CNSX:RZR

Stock Analysis Report

Razore Rock Resources

Executive Summary

Razore Rock Resources Inc. focuses on the acquisition, exploration, and development of mineral resources in Canada.

Rewards

Earnings have grown 21.5% per year over the past 5 years

Risk Analysis

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (CA$519K)

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



Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

RZR

4.6%

CA Metals and Mining

0.2%

CA Market


1 Year Return

n/a

RZR

4.5%

CA Metals and Mining

4.9%

CA Market

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

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


Shareholder returns

RZRIndustryMarket
7 Day0%4.6%0.2%
30 Day0%3.7%0.4%
90 Dayn/a10.7%3.7%
1 Yearn/a5.1%4.5%8.2%4.9%
3 Year-76.7%-76.7%-5.4%-7.0%15.9%5.5%
5 Yearn/a26.4%22.6%33.8%14.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.15x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RZR is overvalued based on its PB Ratio (9.1x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

15.8%

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 Razore Rock 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 Razore Rock Resources performed over the past 5 years?

21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RZR is currently unprofitable.

Growing Profit Margin: RZR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RZR is unprofitable, but has reduced losses over the past 5 years at a rate of 21.5% per year.

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

Earnings vs Industry: RZR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (10.1%).


Return on Equity

High ROE: RZR has a negative Return on Equity (-38.53%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Razore Rock Resources's financial position?


Financial Position Analysis

Short Term Liabilities: RZR's short term assets (CA$124.3K) exceed its short term liabilities (CA$25.4K).

Long Term Liabilities: RZR has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: RZR's debt to equity ratio (15.7%) is considered satisfactory.

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


Balance Sheet

Inventory Level: RZR has a low level of unsold assets or inventory.

Debt Coverage by Assets: RZR's debt is covered by short term assets (assets are 6.8x 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: RZR has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: RZR has sufficient cash runway for 1.2 years if free cash flow continues to reduce at historical rates of -32.8% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if RZR'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 RZR'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 management tenure


CEO

Ken Ralfs (72yo)

0.8yrs

Tenure

0

Mr. Kenneth Richard Ralfs, also known as Ken, B.Sc., Geo, has been Chief Financial Officer of Lightspeed Discoveries Inc. since June 27, 2019 and serves as its Corporate Secretary. He has been President an ...


Leadership Team

NamePositionTenureCompensationOwnership
William Johnstone
Corporate Secretary18.8yrsno datano data
Kenneth Ralfs
President0.8yrsno datano data
Robert Nordin
Chief Financial Officer1.3yrsno datano data
Gary Frank Zak
Vice President of Corporate Development6yrsno datano data

1.3yrs

Average Tenure

63yo

Average Age

Experienced Management: RZR's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Johnstone
Corporate Secretary18.8yrsno datano data
Kenneth Ralfs
President0.8yrsno datano data
Frank van de Water
Independent Director9.2yrsno datano data

9.2yrs

Average Tenure

72yo

Average Age

Experienced Board: RZR's board of directors are considered experienced (9.2 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.


Top Shareholders

Company Information

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


Key Information

  • Name: Razore Rock Resources Inc.
  • Ticker: RZR
  • Exchange: CNSX
  • Founded:
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$518.822k
  • Shares outstanding: 7.41m
  • Website: https://null

Location

  • Razore Rock Resources Inc.
  • 22 Adelaide Street West
  • Suite 3600
  • Toronto
  • Ontario
  • M5H 4E3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RZRCNSX (Canadian National Stock Exchange)YesCommon SharesCACADOct 2015

Biography

Razore Rock Resources Inc. focuses on the acquisition, exploration, and development of mineral resources in Canada. It primarily explores for gold deposits. The company 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 Analysis2020/02/19 01:33
End of Day Share Price2019/11/25 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.