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McChip Resources

TSXV:MCS
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MCS
TSXV
CA$4M
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

McChip Resources Inc. operates in the natural resource industry in Canada. The last earnings update was 140 days ago. More info.


Add to Portfolio Compare Print
  • McChip Resources has significant price volatility in the past 3 months.
MCS Share Price and Events
7 Day Returns
0%
TSXV:MCS
1.4%
CA Oil and Gas
0.6%
CA Market
1 Year Returns
40.4%
TSXV:MCS
-1.9%
CA Oil and Gas
4.4%
CA Market
MCS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
McChip Resources (MCS) 0% -8.8% -2.7% 40.4% 82.5% -53.5%
CA Oil and Gas 1.4% 3.4% 7.5% -1.9% -2.9% -31.7%
CA Market 0.6% 2.2% 8.8% 4.4% 15.7% 7.1%
1 Year Return vs Industry and Market
  • MCS outperformed the Oil and Gas industry which returned -1.9% over the past year.
  • MCS outperformed the Market in Canada which returned 4.4% over the past year.
Price Volatility
MCS
Industry
5yr Volatility vs Market

MCS Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of McChip Resources to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for McChip Resources.

TSXV:MCS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSXV:MCS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.028 (1 + (1- 26.5%) (3.28%))
1.036
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.036 * 5.96%)
8.12%

Discounted Cash Flow Calculation for TSXV:MCS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for McChip Resources is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSXV:MCS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.12%)
2019 4.23 Est @ 102.12% 3.91
2020 7.27 Est @ 72.07% 6.22
2021 10.98 Est @ 51.03% 8.69
2022 14.97 Est @ 36.3% 10.96
2023 18.86 Est @ 26% 12.77
2024 22.41 Est @ 18.78% 14.03
2025 25.48 Est @ 13.73% 14.76
2026 28.08 Est @ 10.2% 15.04
2027 30.25 Est @ 7.72% 14.98
2028 32.06 Est @ 5.99% 14.69
Present value of next 10 years cash flows CA$116.04
TSXV:MCS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$32.06 × (1 + 1.95%) ÷ (8.12% – 1.95%)
CA$529.60
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$529.60 ÷ (1 + 8.12%)10
CA$242.62
TSXV:MCS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$116.04 + CA$242.62
CA$358.66
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$358.66 / 5.66
CA$63.37
TSXV:MCS Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$63.37
Current discount Discount to share price of CA$0.73
= -1 x (CA$0.73 - CA$63.37) / CA$63.37
98.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price McChip Resources is available for.
Intrinsic value
>50%
Share price is CA$0.73 vs Future cash flow value of CA$63.37
Current Discount Checks
For McChip Resources to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • McChip Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • McChip Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for McChip Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are McChip Resources's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSXV:MCS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in CAD CA$0.47
TSXV:MCS Share Price ** TSXV (2019-04-03) in CAD CA$0.73
Canada Oil and Gas Industry PE Ratio Median Figure of 67 Publicly-Listed Oil and Gas Companies 15.42x
Canada Market PE Ratio Median Figure of 556 Publicly-Listed Companies 15.47x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of McChip Resources.

TSXV:MCS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSXV:MCS Share Price ÷ EPS (both in CAD)

= 0.73 ÷ 0.47

1.54x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McChip Resources is good value based on earnings compared to the CA Oil and Gas industry average.
  • McChip Resources is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does McChip Resources's expected growth come at a high price?
Raw Data
TSXV:MCS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 1.54x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-39.1%per year
Canada Oil and Gas Industry PEG Ratio Median Figure of 39 Publicly-Listed Oil and Gas Companies 0.84x
Canada Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for McChip Resources, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on McChip Resources's assets?
Raw Data
TSXV:MCS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in CAD CA$0.97
TSXV:MCS Share Price * TSXV (2019-04-03) in CAD CA$0.73
Canada Oil and Gas Industry PB Ratio Median Figure of 231 Publicly-Listed Oil and Gas Companies 0.94x
Canada Market PB Ratio Median Figure of 2,369 Publicly-Listed Companies 1.52x
TSXV:MCS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSXV:MCS Share Price ÷ Book Value per Share (both in CAD)

= 0.73 ÷ 0.97

0.75x

* Primary Listing of McChip Resources.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McChip Resources is good value based on assets compared to the CA Oil and Gas industry average.
X
Value checks
We assess McChip Resources's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. McChip Resources has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MCS Future Performance

