CNSX:MDD

Stock Analysis Report

Executive Summary

Mag One Products Inc. develops and commercializes technologies for the processing and production of magnesium (Mg) metals, Mg-related compounds, byproducts, and co-products from serpentinite tailings.

Risk Analysis

Earnings have declined by -5.46% per year over past 5 years

Does not have a meaningful market cap (CA$2M)

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

Has less than 1 year of cash runway

+ 1 more risk


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has Mag One Products's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

70.0%

MDD

2.4%

CA Metals and Mining

0.6%

CA Market


1 Year Return

n/a

MDD

4.4%

CA Metals and Mining

5.8%

CA Market

Return vs Industry: Insufficient data to determine how MDD performed against the Canadian Metals and Mining industry.

Return vs Market: Insufficient data to determine how MDD performed against the Canadian Market.


Shareholder returns

MDDIndustryMarket
7 Day70.0%2.4%0.6%
30 Day142.9%1.2%0.5%
90 Day6.3%6.6%3.6%
1 Yearn/a5.0%4.4%9.1%5.8%
3 Year-87.1%-87.1%-10.4%-11.9%15.4%5.0%
5 Yearn/a22.9%19.2%33.6%14.0%

Price Volatility Vs. Market

How volatile is Mag One Products's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Mag One Products undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Mag One Products is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Mag One Products has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of MDD’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Mag One Products regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

How is Mag One Products forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.6%

Forecasted Materials 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 Mag One Products 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 Mag One Products performed over the past 5 years?

-5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDD is currently unprofitable.

Growing Profit Margin: MDD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MDD is unprofitable, and losses have increased over the past 5 years at a rate of -5.5% per year.

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

Earnings vs Industry: MDD is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: MDD's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mag One Products's financial position?


Financial Position Analysis

Short Term Liabilities: MDD has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MDD has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MDD has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MDD's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: MDD has negative shareholder equity (liabilities exceed assets) therefore debt is not 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: MDD has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MDD has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Mag One Products's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if MDD'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 MDD'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?

1.3yrs

Average board tenure


CEO

Gillian Holcroft 0

1.3yrs

Tenure

CA$168,000

Compensation

Ms. Gillian Holcroft, B.Eng., M.Eng., has been Interim Chief Financial Officer of Mag One Products Inc. since December 2019. Ms. Holcroft serves as the Chief Executive Officer and President of Mag One Oper ...


CEO Compensation Analysis

Compensation vs Market: Gillian's total compensation ($USD126.77K) is about average for companies of similar size in the Canadian market ($USD155.16K).

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


Board Members

NamePositionTenureCompensationOwnership
Gillian Holcroft
Chairman1.3yrsCA$168.00k5.23% CA$140.7k
Rodney Burylo
Independent Director2.2yrsno datano data
Frank Vlastelic
Director0.6yrsno datano data

1.3yrs

Average Tenure

Experienced Board: MDD's board of directors are not considered experienced ( 1.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.9%.


Top Shareholders

Company Information

Mag One Products Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mag One Products Inc.
  • Ticker: MDD
  • Exchange: CNSX
  • Founded: 2007
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: €1.871m
  • Listing Market Cap: €2.689m
  • Shares outstanding: 55.04m
  • Website: https://www.magoneproducts.com

Location

  • Mag One Products Inc.
  • 777 Hornby Street
  • Suite 600
  • Vancouver
  • British Columbia
  • V6Z 1S4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MDDCNSX (Canadian National Stock Exchange)YesCommon SharesCACADJan 2015
304DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2015
MGPR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 2015
304BST (Boerse-Stuttgart)YesCommon SharesDEEURJan 2015

Biography

Mag One Products Inc. develops and commercializes technologies for the processing and production of magnesium (Mg) metals, Mg-related compounds, byproducts, and co-products from serpentinite tailings. The company was formerly known as Acana Capital Corp. and changed its name to Mag One Products Inc. in March 2015. Mag One Products Inc. was incorporated in 2007 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:45
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.