TSX:RNX

Stock Analysis Report

Executive Summary

Royal Nickel Corporation, doing business as RNC Minerals, engages in the acquisition, exploration, evaluation, and development of base and precious metal properties in Canada.

Snowflake

Fundamentals

Reasonable growth potential and slightly overvalued.

Share Price & News

How has Royal Nickel's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

14.9%

RNX

0.1%

CA Metals and Mining

-0.2%

CA Market


1 Year Return

-53.6%

RNX

12.3%

CA Metals and Mining

1.1%

CA Market

Return vs Industry: RNX underperformed the Canadian Metals and Mining industry which returned 12.3% over the past year.

Return vs Market: RNX underperformed the Canadian Market which returned 1.1% over the past year.


Shareholder returns

RNXIndustryMarket
7 Day14.9%0.1%-0.2%
30 Day5.5%-3.5%-2.9%
90 Day-33.6%-4.6%-1.6%
1 Year-53.6%-53.6%13.2%12.3%4.6%1.1%
3 Year4.1%4.1%-11.5%-13.1%13.1%3.1%
5 Year18.5%18.5%7.5%3.4%24.7%6.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Royal Nickel undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: RNX (CA$0.39) is trading below our estimate of fair value (CA$0.96)

Significantly Undervalued: RNX is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: RNX is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RNX is overvalued based on its PB Ratio (3.6x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Royal Nickel forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

60.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

High Growth Earnings: RNX's loss is forecast to worsen by 0% next year.

Revenue vs Market: RNX's revenue (15.3% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: RNX's revenue (15.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Royal Nickel performed over the past 5 years?

-37.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RNX is unprofitable, and losses have increased over the past 5 years at a rate of -37.5% per year.

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

Earnings vs Industry: RNX is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-13.7%).


Return on Equity

High ROE: RNX has a negative Return on Equity (-23.96%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: RNX is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RNX is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Royal Nickel's financial position?


Financial Position Analysis

Short Term Liabilities: RNX's short term assets (CA$39.0M) do not cover its short term liabilities (CA$47.3M)

Long Term Liabilities: RNX's short term assets (39.0M) do not cover its long term liabilities (47.3M)


Debt to Equity History and Analysis

Debt Level: RNX's debt to equity ratio (57.5%) is considered high

Reducing Debt: RNX had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: RNX's debt is covered by short term assets (assets are 1.146990x 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: RNX has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RNX has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Royal Nickel's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if RNX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RNX'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 RNX'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 Royal Nickel's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Paul Huet (50yo)

0.3yrs

Tenure

CA$276,410

Compensation

Mr. Paul André Huet, Acc.Dir. serves as Chief Executive Officer at Royal Nickel Corporation since July 2019. He served as Interim Chief Executive Officer of Royal Nickel Corporation since July 18, 2019 unt ...


Management Age and Tenure

2.7yrs

Average Tenure

51yo

Average Age

Experienced Management: RNX's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

1.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: RNX's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCA$68,50025 Jun 19
Frank Marzoli
EntityIndividual
Role
Member of the Board of Directors
Director
Shares100,000
Max PriceCA$0.69
SellCA$53,00018 Jun 19
Frank Marzoli
EntityIndividual
Role
Member of the Board of Directors
Director
Shares100,000
Max PriceCA$0.53
BuyCA$417,67104 Feb 19
Eric Sprott
EntityIndividual
Shares676,500
Max PriceCA$0.62
BuyCA$315,19001 Feb 19
Eric Sprott
EntityIndividual
Shares500,000
Max PriceCA$0.63
BuyCA$2,999,66221 Jan 19
Eric Sprott
EntityIndividual
Shares6,521,000
Max PriceCA$0.46
BuyCA$554,00020 Nov 18
Sprott Foundation, Endowment Arm
EntityCompany
Shares1,000,000
Max PriceCA$0.55
BuyCA$48,50014 Nov 18
Mark Selby
EntityIndividual
Shares100,000
Max PriceCA$0.48
BuyCA$68,00025 Oct 18
Mark Selby
EntityIndividual
Shares100,000
Max PriceCA$0.68

Ownership Breakdown


Management Team

  • Paul Mattinen (73yo)

    Consulting Geologist

    • Tenure: 0yrs
  • John Leddy (51yo)

    VP of Business Development & General Counsel

    • Tenure: 2.7yrs
    • Compensation: CA$533.77k
  • Bob Salter

    Consulting Metallurgist

    • Tenure: 0yrs
  • Johnna Muinonen

    President of Dumont Nickel

    • Tenure: 0.08yrs
    • Compensation: CA$406.27k
  • Rob Buchanan

    Director of Investor Relations

    • Tenure: 8.4yrs
  • Paul Huet (50yo)

    Executive Chairman & CEO

    • Tenure: 0.3yrs
    • Compensation: CA$276.41k
  • Tim Hollaar (58yo)

    CFO & Corporate Secretary

    • Tenure: 4.8yrs
    • Compensation: CA$404.90k
  • Alger St-Jean (51yo)

    Executive Vice President of Exploration & Resource Development

    • Tenure: 12.5yrs
    • Compensation: CA$378.39k
  • Graeme Sloan

    Managing Director of Australian Operations

    • Tenure: 0.08yrs

Board Members

  • Scott Hand (76yo)

    Lead Director

    • Tenure: 0.7yrs
    • Compensation: CA$322.14k
  • Peter Goudie (70yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: CA$186.07k
  • Wendy Kei (51yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: CA$99.47k
  • Frank Marzoli (67yo)

    Director

    • Tenure: 12.4yrs
    • Compensation: CA$176.07k
  • Warwick Morley-Jepson (60yo)

    Director

    • Tenure: 0.7yrs
    • Compensation: CA$276.41k
  • Paul Huet (50yo)

    Executive Chairman & CEO

    • Tenure: 0.3yrs
    • Compensation: CA$276.41k

Company Information

Royal Nickel Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Royal Nickel Corporation
  • Ticker: RNX
  • Exchange: TSX
  • Founded: 2006
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$233.268m
  • Shares outstanding: 605.89m
  • Website: https://www.rncminerals.com

Number of Employees


Location

  • Royal Nickel Corporation
  • 141 Adelaide Street West
  • Suite 1608
  • Toronto
  • Ontario
  • M5H 3L5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNXTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2010
5RNDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2010
RNKL.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2010

Biography

Royal Nickel Corporation, doing business as RNC Minerals, engages in the acquisition, exploration, evaluation, and development of base and precious metal properties in Canada. The company explores for nick ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:11
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.