TSX:BU

Stock Analysis Report

Burcon NutraScience

Executive Summary

Burcon NutraScience Corporation, together with its subsidiary, develops plant proteins and ingredients for use in the food and beverage industries in Canada.

Snowflake

Fundamentals

Flawless balance sheet with high growth potential.

Share Price & News

How has Burcon NutraScience's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-18.3%

BU

-1.5%

CA Chemicals

-0.3%

CA Market


1 Year Return

216.9%

BU

-11.2%

CA Chemicals

4.8%

CA Market

Return vs Industry: BU exceeded the Canadian Chemicals industry which returned -11.2% over the past year.

Return vs Market: BU exceeded the Canadian Market which returned 4.8% over the past year.


Shareholder returns

BUIndustryMarket
7 Day-18.3%-1.5%-0.3%
30 Day-39.8%-3.7%-3.3%
90 Day0%-6.2%-1.6%
1 Year216.9%216.9%-8.1%-11.2%8.5%4.8%
3 Year-66.5%-66.5%-6.9%-12.4%14.8%4.5%
5 Year-56.9%-56.9%-21.2%-29.5%26.6%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Burcon NutraScience 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: BU (CA$1.03) is trading below our estimate of fair value (CA$16.76)

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


Price To Earnings Ratio

PE vs Industry: BU is unprofitable, so we can't compare its PE Ratio to the Chemicals industry average.

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


Price to Book Ratio

PB vs Industry: BU is overvalued based on its PB Ratio (7.5x) compared to the CA Chemicals industry average (1.2x).


Next Steps

Future Growth

How is Burcon NutraScience forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

63.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

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

Revenue vs Market: BU's revenue (65.9% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: BU's revenue (65.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Burcon NutraScience performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BU is unprofitable, but has reduced losses over the past 5 years at a rate of 5.5% per year.

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

Earnings vs Industry: BU is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-25.7%).


Return on Equity

High ROE: BU has a negative Return on Equity (-41.41%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: BU is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: BU is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Burcon NutraScience's financial position?


Financial Position Analysis

Short Term Liabilities: BU's short term assets (CA$7.4M) exceeds its short term liabilities (CA$756.7K)

Long Term Liabilities: BU has no long term liabilities


Debt to Equity History and Analysis

Debt Level: BU is debt free.

Reducing Debt: BU had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if BU's debt is 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: BU has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: BU has sufficient cash runway for 1.794311 years if free cash flow continues to grow at historical rates of 5.1% each year.


Next Steps

Dividend

What is Burcon NutraScience's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if BU'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 BU'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 Burcon NutraScience's salary, the management and board of directors tenure and is there insider trading?

10.1yrs

Average management tenure


CEO

Johann Tergesen (56yo)

0.8yrs

Tenure

CA$285,746

Compensation

Mr. Johann Franz Tergesen, MBA, CPA, CA, serves as the President of Burcon NutraScience Corporation (formerly Burcon Capital Corp.) since September 2000 and serves as the Chief Executive Officer since Janu ...


CEO Compensation Analysis

Compensation vs. Market: Johann has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

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


Management Age and Tenure

10.1yrs

Average Tenure

Experienced Management: BU's management team is seasoned and experienced (10.1 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

76yo

Average Age

Experienced Board: BU's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: BU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$111,34224 Sep 19
David Lorne Tyrrell
EntityIndividual
Role
Chairman of the Board
Chairman & Lead Director
Shares70,055
Max PriceCA$1.59
SellCA$125,00023 Jul 19
Mei Wah Chau
EntityIndividual
Role
Member of the Board of Directors
Director
Shares100,000
Max PriceCA$1.25
SellCA$100,00019 Jul 19
Mei Wah Chau
EntityIndividual
Role
Member of the Board of Directors
Director
Shares100,000
Max PriceCA$1.00
SellCA$40,00012 Jul 19
Mei Wah Chau
EntityIndividual
Role
Member of the Board of Directors
Director
Shares50,000
Max PriceCA$0.80
BuyCA$37,80004 Jul 19
Johann Tergesen
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares56,000
Max PriceCA$0.67
SellCA$31,00028 Jun 19
Mei Wah Chau
EntityIndividual
Role
Member of the Board of Directors
Director
Shares50,000
Max PriceCA$0.62
BuyCA$66,66424 Jun 19
Johann Tergesen
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares125,000
Max PriceCA$0.59
BuyCA$18,75917 Jun 19
David Lorne Tyrrell
EntityIndividual
Role
Chairman of the Board
Chairman & Lead Director
Shares21,556
Max PriceCA$1.91
BuyCA$311,77817 Jan 19
PT International Development Corporation Limited
EntityCompany
Shares1,566,719
Max PriceCA$0.20
SellCA$313,34416 Jan 19
- Yap
EntityIndividual
Shares1,566,719
Max PriceCA$0.20
BuyCA$3,20008 Jan 19
Johann Tergesen
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares20,000
Max PriceCA$0.16
BuyCA$7,05020 Dec 18
Johann Tergesen
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares50,000
Max PriceCA$0.15
BuyCA$19,00118 Dec 18
Johann Tergesen
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares120,000
Max PriceCA$0.17
BuyCA$15,44117 Dec 18
Johann Tergesen
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares70,000
Max PriceCA$0.23

Ownership Breakdown


Management Team

  • Johann Tergesen (56yo)

    President & CEO

    • Tenure: 0.8yrs
    • Compensation: CA$285.75k
  • Dorothy Law (50yo)

    Senior VP of Legal & Corporate Secretary

    • Tenure: 10.1yrs
    • Compensation: CA$145.37k
  • Randy Willardsen

    Senior Vice President of Process

    • Tenure: 17.9yrs
    • Compensation: CA$142.09k
  • Jade Cheng

    CFO & Treasurer

    • Tenure: 0yrs
    • Compensation: CA$185.79k
  • Martin Schweizer

    Vice President of Technical Development

    • Tenure: 10.1yrs
    • Compensation: CA$182.73k

Board Members

  • Paul Westdal

    Director Emeritus

    • Tenure: 0yrs
    • Compensation: CA$48.72k
  • Rosanna Chau (64yo)

    Director

    • Tenure: 20.9yrs
    • Compensation: CA$19.22k
  • Doug Gilpin (80yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: CA$25.22k
  • David Lorne Tyrrell (76yo)

    Chairman & Lead Director

    • Tenure: 0.8yrs
    • Compensation: CA$23.72k
  • Alan Chan

    Director

    • Tenure: 9.5yrs
    • Compensation: CA$18.47k
  • Peter Kappel

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: CA$13.34k
  • David Ju

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: CA$20.06k
  • Calvin Ng

    Director

    • Tenure: 0.3yrs

Company Information

Burcon NutraScience Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Burcon NutraScience Corporation
  • Ticker: BU
  • Exchange: TSX
  • Founded: 1998
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: CA$90.842m
  • Shares outstanding: 88.20m
  • Website: https://www.burcon.ca

Number of Employees


Location

  • Burcon NutraScience Corporation
  • 1946 West Broadway
  • Vancouver
  • British Columbia
  • V6J 1Z2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BUTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 1999
BNEDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1999
BURO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 1999

Biography

Burcon NutraScience Corporation, together with its subsidiary, develops plant proteins and ingredients for use in the food and beverage industries in Canada. The company’s products include CLARISOY, a soy  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:33
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.