TSXV:AFF

Stock Analysis Report

Executive Summary

Affinity Metals Corp. engages in the acquisition, exploration, and development of mineral properties in British Columbia, the Yukon Territory, and other areas of North America.

Risk Analysis

Earnings have declined by -23.92% per year over past 5 years

Has less than 1 year of cash runway

Does not have a meaningful market cap (CA$8M)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 2 more risks


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

19.0%

AFF

2.4%

CA Metals and Mining

0.6%

CA Market


1 Year Return

194.1%

AFF

4.4%

CA Metals and Mining

5.8%

CA Market

Return vs Industry: AFF exceeded the Canadian Metals and Mining industry which returned 4.3% over the past year.

Return vs Market: AFF exceeded the Canadian Market which returned 5.8% over the past year.


Shareholder returns

AFFIndustryMarket
7 Day19.0%2.4%0.6%
30 Day35.1%1.2%0.5%
90 Day61.3%6.6%3.6%
1 Year194.1%194.1%5.0%4.4%9.1%5.8%
3 Year316.7%316.7%-10.4%-11.9%15.4%5.0%
5 Year525.0%525.0%22.9%19.2%33.6%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Affinity Metals undervalued compared to its fair value and its price relative to the market?

7.93x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AFF's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AFF's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AFF is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: AFF is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AFF is overvalued based on its PB Ratio (7.9x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

15.6%

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 Affinity Metals 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 Affinity Metals performed over the past 5 years?

-23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFF is currently unprofitable.

Growing Profit Margin: AFF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AFF is unprofitable, and losses have increased over the past 5 years at a rate of -23.9% per year.

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

Earnings vs Industry: AFF is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: AFF has a negative Return on Equity (-29.49%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Affinity Metals's financial position?


Financial Position Analysis

Short Term Liabilities: AFF's short term assets (CA$344.6K) exceed its short term liabilities (CA$188.1K).

Long Term Liabilities: AFF has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: AFF's debt to equity ratio (1.1%) is considered satisfactory.

Reducing Debt: AFF's debt to equity ratio has reduced from 45.2% to 1.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: AFF's debt is covered by short term assets (assets are 31.6x debt).


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

Forecast Cash Runway: AFF has less than a year of cash runway if free cash flow continues to reduce at historical rates of -17.3% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

3.1yrs

Average board tenure


CEO

Rob Edwards 0

3.1yrs

Tenure

CA$60,000

Compensation

Mr. Robert N. Edwards, also known as Rob, CPA, CGA, has been the Chief Executive Officer and President of Acme Resources Inc since January 5, 2017. Mr. Edwards has been the Chief Financial Officer and Dire ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD155.16K).

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


Board Members

NamePositionTenureCompensationOwnership
Robert Edwards
CEO, President & Director3.1yrsCA$60.00k7.33% CA$571.1k
Darren Blaney
CFO, Corporate Secretary & Director3.1yrsCA$60.00k8.3% CA$647.0k
Ronald-Peter Stoeferle
Member of Corporate Advisory Board0.3yrsno datano data
Sean Pownall
Independent Director3.1yrsno datano data
Dennis Edwards
Independent Director2.3yrsno data0.010% CA$799.8

3.1yrs

Average Tenure

Experienced Board: AFF's board of directors are considered experienced (3.1 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 6.8%.


Top Shareholders

Company Information

Affinity Metals Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Affinity Metals Corp.
  • Ticker: AFF
  • Exchange: TSXV
  • Founded: 1978
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$7.796m
  • Shares outstanding: 31.18m
  • Website: https://www.affinity-metals.com

Location

  • Affinity Metals Corp.
  • 890 West Pender Street
  • Suite 600
  • Vancouver
  • British Columbia
  • V6C 1J9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFFTSXV (TSX Venture Exchange)YesCommon SharesCACADFeb 1991
34IADB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1991
ARIZ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 1991

Biography

Affinity Metals Corp. engages in the acquisition, exploration, and development of mineral properties in British Columbia, the Yukon Territory, and other areas of North America. It holds a 100% interest in the Nor iron oxide-copper-gold property located to the north of Dawson city, Yukon Territory. The company was formerly known as Acme Resources Inc. and changed its name to Affinity Metals Corp. in March 2017. Affinity Metals Corp. was incorporated in 1978 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 Analysis2020/02/16 23:45
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.