CNSX:NLR

Stock Analysis Report

Northern Lights Resources

Executive Summary

Northern Lights Resources Corp. engages in the acquisition, evaluation, and exploration of mineral resource properties in the United States, East Asia, and Canada.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

NLR

3.5%

CA Metals and Mining

-1.5%

CA Market


1 Year Return

11.1%

NLR

6.8%

CA Metals and Mining

2.5%

CA Market

Return vs Industry: NLR exceeded the Canadian Metals and Mining industry which returned 6.8% over the past year.

Return vs Market: NLR exceeded the Canadian Market which returned 2.5% over the past year.


Shareholder returns

NLRIndustryMarket
7 Day0%3.5%-1.5%
30 Day-9.1%5.0%-0.7%
90 Day11.1%14.3%1.8%
1 Year11.1%11.1%7.5%6.8%5.7%2.5%
3 Yearn/a2.8%1.0%16.8%6.2%
5 Yearn/a29.1%25.4%32.0%12.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

25.25x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: NLR is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

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


Price to Book Ratio

PB vs Industry: NLR is overvalued based on its PB Ratio (25.3x) compared to the CA Metals and Mining industry average (1.6x).


Next Steps

Future Growth

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

13.0%

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 Northern Lights 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 Northern Lights Resources performed over the past 5 years?

-59.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NLR is currently unprofitable.

Growing Profit Margin: NLR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NLR is unprofitable, and losses have increased over the past 5 years at a rate of -59.7% per year.

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

Earnings vs Industry: NLR 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: NLR has a negative Return on Equity (-1165.42%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Northern Lights Resources's financial position?


Financial Position Analysis

Short Term Liabilities: NLR's short term assets (CA$41.0K) do not cover its short term liabilities (CA$348.4K).

Long Term Liabilities: NLR has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: NLR's debt to equity ratio (111.5%) is considered high.

Reducing Debt: NLR had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: NLR's debt is not covered by short term assets (assets are 0.4x debt).


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

Forecast Cash Runway: NLR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -44.5% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.6%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

2.3yrs

Average management tenure


CEO

Jason Bahnsen (57yo)

2.3yrs

Tenure

CA$156,368

Compensation

Mr. Jason Bahnsen has been Chief Executive Officer and Director of the Northern Lights Resources since November 14, 2017. Mr. Bahnsen served as the President of Strata Minerals Inc. from August 18, 2015 to ...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD117.81K) is about average for companies of similar size in the Canadian market ($USD154.48K).

Compensation vs Earnings: Jason's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Albert Timcke
Executive Chairman & President4.9yrsCA$126.37k5.35% CA$169.0k
Jason Bahnsen
CEO & Executive Director2.3yrsCA$156.37k2.59% CA$82.0k
Cheuk Wa Ho
Chief Financial Officer2.2yrsCA$21.77kno data
Gary Artmont
Head Geologist2.3yrsno datano data

2.3yrs

Average Tenure

57yo

Average Age

Experienced Management: NLR's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Albert Timcke
Executive Chairman & President4.9yrsCA$126.37k5.35% CA$169.0k
Jason Bahnsen
CEO & Executive Director2.3yrsCA$156.37k2.59% CA$82.0k
Richard Kelertas
Independent Director2.2yrsCA$24.43k0.67% CA$21.3k
Graham Keevil
Non-Executive Director4.9yrsCA$24.43k2.29% CA$72.5k
Gordon Tainton
Independent Director2.2yrsCA$24.43kno data

2.3yrs

Average Tenure

57yo

Average Age

Experienced Board: NLR's board of directors are not considered experienced ( 2.3 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: NLR 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 47.3%.


Top Shareholders

Company Information

Northern Lights Resources Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Northern Lights Resources Corp.
  • Ticker: NLR
  • Exchange: CNSX
  • Founded: 2007
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$3.161m
  • Shares outstanding: 63.21m
  • Website: https://www.northernlightsresources.com

Location

  • Northern Lights Resources Corp.
  • 355 Burrard Street
  • Suite 1000
  • Vancouver
  • British Columbia
  • V6C 2G8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NLRCNSX (Canadian National Stock Exchange)YesCommon SharesCACADOct 2018

Biography

Northern Lights Resources Corp. engages in the acquisition, evaluation, and exploration of mineral resource properties in the United States, East Asia, and Canada. It explores for silver, zinc, and lead deposits. The company’s primary asset is the Medicine Springs Project located on the eastern edge of the Carlin Trend in southeastern Elko County, Nevada. The company was formerly known as Northern Lights Uranium Corp. and changed its name to Northern Lights Resources Corp. in April 2008. Northern Lights Resources Corp. 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 Analysis2020/02/25 01:52
End of Day Share Price2020/02/24 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


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.