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Stornoway Diamond

TSX:SWY
Snowflake Description

Overvalued with concerning outlook.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SWY
TSX
CA$162M
Market Cap
  1. Home
  2. CA
  3. Materials
Company description

Stornoway Diamond Corporation engages in the mining, acquisition, and exploration of diamond properties in Canada. The last earnings update was 126 days ago. More info.


Add to Portfolio Compare Print
  • Stornoway Diamond has significant price volatility in the past 3 months.
SWY Share Price and Events
7 Day Returns
-7.9%
TSX:SWY
-2.1%
CA Metals and Mining
0.3%
CA Market
1 Year Returns
-69.8%
TSX:SWY
-5.9%
CA Metals and Mining
0.7%
CA Market
SWY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Stornoway Diamond (SWY) -7.9% -12.5% -2.8% -69.8% -83.8% -81%
CA Metals and Mining -2.1% 1.4% 13.1% -5.9% 8.9% -22%
CA Market 0.3% 2% 13.2% 0.7% 16.6% 5.6%
1 Year Return vs Industry and Market
  • SWY underperformed the Metals and Mining industry which returned -5.9% over the past year.
  • SWY underperformed the Market in Canada which returned 0.7% over the past year.
Price Volatility
SWY
Industry
5yr Volatility vs Market

Value

 Is Stornoway Diamond undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Stornoway Diamond to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Stornoway Diamond.

TSX:SWY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.9%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:SWY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.18
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.181 (1 + (1- 26.5%) (197.03%))
2.267
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (2 * 5.96%)
13.87%

Discounted Cash Flow Calculation for TSX:SWY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Stornoway Diamond is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:SWY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 13.87%)
2019 -26.00 Analyst x1 -22.83
2020 10.70 Analyst x1 8.25
2021 15.82 Est @ 47.83% 10.71
2022 21.21 Est @ 34.07% 12.61
2023 26.39 Est @ 24.43% 13.79
2024 31.05 Est @ 17.69% 14.25
2025 35.08 Est @ 12.96% 14.13
2026 38.47 Est @ 9.66% 13.61
2027 41.29 Est @ 7.35% 12.83
2028 43.66 Est @ 5.73% 11.92
Present value of next 10 years cash flows CA$89.28
TSX:SWY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$43.66 × (1 + 1.95%) ÷ (13.87% – 1.95%)
CA$373.40
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$373.40 ÷ (1 + 13.87%)10
CA$101.91
TSX:SWY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$89.28 + CA$101.91
CA$191.18
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$191.18 / 923.51
CA$0.21
TSX:SWY Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$0.21
Current discount Discount to share price of CA$0.18
= -1 x (CA$0.18 - CA$0.21) / CA$0.21
15.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Stornoway Diamond is available for.
Intrinsic value
15%
Share price is CA$0.175 vs Future cash flow value of CA$0.20702
Current Discount Checks
For Stornoway Diamond to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Stornoway Diamond's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Stornoway Diamond's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Stornoway Diamond's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Stornoway Diamond's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:SWY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in CAD CA$-0.24
TSX:SWY Share Price ** TSX (2019-03-20) in CAD CA$0.18
Canada Metals and Mining Industry PE Ratio Median Figure of 115 Publicly-Listed Metals and Mining Companies 12.49x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 14.78x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Stornoway Diamond.

TSX:SWY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:SWY Share Price ÷ EPS (both in CAD)

= 0.18 ÷ -0.24

-0.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Stornoway Diamond is loss making, we can't compare its value to the CA Metals and Mining industry average.
  • Stornoway Diamond is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Stornoway Diamond's expected growth come at a high price?
Raw Data
TSX:SWY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.72x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
101.9%per year
Canada Metals and Mining Industry PEG Ratio Median Figure of 35 Publicly-Listed Metals and Mining Companies 0.7x
Canada Market PEG Ratio Median Figure of 253 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Stornoway Diamond, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Stornoway Diamond's assets?
Raw Data
TSX:SWY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in CAD CA$0.60
TSX:SWY Share Price * TSX (2019-03-20) in CAD CA$0.18
Canada Metals and Mining Industry PB Ratio Median Figure of 1,080 Publicly-Listed Metals and Mining Companies 1.44x
Canada Market PB Ratio Median Figure of 2,349 Publicly-Listed Companies 1.58x
TSX:SWY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:SWY Share Price ÷ Book Value per Share (both in CAD)

