TSX:FAR

Stock Analysis Report

Foraco International

Executive Summary

Foraco International SA provides drilling services to mining and water projects worldwide.


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Foraco International's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.6%

FAR

3.5%

CA Metals and Mining

-1.5%

CA Market


1 Year Return

-12.6%

FAR

6.8%

CA Metals and Mining

2.5%

CA Market

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

Return vs Market: FAR underperformed the Canadian Market which returned 2.5% over the past year.


Shareholder returns

FARIndustryMarket
7 Day-2.6%3.5%-1.5%
30 Day-14.6%5.0%-0.7%
90 Day20.6%14.3%1.8%
1 Year-12.6%-12.6%7.5%6.8%5.7%2.5%
3 Year2.7%2.7%2.8%1.0%16.8%6.2%
5 Year-24.0%-24.0%29.1%25.4%32.0%12.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Foraco International 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: FAR (CA$0.38) is trading below our estimate of fair value (CA$2.28)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: FAR is good value based on its PB Ratio (0.8x) compared to the CA Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Foraco International 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 Foraco International 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 Foraco International performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FAR is currently unprofitable.

Growing Profit Margin: FAR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FAR is unprofitable, but has reduced losses over the past 5 years at a rate of 10.2% per year.

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

Earnings vs Industry: FAR 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: FAR has a negative Return on Equity (-8.8%), as it is currently unprofitable.


Next Steps

Financial Health

How is Foraco International's financial position?


Financial Position Analysis

Short Term Liabilities: FAR's short term assets ($90.3M) exceed its short term liabilities ($55.5M).

Long Term Liabilities: FAR's short term assets ($90.3M) do not cover its long term liabilities ($135.4M).


Debt to Equity History and Analysis

Debt Level: FAR's debt to equity ratio (380.5%) is considered high.

Reducing Debt: FAR's debt to equity ratio has increased from 77.3% to 380.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: FAR's debt is not covered by short term assets (assets are 0.6x 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: Whilst unprofitable FAR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FAR is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -27.1% per year.


Next Steps

Dividend

What is Foraco International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if FAR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FAR is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FAR'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?

17.0yrs

Average management tenure


CEO

Daniel Simoncini (61yo)

22.7yrs

Tenure

US$1,344,156

Compensation

Mr. Daniel Simoncini has been the Chief Executive Officer of Foraco International SA since June 1997. Mr. Simoncini held various senior management positions with other entities. From 1994 to 1997, he serve ...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD960.89K) is above average for companies of similar size in the Canadian market ($USD154.48K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Simoncini
Chairman & CEO22.7yrsUS$1.34m15.1% $5.1m
Jean-Pierre Charmensat
Vice CEO22.7yrsUS$719.42k22.9% $7.7m
Timothy Bremner
Senior Vice President of North America0yrsUS$406.30kno data
Peter Jacobs
Senior Vice President of Asia Pacific0yrsUS$369.17kno data
Olivier Demesy
Vice President of Brazil9.1yrsUS$824.05kno data
Laurence Mahieux
Corporate Counsel11.3yrsno datano data
Fabien Sevestre
Deputy Chief Financial Officer0yrsno datano data
Philippe Violle
Vice President of Engineering & Technical Services0yrsUS$156.16kno data

17.0yrs

Average Tenure

Experienced Management: FAR's management team is seasoned and experienced (17 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Simoncini
Chairman & CEO22.7yrsUS$1.34m15.1% $5.1m
Jean-Pierre Charmensat
Vice CEO22.7yrsUS$719.42k22.9% $7.7m
Bruno Y. Chabas
Independent Director12.5yrsUS$20.00k0.31% $105.0k
W. Holmes
Lead Director9.8yrsUS$20.00k0.45% $151.1k
Jorge Hurtado Garreton
Independent Director9.8yrsUS$20.00kno data

12.5yrs

Average Tenure

68yo

Average Age

Experienced Board: FAR's board of directors are seasoned and experienced ( 12.5 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Foraco International SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Foraco International SA
  • Ticker: FAR
  • Exchange: TSX
  • Founded: 1997
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$33.704m
  • Shares outstanding: 89.88m
  • Website: https://www.foraco.com

Number of Employees


Location

  • Foraco International SA
  • 26, Plage de l’Estaque
  • Marseille
  • Provence-Alpes-Côte d'Azur
  • 13016
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FARTSX (The Toronto Stock Exchange)YesOrdinary SharesCACADJul 2007
FRAC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2007

Biography

Foraco International SA provides drilling services to mining and water projects worldwide. It operates through Mining and Water segments. The company offers its drilling services in the exploration, development, and production phases of mining projects. It also drills wells for drinking, irrigation, and industrial water; and undertakes a range of projects, including large scale village water drilling programs, specialized drilling projects to access mineral water using sanitary protection methods, and large diameter well fields for residential supply in urban environments, as well as provides inspection, servicing, and rehabilitation services for existing wells. As of December 31, 2017, it operated 302 drill rigs. The company was founded in 1997 and is headquartered in Marseille, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:34
End of Day Share Price2020/02/24 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.