Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Alderon Iron Ore. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Alderon Iron Ore's
is considered below, and whether this is a fair price.
Price based on past earnings
Alderon Iron Ore's earnings available for a low price, and how does
this compare to other companies in the same industry?
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 Alderon Iron Ore 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 Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Alderon Iron Ore
expected to grow at an
Unable to compare Alderon Iron Ore's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Alderon Iron Ore's earnings growth to the Canada market average as no estimate data is available.
Unable to compare Alderon Iron Ore's revenue growth to the Canada market average as no estimate data is available.
Unable to determine if Alderon Iron Ore is high growth as no earnings estimate data is available.
Unable to determine if Alderon Iron Ore is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Alderon Iron Ore's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Metals and Mining
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Alderon Iron Ore
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Alderon Iron Ore's finances.
The net worth of a company is the difference between its assets and liabilities.
Alderon Iron Ore's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Alderon Iron Ore's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Alderon Iron Ore's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.5x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Tayfun Eldem, P.Eng., has been President, Chief Executive Officer and Director of Alderon Iron Ore Corp since February 5, 2018. Mr. Eldem served as the Chief Executive officer and President at Alderon Iron Ore Corp. from September 07, 2011 to August 24, 2015. Mr. Eldem served as Vice President of Expansion Projects & Engineering at Iron Ore Company of Canada Inc., and served as its Vice President of Operations & Engineering. He worked for the Iron Ore Company of Canada for more than 20 years. Mr. Eldem was accountable for the development and delivery of a nearly $2.0 billion program of green and brown fields expansion projects. His additional responsibilities included strategic and tactical oversight of clean air and GHG reduction programs and the execution of sustaining capital investments and mineral exploration. Mr. Eldem had been responsible for all of IOC's "Operations" including the mine, process plants, rail and port facilities. He led a team of about 2,000 to deliver two consecutive years of record annual material movement at the mine and record ore processing through the concentrator. He served as the Chairman of Mason Graphite Inc., from February 26, 2013 to February 16, 2016. He served as Vice Chairman of Alderon Iron Ore Corp. from August 24, 2015 to June 16, 2016. He has been a Director of Alderon Iron Ore Corp. since January 23, 2017. He has been a Member of Advisory Board at Canada Jetlines Ltd. since February 5, 2018. He has been an Independent Director at Ridgemont Iron Ore Corp. since July 2012. He served as a Director of Alderon Iron Ore Corp. from September 30, 2011 to June 16, 2016. He served as a Director of Mason Graphite Inc. from November 23, 2012 to February 16, 2016. Mr. Eldem holds a Bachelor of Engineering Degree from Dalhousie University along with Operations & Strategic Management Certificates from Richard Ivey School of Business and London Business School.
Tayfun's compensation has increased whilst company is loss making.
Tayfun's remuneration is about average for companies of similar size in Canada.
Management Team Tenure
Average tenure and age of the
Alderon Iron Ore
management team in years:
The average tenure for the Alderon Iron Ore management team is over 5 years, this suggests they are a seasoned and experienced team.
Co-Founder & Non-Executive Chairman
Chief Financial Officer
General Counsel & Corporate Secretary
Director of Corporate Development
Executive Vice President of Government & Community Affairs
Assistant Corporate Secretary
Consultant & Special Advisor
Board of Directors Tenure
Average tenure and age of the
Alderon Iron Ore
board of directors in years:
The average tenure for the Alderon Iron Ore board of directors is less than 3 years, this suggests a new board.
Should You Have Alderon Iron Ore Corp's (TSE:IRON) In Your Portfolio?
If you are looking to invest in Alderon Iron Ore Corp’s (TSX:IRON), or currently own the stock, then you need to understand its beta in order to understand how it can affect the risk of your portfolio. … View our latest analysis for Alderon Iron Ore An interpretation of IRON's beta Alderon Iron Ore has a beta of 1.77, which means that the percentage change in its stock value will be higher than the entire market in times of booms and busts. … As a result, this aspect of IRON indicates a higher beta than a similar size company with a lower portion of fixed assets on their balance sheet.
Are Alderon Iron Ore Corp's (TSE:IRON) Interest Costs Too High?
How does IRON’s operating cash flow stack up against its debt? … At this current level of debt, IRON currently has CA$10.11M remaining in cash and short-term investments , ready to deploy into the business. … Risk around debt is very low for IRON, and the company also has the ability and headroom to increase debt if needed going forward.Next Steps: IRON’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise.
Alderon Iron Ore Corp. engages in the acquisition, exploration, and development of mineral properties. Its principal asset is the Kami iron ore project that comprises 283 claim units covering an area of 7,075 hectares located in Western Labrador, Canada. The company was formerly known as Alderon Resource Corp. and changed its name to Alderon Iron Ore Corp. in September 2011. Alderon Iron Ore Corp. was incorporated in 1978 and is headquartered in Vancouver, Canada.
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