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

  • No analysts cover McChip Resources, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-39.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is McChip Resources expected to grow at an attractive rate?
  • McChip Resources's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.
Growth vs Market Checks
  • McChip Resources's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • Unable to compare McChip Resources's revenue growth to the Canada market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
TSXV:MCS Future Growth Rates Data Sources
Data Point Source Value (per year)
TSXV:MCS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -39.1%
Canada Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 19.8%
Canada Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
Canada Market Earnings Growth Rate Market Cap Weighted Average 18.2%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSXV:MCS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSXV:MCS Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-09-30 4 2 3
2018-06-30 5 2 3
2018-03-31 4 2 3
2017-12-31 4 3 3
2017-09-30 0 0 -1
2017-06-30 0 0 -1
2017-03-31 1 0 0
2016-12-31 2 0 0
2016-09-30 2 0 1
2016-06-30 2 0 1
2016-03-31 1 0 0
2015-12-31 1 0 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • McChip Resources's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if McChip Resources is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSXV:MCS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from McChip Resources Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSXV:MCS Past Financials Data
Date (Data in CAD Millions) EPS *
2018-09-30 0.47
2018-06-30 0.59
2018-03-31 0.49
2017-12-31 0.53
2017-09-30 -0.14
2017-06-30 -0.11
2017-03-31 -0.02
2016-12-31 0.06
2016-09-30 0.11
2016-06-30 0.09
2016-03-31 0.00
2015-12-31 -0.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if McChip Resources will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess McChip Resources's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
McChip Resources has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MCS Past Performance

  How has McChip Resources performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare McChip Resources's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • McChip Resources has delivered over 20% year on year earnings growth in the past 5 years.
  • McChip Resources has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • McChip Resources has become profitable in the last year making it difficult to compare the CA Oil and Gas industry average.
Earnings and Revenue History
McChip Resources's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from McChip Resources Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSXV:MCS Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 4.06 2.69 0.62
2018-06-30 4.57 3.35 0.61
2018-03-31 3.91 2.76 0.61
2017-12-31 4.14 3.00 0.60
2017-09-30 0.09 -0.78 0.51
2017-06-30 0.43 -0.63 0.65
2017-03-31 1.00 -0.13 0.64
2016-12-31 1.55 0.33 0.65
2016-09-30 2.20 0.62 0.68
2016-06-30 1.93 0.52 0.54
2016-03-31 1.35 0.03 0.55
2015-12-31 1.00 -0.26 0.54
2015-09-30 0.32 -0.46 0.54
2015-06-30 0.20 -0.54 0.53
2015-03-31 0.22 -0.53 0.53
2014-12-31 0.33 -0.44 0.53
2014-09-30 0.49 -1.52 0.54
2014-06-30 -0.32 -2.22 0.56
2014-03-31 -1.91 -3.73 0.58
2013-12-31 -3.69 -5.28 0.61
2013-09-30 -3.86 -4.23 0.63
2013-06-30 -1.79 -2.50 0.62
2013-03-31 -1.65 -2.27 0.64
2012-12-31 -0.34 -1.17 0.65
2012-09-30 0.25 -0.46 0.65
2012-06-30 -2.52 -3.29 1.29

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • McChip Resources made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • McChip Resources used its assets more efficiently than the CA Oil and Gas industry average last year based on Return on Assets.
  • McChip Resources has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess McChip Resources's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
McChip Resources has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MCS Health

 How is McChip Resources's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up McChip Resources's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • McChip Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • McChip Resources has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of McChip Resources's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 34.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from McChip Resources Company Filings, last reported 6 months ago.

