TSX:SMF

Stock Analysis Report

Executive Summary

SEMAFO Inc., a mining company, engages in the exploration, development, and operation of gold properties in West Africa.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.7%

SMF

-1.5%

CA Metals and Mining

-0.05%

CA Market


1 Year Return

-20.4%

SMF

-10.2%

CA Metals and Mining

-24.6%

CA Market

Return vs Industry: SMF underperformed the Canadian Metals and Mining industry which returned -10.2% over the past year.

Return vs Market: SMF exceeded the Canadian Market which returned -24.6% over the past year.


Shareholder returns

SMFIndustryMarket
7 Day1.7%-1.5%-0.05%
30 Day0%-12.7%-21.2%
90 Day15.1%-14.9%-24.7%
1 Year-20.4%-20.4%-9.5%-10.2%-22.1%-24.6%
3 Year-24.9%-24.9%-18.9%-20.3%-14.2%-22.1%
5 Year-23.8%-23.8%7.8%4.7%-1.9%-16.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SEMAFO 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: SMF (CA$3.05) is trading below our estimate of fair value (CA$10.16)

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


Price To Earnings Ratio

PE vs Industry: SMF is poor value based on its PE Ratio (14.2x) compared to the Metals and Mining industry average (12.6x).

PE vs Market: SMF is poor value based on its PE Ratio (14.2x) compared to the Canadian market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: SMF is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: SMF is good value based on its PB Ratio (0.9x) compared to the CA Metals and Mining industry average (1.2x).


Next Steps

Future Growth

How is SEMAFO forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

24.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMF's forecast earnings growth (24.5% per year) is above the savings rate (1.4%).

Earnings vs Market: SMF's earnings (24.5% per year) are forecast to grow faster than the Canadian market (7% per year).

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

Revenue vs Market: SMF's revenue (10.6% per year) is forecast to grow faster than the Canadian market (3.5% per year).

High Growth Revenue: SMF's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SMF's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has SEMAFO performed over the past 5 years?

-2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMF has high quality earnings.

Growing Profit Margin: SMF became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SMF's earnings have declined by -2.9% per year over the past 5 years.

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

Earnings vs Industry: SMF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (16.5%).


Return on Equity

High ROE: SMF's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is SEMAFO's financial position?


Financial Position Analysis

Short Term Liabilities: SMF's short term assets ($250.8M) exceed its short term liabilities ($146.3M).

Long Term Liabilities: SMF's short term assets ($250.8M) exceed its long term liabilities ($116.1M).


Debt to Equity History and Analysis

Debt Level: SMF's debt to equity ratio (7%) is considered satisfactory.

Reducing Debt: SMF's debt to equity ratio has increased from 0.2% to 7% over the past 5 years.

Debt Coverage: SMF's debt is well covered by operating cash flow (366.5%).

Interest Coverage: SMF's interest payments on its debt are well covered by EBIT (21.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: SMF's debt is covered by short term assets (assets are 4.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: SMF is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SMF'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?

9.1yrs

Average management tenure


CEO

Benoit Desormeaux (49yo)

7.67s

Tenure

US$2,129,938

Compensation

Mr. Benoit Desormeaux, CPA, CA, has been President and Chief Executive Officer at SEMAFO Inc. since August 8, 2012 and serves as it’s Director. He has 20 years’ experience in international mining and explo ...


CEO Compensation Analysis

Compensation vs Market: Benoit's total compensation ($USD1.51M) is about average for companies of similar size in the Canadian market ($USD1.73M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Benoit Desormeaux
President7.67yrsUS$2.13m0.13% $1.3m
Martin Milette
Chief Financial Officer13.92yrsUS$928.24k0.0036% $36.3k
John Jentz
Vice President of Corporate Development & Investor Relations2.33yrsUS$671.25kno data
Eric Paul-Hus
VP of Law10.58yrsno datano data
Alain Mélanson
Vice President of Human Resources10.58yrsno datano data
Mamoudou Diallo
Managing Director of Semafo Guineano datano datano data
Richard Roy
Vice President of Exploration1.75yrsno datano data
Ruth Hanna
Analyst of Investor Relationsno datano datano data

9.1yrs

Average Tenure

Experienced Management: SMF's management team is seasoned and experienced (9.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Benoit Desormeaux
President7.67yrsUS$2.13m0.13% $1.3m
John LeBoutillier
Independent Chairman of the Board2.25yrsUS$237.50k0.034% $344.0k
Daniel Buron
Independent Director0.67yrno datano data
Gilles E. Masson
Independent Director14.25yrsUS$161.25k0.024% $244.0k
Terence Bowles
Independent Director8.92yrsUS$148.75k0.0033% $33.6k
Hélène Cartier
Independent Director0.92yrno datano data
Tertius Zongo
Independent Director7.92yrsUS$150.00kno data
Flore Konan
Independent Director4.92yrsUS$137.50kno data

6.4yrs

Average Tenure

58.5yo

Average Age

Experienced Board: SMF's board of directors are considered experienced (6.4 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

SEMAFO Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SEMAFO Inc.
  • Ticker: SMF
  • Exchange: TSX
  • Founded: 1994
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$1.020b
  • Shares outstanding: 334.47m
  • Website: https://www.semafo.com

Number of Employees


Location

  • SEMAFO Inc.
  • 100 Alexis-Nihon Boulevard
  • 7th Floor
  • Saint-Laurent
  • Quebec
  • H4M 2P3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMFTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1992
S7UDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
SMFOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKJan 1992
0Q4JLSE (London Stock Exchange)YesCommon SharesGBSEKJan 1992
SEMF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
SMFSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKJan 1992

Biography

SEMAFO Inc., a mining company, engages in the exploration, development, and operation of gold properties in West Africa. The company operates the Mana Mine in Burkina Faso, which includes the Siou deposit. It also holds a 90% interest in the Boungou project. The company was formerly known as West Africa Mining Exploration Corporation Inc. and changed its name to SEMAFO Inc. in May 1997. SEMAFO Inc. was founded in 1994 and is headquartered in Saint-Laurent, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 00:36
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.