Executive Summary
Foraco International SA provides drilling services to mining and water projects worldwide.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
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
| FAR | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.6% | 3.5% | -1.5% |
| 30 Day | -14.6% | 5.0% | -0.7% |
| 90 Day | 20.6% | 14.3% | 1.8% |
| 1 Year | -12.6%-12.6% | 7.5%6.8% | 5.7%2.5% |
| 3 Year | 2.7%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
12 hours ago | Simply Wall St
What Kind Of Shareholder Owns Most Foraco International SA (TSE:FAR) Stock?3 weeks ago | Simply Wall St
Should You Worry About Foraco International SA's (TSE:FAR) CEO Salary Level?1 month ago | Simply Wall St
Does Foraco International SA (TSE:FAR) Have A High Beta?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
- Examine whether Foraco International is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Foraco International competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Materials industry.
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 22.7yrs | US$1.34m | 15.1% $5.1m | |
| Vice CEO | 22.7yrs | US$719.42k | 22.9% $7.7m | |
| Senior Vice President of North America | 0yrs | US$406.30k | no data | |
| Senior Vice President of Asia Pacific | 0yrs | US$369.17k | no data | |
| Vice President of Brazil | 9.1yrs | US$824.05k | no data | |
| Corporate Counsel | 11.3yrs | no data | no data | |
| Deputy Chief Financial Officer | 0yrs | no data | no data | |
| Vice President of Engineering & Technical Services | 0yrs | US$156.16k | no data |
17.0yrs
Average Tenure
Experienced Management: FAR's management team is seasoned and experienced (17 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 22.7yrs | US$1.34m | 15.1% $5.1m | |
| Vice CEO | 22.7yrs | US$719.42k | 22.9% $7.7m | |
| Independent Director | 12.5yrs | US$20.00k | 0.31% $105.0k | |
| Lead Director | 9.8yrs | US$20.00k | 0.45% $151.1k | |
| Independent Director | 9.8yrs | US$20.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FAR | TSX (The Toronto Stock Exchange) | Yes | Ordinary Shares | CA | CAD | Jul 2007 |
| FRAC.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jul 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/25 00:34 |
| End of Day Share Price | 2020/02/24 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.