TSXV:MCS Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 5.48 0.14 3.93
2018-06-30 6.09 0.09 4.26
2018-03-31 5.54 0.39 3.91
2017-12-31 6.40 0.00 4.62
2017-09-30 3.36 0.49 2.21
2017-06-30 3.30 0.51 2.17
2017-03-31 3.35 0.52 2.12
2016-12-31 3.40 0.50 2.25
2016-09-30 4.14 0.58 2.74
2016-06-30 3.80 0.60 2.38
2016-03-31 3.35 0.34 1.47
2015-12-31 2.94 0.24 0.99
2015-09-30 3.39 0.25 1.03
2015-06-30 3.28 0.30 1.06
2015-03-31 3.32 0.22 0.97
2014-12-31 3.20 0.18 1.02
2014-09-30 3.86 0.16 1.08
2014-06-30 3.82 0.10 1.07
2014-03-31 4.14 0.31 1.28
2013-12-31 3.92 0.32 1.05
2013-09-30 5.67 0.30 1.43
2013-06-30 6.32 0.53 1.65
2013-03-31 7.87 1.88 4.51
2012-12-31 9.20 2.73 6.79
2012-09-30 9.89 1.54 6.61
2012-06-30 8.82 2.02 5.90
  • McChip Resources's level of debt (2.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (5.4% vs 2.5% today).
  • Debt is well covered by operating cash flow (1543.1%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on McChip Resources's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess McChip Resources's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. McChip Resources has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MCS Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.11%
Current annual income from McChip Resources dividends.
If you bought CA$2,000 of McChip Resources shares you are expected to receive CA$82 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • McChip Resources's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.09%).
  • McChip Resources's dividend is below the markets top 25% of dividend payers in Canada (5.61%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSXV:MCS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Canada Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 4.3%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSXV:MCS Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-02-07 0.030 3.686
2018-12-04 0.100 12.658
2018-09-10 0.100 13.174
2018-05-31 0.100 15.642
2016-07-18 0.000 0.000
2016-06-06 0.000 0.000
2016-04-20 0.000 0.000
2015-12-04 0.000 0.000
2015-04-28 0.050 6.141
2014-12-02 0.050 4.584
2014-05-23 0.050 3.708
2013-11-29 0.000 0.000
2013-09-13 0.000 0.000
2013-06-11 0.000 0.000
2013-05-01 0.000 0.000
2012-11-27 0.000 0.000
2011-11-25 0.200 9.467
2011-04-07 0.200 8.971
2010-12-02 0.000 0.000
2010-08-31 0.000 0.000
2010-05-28 0.000 0.000
2010-03-01 0.000 0.000
2009-05-12 0.100 8.091

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of McChip Resources's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.7x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess McChip Resources's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can McChip Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. McChip Resources has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MCS Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Richard McCloskey
COMPENSATION CA$139,860
AGE 67
CEO Bio

Mr. Richard D. McCloskey, Bo, B.Sc., MBA has been the President of Baffinland Iron Mines Limited since July 2002. Mr. McCloskey serves as the Chief Executive Officer and President of McChip Resources Inc. He serves as the Chief Executive Officer and President of Matachewan Consolidated Mines Limited. Mr. McCloskey served as an Acting Chief Executive Officer and Acting President of Baffinland Iron Mines Corp., from March 2010 to January 27, 2011. As a representative of the Mining Association of Canada, he has actively participated in negotiations with the Canadian government to implement the Canadian Gold Maple Leaf coin programme. He served as the President and Director of Glimmer Resources, Inc. from January 1997 to December 2001. He has been engaged as a Director and officer at a senior level by several public and Private International Corporations in the Natural Resource Industry for in excess of 27 years. He served as Chairman of Baffinland Iron Mines Corp. from June 2005 to January 27, 2011. He has been an Independent Director of Taranis Resources Inc. since December 16, 2002, Gold Institute since 1976, McChip Resources Inc. since 1975 and of Matachewan Consolidated Mines, Ltd. since 1975. He also serves as a Director of two other public companies engaged in the business of mineral exploration and development. He served as a Director of Canico Resource Corp. since September 19, 2002. He served as a Director of Baffinland Iron Mines Corp. from 1997 to January 27, 2011. He served as Director of Sutton Resources, Inc. during its acquisition and development of the Bulyanhulu Gold Mine in Tanzania. Mr. McCloskey is a Mining Engineer with a Masters in Business Administration.

CEO Compensation
  • Richard's compensation has increased in line with McChip Resources recently becoming profitable.
  • Richard's remuneration is about average for companies of similar size in Canada.
Management Team

Richard McCloskey

TITLE
CEO, President & Director
COMPENSATION
CA$140K
AGE
67

Edward Dumond

TITLE
CFO, Corporate Secretary & Director
COMPENSATION
CA$105K
Board of Directors Tenure

Average tenure and age of the McChip Resources board of directors in years:

27.3
Average Tenure
67
Average Age
  • The average tenure for the McChip Resources board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Richard McCloskey

TITLE
CEO, President & Director
COMPENSATION
CA$140K
AGE
67
TENURE
44.3 yrs

Edward Dumond

TITLE
CFO, Corporate Secretary & Director
COMPENSATION
CA$105K
TENURE
28.3 yrs

Douglas Bolton

TITLE
Director
TENURE
0.5 yrs

Anthony Weldon

TITLE
Independent Director
TENURE
23.3 yrs

Gord McCreary

TITLE
Independent Director
AGE
66
TENURE
27.3 yrs

A. Matthew

TITLE
Independent Director
AGE
77
TENURE
34.3 yrs

Timothy Gould

TITLE
Independent Director
TENURE
12.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
X
Management checks
We assess McChip Resources's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. McChip Resources has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MCS News

