TSX:SWY

Stock Analysis Report

Stornoway Diamond

Executive Summary

Stornoway Diamond Corporation engages in the mining, acquisition, and exploration of diamond properties in Canada.


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SWY

3.5%

CA Metals and Mining

-1.5%

CA Market


1 Year Return

-94.4%

SWY

6.8%

CA Metals and Mining

2.5%

CA Market

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

Return vs Market: SWY underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

SWYIndustryMarket
7 Day0%3.5%-1.5%
30 Day33.3%5.0%-0.7%
90 Day0%14.3%1.8%
1 Year-94.4%-94.4%7.5%6.8%5.7%2.5%
3 Year-98.3%-98.3%2.8%1.0%16.8%6.2%
5 Year-96.7%-96.7%29.1%25.4%32.0%12.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Stornoway Diamond undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Stornoway Diamond is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Stornoway Diamond has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of SWY’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Stornoway Diamond regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

How is Stornoway Diamond forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-12.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SWY's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if SWY's earnings are forecast to grow faster than the Canadian market

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

Revenue vs Market: SWY's revenue is expected to decline over the next 3 years (-12.8% per year).

High Growth Revenue: SWY's revenue is forecast to decline over the next 3 years (-12.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Stornoway Diamond performed over the past 5 years?

-67.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWY is currently unprofitable.

Growing Profit Margin: SWY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SWY is unprofitable, and losses have increased over the past 5 years at a rate of -67.6% per year.

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

Earnings vs Industry: SWY is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-1.4%).


Return on Equity

High ROE: SWY's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Stornoway Diamond's financial position?


Financial Position Analysis

Short Term Liabilities: SWY has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SWY has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SWY has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SWY's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: SWY has negative shareholder equity (liabilities exceed assets) therefore debt is not 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: SWY has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SWY has less than a year of cash runway if free cash flow continues to grow at historical rates of 61.7% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.6%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if SWY'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 SWY'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?

0.9yrs

Average management tenure


CEO

Pat Godin 0

0.7yrs

Tenure

CA$691,265

Compensation

Mr. Patrick Godin, also known as Pat, B.Sc., M. Eng., Asc., Eng., has been President and Chief Executive Officer of Stornoway Diamond Corporation since January 1, 2019 and served as its Chief Operating Off ...


CEO Compensation Analysis

Compensation vs Market: Pat's total compensation ($USD520.85K) is above average for companies of similar size in the Canadian market ($USD165.67K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Godin
President0.7yrsCA$691.27k0.020% CA$3.7k
Annie Torkia Lagacé
Executive VP of Corporate Development & Legal Affairs and Corporate Secretary4.8yrsCA$378.69kno data
Dino Rambidis
Chief Financial Officer0.4yrsno datano data
Patrick Sévigny
Vice President of Operations0.7yrsno data0.040% CA$7.4k
Alexandre Burelle
Manager of Investor Relations & Business Development0yrsno datano data
Sylvie Gervais
Vice President of Human Resources1.1yrsno data0.00063% CA$117.0
Robin Hopkins
Vice President of Exploration13.7yrsCA$277.25k0.0032% CA$588.6
Jeff Stibbard
Technical Advisor0yrsno datano data

0.9yrs

Average Tenure

Experienced Management: SWY's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Patrick Godin
President0.7yrsCA$691.27k0.020% CA$3.7k
Hubert Lacroix
Chairman0.3yrsno data0.011% CA$2.0k
Michele Darling
Independent Director1.3yrsCA$102.78kno data
Hume Kyle
Independent Director6.1yrsCA$154.00k0.0046% CA$854.2
Marie-Anne Tawil
Independent Director3.9yrsCA$145.50kno data
Gaston Morin
Independent Director4.9yrsCA$153.50k0.0049% CA$900.6
Angelina Mehta
Independent Director0.7yrsno datano data

3.9yrs

Average Tenure

61yo

Average Age

Experienced Board: SWY's board of directors are considered experienced (3.9 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 been diluted in the past year, with total shares outstanding growing by 7.7%.


Top Shareholders

Company Information

Stornoway Diamond Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Stornoway Diamond Corporation
  • Ticker: SWY
  • Exchange: TSX
  • Founded: 1986
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: CA$18.569m
  • Shares outstanding: 928.43m
  • Website: https://www.stornowaydiamonds.com

Number of Employees


Location

  • Stornoway Diamond Corporation
  • 1111 St.-Charles Street West
  • Suite 400
  • Longueuil
  • Quebec
  • J4K 5G4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SWYTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1988
OXN1DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
SWYD.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988

Biography

Stornoway Diamond Corporation engages in the mining, acquisition, and exploration of diamond properties in Canada. Its principal project is the Renard mine located in north-central Quebec. The company was founded in 1986 and is headquartered in Longueuil, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 23:42
End of Day Share Price2019/09/06 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.