= 0.18 ÷ 0.60

0.29x

* Primary Listing of Stornoway Diamond.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Stornoway Diamond is good value based on assets compared to the CA Metals and Mining industry average.
X
Value checks
We assess Stornoway Diamond's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Stornoway Diamond has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
101.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Stornoway Diamond expected to grow at an attractive rate?
  • Unable to compare Stornoway Diamond's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Stornoway Diamond's earnings growth to the Canada market average as it is expected to be loss making during the next 1-3 years.
  • Stornoway Diamond's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:SWY Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:SWY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 101.9%
TSX:SWY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 18.1%
Canada Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 33.3%
Canada Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 7%
Canada Market Earnings Growth Rate Market Cap Weighted Average 17.8%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:SWY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:SWY Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 267 59 -3 2
2019-12-31 279 61 -5 3
2018-12-31 182 20 -99 2
TSX:SWY Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-09-30 198 2 -203
2018-06-30 218 39 -163
2018-03-31 204 41 -124
2017-12-31 197 66 -115
2017-09-30 141 29 56
2017-06-30 91 -1 38
2017-03-31 48 -5 41
2016-12-31 75 20
2015-12-31 148 -5
2015-10-31 203 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Stornoway Diamond is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Stornoway Diamond's revenue is expected to grow by 18.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:SWY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Stornoway Diamond Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SWY Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 -0.05 0.00 -0.09 2.00
2019-12-31 -0.03 0.00 -0.09 3.00
2018-12-31 -0.14 -0.14 -0.14 1.00
TSX:SWY Past Financials Data
Date (Data in CAD Millions) EPS *
2018-09-30 -0.24
2018-06-30 -0.20
2018-03-31 -0.15
2017-12-31 -0.14
2017-09-30 0.07
2017-06-30 0.05
2017-03-31 0.05
2016-12-31 0.03
2015-12-31
2015-10-31 0.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Stornoway Diamond will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Stornoway Diamond's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Stornoway Diamond has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Stornoway Diamond performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Stornoway Diamond's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Stornoway Diamond does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Stornoway Diamond's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Stornoway Diamond's 1-year growth to the CA Metals and Mining industry average as it is not currently profitable.
Earnings and Revenue History
Stornoway Diamond's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Stornoway Diamond Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SWY Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 197.70 -203.35 22.75
2018-06-30 218.32 -163.41 21.67
2018-03-31 203.96 -124.44 19.05
2017-12-31 196.50 -114.63 19.94
2017-09-30 141.02 56.25 17.01
2017-06-30 91.04 38.41 16.13
2017-03-31 48.49 41.08 15.54
2016-12-31 19.64 12.79
2015-12-31 -5.48 8.71
2015-10-31 -0.19 10.63
2015-07-31 1.17 9.33
2015-04-30 -0.64 10.13
2015-01-31 -0.05 14.44
2014-10-31 -9.05 13.64
2014-07-31 -22.40 14.21
2014-04-30 -12.30 12.55
2014-01-31 -16.50 9.49
2013-10-31 -20.34 11.96
2013-07-31 -30.81 18.54
2013-04-30 -36.80 23.12
2013-01-31 -29.69 22.18
2012-10-31 -30.72 23.86
2012-07-31 -24.29 20.81
2012-04-30 -26.51 23.92

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Stornoway Diamond has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Stornoway Diamond has efficiently used its assets last year compared to the CA Metals and Mining industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Stornoway Diamond improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Stornoway Diamond's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Stornoway Diamond has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Stornoway Diamond's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Stornoway Diamond's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Stornoway Diamond's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Stornoway Diamond's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Stornoway Diamond's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Stornoway Diamond Company Filings, last reported 5 months ago.