Simply Wall St News

Why McChip Resources Inc. (CVE:MCS) Is An Attractive Investment To Consider

I've been keeping an eye on McChip Resources Inc. … Looking at the company as a whole, as a potential stock investment, I believe MCS has a lot to offer. … company with a

Simply Wall St -

Imagine Owning McChip Resources (CVE:MCS) And Wondering If The 49% Share Price Slide Is Justified

(CVE:MCS), since the last five years saw the share price fall 49%. … Unfortunately the share price momentum is still quite negative, with prices down 20% in thirty days. … In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business.

Simply Wall St -

Why You Should Like McChip Resources Inc.’s (CVE:MCS) ROCE

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

McChip Resources Inc. (CVE:MCS): 3 Days To Buy Before The Ex-Dividend Date

Important news for shareholders and potential investors in McChip Resources Inc. … (CVE:MCS): The dividend payment of CA$0.03 per share will be distributed to shareholders on 28 February 2019, and the stock will begin trading ex-dividend at an earlier date, 14 February 2019. … Below, I will explain how holding McChip Resources can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes.

Simply Wall St -

Can We See Significant Insider Ownership On The McChip Resources Inc (CVE:MCS) Share Register?

The big shareholder groups in McChip Resources Inc (CVE:MCS) have power over the company. … So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

Is McChip Resources Inc (CVE:MCS) Attractive At This PE Ratio?

This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … View our latest analysis for McChip Resources

Simply Wall St -

Did McChip Resources Inc (CVE:MCS) Create Value For Shareholders?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to better understand how you can grow your money by investing in McChip Resources Inc (CVE:MCS). … McChip Resources Inc (CVE:MCS) delivered an ROE of 49.82% over the past 12 months, which is an impressive feat relative to its industry average of 5.61% during the same period.

Simply Wall St -

Is McChip Resources Inc (CVE:MCS) Potentially Underrated?

I've been keeping an eye on McChip Resources Inc (CVE:MCS) because I'm attracted to its fundamentals. … is a company that has been able to sustain great financial health, trading at an attractive share price. … report on McChip Resources here

Simply Wall St -

Top Undervalued Energy Stocks To Buy Now

This is the case for energy stocks McChip Resources and High Arctic Energy Services. … (TSX:ENF) Enbridge Income Fund Holdings Inc., through its investment in Enbridge Income Fund, holds energy infrastructure assets in Canada. … Enbridge Income Fund Holdings was formed in 2010 and with the company's market cap sitting at CAD CA$4.95B, it falls under the mid-cap category.

Simply Wall St -

Does McChip Resources Inc (CVE:MCS) Have A Place In Your Portfolio?

Over the past 10 years, McChip Resources Inc (TSXV:MCS) has returned an average of 4.00% per year to shareholders in terms of dividend yield. … See our latest analysis for McChip Resources Here's how I find good dividend stocks If you are a dividend investor, you should always assess these five key metrics: Does it pay an annual yield higher than 75% of dividend payers? … Relative to peers, McChip Resources produces a yield of 16.39%, which is high for Oil and Gas stocks.Next Steps: Whilst there are few things you may like about McChip Resources from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor.

Simply Wall St -

MCS Company Info

Description

McChip Resources Inc. operates in the natural resource industry in Canada. The company invests in petroleum interests in Western Canada, as well as direct and indirect interests in minerals. It holds a 100% working interest in 4,147 acres and a 50% working interest in 240 acres in the Rocainville Area located in south eastern Saskatchewan. The company was formerly known as Madsen Red Lake Gold Mines Limited and changed its name to McChip Resources Inc. in May 1981. McChip Resources Inc. was incorporated in 1935 and is based in Toronto, Canada.

Details
Name: McChip Resources Inc.
MCS
Exchange: TSXV
Founded: 1935
CA$4,131,871
5,660,098
Website: http://
Address: McChip Resources Inc.
150 York Street,
Suite 410,
Toronto,
Ontario, M5H 3S5,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSXV MCS Common Shares TSX Venture Exchange CA CAD 05. Jan 1981
OTCPK MCCH.F Common Shares Pink Sheets LLC US USD 05. Jan 1981
Number of employees
Current staff
Staff numbers
0
McChip Resources employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/16 23:41
End of day share price update: 2019/04/03 00:00
Last earnings filing: 2018/11/27
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.