TSX:AR

Stock Analysis Report

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Executive Summary

Argonaut Gold Inc. engages in the mining, mine development, and mineral exploration activities in North America. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.8%

AR

-0.9%

CA Metals and Mining

-1.0%

CA Market


1 Year Return

28.8%

AR

54.1%

CA Metals and Mining

-4.3%

CA Market

Return vs Industry: AR underperformed the Canadian Metals and Mining industry which returned 54.2% over the past year.

Return vs Market: AR exceeded the Canadian Market which returned -4.2% over the past year.


Shareholder returns

ARIndustryMarket
7 Day-1.8%-0.9%-1.0%
30 Day-4.9%-1.2%1.3%
90 Day8.3%-1.2%1.9%
1 Year28.8%28.8%55.3%54.1%-0.9%-4.3%
3 Year17.2%17.2%58.2%55.1%6.4%-4.0%
5 Year95.0%95.0%151.2%143.4%33.3%12.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AR (CA$2.73) is trading below our estimate of fair value (CA$8)

Significantly Below Fair Value: AR is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AR is good value based on its PB Ratio (0.7x) compared to the CA Metals and Mining industry average (2.8x).


Next Steps

Future Growth

How is Argonaut Gold forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

55.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

Revenue vs Market: AR's revenue (17.4% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: AR's revenue (17.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AR's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has Argonaut Gold performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AR is currently unprofitable.

Growing Profit Margin: AR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AR is unprofitable, but has reduced losses over the past 5 years at a rate of 19.8% per year.

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

Earnings vs Industry: AR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (78.5%).


Return on Equity

High ROE: AR has a negative Return on Equity (-23.74%), as it is currently unprofitable.


Next Steps

Financial Health

How is Argonaut Gold's financial position?


Financial Position Analysis

Short Term Liabilities: AR's short term assets ($116.6M) exceed its short term liabilities ($50.5M).

Long Term Liabilities: AR's short term assets ($116.6M) exceed its long term liabilities ($33.1M).


Debt to Equity History and Analysis

Debt Level: AR's debt to equity ratio (1.2%) is considered satisfactory.

Reducing Debt: AR's debt to equity ratio has increased from 0.3% to 1.2% over the past 5 years.


Balance Sheet


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: Whilst unprofitable AR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 14.5% per year.


Next Steps

Dividend

What is Argonaut Gold current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate AR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AR's dividends per share have been stable in the past.

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

6.9yrs

Average management tenure


CEO

Pete Dougherty

10.83yrs

Tenure

US$1,379,606

Compensation

Mr. Peter C. Dougherty, also known as Pete, is the President and Chief Executive Officer of Argonaut Gold Inc. and formerly served as the Vice-President of Finance and Chief Financial Officer of Meridian G ...


CEO Compensation Analysis

Compensation vs Market: Pete's total compensation ($USD1.38M) is about average for companies of similar size in the Canadian market ($USD1.32M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Dougherty
President10.83yrsUS$1.38m0.76%
$ 6.1m
David Ponczoch
CFO & Corporate Secretary6.92yrsUS$791.66k0.16%
$ 1.3m
W. Rose
Vice President of Technical Services7.5yrsUS$660.53k0.14%
$ 1.1m
Daniel Symons
Vice President of Investor Relations4.5yrsUS$508.38k0.036%
$ 289.1k
Brian Arkell
Vice President of Exploration2.75yrsUS$452.94k0.012%
$ 95.0k

6.9yrs

Average Tenure

Experienced Management: AR's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Dougherty
President10.83yrsUS$1.38m0.76%
$ 6.1m
Ian Atkinson
Independent Director4.42yrsUS$135.00k0.028%
$ 226.3k
Stephen Lang
Director0.25yrno data0.013%
$ 104.7k
Christopher Lattanzi
Independent Director10.83yrsUS$140.00k0.046%
$ 365.6k
Peter Mordaunt
Independent Director9.75yrsUS$138.00k0.044%
$ 355.9k
Paula Rogers
Director0.25yrno data0.015%
$ 122.5k
Dale Peniuk
Independent Director10.83yrsUS$143.00k0.046%
$ 365.6k
James Kofman
Independent Chairman of the Board4.83yrsUS$258.00k0.095%
$ 763.9k
Audra Walsh
Independent Director4.5yrsUS$135.00k0.038%
$ 302.3k

4.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: AR's board of directors are considered experienced (4.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 63.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Argonaut Gold Inc.
  • Ticker: AR
  • Exchange: TSX
  • Founded:
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$802.037m
  • Shares outstanding: 293.79m
  • Website: https://www.argonautgold.com

Number of Employees


Location

  • Argonaut Gold Inc.
  • 9600 Prototype Court
  • Reno
  • Nevada
  • 89521
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2009
A8UDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2009
ARNG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2009
0UIKLSE (London Stock Exchange)YesCommon SharesGBCADDec 2009

Biography

Argonaut Gold Inc. engages in the mining, mine development, and mineral exploration activities in North America. It primarily explores for gold and silver deposits. The company holds interests in the produ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 23:31
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.