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

Fundamentals

Excellent balance sheet and fair 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


Market Performance


7 Day Return

-1.8%

TSX:SMF

0.08%

CA Metals and Mining

1.4%

CA Market


1 Year Return

55.7%

TSX:SMF

19.8%

CA Metals and Mining

-4.1%

CA Market

SMF outperformed the Metals and Mining industry which returned 20.3% over the past year.

SMF outperformed the Market in Canada which returned -4.9% over the past year.


Share holder returns

SMFIndustryMarket
7 Day-1.8%0.08%1.4%
30 Day-8.8%-0.9%-2.2%
90 Day30.3%24.5%-1.1%
1 Year55.7%55.7%20.8%19.8%-0.7%-4.1%
3 Year-16.2%-16.2%-8.0%-9.7%15.1%4.8%
5 Year1.9%1.9%-8.7%-12.0%12.8%-3.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

SEMAFO's share price is below the future cash flow value, and at a moderate discount (> 20%).

SEMAFO's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

SEMAFO is overvalued based on earnings compared to the CA Metals and Mining industry average.

SEMAFO is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

SEMAFO is good value based on expected growth next year.


Price Based on Value of Assets

SEMAFO is overvalued based on assets compared to the CA Metals and Mining industry average.


Next Steps

Future Growth

How is SEMAFO expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

33.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SEMAFO's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).

SEMAFO's earnings are expected to grow significantly at over 20% yearly.

SEMAFO's revenue growth is positive but not above the Canada market average.

SEMAFO's earnings growth is expected to exceed the Canada market average.

SEMAFO's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

SEMAFO is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has SEMAFO performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

SEMAFO's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

SEMAFO has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

SEMAFO has become profitable in the last year making it difficult to compare the CA Metals and Mining industry average.


Return on Equity

SEMAFO has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

SEMAFO used its assets less efficiently than the CA Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

SEMAFO has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is SEMAFO's financial position?


Financial Position Analysis

SEMAFO is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

SEMAFO's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

SEMAFO's level of debt (10.7%) compared to net worth is satisfactory (less than 40%).

Unable to establish if SEMAFO's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (245.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 14x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.9x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate SEMAFO's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate SEMAFO's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as SEMAFO has not reported any payouts.

Unable to verify if SEMAFO's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as SEMAFO has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of SEMAFO's dividends in 3 years as they are not expected to pay a notable one for Canada.


Next Steps

Management

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

8.5yrs

Average management tenure


CEO

Benoit Desormeaux (49yo)

7.0yrs

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

Benoit's remuneration is about average for companies of similar size in Canada.

Benoit's compensation has increased in line with SEMAFO recently becoming profitable.


Management Age and Tenure

8.5yrs

Average Tenure

The average tenure for the SEMAFO management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.3yrs

Average Tenure

58.5yo

Average Age

The tenure for the SEMAFO board of directors is about average.


Insider Trading

SEMAFO individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$3,06025 Jun 19
François Thibert
EntityIndividual
Shares617
Max PriceUS$4.96
SellUS$105,57914 Jun 19
Eric Paul-Hus
EntityIndividual
Role
Chief Compliance Officer
VP of Law
Shares22,200
Max PriceUS$4.76
SellUS$287,70414 Jun 19
Martin Milette
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares59,900
Max PriceUS$4.82
SellUS$104,24314 Jun 19
Alain Mélanson
EntityIndividual
Role
Head of Human Resources
Vice President of Human Resources
Shares22,000
Max PriceUS$4.81

Ownership Breakdown


Management Team

  • Mamoudou Diallo

    Managing Director of Semafo Guinea

    • Tenure: 0.0yrs
  • Benoit Desormeaux (49yo)

    President

    • Tenure: 7.0yrs
    • Compensation: US$2.13m
  • John Jentz (48yo)

    Vice President of Corporate Development & Investor Relations

    • Tenure: 1.7yrs
    • Compensation: US$671.25k
  • Eric Paul-Hus

    VP of Law

    • Tenure: 9.9yrs
  • Martin Milette

    Chief Financial Officer

    • Tenure: 13.3yrs
    • Compensation: US$928.24k
  • Alain Mélanson

    Vice President of Human Resources

    • Tenure: 9.9yrs
  • Richard Roy

    Vice President of Exploration

    • Tenure: 1.1yrs

Board Members

  • John LeBoutillier (75yo)

    Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: US$237.50k
  • Benoit Desormeaux (49yo)

    President

    • Tenure: 7.0yrs
    • Compensation: US$2.13m
  • Daniel Buron (55yo)

    Director

    • Tenure: 0.0yrs
  • Gilles E. Masson (72yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$161.25k
  • Terence Bowles (70yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$148.75k
  • Hélène Cartier (56yo)

    Director

    • Tenure: 0.3yrs
  • Tertius Zongo (61yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$150.00k
  • Flore Konan (56yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$137.50k

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$1.656b
  • Shares outstanding: 334.46m
  • 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. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:43
End of Day Share Price2019/08/21 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.