TSXV:MCS

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McChip Resources

Executive Summary

McChip Resources Inc. operates in the natural resource industry in Canada.


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MCS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.8%

MCS

1.0%

CA Oil and Gas

2.0%

CA Market


1 Year Return

-37.7%

MCS

-27.5%

CA Oil and Gas

-11.4%

CA Market

Return vs Industry: MCS underperformed the Canadian Oil and Gas industry which returned -27.8% over the past year.

Return vs Market: MCS underperformed the Canadian Market which returned -11.7% over the past year.


Shareholder returns

MCSIndustryMarket
7 Day3.8%1.0%2.0%
30 Day-12.0%4.2%4.1%
90 Day-26.4%-22.0%-8.8%
1 Year-35.3%-37.7%-23.7%-27.5%-8.3%-11.4%
3 Year-17.6%-32.5%-28.2%-36.6%-0.2%-9.5%
5 Year-41.8%-52.4%-31.5%-41.6%15.9%-0.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.62x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MCS (CA$0.41) is trading above our estimate of fair value (CA$0.14)

Significantly Below Fair Value: MCS is trading above our estimate of fair value.


Price To Earnings Ratio

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

PE vs Market: MCS 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 MCS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MCS is good value based on its PB Ratio (0.6x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

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

47.4%

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 McChip 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 McChip Resources performed over the past 5 years?

9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCS is currently unprofitable.

Growing Profit Margin: MCS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MCS is unprofitable, but has reduced losses over the past 5 years at a rate of 9.2% per year.

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

Earnings vs Industry: MCS is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-18.2%).


Return on Equity

High ROE: MCS has a negative Return on Equity (-41.27%), as it is currently unprofitable.


Next Steps

Financial Health

How is McChip Resources's financial position?


Financial Position Analysis

Short Term Liabilities: MCS's short term assets (CA$3.6M) exceed its short term liabilities (CA$613.9K).

Long Term Liabilities: MCS has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: MCS's debt to equity ratio (12.1%) is considered satisfactory.

Reducing Debt: MCS's debt to equity ratio has increased from 6.7% to 12.1% 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 MCS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MCS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 6.9% per year.


Next Steps

Dividend

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

4.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MCS's dividend (4.94%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: MCS's dividend (4.94%) is low compared to the top 25% of dividend payers in the Canadian market (6.47%).


Stability and Growth of Payments

Stable Dividend: MCS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MCS has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: MCS is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

26.3yrs

Average board tenure


CEO

Richard McCloskey (68yo)

no data

Tenure

CA$127,360

Compensation

Mr. Richard Duncan 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 I ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD92.25K) is below average for companies of similar size in the Canadian market ($USD162.98K).

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


Board Members

NamePositionTenureCompensationOwnership
Richard McCloskey
CEO, President & Directorno dataCA$127.36k37.96% CA$870.1k
Edward Dumond
CFO, Corporate Secretary & Director29.33yrsCA$98.57k1.09% CA$25.0k
Gordon McCreary
Independent Director28.33yrsno data1.2% CA$27.5k
Anthony Weldon
Independent Director24.33yrsno data7.95% CA$182.3k
Timothy Gould
Independent Director13.83yrsno data1.02% CA$23.5k
Douglas Bolton
Director1.58yrsno datano data

26.3yrs

Average Tenure

Experienced Board: MCS's board of directors are seasoned and experienced ( 26.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

McChip Resources Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: McChip Resources Inc.
  • Ticker: MCS
  • Exchange: TSXV
  • Founded: 1935
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$2.292m
  • Shares outstanding: 5.66m
  • Website: https://null

Location

  • McChip Resources Inc.
  • 150 York Street
  • Suite 410
  • Toronto
  • Ontario
  • M5H 3S5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCSTSXV (TSX Venture Exchange)YesCommon SharesCACADJan 1981
MCCH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1981

Biography

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 interest in Saskatchewan Potash project located in province of 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 04:04
End of Day Share Price2020/05/28 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.