TSXV:ADG

Stock Analysis Report

Arcus Development Group

Executive Summary

Arcus Development Group Inc. engages in the acquisition and exploration of mineral properties in Canada.


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has Arcus Development Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ADG

3.1%

CA Metals and Mining

0.6%

CA Market


1 Year Return

-66.7%

ADG

4.7%

CA Metals and Mining

5.3%

CA Market

Return vs Industry: ADG underperformed the Canadian Metals and Mining industry which returned 4.7% over the past year.

Return vs Market: ADG underperformed the Canadian Market which returned 5.3% over the past year.


Shareholder returns

ADGIndustryMarket
7 Day0%3.1%0.6%
30 Day0%3.5%1.0%
90 Day0%11.9%4.5%
1 Year-66.7%-66.7%5.4%4.7%8.6%5.3%
3 Year-89.3%-89.3%-4.3%-5.9%18.0%7.4%
5 Year-40.0%-40.0%24.6%21.0%34.4%14.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Arcus Development Group undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Arcus Development Group is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Arcus Development Group 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 ADG’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 Arcus Development Group regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

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

15.9%

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 Arcus Development Group 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 Arcus Development Group performed over the past 5 years?

-11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADG is currently unprofitable.

Growing Profit Margin: ADG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ADG is unprofitable, and losses have increased over the past 5 years at a rate of -11.2% per year.

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

Earnings vs Industry: ADG is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.7%).


Return on Equity

High ROE: ADG'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 Arcus Development Group's financial position?


Financial Position Analysis

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

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

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


Balance Sheet

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

Debt Coverage by Assets: ADG 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: ADG has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ADG has less than a year of cash runway if free cash flow continues to reduce at historical rates of -30% each year


Next Steps

Dividend

What is Arcus Development Group'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 ADG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

13.5yrs

Average board tenure


CEO

Ian Talbot (60yo)

0

Mr. Ian John Talbot, B.Sc., LLB., serves as the Chief Operating Officer at Silver Range Resources Ltd. Mr. Talbot has been the Chief Executive Officer and President of Arcus Development Group Inc. since Ju ...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD154.33K).

Compensation vs Earnings: Ian's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Ian Talbot
President0yrsno data3.52% CA$26.9k
James Gray
CFO & Director13.5yrsCA$750.001.59% CA$12.1k
Grant Longhurst
Vice President & Director13.5yrsno data0.51% CA$3.9k
P. Paulson
Independent Director13.5yrsno data3.97% CA$30.3k
Marc Blythe
Independent Director9.3yrsno data0.024% CA$185.0

13.5yrs

Average Tenure

51yo

Average Age

Experienced Board: ADG's board of directors are seasoned and experienced ( 13.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Arcus Development Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arcus Development Group Inc.
  • Ticker: ADG
  • Exchange: TSXV
  • Founded: 2006
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$762.780k
  • Shares outstanding: 76.28m
  • Website: https://www.arcusdevelopmentgroup.com

Location

  • Arcus Development Group Inc.
  • 510 West Hastings Street
  • Suite 1016
  • Vancouver
  • British Columbia
  • V6B 1L8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADGTSXV (TSX Venture Exchange)YesCommon SharesCACADOct 2007
AJRDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2007
ARCU.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2007

Biography

Arcus Development Group Inc. engages in the acquisition and exploration of mineral properties in Canada. The company primarily explores for gold. It holds a 100% interest in the Dan Man, Touleary, and Shamrock properties located in the White Gold District of Yukon Territory. The company was founded in 2006 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 00:12
End of Day Share Price2020/02/20 00:00
Earnings2019/10/31
Annual Earnings2019/07/31


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.