company background image
STGO

Steppe Gold TSX:STGO Stock Report

Last Price

CA$1.12

Market Cap

CA$77.9m

7D

5.7%

1Y

-24.3%

Updated

17 Aug, 2022

Data

Company Financials +
STGO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth6/6
Past Performance0/6
Financial Health1/6
Dividends0/6

STGO Stock Overview

Steppe Gold Ltd. acquires, explores for, develops, and operates precious metals in Mongolia.

Steppe Gold Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Steppe Gold
Historical stock prices
Current Share PriceCA$1.12
52 Week HighCA$1.82
52 Week LowCA$0.95
Beta1.19
1 Month Change6.67%
3 Month Change-16.42%
1 Year Change-24.32%
3 Year Change17.90%
5 Year Changen/a
Change since IPO-42.56%

Recent News & Updates

Jun 07
Is Steppe Gold (TSE:STGO) Using Debt In A Risky Way?

Is Steppe Gold (TSE:STGO) Using Debt In A Risky Way?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

STGOCA Metals and MiningCA Market
7D5.7%-2.4%1.5%
1Y-24.3%-13.2%2.1%

Return vs Industry: STGO underperformed the Canadian Metals and Mining industry which returned -12.7% over the past year.

Return vs Market: STGO underperformed the Canadian Market which returned 2.1% over the past year.

Price Volatility

Is STGO's price volatile compared to industry and market?
STGO volatility
STGO Average Weekly Movement10.2%
Metals and Mining Industry Average Movement11.4%
Market Average Movement10.6%
10% most volatile stocks in CA Market18.9%
10% least volatile stocks in CA Market4.2%

Stable Share Price: STGO is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: STGO's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2016n/aBataa Tumur-Ochirhttps://www.steppegold.com

Steppe Gold Ltd. acquires, explores for, develops, and operates precious metals in Mongolia. Its principal projects are the Altan Tsagaan Ovoo gold and silver project comprising one mining license covering an area of approximately 5,492.63 hectares located in the territory of Tsagaan Ovoo soum, Dornod province of Eastern Mongolia; and the Uudam Khundii property that covers an area of 14,397 hectares located in Ulaanbaatar, Bayankhongor Province. The company was incorporated in 2016 and is headquartered in Ulaanbaatar, Mongolia.

Steppe Gold Fundamentals Summary

How do Steppe Gold's earnings and revenue compare to its market cap?
STGO fundamental statistics
Market CapCA$77.89m
Earnings (TTM)-CA$32.36m
Revenue (TTM)CA$44.09m

1.8x

P/S Ratio

-2.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STGO income statement (TTM)
RevenueUS$34.12m
Cost of RevenueUS$18.84m
Gross ProfitUS$15.28m
Other ExpensesUS$40.32m
Earnings-US$25.04m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.36
Gross Margin44.78%
Net Profit Margin-73.39%
Debt/Equity Ratio2,258.2%

How did STGO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is STGO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STGO?

Other financial metrics that can be useful for relative valuation.

STGO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.5x
Enterprise Value/EBITDA18.7x
PEG Ration/a

Price to Sales Ratio vs Peers

How does STGO's PS Ratio compare to its peers?

STGO PS Ratio vs Peers
The above table shows the PS ratio for STGO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average5.4x
SCZ Santacruz Silver Mining
1.2xn/aCA$136.3m
ELR Eastern Platinum
0.4xn/aCA$35.1m
MPVD Mountain Province Diamonds
0.3x-7.0%CA$118.1m
VOX Vox Royalty
19.6x22.8%CA$127.4m
STGO Steppe Gold
1.8x40.0%CA$77.9m

Price-To-Sales vs Peers: STGO is good value based on its Price-To-Sales Ratio (1.8x) compared to the peer average (5.4x).


Price to Earnings Ratio vs Industry

How does STGO's PE Ratio compare vs other companies in the CA Metals and Mining Industry?

Price-To-Sales vs Industry: STGO is good value based on its Price-To-Sales Ratio (1.8x) compared to the Canadian Metals and Mining industry average (2.4x)


Price to Sales Ratio vs Fair Ratio

What is STGO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STGO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.8x
Fair PS Ratio5.1x

Price-To-Sales vs Fair Ratio: STGO is good value based on its Price-To-Sales Ratio (1.8x) compared to the estimated Fair Price-To-Sales Ratio (5.1x).


Share Price vs Fair Value

What is the Fair Price of STGO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STGO (CA$1.12) is trading below our estimate of fair value (CA$18.37)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Steppe Gold forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


43.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STGO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

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

High Growth Earnings: STGO is expected to become profitable in the next 3 years.

Revenue vs Market: STGO's revenue (40% per year) is forecast to grow faster than the Canadian market (6.5% per year).

High Growth Revenue: STGO's revenue (40% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STGO's Return on Equity is forecast to be high in 3 years time (32.7%)


Discover growth companies

Past Performance

How has Steppe Gold performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-19.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: STGO is currently unprofitable.

Growing Profit Margin: STGO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: STGO is unprofitable, and losses have increased over the past 5 years at a rate of 19.3% per year.

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

Earnings vs Industry: STGO is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-16%).


Return on Equity

High ROE: STGO has a negative Return on Equity (-591.26%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Steppe Gold's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: STGO's short term assets ($58.0M) exceed its short term liabilities ($53.4M).

Long Term Liabilities: STGO's short term assets ($58.0M) do not cover its long term liabilities ($59.9M).


Debt to Equity History and Analysis

Debt Level: STGO's net debt to equity ratio (2212.6%) is considered high.

Reducing Debt: STGO's debt to equity ratio has increased from 450.8% to 2258.2% over the past 5 years.


Balance Sheet


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: STGO has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: STGO has less than a year of cash runway if free cash flow continues to grow at historical rates of 28.8% each year.


Discover healthy companies

Dividend

What is Steppe Gold current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as STGO has not reported any payouts.


Discover strong dividend paying companies

Management

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

2.7yrs

Average management tenure


CEO

Bataa Tumur-Ochir (36 yo)

2.67yrs

Tenure

US$360,000

Compensation

Mr. Bataa Tumur-Ochir has been an Independent Director of Aranjin Resources Limited since July 23, 2020 and Ion Energy Ltd. since August 27, 2020. He serves as a Director of Spirit Banner II Capital Corp s...


CEO Compensation Analysis

Compensation vs Market: Bataa's total compensation ($USD360.00K) is above average for companies of similar size in the Canadian market ($USD186.20K).

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


Leadership Team

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


Board Members

Experienced Board: STGO's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: STGO 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

Steppe Gold Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Steppe Gold Ltd.
  • Ticker: STGO
  • Exchange: TSX
  • Founded: 2016
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Implied Market Cap: CA$77.894m
  • Shares outstanding: 69.55m
  • Website: https://www.steppegold.com

Number of Employees


Location

  • Steppe Gold Ltd.
  • Shangri-La office
  • Suite 1201
  • Ulaanbaatar
  • 14241
  • Mongolia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/17 00:00
End of Day Share Price2022/08/17 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.