TSX:SWY Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 503.70 318.43 5.87
2018-06-30 538.73 310.84 31.61
2018-03-31 574.89 306.89 51.62
2017-12-31 583.21 308.11 81.04
2017-09-30 690.30 241.33 52.65
2017-06-30 691.99 247.27 60.44
2017-03-31 688.34 238.46 72.08
2016-12-31 689.54 249.50 85.99
2015-12-31 575.96 228.14 209.09
2015-10-31 579.98 218.56 290.29
2015-07-31 569.15 224.32 270.14
2015-04-30 577.47 208.01 363.62
2015-01-31 584.95 181.96 321.56
2014-10-31 575.58 178.83 388.40
2014-07-31 563.08 182.23 438.66
2014-04-30 209.66 77.14 26.98
2014-01-31 217.29 66.07 21.12
2013-10-31 209.98 60.48 25.37
2013-07-31 211.58 38.90 24.93
2013-04-30 212.36 31.21 32.88
2013-01-31 224.46 28.35 35.57
2012-10-31 229.01 17.23 31.18
2012-07-31 239.63 17.17 40.57
2012-04-30 244.72 0.00 27.93
  • Stornoway Diamond's level of debt (63.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (25.4% vs 63.2% today).
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.

  • Stornoway Diamond has less than a year of cash runway based on current free cash flow.
  • Stornoway Diamond has less than a year of cash runway if free cash flow continues to reduce at historical rates of -23% each year.
X
Financial health checks
We assess Stornoway Diamond's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Stornoway Diamond has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Stornoway Diamond dividends.
If you bought CA$2,000 of Stornoway Diamond shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Stornoway Diamond's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Stornoway Diamond's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:SWY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Canada Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 28 Stocks 1.2%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:SWY Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31
2018-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Stornoway Diamond has not reported any payouts.
  • Unable to verify if Stornoway Diamond's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Stornoway Diamond's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Stornoway Diamond has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Stornoway Diamond's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Stornoway Diamond afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Stornoway Diamond has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pat Godin
COMPENSATION CA$1,090,771
TENURE AS CEO 0.2 years
CEO Bio

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 Officer since joined it on May 3, 2010 until January 1, 2019. Mr. Godin is responsible for day-to-day operational requirements of the Renard Diamond Project as it moves through feasibility, mine construction and into production. He is a professional mining engineer with more than 20 years of experience in all aspects of mine development, construction and operation. He served as Vice President of Project Development, for G Mining Services Inc. of Montreal from 2009 to 2010, with responsibility for the successful development of the Essakane Project in Burkina Faso under contract to IAMGOLD Corporation. Mr. Godin served as Vice President of Operations and General Mine Manager of Nunavik Nickel Project at Canadian Royalties Inc. from October 2007 to November 21, 2008. He was responsible for planning and organizing the start-up of the operations by late 2009. He served as President and General Manager at CBJ-CAIMAN S.A.S. (French Guiana), a French subsidiary of IAMGold Corporation from 2004 to September 2007. He served as General Manager of French Guiana at IAMGOLD Corp. From 1991 to 2007 he held successively senior positions with Cambior Inc. and its affiliate companies, with experience in the development and management of several mining operations in the Abitibi-Témiscamingue region of Québec. Mr. Godin served as Corporate Manager of continuous improvement for the Canadian operations of Cambior Inc. from 2003 to 2004 and from 1999 to 2004, he served as Mine Manager of the Mouska gold mine owned by Cambior Inc. situated near Rouyn-Noranda and from 1998 to 1999 as Superintendent Projects at the Doyon and Mouska. He served as the Chairman of Geomega Resources Inc., since October 3, 2011. He has been Director of Nemaska Lithium Inc. since May 2018. He has been a Director of Mason Graphite Inc. since November 22, 2017. He has been a Director of Stornoway Diamond Corporation since October 2011. He served as an Independent Director at Orbit Garant Drilling, Inc. from 2008 to December 4, 2014. Mr. Godin is a member of the "Ordre des Ingenieurs du Quebec", of the Certified Directors College and of The Canadian Institute of Mining, Metallurgy and Petroleum (CIM). Mr. Godin holds a Bachelor of Mining Engineering from Laval University in 1991. His areas of expertise include Mining Industry Experience, Environment, Health & Safety / Corporate Social Responsibility and Mining.

