TSX:PDL

Stock Analysis Report

North American Palladium

Executive Summary

North American Palladium Ltd. produces precious metals in Canada.


Snowflake Analysis

Outstanding track record with flawless balance sheet.


Similar Companies

Share Price & News

How has North American Palladium's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.1%

PDL

3.5%

CA Metals and Mining

-1.5%

CA Market


1 Year Return

74.6%

PDL

6.8%

CA Metals and Mining

2.5%

CA Market

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

Return vs Market: PDL exceeded the Canadian Market which returned 10.4% over the past year.


Shareholder returns

PDLIndustryMarket
7 Day0.1%3.5%-1.5%
30 Day0.4%5.0%-0.7%
90 Day22.1%14.3%1.8%
1 Year81.8%74.6%7.5%6.8%5.7%2.5%
3 Year270.2%255.5%2.8%1.0%16.8%6.2%
5 Year-67.9%-69.2%29.1%25.4%32.0%12.8%

Price Volatility Vs. Market

How volatile is North American Palladium's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is North American Palladium 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: PDL (CA$19.73) is trading below our estimate of fair value (CA$44.18)

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


Price To Earnings Ratio

PE vs Industry: PDL is good value based on its PE Ratio (6.3x) compared to the Metals and Mining industry average (17.3x).

PE vs Market: PDL is good value based on its PE Ratio (6.3x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: PDL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PDL is overvalued based on its PB Ratio (1.9x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is North American Palladium forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PDL's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: PDL's earnings are forecast to decline over the next 3 years (-0.4% per year).

High Growth Earnings: PDL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PDL's revenue (5.2% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: PDL's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PDL's Return on Equity is forecast to be high in 3 years time (21.7%)


Next Steps

Past Performance

How has North American Palladium performed over the past 5 years?

69.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PDL has high quality earnings.

Growing Profit Margin: PDL's current net profit margins (34.5%) are higher than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: PDL has become profitable over the past 5 years, growing earnings by 69.2% per year.

Accelerating Growth: PDL's earnings growth over the past year (230.4%) exceeds its 5-year average (69.2% per year).

Earnings vs Industry: PDL earnings growth over the past year (230.4%) exceeded the Metals and Mining industry -1.4%.


Return on Equity

High ROE: PDL's Return on Equity (29.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is North American Palladium's financial position?


Financial Position Analysis

Short Term Liabilities: PDL's short term assets (CA$201.4M) exceed its short term liabilities (CA$52.6M).

Long Term Liabilities: PDL's short term assets (CA$201.4M) exceed its long term liabilities (CA$50.8M).


Debt to Equity History and Analysis

Debt Level: PDL is debt free.

Reducing Debt: PDL has no debt compared to 5 years ago when its debt to equity ratio was 104.4%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if PDL's debt is covered by short term assets.


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: PDL is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: PDL is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is North American Palladium's current dividend yield, its reliability and sustainability?

2.03%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%2.0%markettop25%5.6%industryaverage1.2%forecastin3Years5.5%

Current dividend yield vs market & industry

Notable Dividend: PDL's dividend (2.03%) is higher than the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: PDL's dividend (2.03%) is low compared to the top 25% of dividend payers in the Canadian market (5.48%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether PDL's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if PDL's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.3%), PDL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PDL's dividends in 3 years are forecast to be well covered by earnings (38.7% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Jim Gallagher 0

4.3yrs

Tenure

CA$1,023,463

Compensation

Mr. James E. Gallagher, also known as Jim, B.Eng, serves as Independent Director of Harte Gold Corporation since October 2019. Mr. Gallagher has been the Chief Executive Officer and President of North Amer ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD775.29K) is below average for companies of similar size in the Canadian market ($USD1.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Gallagher
President & CEO4.3yrsCA$1.02m0.011% CA$123.1k
Timothy Hill
VP of Finance & CFO3.8yrsCA$488.67kno data
David Peck
Vice President of Exploration5.5yrsCA$501.64k0.00011% CA$1.3k
Erin Satterthwaite
Vice President of Corporate Affairs and Communications0yrsno datano data
Wayne Scott
Vice President of Human Resources2.8yrsno data0.00014% CA$1.6k
Bryan Wilson
General Manager0yrsno datano data
David Galea
Manager of Operational Excellence0yrsno datano data

4.1yrs

Average Tenure

Experienced Management: PDL's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Fauquier
Independent Director4.9yrsCA$70.00kno data
J. Gordon
Chairman of the Board4.9yrsno datano data
Dean Chambers
Independent Director4.9yrsCA$72.50k0.0051% CA$59.2k
John Jentz
Independent Director5.5yrsCA$70.00kno data
David Nowak
Director4.9yrsno datano data

4.9yrs

Average Tenure

58yo

Average Age

Experienced Board: PDL's board of directors are considered experienced (4.9 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

North American Palladium Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: North American Palladium Ltd.
  • Ticker: PDL
  • Exchange: TSX
  • Founded: 1968
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: CA$1.161b
  • Shares outstanding: 58.84m
  • Website: https://www.nap.com

Number of Employees


Location

  • North American Palladium Ltd.
  • One University Avenue
  • Suite 1601
  • Toronto
  • Ontario
  • M5J 2P1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PALD.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 1972
PDLTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
NAPNBST (Boerse-Stuttgart)YesCommon SharesDEEURDec 1972
NAPNDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
0V9YLSE (London Stock Exchange)YesCommon SharesGBCADDec 1972

Biography

North American Palladium Ltd. produces precious metals in Canada. It explores for palladium, platinum, gold, nickel, copper, and other metals. It primarily holds interest in the Lac des Iles mine that is located to the northwest of Thunder Bay, Ontario. The company was founded in 1968 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 Analysis2019/12/13 23:43
End of Day Share Price2019/12/13 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.