TSX:FAR

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Foraco International

Executive Summary

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


Snowflake Analysis

Good value with acceptable track record.


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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FAR's weekly volatility has decreased from 12% to 6% over the past year.


Market Performance


7 Day Return

-9.1%

FAR

-5.8%

CA Metals and Mining

-0.5%

CA Market


1 Year Return

16.3%

FAR

33.6%

CA Metals and Mining

1.7%

CA Market

Return vs Industry: FAR underperformed the Canadian Metals and Mining industry which returned 37.1% over the past year.

Return vs Market: FAR exceeded the Canadian Market which returned 2.6% over the past year.


Shareholder returns

FARIndustryMarket
7 Day-9.1%-5.8%-0.5%
30 Day-2.0%-0.5%3.4%
90 Day-3.8%-5.7%12.3%
1 Year16.3%16.3%34.7%33.6%5.3%1.7%
3 Year29.9%29.9%36.2%33.4%13.0%2.3%
5 Year132.6%132.6%176.5%167.8%66.2%40.7%

Long-Term 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$0.5) is trading below our estimate of fair value (CA$10.56)

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 (7.7x) compared to the CA Metals and Mining industry average (17.6x).

PE vs Market: FAR is good value based on its PE Ratio (7.7x) compared to the Canadian market (16.9x).


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 overvalued based on its PB Ratio (4.2x) compared to the CA Metals and Mining industry average (3x).


Next Steps

Future Growth

How is Foraco International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

28.2%

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?

33.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FAR has high quality earnings.

Growing Profit Margin: FAR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FAR has become profitable over the past 5 years, growing earnings by 33.8% per year.

Accelerating Growth: FAR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FAR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (71.8%).


Return on Equity

High ROE: Whilst FAR's Return on Equity (59.26%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Foraco International's financial position?


Financial Position Analysis

Short Term Liabilities: FAR's short term assets ($93.4M) exceed its short term liabilities ($49.8M).

Long Term Liabilities: FAR's short term assets ($93.4M) do not cover its long term liabilities ($151.9M).


Debt to Equity History and Analysis

Debt Level: FAR's debt to equity ratio (1153.4%) is considered high.

Reducing Debt: FAR's debt to equity ratio has increased from 111.7% to 1153.4% over the past 5 years.

Debt Coverage: FAR's debt is not well covered by operating cash flow (18.8%).

Interest Coverage: FAR's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

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?

17.9yrs

Average management tenure


CEO

Daniel Simoncini (62 yo)

23.58yrs

Tenure

US$1,266,145

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 ($USD708.23K) is above average for companies of similar size in the Canadian market ($USD154.03K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Simoncini
Chairman & CEO23.58yrsUS$1.27m15.11%
$ 6.9m
Jean-Pierre Charmensat
Vice CEO23.58yrsUS$2.19m22.92%
$ 10.5m
Timothy Bremner
Senior Vice President of North Americano dataUS$387.47kno data
Peter Jacobs
Senior Vice President of Asia Pacificno dataUS$333.60kno data
Olivier Demesy
Vice President of Brazil10yrsUS$1.11mno data
Laurence Mahieux
Corporate Counsel12.25yrsno datano data
Fabien Sevestre
Deputy Chief Financial Officerno datano datano data
Philippe Violle
Vice President of Engineering & Technical Servicesno dataUS$156.16kno data

17.9yrs

Average Tenure

Experienced Management: FAR's management team is seasoned and experienced (17.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Simoncini
Chairman & CEO23.58yrsUS$1.27m15.11%
$ 6.9m
Jean-Pierre Charmensat
Vice CEO23.58yrsUS$2.19m22.92%
$ 10.5m
Bruno Y. Chabas
Independent Director13.42yrsUS$20.00k0.31%
$ 142.8k
W. Holmes
Independent Lead Director10.67yrsUS$20.00k0.45%
$ 205.5k
Jorge Hurtado Garreton
Independent Director10.67yrsUS$20.00kno data

13.4yrs

Average Tenure

69yo

Average Age

Experienced Board: FAR's board of directors are seasoned and experienced ( 13.4 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 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: 1961
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$45.795m
  • Shares outstanding: 89.79m
  • 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, together with its subsidiaries, provides drilling services worldwide. It operates through Mining and Water segments. The company offers its drilling services in the exploration, de...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/15 23:05
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
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.