TSX:OGD

Stock Analysis Report

Orbit Garant Drilling

Executive Summary

Orbit Garant Drilling Inc. provides mineral drilling services in Canada, United States, Central and South America, and West Africa.


Snowflake Analysis

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

How has Orbit Garant Drilling's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OGD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.5%

OGD

-6.0%

CA Metals and Mining

-6.2%

CA Market


1 Year Return

-47.7%

OGD

2.2%

CA Metals and Mining

-2.0%

CA Market

Return vs Industry: OGD underperformed the Canadian Metals and Mining industry which returned 6.3% over the past year.

Return vs Market: OGD underperformed the Canadian Market which returned 0.1% over the past year.


Shareholder returns

OGDIndustryMarket
7 Day2.5%-6.0%-6.2%
30 Day-19.0%-1.0%-5.0%
90 Day-10.0%4.9%-2.8%
1 Year-47.7%-47.7%2.9%2.2%1.1%-2.0%
3 Year-56.2%-56.2%-2.8%-4.5%10.7%0.6%
5 Year-28.3%-28.3%25.0%21.4%27.6%8.9%

Price Volatility Vs. Market

How volatile is Orbit Garant Drilling's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Orbit Garant Drilling undervalued compared to its fair value and its price relative to the market?

0.4x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: OGD is good value based on its PB Ratio (0.4x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Orbit Garant Drilling forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

9.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if OGD's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if OGD's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OGD's revenue (9.2% per year) is forecast to grow faster than the Canadian market (4.7% per year).

High Growth Revenue: OGD's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if OGD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Orbit Garant Drilling performed over the past 5 years?

39.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OGD is currently unprofitable.

Growing Profit Margin: OGD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OGD is unprofitable, but has reduced losses over the past 5 years at a rate of 39% per year.

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

Earnings vs Industry: OGD 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: OGD has a negative Return on Equity (-4.64%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Orbit Garant Drilling's financial position?


Financial Position Analysis

Short Term Liabilities: OGD's short term assets (CA$83.8M) exceed its short term liabilities (CA$26.1M).

Long Term Liabilities: OGD's short term assets (CA$83.8M) exceed its long term liabilities (CA$36.7M).


Debt to Equity History and Analysis

Debt Level: OGD's debt to equity ratio (50.9%) is considered high.

Reducing Debt: OGD's debt to equity ratio has increased from 5.9% to 50.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: OGD's debt is covered by short term assets (assets are 2.2x 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: OGD has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: OGD has less than a year of cash runway if free cash flow continues to reduce at historical rates of -49.3% each year


Next Steps

Dividend

What is Orbit Garant Drilling's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.1%markettop25%5.9%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if OGD'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 OGD'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?

9.3yrs

Average board tenure


CEO

Éric Alexandre 0

9.3yrs

Tenure

CA$637,868

Compensation

Mr. Éric Alexandre, CPA, CMA, has been the Chief Executive Officer of Orbit Garant Drilling, Inc., since October 8, 2010 and serves as its President and also served as its Chief Operating Officer until Oct ...


CEO Compensation Analysis

Compensation vs Market: Éric's total compensation ($USD479.51K) is above average for companies of similar size in the Canadian market ($USD156.06K).

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


Board Members

NamePositionTenureCompensationOwnership
Éric Alexandre
President9.3yrsCA$637.87k1.94% CA$582.8k
Pierre Alexandre
Vice Chairman & VP of Corporate Development9.3yrsCA$348.05k0.11% CA$32.4k
Jean-Yves Laliberté
Independent Director12.1yrsCA$70.38k0.068% CA$20.3k
William Gula
Independent Director9yrsCA$60.72k0.035% CA$10.5k
Paul Carmel
Non-Executive Chairman of the Board4.3yrsCA$99.55k0.32% CA$97.2k

9.3yrs

Average Tenure

Experienced Board: OGD's board of directors are considered experienced (9.3 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

Orbit Garant Drilling Inc.'s company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Orbit Garant Drilling Inc.
  • 3200, Jean-Jacques Cossette Boulevard
  • Val-d'Or
  • Quebec
  • J9P 6Y6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OGDTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2008
OBGR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2008
8O1BST (Boerse-Stuttgart)YesCommon SharesDEEURJun 2008

Biography

Orbit Garant Drilling Inc. provides mineral drilling services in Canada, United States, Central and South America, and West Africa. It provides underground and surface diamond drilling services to mining companies through various stages of mineral exploration, mine development, and production. The company also offers geotechnical and water drilling services to mining or mineral exploration companies, engineering and environmental consultant firms, and government agencies. In addition, it manufactures and sells surface and underground drills to other drilling companies; and custom drill rigs. As of June 30, 2019, the company operated 235 drill rigs. Orbit Garant Drilling Inc. was founded in 1965 and is headquartered in Val-d'Or, 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 01:35
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
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.