TSX:MPVD

Stock Analysis Report

Mountain Province Diamonds

Executive Summary

Mountain Province Diamonds Inc., through its subsidiaries, focuses on the mining and marketing of rough diamonds worldwide.


Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

How has Mountain Province Diamonds's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.3%

MPVD

-6.0%

CA Metals and Mining

-6.2%

CA Market


1 Year Return

-24.4%

MPVD

2.2%

CA Metals and Mining

-2.0%

CA Market

Return vs Industry: MPVD underperformed the Canadian Metals and Mining industry which returned 2.2% over the past year.

Return vs Market: MPVD underperformed the Canadian Market which returned -2% over the past year.


Shareholder returns

MPVDIndustryMarket
7 Day-7.3%-6.0%-6.2%
30 Day-13.6%-1.0%-5.0%
90 Day-8.1%4.9%-2.8%
1 Year-24.4%-24.4%2.9%2.2%1.1%-2.0%
3 Year-80.2%-80.5%-2.8%-4.5%10.7%0.6%
5 Year-78.0%-78.4%25.0%21.4%27.6%8.9%

Price Volatility Vs. Market

How volatile is Mountain Province Diamonds's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mountain Province Diamonds 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: MPVD (CA$1.02) is trading below our estimate of fair value (CA$5.48)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: MPVD is good value based on its PB Ratio (0.5x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Mountain Province Diamonds forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

111.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPVD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: MPVD is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MPVD's is expected to become profitable in the next 3 years.

Revenue vs Market: MPVD's revenue (11.5% per year) is forecast to grow faster than the Canadian market (4.7% per year).

High Growth Revenue: MPVD's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MPVD's Return on Equity is forecast to be low in 3 years time (3.5%).


Next Steps

Past Performance

How has Mountain Province Diamonds performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MPVD is currently unprofitable.

Growing Profit Margin: MPVD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MPVD is unprofitable, but has reduced losses over the past 5 years at a rate of 8.7% per year.

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

Earnings vs Industry: MPVD is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.8%).


Return on Equity

High ROE: MPVD has a negative Return on Equity (-9.57%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mountain Province Diamonds's financial position?


Financial Position Analysis

Short Term Liabilities: MPVD's short term assets (CA$143.6M) exceed its short term liabilities (CA$50.4M).

Long Term Liabilities: MPVD's short term assets (CA$143.6M) do not cover its long term liabilities (CA$451.2M).


Debt to Equity History and Analysis

Debt Level: MPVD's debt to equity ratio (85.4%) is considered high.

Reducing Debt: Insufficient data to determine if MPVD's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: MPVD's debt is not covered by short term assets (assets are 0.4x 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 MPVD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MPVD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 21.2% per year.


Next Steps

Dividend

What is Mountain Province Diamonds's current dividend yield, its reliability and sustainability?

3.92%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%2.1%markettop25%5.9%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: MPVD's dividend (3.92%) is higher than the bottom 25% of dividend payers in the Canadian market (2.07%).

High Dividend: MPVD's dividend (3.92%) is low compared to the top 25% of dividend payers in the Canadian market (5.91%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MPVD has been paying a dividend for less than 10 years.

Growing Dividend: MPVD has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: Unable to calculate sustainability of dividends as MPVD has not reported any payouts.


Future Payout to Shareholders

Future Dividend Coverage: MPVD is not forecast to pay a dividend in 3 years.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Stuart Brown (55yo)

1.6yrs

Tenure

CA$723,504

Compensation

Mr. Stuart Michael Brown has been President, Chief Executive Officer and Director of Mountain Province Diamonds Inc. since July 1, 2018. Mr. Brown served as the Chief Executive Officer of Firestone Diamond ...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD541.46K) is about average for companies of similar size in the Canadian market ($USD687.59K).

Compensation vs Earnings: Insufficient data to compare Stuart's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Brown
President1.6yrsCA$723.50k0.037% CA$79.6k
Perry Ing
VP of Finance3yrsCA$473.00k0.047% CA$100.0k
Tom McCandless
Vice President of Exploration1.3yrsCA$195.00kno data
Reid Mackie
Vice President of Diamond Marketing4.3yrsCA$525.00k0.036% CA$76.5k
Keyvan Salehi
Vice President of Corporate Development & Technical services1.1yrsno datano data
Jennie Ly
Controller0yrsno datano data

1.6yrs

Average Tenure

55yo

Average Age

Experienced Management: MPVD's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stuart Brown
President1.6yrsCA$723.50k0.037% CA$79.6k
David Whittle
Senior Non Executive Director1.6yrsCA$510.00k0.13% CA$283.0k
Jonathan Christopher Comerford
Non Executive Chairman13.8yrsCA$50.00k0.16% CA$350.4k
William Lamb
Independent Director0.7yrsno datano data
Thomas Peregoodoff
Independent Director0.7yrsno datano data
Karen Goracke
Independent Director3.3yrsCA$35.00k0.026% CA$56.1k
Brett Desmond
Director0.7yrsno data0.17% CA$359.7k

1.6yrs

Average Tenure

52yo

Average Age

Experienced Board: MPVD's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 14.5%.


Top Shareholders

Company Information

Mountain Province Diamonds Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mountain Province Diamonds Inc.
  • Ticker: MPVD
  • Exchange: TSX
  • Founded: 1986
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: CA$214.600m
  • Shares outstanding: 210.39m
  • Website: https://www.mountainprovince.com

Number of Employees


Location

  • Mountain Province Diamonds Inc.
  • TD Canada Trust Tower
  • Brookfield Place
  • Toronto
  • Ontario
  • M5J 2S1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MPVD.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 1988
MPVDTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 1988
MPGDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1988
0V7XLSE (London Stock Exchange)YesCommon SharesGBCADOct 1988

Biography

Mountain Province Diamonds Inc., through its subsidiaries, focuses on the mining and marketing of rough diamonds worldwide. Its primary asset is its 49% interest in the Gahcho Kué diamond mine located in the Northwest Territories, Canada. The company was formerly known as Mountain Province Mining Inc. and changed its name to Mountain Province Diamonds Inc. in October 2000. Mountain Province Diamonds Inc. was founded in 1986 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:35
End of Day Share Price2020/02/27 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.