TSX:MQR

Stock Analysis Report

Executive Summary

Monarch Gold Corporation engages in the acquisition, exploration, and development of mining properties in Canada.

Rewards

PE ratio (14.2x) is below the Canadian market (15.8x)

Became profitable this year

Risk Analysis

High level of non-cash earnings

Shareholders have been diluted in the past year

Does not have a meaningful market cap (CA$54M)



Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has Monarch Gold's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.8%

MQR

0.4%

CA Metals and Mining

1.6%

CA Market


1 Year Return

-2.4%

MQR

28.4%

CA Metals and Mining

10.0%

CA Market

Return vs Industry: MQR underperformed the Canadian Metals and Mining industry which returned 26.9% over the past year.

Return vs Market: MQR underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

MQRIndustryMarket
7 Day-6.8%0.4%1.6%
30 Day5.1%3.5%2.7%
90 Day-6.8%8.8%6.4%
1 Year-2.4%-2.4%29.3%28.4%13.5%10.0%
3 Year-56.4%-56.4%-0.3%-2.1%17.5%6.8%
5 Year86.4%86.4%28.5%24.4%36.6%16.5%

Price Volatility Vs. Market

How volatile is Monarch Gold's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Monarch Gold undervalued compared to its fair value and its price relative to the market?

14.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MQR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MQR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MQR is good value based on its PE Ratio (14.2x) compared to the Metals and Mining industry average (17.3x).

PE vs Market: MQR is good value based on its PE Ratio (14.2x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MQR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MQR is good value based on its PB Ratio (1.1x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

15.7%

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 Monarch Gold 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 Monarch Gold performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MQR has a high level of non-cash earnings.

Growing Profit Margin: MQR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MQR has become profitable over the past 5 years, growing earnings by 8.3% per year.

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

Earnings vs Industry: MQR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-1.4%).


Return on Equity

High ROE: MQR's Return on Equity (7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

  • Explore strong past performing companies in the Materials industry.

Financial Health

How is Monarch Gold's financial position?


Financial Position Analysis

Short Term Liabilities: MQR's short term assets (CA$11.9M) exceed its short term liabilities (CA$5.0M).

Long Term Liabilities: MQR's short term assets (CA$11.9M) do not cover its long term liabilities (CA$21.9M).


Debt to Equity History and Analysis

Debt Level: MQR's debt to equity ratio (13.4%) is considered satisfactory.

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

Debt Coverage: MQR's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: MQR's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: MQR's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is Monarch Gold's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.4%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MQR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MQR'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 MQR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MQR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MQR's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Monarch Gold's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Jean-Marc Lacoste 0

7.3yrs

Tenure

CA$464,504

Compensation

Mr. Jean-Marc Lacoste serves as Director at Unigold Inc. since July 2019. He has been the Chief Executive Officer and President of Monarch Gold Corporation (Monarques Gold Corporation) since October 10, 20 ...


CEO Compensation Analysis

Compensation vs Market: Jean-Marc's total compensation ($USD355.53K) is above average for companies of similar size in the Canadian market ($USD165.67K).

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


Management Age and Tenure

3.3yrs

Average Tenure

Experienced Management: MQR's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

64yo

Average Age

Experienced Board: MQR's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: MQR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$11,00013 Jan 20
Mathieu Séguin
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares50,000
Max PriceCA$0.22
BuyCA$10,94606 Nov 19
Laurence Gaborit
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceCA$0.22
BuyCA$5,04031 Oct 19
Laurence Gaborit
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares24,000
Max PriceCA$0.21
BuyCA$20,77022 Oct 19
Mathieu Séguin
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares100,000
Max PriceCA$0.21
BuyCA$63021 Oct 19
Michel Bouchard
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares3,000
Max PriceCA$0.21
BuyCA$24,52813 Sep 19
Mathieu Séguin
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares100,000
Max PriceCA$0.25
SellCA$53,51115 Aug 19
Jean-Marc Lacoste
EntityIndividual
Role
Chief Executive Officer
President
Shares200,000
Max PriceCA$0.28
BuyCA$11,00017 Jul 19
Mathieu Séguin
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares50,000
Max PriceCA$0.22
BuyCA$10,50029 May 19
Mathieu Séguin
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares50,000
Max PriceCA$0.21
SellCA$7,09503 May 19
Jean-Marc Lacoste
EntityIndividual
Role
Chief Executive Officer
President
Shares33,000
Max PriceCA$0.22
BuyCA$7,09503 May 19
Jean-Marc Lacoste
EntityIndividual
Role
Chief Executive Officer
President
Shares33,000
Max PriceCA$0.22
BuyCA$7,70001 May 19
Mathieu Séguin
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares35,000
Max PriceCA$0.22
BuyCA$16,50018 Apr 19
Christian Pichette
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceCA$0.33
BuyCA$15,54915 Apr 19
Mathieu Séguin
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares65,000
Max PriceCA$0.24
BuyCA$25,00009 Apr 19
Mathieu Séguin
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares100,000
Max PriceCA$0.25

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.8%.


Management Team

  • Guy Bourassa (61yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: CA$63.45k
  • Lucie Desjardins

    Director of Legal Services & Corporate Secretary

    • Tenure: 2.1yrs
  • Jean-Marc Lacoste

    President

    • Tenure: 7.3yrs
    • Compensation: CA$464.50k
  • Donald Trudel

    Chief Geologist for Croinor Gold Project

    • Tenure: 3.6yrs
  • Marc-André Lavergne

    Vice President of Operations & Community Relations

    • Tenure: 2.3yrs
    • Compensation: CA$342.28k
  • Alain Levesque

    CFO, Chief Management Financial & VP of Finance

    • Tenure: 4.1yrs
    • Compensation: CA$279.72k
  • Ronald Leber

    Chief Exploration Geologist

    • Tenure: 3yrs
  • Mathieu Séguin

    Vice President of Corporate Development

    • Tenure: 0.9yrs

Board Members

  • Michel Baril (64yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: CA$74.95k
  • Guy Bourassa (61yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: CA$63.45k
  • Christian Pichette

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: CA$67.45k
  • Michel Bouchard (65yo)

    Independent Chairman of the Board

    • Tenure: 3.5yrs
    • Compensation: CA$101.23k
  • Jean-Marc Lacoste

    President

    • Tenure: 7.3yrs
    • Compensation: CA$464.50k
  • Laurie Gaborit

    Independent Director

    • Tenure: 0.3yrs

Company Information

Monarch Gold Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Monarch Gold Corporation
  • Ticker: MQR
  • Exchange: TSX
  • Founded: 2011
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$53.824m
  • Shares outstanding: 262.56m
  • Website: https://www.monarquesgold.com

Number of Employees


Location

  • Monarch Gold Corporation
  • 68 avenue de la Gare
  • Suite 205
  • Saint-Sauveur
  • Quebec
  • J0R 1R0
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MQRTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2011
MR7DB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2011
MRQR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2011

Biography

Monarch Gold Corporation engages in the acquisition, exploration, and development of mining properties in Canada. The company owns approximately 300 square kilometers of gold properties, including the Wasamac deposit; the Beaufor Mine; the Croinor Gold, the Fayolle, the McKenzie Break, and the Swanson advanced projects; and the Camflo and Beacon mills, as well as other promising exploration projects located in Quebec. It also offers custom milling services through its 1,600 tonne-per-day Camflo mill. The company was formerly known as Monarques Gold Corporation and changed its name to Monarch Gold Corporation in January 2019. Monarch Gold Corporation was incorporated in 2011 and is headquartered in Saint-Sauveur, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/18 00:07
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.