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FAR

Foraco InternationalTSX:FAR Stock Report

Last Price

CA$1.82

Market Cap

CA$179.3m

7D

4.0%

1Y

271.4%

Updated

26 Jan, 2022

Data

Company Financials +
FAR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health3/6
Dividends0/6

FAR Stock Overview

Foraco International SA, together with its subsidiaries, provides drilling services worldwide.

Foraco International Competitors

Major Drilling Group International

TSX:MDI

CA$694.5m

Geodrill

TSX:GEO

CA$98.3m

Orbit Garant Drilling

TSX:OGD

CA$29.2m

Primoris Services

NasdaqGS:PRIM

US$1.4b

Price History & Performance

Summary of all time highs, changes and price drops for Foraco International
Historical stock prices
Current Share PriceCA$1.82
52 Week HighCA$2.45
52 Week LowCA$0.47
Beta1.35
1 Month Change0.55%
3 Month Change-19.11%
1 Year Change271.43%
3 Year Change304.44%
5 Year Change378.95%
Change since IPO-25.71%

Recent News & Updates

Dec 17
Should You Be Adding Foraco International (TSE:FAR) To Your Watchlist Today?

Should You Be Adding Foraco International (TSE:FAR) To Your Watchlist Today?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Aug 31
Here's Why I Think Foraco International (TSE:FAR) Might Deserve Your Attention Today

Here's Why I Think Foraco International (TSE:FAR) Might Deserve Your Attention Today

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

FARCA Metals and MiningCA Market
7D4.0%0.08%-2.9%
1Y271.4%0.6%16.1%

Return vs Industry: FAR exceeded the Canadian Metals and Mining industry which returned -1.3% over the past year.

Return vs Market: FAR exceeded the Canadian Market which returned 15% over the past year.

Price Volatility

Is FAR's price volatile compared to industry and market?
FAR volatility
FAR Average Weekly Movement8.5%
Metals and Mining Industry Average Movement10.6%
Market Average Movement9.8%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market3.7%

Stable Share Price: FAR is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: FAR's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19972,693Daniel Simoncinihttps://www.foraco.com

Foraco International SA, together with its subsidiaries, provides drilling services worldwide. It operates through Mining and Water segments. The company offers its drilling services to the mining and energy industry, such as exploration, development, and production related underground water drilling services.

Foraco International Fundamentals Summary

How do Foraco International's earnings and revenue compare to its market cap?
FAR fundamental statistics
Market CapUS$141.95m
Earnings (TTM)US$34.82m
Revenue (TTM)US$254.97m

4.1x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FAR income statement (TTM)
RevenueUS$254.97m
Cost of RevenueUS$209.30m
Gross ProfitUS$45.67m
ExpensesUS$10.85m
EarningsUS$34.82m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.35
Gross Margin17.91%
Net Profit Margin13.66%
Debt/Equity Ratio155.6%

How did FAR perform over the long term?

See historical performance and comparison

Valuation

Is Foraco International undervalued compared to its fair value and its price relative to the market?

38.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FAR (CA$1.82) is trading below our estimate of fair value (CA$2.97)

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


Price To Earnings Ratio

PE vs Industry: FAR is good value based on its PE Ratio (4.1x) compared to the Canadian Metals and Mining industry average (10.3x).

PE vs Market: FAR is good value based on its PE Ratio (4.1x) compared to the Canadian market (12.6x).


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's PB Ratio (2.4x) is in line with the CA Metals and Mining industry average.


Future Growth

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

11.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if FAR's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if FAR's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FAR's revenue (11.1% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: FAR's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Foraco International performed over the past 5 years?

65.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FAR has a large one-off gain of $34.6M impacting its September 30 2021 financial results.

Growing Profit Margin: FAR's current net profit margins (13.7%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: FAR has become profitable over the past 5 years, growing earnings by 65.6% per year.

Accelerating Growth: FAR's earnings growth over the past year (656.5%) exceeds its 5-year average (65.6% per year).

Earnings vs Industry: FAR earnings growth over the past year (656.5%) exceeded the Metals and Mining industry 93.2%.


Return on Equity

High ROE: Whilst FAR's Return on Equity (58.83%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Foraco International's financial position?


Financial Position Analysis

Short Term Liabilities: FAR's short term assets ($110.5M) exceed its short term liabilities ($67.1M).

Long Term Liabilities: FAR's short term assets ($110.5M) exceed its long term liabilities ($101.2M).


Debt to Equity History and Analysis

Debt Level: FAR's net debt to equity ratio (121.8%) is considered high.

Reducing Debt: FAR's debt to equity ratio has increased from 119.6% to 155.6% over the past 5 years.

Debt Coverage: FAR's debt is well covered by operating cash flow (31.5%).

Interest Coverage: FAR's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Dividend

What is Foraco International 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 recent payouts.

High Dividend: Unable to evaluate FAR'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 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?

18.9yrs

Average management tenure


CEO

Daniel Simoncini (63 yo)

24.58yrs

Tenure

US$1,526,620

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 ($USD1.53M) is above average for companies of similar size in the Canadian market ($USD158.71K).

Compensation vs Earnings: Daniel's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: FAR's management team is seasoned and experienced (18.9 years average tenure).


Board Members

Experienced Board: FAR's board of directors are seasoned and experienced ( 14.4 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 diluted in the past year, with total shares outstanding growing by 9.7%.


Top Shareholders

Company Information

Foraco International SA's 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
  • Implied Market Cap: CA$179.275m
  • Shares outstanding: 98.50m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 01:02
End of Day Share Price2022/01/25 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.