TSXV:CCW

Stock Analysis Report

Canada Cobalt Works

Executive Summary

Canada Cobalt Works Inc. engages in the acquisition, evaluation, exploration, and development of mineral properties in Canada.

Risk Analysis

Earnings have declined by -55.96% per year over past 5 years

Has less than 1 year of cash runway

Makes less than USD$1m in revenue (CA$177K)

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

+ 3 more risks


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

How has Canada Cobalt Works's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.7%

CCW

1.3%

CA Metals and Mining

0.3%

CA Market


1 Year Return

7.3%

CCW

3.3%

CA Metals and Mining

5.5%

CA Market

Return vs Industry: CCW exceeded the Canadian Metals and Mining industry which returned 4.4% over the past year.

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


Shareholder returns

CCWIndustryMarket
7 Day-1.7%1.3%0.3%
30 Day-14.5%1.2%0.5%
90 Day43.9%5.9%3.5%
1 Year7.3%7.3%3.9%3.3%8.8%5.5%
3 Year151.1%151.1%-12.5%-13.9%14.8%4.5%
5 Year5800.0%5800.0%23.7%20.0%34.1%14.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Canada Cobalt Works undervalued compared to its fair value and its price relative to the market?


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

Future Growth

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

16.0%

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 Canada Cobalt Works 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 Canada Cobalt Works performed over the past 5 years?

-56.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCW is currently unprofitable.

Growing Profit Margin: CCW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CCW is unprofitable, and losses have increased over the past 5 years at a rate of -56% per year.

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

Earnings vs Industry: CCW 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: CCW'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 Canada Cobalt Works's financial position?


Financial Position Analysis

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

Long Term Liabilities: CCW 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: CCW is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if CCW's debt is 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: CCW has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: CCW has less than a year of cash runway if free cash flow continues to reduce at historical rates of -53.1% each year


Next Steps

Dividend

What is Canada Cobalt Works'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 CCW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

4.4yrs

Average management tenure


CEO

Frank Basa 0

4.4yrs

Tenure

CA$120,000

Compensation

Mr. Frank Joseph Basa, P.Eng., has been the Chief Executive Officer and President of Takara Resources Inc. since September 15, 2015. Mr. Basa serves as the Chief Executive Officer and President of Castle S ...


CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD90.71K) is below average for companies of similar size in the Canadian market ($USD155.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Frank Basa
President4.4yrsCA$120.00k1.0% CA$549.0k
Thomas Devlin
Chief Financial Officer4.4yrsCA$68.35kno data
Tina Whyte
Corporate Secretary3.8yrsno data0.029% CA$16.1k
William Kerr
Vice President of Exploration5.8yrsCA$14.83kno data

4.4yrs

Average Tenure

Experienced Management: CCW's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frank Basa
President4.4yrsCA$120.00k1.0% CA$549.0k
Jacques Monette
Independent Director4.4yrsno datano data
Dianne Tookenay
Independent Director4.7yrsno datano data
Robert Setter
Independent Director4.2yrsno data0.027% CA$14.8k
Marc Bamber
Director0.8yrsno datano data

4.4yrs

Average Tenure

Experienced Board: CCW's board of directors are considered experienced (4.4 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 42.3%.


Top Shareholders

Company Information

Canada Cobalt Works Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Canada Cobalt Works Inc.
  • Ticker: CCW
  • Exchange: TSXV
  • Founded: 2005
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$54.915m
  • Shares outstanding: 93.08m
  • Website: https://www.canadacobaltworks.com

Location

  • Canada Cobalt Works Inc.
  • 3028 Quadra Court
  • Coquitlam
  • British Columbia
  • V3B 5X6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCWTSXV (TSX Venture Exchange)YesCommon SharesCACADApr 2010
4T9BDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2010
CCWO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2010
0P3VLSE (London Stock Exchange)YesCommon SharesGBCADApr 2010

Biography

Canada Cobalt Works Inc. engages in the acquisition, evaluation, exploration, and development of mineral properties in Canada. The company primarily explores for silver and cobalt deposits. It focuses on exploring and developing the Castle cobalt silver mine covering 19 claims, 34 leases, and two licenses located in Ontario; and the Beaver and Violet cobalt and silver properties located in the township of Coleman, Ontario. The company was formerly known as Castle Silver Resources Inc. and changed its name to Canada Cobalt Works Inc. in February 2018. Canada Cobalt Works Inc. was incorporated in 2005 and is headquartered in Coquitlam, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 00:36
End of Day Share Price2020/02/14 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.