TSX:ALO

Stock Analysis Report

Executive Summary

Alio Gold Inc., through its subsidiaries, engages in the acquisition, exploration, development, and operation of mineral resource properties.

Rewards

Earnings are forecast to grow 107.14% per year

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been diluted in the past year

Does not have a meaningful market cap (CA$70M)



Snowflake Analysis

Excellent balance sheet with moderate growth potential.

Share Price & News

How has Alio Gold's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.8%

ALO

0.2%

CA Metals and Mining

-0.4%

CA Market


1 Year Return

-15.3%

ALO

22.8%

CA Metals and Mining

10.5%

CA Market

Return vs Industry: ALO underperformed the Canadian Metals and Mining industry which returned 22.8% over the past year.

Return vs Market: ALO underperformed the Canadian Market which returned 10.5% over the past year.


Shareholder returns

ALOIndustryMarket
7 Day3.8%0.2%-0.4%
30 Day0%1.3%0.8%
90 Day-10.8%-3.3%1.7%
1 Year-15.3%-15.3%23.8%22.8%14.1%10.5%
3 Year-80.5%-80.5%6.7%4.7%16.1%5.6%
5 Year-92.8%-92.8%34.6%30.4%41.2%20.4%

Price Volatility Vs. Market

How volatile is Alio Gold's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alio Gold undervalued compared to its fair value and its price relative to the market?

0.43x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ALO is good value based on its PB Ratio (0.4x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Alio Gold forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

107.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: ALO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ALO's is expected to become profitable in the next 3 years.

Revenue vs Market: ALO's revenue is expected to decline over the next 3 years (-9.9% per year).

High Growth Revenue: ALO's revenue is forecast to decline over the next 3 years (-9.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ALO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Alio Gold performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALO is currently unprofitable.

Growing Profit Margin: ALO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ALO is unprofitable, but has reduced losses over the past 5 years at a rate of 14.2% per year.

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

Earnings vs Industry: ALO is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (3.9%).


Return on Equity

High ROE: ALO has a negative Return on Equity (-117.24%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alio Gold's financial position?


Financial Position Analysis

Short Term Liabilities: ALO's short term assets ($80.7M) exceed its short term liabilities ($35.5M).

Long Term Liabilities: ALO's short term assets ($80.7M) exceed its long term liabilities ($52.1M).


Debt to Equity History and Analysis

Debt Level: ALO's debt to equity ratio (6.1%) is considered satisfactory.

Reducing Debt: ALO's debt to equity ratio has reduced from 7.7% to 6.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ALO's debt is covered by short term assets (assets are 10.6x 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: ALO has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ALO has sufficient cash runway for 1.825979 years if free cash flow continues to reduce at historical rates of -69.2% each year.


Next Steps

Dividend

What is Alio Gold's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

What is the CEO of Alio Gold's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Mark Backens (57yo)

0.8yrs

Tenure

US$184,466

Compensation

Mr. Mark D. Backens, B.SC., P. Geo., serves as President and Chief Executive Officer of Alio Gold Inc. since March 2019. Mr. Backens has been a Director of Alio Gold Inc. since May 26, 2015. He served as t ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD139.54K) is about average for companies of similar size in the Canadian market ($USD136.16K).

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


Management Age and Tenure

2.7yrs

Average Tenure

57yo

Average Age

Experienced Management: ALO's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

57.5yo

Average Age

Experienced Board: ALO's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$20,25013 Jun 19
Mark Backens
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceUS$0.81

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 45.1%.


Management Team

  • Francisco Bonillas Zepeda (61yo)

    • Tenure: 2.7yrs
    • Compensation: US$1.21m
  • Mark Backens (57yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$184.47k
  • Luc Lessard (55yo)

    Consultant

    • Tenure: 3.6yrs
    • Compensation: US$70.20k
  • Gillian K. Kearvell

    Consultant

    • Tenure: 0yrs
  • Leslie Kapusianyk

    Corporate Counsel & Corporate Secretary

    • Tenure: 11.3yrs
  • Taj Singh

    Vice President of Engineering

    • Tenure: 7.3yrs
    • Compensation: US$373.61k
  • Ian Harcus

    Vice President of Finance & Acting CFO

    • Tenure: 1.3yrs
    • Compensation: US$643.50k
  • Paul Jones

    Senior Vice President of Corporate Development

    • Tenure: 0.2yrs

Board Members

  • Steve Lang (63yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$150.00k
  • David Whittle (54yo)

    Independent Director

    • Tenure: 0.5yrs
  • George Brack (58yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$167.50k
  • Paula Rogers (50yo)

    Independent Chairman

    • Tenure: 0.3yrs
    • Compensation: US$162.00k
  • Mark Backens (57yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$184.47k
  • John Mansanti (64yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$48.33k

Company Information

Alio Gold Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alio Gold Inc.
  • Ticker: ALO
  • Exchange: TSX
  • Founded: 2005
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$69.706m
  • Shares outstanding: 86.06m
  • Website: https://www.aliogold.com

Number of Employees


Location

  • Alio Gold Inc.
  • 700 West Pender Street
  • Suite 507
  • Vancouver
  • British Columbia
  • V6C 1G8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALOTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 2006
ALOAMEX (NYSE MKT LLC)YesCommon SharesUSUSDJul 2006
T66BDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2006
0UH5LSE (London Stock Exchange)YesCommon SharesGBCADJul 2006

Biography

Alio Gold Inc., through its subsidiaries, engages in the acquisition, exploration, development, and operation of mineral resource properties. The company primarily mines for gold and silver. It holds 100%  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 23:54
End of Day Share Price2019/12/06 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.