CEO Compensation
  • Pat's compensation has increased whilst company is loss making.
  • Pat's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Stornoway Diamond management team in years:

1.6
Average Tenure
  • The average tenure for the Stornoway Diamond management team is less than 2 years, this suggests a new team.
Management Team

Pat Godin

TITLE
President
COMPENSATION
CA$1M
TENURE
0.2 yrs

Orin Baranowsky

TITLE
Chief Financial Officer
COMPENSATION
CA$519K
TENURE
1.6 yrs

Patrick Sevigny

TITLE
Vice President of Operations
TENURE
0.2 yrs

Alexandre Burelle

TITLE
Manager of Investor Relations & Business Development

Annie Lagace

TITLE
VP of Legal Affairs
TENURE
4.3 yrs

Sylvie Gervais

TITLE
Vice President of Human Resources
TENURE
0.6 yrs

Robin Hopkins

TITLE
Vice President of Exploration
COMPENSATION
CA$277K
TENURE
13.2 yrs

Brian Glover

TITLE
Vice President of Asset Protection
COMPENSATION
CA$298K
TENURE
6.8 yrs

Jeff Stibbard

TITLE
Technical Advisor
AGE
52
Board of Directors Tenure

Average tenure and age of the Stornoway Diamond board of directors in years:

6
Average Tenure
63
Average Age
  • The tenure for the Stornoway Diamond board of directors is about average.
Board of Directors

Ebe Scherkus

TITLE
Chairman of the Board
COMPENSATION
CA$206K
AGE
66
TENURE
6.5 yrs

Pat Godin

TITLE
President
COMPENSATION
CA$1M
TENURE
7.4 yrs

Peter Nixon

TITLE
Director
COMPENSATION
CA$152K
AGE
72
TENURE
16 yrs

John LeBoutillier

TITLE
Independent Director
COMPENSATION
CA$156K
AGE
74
TENURE
7.7 yrs

Hume Kyle

TITLE
Director
COMPENSATION
CA$163K
AGE
57
TENURE
5.6 yrs

Gaston Morin

TITLE
Director
COMPENSATION
CA$161K
TENURE
4.4 yrs

Matt Manson

TITLE
Director
COMPENSATION
CA$1M
AGE
51
TENURE
10 yrs

Marie-Anne Tawil

TITLE
Director
COMPENSATION
CA$149K
AGE
58
TENURE
3.4 yrs

Michele Darling

TITLE
Director
AGE
64
TENURE
0.8 yrs

Hubert Lacroix

TITLE
Director
AGE
62
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Stornoway Diamond insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
29. Jan 19 Buy John LeBoutillier Individual 29. Jan 19 29. Jan 19 73,500 CA$0.20 CA$14,700
28. Jan 19 Buy John LeBoutillier Individual 28. Jan 19 28. Jan 19 26,500 CA$0.20 CA$5,300
23. Jan 19 Buy Hubert Lacroix Individual 23. Jan 19 23. Jan 19 100,000 CA$0.21 CA$21,000
14. Dec 18 Sell John LeBoutillier Individual 11. Dec 18 11. Dec 18 -100,000 CA$0.19 CA$-19,000
11. Dec 18 Buy Investissement Québec, Investment Arm Company 07. Dec 18 07. Dec 18 28,571,428 CA$0.35 CA$9,999,986
18. Nov 18 Buy Orin Baranowsky Individual 16. Nov 18 16. Nov 18 25,000 CA$0.23 CA$5,688
18. Nov 18 Buy Matthew Manson Individual 16. Nov 18 16. Nov 18 100,000 CA$0.23 CA$23,000
19. Nov 18 Buy Patrick Godin Individual 19. Nov 18 19. Nov 18 100,000 CA$0.24 CA$23,500
02. Aug 18 Buy Ghislain Poirier Individual 31. Jul 18 31. Jul 18 3,000 CA$0.43 CA$1,275
06. Jun 18 Buy Ghislain Poirier Individual 06. Jun 18 06. Jun 18 5,000 CA$0.45 CA$2,250
30. May 18 Buy Ghislain Poirier Individual 30. May 18 30. May 18 5,000 CA$0.50 CA$2,500
X
Management checks
We assess Stornoway Diamond's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Stornoway Diamond has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Do Directors Own Stornoway Diamond Corporation (TSE:SWY) Shares?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Stornoway Diamond is a smaller company with a market capitalization of CA$175m, so it may still be flying under the radar of many institutional investors. … institutional investors have bought into the company.

Simply Wall St -

Is Stornoway Diamond Corporation (TSE:SWY) Worth CA$0.35 Based On Intrinsic Value?

I am going to run you through how I calculated the intrinsic value of Stornoway Diamond Corporation (TSE:SWY). … by taking the expected future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Is Stornoway Diamond Corporation (TSE:SWY) A Financially Sound Company?

