TSXV:AZR

Stock Analysis Report

Executive Summary

Azarga Metals Corp. engages in the exploration and development of mineral properties in Russia.

Risk Analysis

Earnings have declined by -8.36% per year over past 5 years

Does not have a meaningful market cap (CA$6M)

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

Shareholders have been diluted in the past year



Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

AZR

2.4%

CA Metals and Mining

0.6%

CA Market


1 Year Return

-43.5%

AZR

4.4%

CA Metals and Mining

5.8%

CA Market

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

Return vs Market: AZR underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

AZRIndustryMarket
7 Day0%2.4%0.6%
30 Day-7.1%1.2%0.5%
90 Day8.3%6.6%3.6%
1 Year-43.5%-43.5%5.0%4.4%9.1%5.8%
3 Year-71.7%-71.7%-10.4%-11.9%15.4%5.0%
5 Year-56.7%-56.7%22.9%19.2%33.6%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.12x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: AZR 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 AZR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AZR is good value based on its PB Ratio (1.1x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Azarga 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 Azarga 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 Azarga Metals performed over the past 5 years?

-8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AZR is currently unprofitable.

Growing Profit Margin: AZR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AZR is unprofitable, and losses have increased over the past 5 years at a rate of -8.4% per year.

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

Earnings vs Industry: AZR 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: AZR has a negative Return on Equity (-29.13%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Azarga Metals's financial position?


Financial Position Analysis

Short Term Liabilities: AZR's short term assets (CA$2.7M) exceed its short term liabilities (CA$205.9K).

Long Term Liabilities: AZR's short term assets (CA$2.7M) do not cover its long term liabilities (CA$5.2M).


Debt to Equity History and Analysis

Debt Level: AZR's debt to equity ratio (66.4%) is considered high.

Reducing Debt: Insufficient data to determine if AZR's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: AZR's debt is not covered by short term assets (assets are 0.8x 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: AZR has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: AZR has sufficient cash runway for 1.3 years if free cash flow continues to grow at historical rates of 18.6% each year.


Next Steps

Dividend

What is Azarga 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 AZR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

7.0yrs

Average management tenure


CEO

Michael Hopley (69yo)

0.8yrs

Tenure

CA$24,823

Compensation

Mr. Michael J. Hopley, P.Eng. has been President and Chief Executive Officer of Azarga Metals Corp. since May 14, 2019. Mr. Hopley served as the Chief Executive Officer of Sunridge Gold Corp. since Decembe ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD18.73K) is below average for companies of similar size in the Canadian market ($USD155.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Hopley
CEO, President & Director0.8yrsCA$24.82k0.083% CA$5.1k
Daniel O'Brien
Chief Financial Officer2.9yrsno datano data
Doris Meyer
Corporate Secretary11.2yrsno datano data
James Anthony Walchuck
Strategic Advisor11.6yrsCA$183.76kno data

7.0yrs

Average Tenure

67yo

Average Age

Experienced Management: AZR's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Hopley
CEO, President & Director0.8yrsCA$24.82k0.083% CA$5.1k
Trevor Steel
Independent Director0.8yrsno datano data
Vladimir Pakhomov
Independent Director3.7yrsno data15.75% CA$957.7k
Alexander Alan Molyneux
Non-Executive Chair0yrsno data15.4% CA$936.1k
Blake Steele
Independent Director3.2yrsno data4.83% CA$293.6k

3.4yrs

Average Tenure

Experienced Board: AZR's board of directors are considered experienced (3.4 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 27.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Azarga Metals Corp.
  • Ticker: AZR
  • Exchange: TSXV
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$6.080m
  • Shares outstanding: 93.53m
  • Website: https://www.azargametals.com

Number of Employees


Location

  • Azarga Metals Corp.
  • 15782 Marine Drive
  • Unit 1
  • White Rock
  • British Columbia
  • V4B 1E6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AZRTSXV (TSX Venture Exchange)YesCommon SharesCACADJan 1980
EUUN.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1980
TGPPDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1980

Biography

Azarga Metals Corp. engages in the exploration and development of mineral properties in Russia. It owns a 100% interest in the Unkur copper-silver project, which is located in the Zabaikalsky administrative region in eastern Russia. The company was formerly known as European Uranium Resources Ltd. and changed its name to Azarga Metals Corp. in May 2016. Azarga Metals Corp. is based in White Rock, 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 23:54
End of Day Share Price2020/02/13 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.