared to the CA Capital Markets industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Earl Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Earl Resources's financial position?


Financial Position Analysis

Earl Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Earl Resources has no long term commitments.


Debt to Equity History and Analysis

Earl Resources's level of debt (887.7%) compared to net worth is high (greater than 40%).

Earl Resources had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.2x debt.


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.

Earl Resources has sufficient cash runway for 1.5 years based on current free cash flow.

Earl Resources has sufficient cash runway for 1.4 years if free cash flow continues to grow at historical rates of 65.3% each year.


Next Steps

Dividend

What is Earl Resources's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Earl Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Earl Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Earl Resources has not reported any payouts.

Unable to verify if Earl Resources's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Earl Resources has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Earl Resources's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average board tenure


CEO

Paul Larkin (68yo)

1.7yrs

Tenure

CA$30,000

Compensation

Mr. Paul Anthony Larkin serves as Chief Executive Officer, Chief Financial Officer, Corporate Secretary at Kelly Ventures Ltd. and serves as its Director since November 2, 2016. Mr. Larkin has been the Chi ...


CEO Compensation Analysis

Paul's remuneration is lower than average for companies of similar size in Canada.

Insufficient data for Paul to compare compensation growth.


Board Age and Tenure

1.7yrs

Average Tenure

The average tenure for the Earl Resources board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

BuyCA$160,00203 May 19
Paul Larkin
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares3,200,000
Max PriceCA$0.05

Ownership Breakdown


Management Team

  • Paul Larkin (68yo)

    CEO & Director

    • Tenure: 1.7yrs
    • Compensation: CA$30.00k
  • Jonathan Younie

    CFO & Corporate Secretary

    • Tenure: 1.7yrs

Board Members

  • Paul Larkin (68yo)

    CEO & Director

    • Tenure: 1.7yrs
    • Compensation: CA$30.00k
  • Lyle Davis (62yo)

    Director

    • Tenure: 1.7yrs
  • Saf Dhillon

    Director

    • Tenure: 1.7yrs

Company Information

Earl Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Earl Resources Limited
  • Ticker: ERL.H
  • Exchange: TSXV
  • Founded: 1963
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CA$4.200m
  • Shares outstanding: 32.31m
  • Website: https://null

Location

  • Earl Resources Limited
  • 625 Howe Street
  • Suite 530
  • Vancouver
  • British Columbia
  • V6C 2T6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ERL.HTSXV (TSX Venture Exchange)YesCommon SharesCACADMar 2018

Biography

Earl Resources Limited does not have significant operations. It is in the process of seeking business opportunities. The company was formerly known as Legion Resources Ltd and changed its name to Earl Reso ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/30 00:42
End of Day Share Price2019/05/01 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.