TSXV:SOCK

Stock Analysis Report

Smooth Rock Ventures

Executive Summary

Smooth Rock Ventures Corp. acquires, explores for, and develops mineral, and oil and gas properties.


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Smooth Rock Ventures's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.7%

SOCK

-0.7%

CA Oil and Gas

0.2%

CA Market


1 Year Return

55.6%

SOCK

-1.1%

CA Oil and Gas

4.9%

CA Market

Return vs Industry: SOCK exceeded the Canadian Oil and Gas industry which returned -1.1% over the past year.

Return vs Market: SOCK exceeded the Canadian Market which returned 4.9% over the past year.


Shareholder returns

SOCKIndustryMarket
7 Day-6.7%-0.7%0.2%
30 Day-6.7%-2.7%0.4%
90 Day-6.7%2.8%3.7%
1 Year55.6%55.6%3.2%-1.1%8.2%4.9%
3 Year-50.0%-50.0%-6.5%-16.5%15.9%5.5%
5 Year-50.0%-50.0%-9.8%-24.1%33.8%14.3%

Price Volatility Vs. Market

How volatile is Smooth Rock Ventures's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Smooth Rock Ventures undervalued compared to its fair value and its price relative to the market?

2.91x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SOCK is overvalued based on its PB Ratio (2.9x) compared to the CA Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Smooth Rock Ventures forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-0.2%

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 Smooth Rock Ventures 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 Smooth Rock Ventures performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOCK is currently unprofitable.

Growing Profit Margin: SOCK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SOCK is unprofitable, and losses have increased over the past 5 years at a rate of -7.2% per year.

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

Earnings vs Industry: SOCK is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (6%).


Return on Equity

High ROE: SOCK has a negative Return on Equity (-107.07%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Smooth Rock Ventures's financial position?


Financial Position Analysis

Short Term Liabilities: SOCK's short term assets (CA$428.4K) exceed its short term liabilities (CA$85.1K).

Long Term Liabilities: SOCK has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: SOCK is debt free.

Reducing Debt: SOCK has no debt compared to 5 years ago when its debt to equity ratio was 10.5%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if SOCK's debt is covered by short term assets.


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: SOCK has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SOCK has less than a year of cash runway if free cash flow continues to grow at historical rates of 38.5% each year.


Next Steps

Dividend

What is Smooth Rock Ventures's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate SOCK'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 SOCK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SOCK'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 SOCK's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

Michel David 0

0.2yrs

Tenure

Mr. Michel David, BSc., serves as Director of Smooth Rock Ventures Corp. since June 13, 2018. Mr. David serves as Interim Chief Executive Officer of Smooth Rock Ventures since December 2019 and also serves ...


Leadership Team

NamePositionTenureCompensationOwnership
Michel David
Interim CEO0.2yrsno datano data
Christopher Hobbs
CFO, Corporate Secretary & Director2.1yrsCA$15.00k0.86% CA$29.2k
Jeffrey Cocks
Consultant0.5yrsCA$15.00kno data
Yves Caron
Advisory Board Member & Consultant0.2yrsno datano data

0.5yrs

Average Tenure

53yo

Average Age

Experienced Management: SOCK's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michel David
Interim CEO0.2yrsno datano data
Christopher Hobbs
CFO, Corporate Secretary & Director2.1yrsCA$15.00k0.86% CA$29.2k
Yves Caron
Advisory Board Member & Consultant0.2yrsno datano data
Eric Falardeau
Independent Director0yrsno datano data

1.7yrs

Average Tenure

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


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 33.3%.


Top Shareholders

Company Information

Smooth Rock Ventures Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Smooth Rock Ventures Corp.
  • Ticker: SOCK
  • Exchange: TSXV
  • Founded: 1966
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$3.393m
  • Shares outstanding: 48.47m
  • Website: https://smoothrockventures.com

Location

  • Smooth Rock Ventures Corp.
  • 789 West Pender Street
  • Suite 1080
  • Vancouver
  • British Columbia
  • V6C 1H2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOCKTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1988

Biography

Smooth Rock Ventures Corp. acquires, explores for, and develops mineral, and oil and gas properties. It has an option to acquire a 100% interest in the Mattagami River zinc property comprising 14 unpatented mining claims located northeast of the town of Kapuskasing, Ontario; and a 33.33% working interest in the Days Chapel enhanced oil recovery project situated in Anderson County, Texas. The company was formerly known as Trinity Valley Energy Corp. and changed its name to Smooth Rock Ventures Corp. in November 2017. Smooth Rock Ventures Corp. was incorporated in 1966 and is based in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 23:52
End of Day Share Price2020/02/13 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.