TSXV:AB.H

Stock Analysis Report

Executive Summary

Asbestos Corporation Limited manages various mining assets in Canada.

Rewards

Trading at 60.1% below its fair value

Earnings grew by 1320.8% over the past year

Risk Analysis

Interest payments are not well covered by earnings

High level of non-cash earnings

Does not have a meaningful market cap (CA$1M)

Does not have meaningful revenue (CA$2M)



Snowflake Analysis

Good value with proven track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AB.H has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

AB.H

4.6%

CA Metals and Mining

0.2%

CA Market


1 Year Return

n/a

AB.H

4.5%

CA Metals and Mining

4.9%

CA Market

Return vs Industry: Insufficient data to determine how AB.H performed against the Canadian Metals and Mining industry.

Return vs Market: Insufficient data to determine how AB.H performed against the Canadian Market.


Shareholder returns

AB.HIndustryMarket
7 Day0%4.6%0.2%
30 Day0%3.7%0.4%
90 Dayn/a10.7%3.7%
1 Yearn/a5.1%4.5%8.2%4.9%
3 Year97.5%97.5%-5.4%-7.0%15.9%5.5%
5 Year97.5%97.5%26.4%22.6%33.8%14.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Asbestos 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: AB.H (CA$0.4) is trading below our estimate of fair value (CA$0.99)

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


Price To Earnings Ratio

PE vs Industry: AB.H is good value based on its PE Ratio (1.1x) compared to the Metals and Mining industry average (15.8x).

PE vs Market: AB.H is good value based on its PE Ratio (1.1x) compared to the Canadian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AB.H's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AB.H has negative assets, so we can't compare its PB Ratio to the CA Metals and Mining industry average.


Next Steps

Future Growth

How is Asbestos forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.8%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Asbestos has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Asbestos performed over the past 5 years?

30.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AB.H has a high level of non-cash earnings.

Growing Profit Margin: AB.H's current net profit margins (41%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: AB.H has become profitable over the past 5 years, growing earnings by 30.2% per year.

Accelerating Growth: AB.H's earnings growth over the past year (1320.8%) exceeds its 5-year average (30.2% per year).

Earnings vs Industry: AB.H earnings growth over the past year (1320.8%) exceeded the Metals and Mining industry 10.1%.


Return on Equity

High ROE: AB.H'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 Asbestos's financial position?


Financial Position Analysis

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

Long Term Liabilities: AB.H 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: AB.H has negative shareholder equity, which is a more serious situation than a high debt level.

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

Debt Coverage: AB.H's debt is not well covered by operating cash flow (0.3%).

Interest Coverage: AB.H's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

Inventory Level: AB.H has a low level of unsold assets or inventory.

Debt Coverage by Assets: AB.H has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if AB.H'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 AB.H'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?

9.8yrs

Average board tenure


CEO

Asbestos has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
John LeBoutillier
Chairman of the Board & President0yrsCA$40.00k0.0025% CA$27.7
Clément Godbout
Independent Director16.2yrsCA$9.30k0.00035% CA$3.9
Laurent Langevin
Independent Director11.9yrsCA$8.67kno data
Daniel Frigon
Independent Director7.8yrsCA$7.00k0.00035% CA$3.9
Serge Monette
Independent Director1.8yrsCA$3.50k5.56% CA$62.3k

9.8yrs

Average Tenure

Experienced Board: AB.H's board of directors are considered experienced (9.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AB.H insiders have only sold shares 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

Asbestos Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Asbestos Corporation Limited
  • Ticker: AB.H
  • Exchange: TSXV
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$1.121m
  • Shares outstanding: 2.84m
  • Website: https://www.asbestoscorporation.com

Location

  • Asbestos Corporation Limited
  • 840 Ouellet Boulevard
  • Thetford Mines
  • Quebec
  • G6G 7A5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AB.HTSXV (TSX Venture Exchange)YesCommon SharesCACADDec 1972

Biography

Asbestos Corporation Limited manages various mining assets in Canada. The company is involved in the rental of mining buildings that can be used as warehouses or plants; and sale of land and mining equipment, as well as aggregates and royalties from the exploitation of a granite quarry. It also provides revegetation of mining sites. The company is headquartered in Thetford Mines, Canada. Asbestos Corporation Limited is a subsidiary of Mazarin Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 23:49
End of Day Share Price2020/01/10 00:00
Earnings2019/09/30
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.