TSXV:CSO

Stock Analysis Report

Executive Summary

Corsa Coal Corp. engages in mining, processing, and selling metallurgical coal; and exploring, acquiring, and developing resource properties.


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

CSO

-7.9%

CA Metals and Mining

3.7%

CA Market


1 Year Return

-84.1%

CSO

-11.9%

CA Metals and Mining

-23.7%

CA Market

Return vs Industry: CSO underperformed the Canadian Metals and Mining industry which returned -11.9% over the past year.

Return vs Market: CSO underperformed the Canadian Market which returned -23.7% over the past year.


Shareholder returns

CSOIndustryMarket
7 Day0%-7.9%3.7%
30 Day-46.0%-11.1%-19.7%
90 Day-54.2%-18.4%-24.3%
1 Year-84.1%-84.1%-11.3%-11.9%-21.2%-23.7%
3 Year-93.7%-93.7%-19.7%-21.2%-13.3%-21.4%
5 Year-94.8%-94.8%3.6%0.7%-0.8%-15.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Corsa Coal undervalued compared to its fair value and its price relative to the market?

0.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CSO (CA$0.14) is trading above our estimate of fair value (CA$0.04)

Significantly Below Fair Value: CSO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CSO is good value based on its PE Ratio (0.6x) compared to the Metals and Mining industry average (11.3x).

PE vs Market: CSO is good value based on its PE Ratio (0.6x) compared to the Canadian market (10.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CSO is good value based on its PB Ratio (0.1x) compared to the CA Metals and Mining industry average (1.1x).


Next Steps

Future Growth

How is Corsa Coal forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

11.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CSO's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if CSO's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CSO's revenue (11.9% per year) is forecast to grow faster than the Canadian market (3.7% per year).

High Growth Revenue: CSO's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CSO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Corsa Coal performed over the past 5 years?

51.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSO has a large one-off gain of $2.9M impacting its September 30 2019 financial results.

Growing Profit Margin: CSO's current net profit margins (5.8%) are lower than last year (28.2%).


Past Earnings Growth Analysis

Earnings Trend: CSO has become profitable over the past 5 years, growing earnings by 51.1% per year.

Accelerating Growth: CSO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CSO had negative earnings growth (-79.7%) over the past year, making it difficult to compare to the Metals and Mining industry average (16.5%).


Return on Equity

High ROE: CSO's Return on Equity (11.2%) is considered low.


Next Steps

Financial Health

How is Corsa Coal's financial position?


Financial Position Analysis

Short Term Liabilities: CSO's short term assets ($50.8M) exceed its short term liabilities ($40.4M).

Long Term Liabilities: CSO's short term assets ($50.8M) do not cover its long term liabilities ($75.8M).


Debt to Equity History and Analysis

Debt Level: CSO's debt to equity ratio (12.8%) is considered satisfactory.

Reducing Debt: CSO's debt to equity ratio has increased from 11.3% to 12.8% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CSO's debt is covered by short term assets (assets are 2.5x 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: CSO is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: CSO is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

1.3yrs

Average management tenure


CEO

Pete Merritts

0.75

Tenure

US$427,865

Compensation

Mr. Peter V. Merritts, also known as Pete, serves as Chief Executive Officer and Director of Corsa Coal Corp. since July 12, 2019. He had been President of Northern Appalachia (Napp) Division at Corsa Coal ...


CEO Compensation Analysis

Compensation vs Market: Pete's total compensation ($USD427.87K) is above average for companies of similar size in the Canadian market ($USD158.74K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Merritts
CEO & Director0.75yrUS$427.87k0.49% $63.0k
Kevin Harrigan
CFO & Corporate Secretary4.83yrsUS$437.61kno data
Frederick Cushmore
VP & Head of International Sales1.75yrsUS$365.96kno data
Daniel Bonacci
VP of Finance & Treasurer0.58yrno datano data

1.3yrs

Average Tenure

Experienced Management: CSO's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Peter Merritts
CEO & Director0.75yrUS$427.87k0.49% $63.0k
John Craig
Independent Director9.33yrsUS$41.74k0.021% $2.6k
Alan De'Ath
Independent Director6.75yrsUS$66.74kno data
Ronald Stovash
Independent Director6.75yrsUS$69.24kno data
Robert Scott
Independent Director10.67yrsUS$69.24kno data
Robert Sturdivant
Chairman of the Board2.92yrsno datano data
Kai Xia
Director3.08yrsno datano data

6.8yrs

Average Tenure

72yo

Average Age

Experienced Board: CSO's board of directors are considered experienced (6.8 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

Corsa Coal Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Corsa Coal Corp.
  • Ticker: CSO
  • Exchange: TSXV
  • Founded: 2007
  • Industry: Steel
  • Sector: Materials
  • Market Cap: CA$12.792m
  • Shares outstanding: 94.76m
  • Website: https://www.corsacoal.com

Number of Employees


Location

  • Corsa Coal Corp.
  • 4600 J. Barry Court
  • Suite 220
  • Canonsburg
  • Pennsylvania
  • 15317
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSOTSXV (TSX Venture Exchange)YesCommon SharesCACADAug 2013
4RC1DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2013
CRSX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2013

Biography

Corsa Coal Corp. engages in mining, processing, and selling metallurgical coal; and exploring, acquiring, and developing resource properties. The company produces and sells a metallurgical coal used for the production of coke from its mines in the Northern Appalachia coal region of the United States. It serves steel and coke producers. The company markets and sells its coal to customers in North America, Europe, South America, and Asia. Corsa Coal Corp. was founded in 2007 and is headquartered in Canonsburg, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 01:19
End of Day Share Price2020/03/30 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.