McChip Resources Inc. operates in the natural resource industry in Canada.
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.
7 Day Return
CA Oil and Gas
1 Year Return
CA Oil and Gas
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.
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
3 weeks ago | Simply Wall StCould The McChip Resources Inc. (CVE:MCS) Ownership Structure Tell Us Something Useful?
1 month ago | Simply Wall StIs McChip Resources Inc. (CVE:MCS) A Smart Choice For Dividend Investors?
3 months ago | Simply Wall St3 Days Left Until McChip Resources Inc. (CVE:MCS) Trades Ex-Dividend
Is McChip Resources undervalued compared to its fair value and its price relative to the market?
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).
How is McChip Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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.
- Examine McChip Resources'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.
- McChip Resources competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Energy industry.
How has McChip Resources performed over the past 5 years?
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.
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.
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.
What is McChip Resources's current dividend yield, its reliability and sustainability?
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.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Richard McCloskey (68yo)
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.
|CEO, President & Director||no data||CA$127.36k||37.96% CA$870.1k|
|CFO, Corporate Secretary & Director||29.33yrs||CA$98.57k||1.09% CA$25.0k|
|Independent Director||28.33yrs||no data||1.2% CA$27.5k|
|Independent Director||24.33yrs||no data||7.95% CA$182.3k|
|Independent Director||13.83yrs||no data||1.02% CA$23.5k|
|Director||1.58yrs||no data||no data|
Experienced Board: MCS's board of directors are seasoned and experienced ( 26.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
McChip Resources Inc.'s company bio, employee growth, exchange listings and data sources
- 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
- McChip Resources Inc.
- 150 York Street
- Suite 410
- M5H 3S5
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|MCS||TSXV (TSX Venture Exchange)||Yes||Common Shares||CA||CAD||Jan 1981|
|MCCH.F||OTCPK (Pink Sheets LLC)||Yes||Common Shares||US||USD||Jan 1981|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/05/31 04:04|
|End of Day Share Price||2020/05/28 00:00|
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.