Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Deep-South Resources. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Deep-South Resources's earnings available for a low price, and how does
this compare to other companies in the same industry?
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 Deep-South Resources 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 Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Deep-South Resources's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Deep-South Resources's earnings growth to the Canada market average as no estimate data is available.
Unable to compare Deep-South Resources's revenue growth to the Canada market average as no estimate data is available.
Unable to determine if Deep-South Resources is high growth as no earnings estimate data is available.
Unable to determine if Deep-South Resources is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Deep-South Resources's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Metals and Mining
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Deep-South Resources's finances.
The net worth of a company is the difference between its assets and liabilities.
Deep-South Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Deep-South Resources has no long term commitments.
This treemap shows a more detailed breakdown of
Deep-South Resources's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.2x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Pierre Léveillé is the President and Owner of Q7 Capital inc. Mr. Léveillé has been Chief Executive Officer of the Deep-South Resources Inc. since anuary 18, 2017 has been its President and Director since February 23, 2017. Mr. Léveillé has over 28 years of experience in the International financial sector and 20 years of experience in the mining exploration industry. Mr. Léveillé started his career as a Stock Broker and Corporate Finance specialist with Lévesque, Beaubien, Geofrion and National Bank Financial. From the mid 1990’s to today, he has been Executive and Director of several exploration companies active in Africa. He has financed and managed exploration projects in Namibia since 1996. He is currently Executive Director of Deep-South Mining Company (PTY) Ltd. and a Director of Haib Minerals (PTY) Ltd. He served as President and Chief Executive Officer of Afri-Can Marine Minerals Corp. (the “Corporation”) since 1994 and has been its Director since 1994. Prior to joining the Corporation, he spent over eight years in the financial markets as a Stockbroker and Corporate Finance Advisor with Levesque, Beaubien, Geoffrion inc. and Investpro Securities Inc.
Pierre's compensation has been consistent with company performance over the past year.
Pierre's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Deep-South Resources management team is about average.
Ryan E. S. Cheung
CFO, Corporate Secretary & Director
VP & Director
Vice-President of Exploration
Board of Directors Tenure
Average tenure of the
board of directors in years:
The average tenure for the Deep-South Resources board of directors is less than 3 years, this suggests a new board.
What Investors Should Know About Deep-South Resources Inc's (CVE:DSM) Financial Strength
DSM has built up its total debt levels in the last twelve months, from CA$229.28K to CA$312.12K , which is made up of current and long term debt. … With this increase in debt, DSM's cash and short-term investments stands at below CA$10K, which is concerning. … On top of this, its small level of operating cash flow means calculating cash-to-debt wouldn't be too useful, though these low levels of cash means that operational efficiency is worth a look.
Should You Be Concerned About Deep-South Resources Inc's (TSXV:DSM) Investors?
Today, I will be analyzing Deep-South Resources Inc’s (TSXV:DSM) recent ownership structure, an important but not-so-popular subject among individual investors. … Insider Ownership I find insiders are another important group of stakeholders, who are directly involved in making key decisions related to the use of capital. … This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses.
Deep-South Resources Inc., a development stage company, engages in the acquisition, exploration, and development of mineral properties. It primarily explores for copper, nickel, cobalt, and gold deposits. The company holds a 100% interest in the Haib project located in the south of Namibia. It also has an option to acquire 75% interest in the Kapili Tepe project that consists of one mining license and two exploration licenses located in the Sivas Province of the North Central part of Turkey. The company was formerly known as Jet Gold Corp. and changed its name to Deep-South Resources Inc. in November 2016. Deep-South Resources Inc. was incorporated in 1987 and is headquartered in Vancouver, Canada.
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