Investors are always looking for growth in small-cap stocks like Stornoway Diamond Corporation (TSE:SWY), with a market cap of CA$367.65m. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Why Stornoway Diamond Corporation (TSE:SWY) May Not Be As Efficient As Its Industry

Check out our latest analysis for Stornoway Diamond What you must know about ROE Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Stornoway Diamond’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity TSX:SWY Last Perf Jan 9th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

Who Just Ramped Up Their Shares In Stornoway Diamond Corporation (TSE:SWY)?

Stornoway Diamond saw some insider buying over the past three months, with insiders investing in 101,900 shares during this period. … Check out our latest analysis for Stornoway Diamond Which Insiders Are Buying? … Next Steps: Stornoway Diamond’s insider meaningful buying activity tells us the shares are currently in favour, though negative growth in expected earnings contests this assumption, whilst a moderate share price movement could provide incentive to buy now.

Simply Wall St -

Should You Buy Stornoway Diamond Corporation (TSE:SWY) At This PE Ratio?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SWY Price per share = CA$0.66 Earnings per share = CA$0.058 ∴ Price-Earnings Ratio = CA$0.66 ÷ CA$0.058 = 11.3x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … SWY’s P/E of 11.3x is lower than its industry peers (11.6x), which implies that each dollar of SWY’s earnings is being undervalued by investors.

Simply Wall St -

What Should Investors Know About Stornoway Diamond Corporation's (TSX:SWY) Earnings Outlook?

The latest earnings release Stornoway Diamond Corporation's (TSX:SWY) announced in September 2017 confirmed that the company finally turned profitable after negative earnings on average over the last few years. … Below, I've laid out key numbers on how market analysts view Stornoway Diamond's earnings growth outlook over the next couple of years and whether the future looks brighter. … This means, we can expect Stornoway Diamond will grow its earnings by 60.26% every year for the next few years.

Simply Wall St -

Is It The Right Time To Buy Stornoway Diamond Corporation (TSX:SWY)?

It’s trading around 5% above my intrinsic value, which means if you buy SWY today, you’d be paying a relatively reasonable price for it. … This is because SWY’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. … It seems like the market has already priced in SWY’s positive outlook, with shares trading around its fair value.

Simply Wall St -

A Look At The Fair Value Of Stornoway Diamond Corporation (TSX:SWY)

5-year cash flow forecast 2017 2018 2019 2020 2021 Levered FCF (CAD, Millions) CA$-61.00 CA$28.76 CA$82.49 CA$120.85 CA$140.19 Source Analyst x1 Analyst x2 Analyst x2 Analyst x2 Extrapolated @ (16%, capped from 197.5%) Present Value Discounted @ 17.53% CA$-51.90 CA$20.82 CA$50.81 CA$63.34 CA$62.51 Present Value of 5-year Cash Flow (PVCF)= CA$146 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2021 × (1 + g) ÷ (r – g) = CA$140 × (1 + 2.5%) ÷ (17.5% – 2.5%) = CA$954 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = CA$954 / ( 1 + 17.5%)5 = CA$425 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is CA$571. … TSX:SWY Intrinsic Value Nov 9th 17 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Is Stornoway Diamond Corporation (TSX:SWY) A Financially Sound Company?

Fortunately, we can test the company’s capacity to pay back its debtholders without summoning any catastrophes by looking at how much cash it generates from its current operations. … Last year, SWY’s operating cash flow was -0.03x its current debt. … We test for SWY's ability to meet these needs by comparing its cash and short-term investments with current liabilities.

Simply Wall St -

Company Info

Description

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

Details
Name: Stornoway Diamond Corporation
SWY
Exchange: TSX
Founded: 1986
CA$161,613,930
923,508,172
Website: http://www.stornowaydiamonds.com
Address: Stornoway Diamond Corporation
1111 St-Charles Ouest,
Suite 400,
Longueuil,
Quebec, J4K 5G4,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX SWY Common Shares The Toronto Stock Exchange CA CAD 07. Sep 1988
OTCPK SWYD.F Common Shares Pink Sheets LLC US USD 07. Sep 1988
DB OXN1 Common Shares Deutsche Boerse AG DE EUR 07. Sep 1988
Number of employees
Current staff
Staff numbers
571
Stornoway Diamond employees.
Industry
Precious Metals and Minerals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:42
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/02/11
Last earnings filing: 2018/11/14
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.