TSXV:AMR

Stock Analysis Report

Executive Summary

AM Resources Corp., together with its subsidiaries, engages in the exploration of coal, hydrocarbons, and gold mining sites in Colombia and Canada.

Risk Analysis

Earnings have declined by -66.62% per year over past 5 years

Has less than 1 year of cash runway

Does not have a meaningful market cap (CA$4M)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 2 more risks


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AMR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.3%

AMR

3.3%

CA Oil and Gas

0.4%

CA Market


1 Year Return

-59.4%

AMR

5.4%

CA Oil and Gas

11.0%

CA Market

Return vs Industry: AMR underperformed the Canadian Oil and Gas industry which returned 5.4% over the past year.

Return vs Market: AMR underperformed the Canadian Market which returned 11% over the past year.


Shareholder returns

AMRIndustryMarket
7 Day8.3%3.3%0.4%
30 Day-13.3%0.9%0.01%
90 Day-27.8%3.5%0.9%
1 Year-59.4%-59.4%10.3%5.4%14.7%11.0%
3 Yearn/a-13.6%-22.5%15.1%4.6%
5 Yearn/a-4.1%-19.2%37.8%17.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is AM Resources undervalued compared to its fair value and its price relative to the market?

2.13x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AMR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AMR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AMR is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: AMR is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AMR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AMR is overvalued based on its PB Ratio (2.1x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

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

-7.1%

Forecasted Energy 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 AM 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 AM Resources performed over the past 5 years?

-66.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMR is currently unprofitable.

Growing Profit Margin: AMR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AMR is unprofitable, and losses have increased over the past 5 years at a rate of -66.6% per year.

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

Earnings vs Industry: AMR is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (16.5%).


Return on Equity

High ROE: AMR has a negative Return on Equity (-72.9%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AM Resources's financial position?


Financial Position Analysis

Short Term Liabilities: AMR's short term assets (CA$538.5K) do not cover its short term liabilities (CA$1.6M).

Long Term Liabilities: AMR's short term assets (CA$538.5K) exceed its long term liabilities (CA$39.0K).


Debt to Equity History and Analysis

Debt Level: AMR's debt to equity ratio (47.4%) is considered high.

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


Balance Sheet

Inventory Level: AMR has a high level of physical assets or inventory.

Debt Coverage by Assets: AMR's debt is not covered by short term assets (assets are 0.5x 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.

Stable Cash Runway: AMR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: AMR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -59.5% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.6%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMR's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

1.7yrs

Average board tenure


CEO

Adriana Shaw Rios Garcia 0

0.6yrs

Tenure

CA$390,851

Compensation

Ms. Adriana Rios Garcia, also known as Adriana Shaw, is Interim President and CEO since May 30, 2019 and Chief Operating Officer Director of AM Resources Corp. since April 11, 2018. Ms. Shaw is also the Ch ...


CEO Compensation Analysis

Compensation vs Market: Adriana Shaw's total compensation ($USD295.44K) is above average for companies of similar size in the Canadian market ($USD170.35K).

Compensation vs Earnings: Insufficient data to compare Adriana Shaw's compensation with company performance.


Board Age and Tenure

1.7yrs

Average Tenure

Experienced Board: AMR's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 10.7%.


Management Team

  • Pierre O'Dowd (62yo)

    Independent Consultant

    • Tenure: 0yrs
  • Martin Nicoletti (56yo)

    CFO & Corporate Secretary

    • Tenure: 0yrs
    • Compensation: CA$78.00k
  • Adriana Shaw Rios Garcia

    Interim President

    • Tenure: 0.6yrs
    • Compensation: CA$390.85k

Board Members

  • Wayne Isaacs (56yo)

    Independent Director

    • Tenure: 2.9yrs
  • David Grondin (42yo)

    Independent Director

    • Tenure: 12.1yrs
  • Dominic Voyer

    Director

    • Tenure: 1.6yrs
    • Compensation: CA$79.01k
  • Adriana Shaw Rios Garcia

    Interim President

    • Tenure: 0.6yrs
    • Compensation: CA$390.85k
  • Diego Barragan

    Director

    • Tenure: 1.1yrs
    • Compensation: CA$1.54k

Company Information

AM Resources Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AM Resources Corp.
  • Ticker: AMR
  • Exchange: TSXV
  • Founded: 2007
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: CA$4.004m
  • Shares outstanding: 61.60m
  • Website: https://www.am-resources.com

Location

  • AM Resources Corp.
  • 500 Place d’Armes
  • Suite 1800
  • Montréal
  • Quebec
  • H2Y 2W2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMRTSXV (TSX Venture Exchange)YesCommon SharesCACADApr 2018
76ADB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2018
AMRC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2018

Biography

AM Resources Corp., together with its subsidiaries, engages in the exploration of coal, hydrocarbons, and gold mining sites in Colombia and Canada. It owns 80% interest in the Mina Luz coal property, which ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 01:17
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.