TSXV:EAU

Stock Analysis Report

Engineer Gold Mines

Executive Summary

Engineer Gold Mines Ltd., an exploration stage junior mining company, engages in the identification, acquisition, exploration, and development of mineral properties in Canada.


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has Engineer Gold Mines's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

10.0%

EAU

-6.0%

CA Metals and Mining

-6.2%

CA Market


1 Year Return

-42.1%

EAU

2.2%

CA Metals and Mining

-2.0%

CA Market

Return vs Industry: EAU underperformed the Canadian Metals and Mining industry which returned 6.3% over the past year.

Return vs Market: EAU underperformed the Canadian Market which returned 0.1% over the past year.


Shareholder returns

EAUIndustryMarket
7 Day10.0%-6.0%-6.2%
30 Day-8.3%-1.0%-5.0%
90 Day-42.1%4.9%-2.8%
1 Year-42.1%-42.1%2.9%2.2%1.1%-2.0%
3 Yearn/a-2.8%-4.5%10.7%0.6%
5 Yearn/a25.0%21.4%27.6%8.9%

Price Volatility Vs. Market

How volatile is Engineer Gold Mines's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Engineer Gold Mines undervalued compared to its fair value and its price relative to the market?

0.69x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: EAU is good value based on its PB Ratio (0.7x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Engineer Gold Mines forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.0%

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 Engineer Gold Mines 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 Engineer Gold Mines performed over the past 5 years?

40.5%

Historical Materials annual earnings growth


Earnings and Revenue History

Quality Earnings: EAU is currently unprofitable.

Growing Profit Margin: EAU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if EAU's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

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

Earnings vs Industry: EAU is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.8%).


Return on Equity

High ROE: EAU has a negative Return on Equity (-32.52%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Engineer Gold Mines's financial position?


Financial Position Analysis

Short Term Liabilities: EAU's short term assets (CA$96.6K) do not cover its short term liabilities (CA$455.3K).

Long Term Liabilities: EAU has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: EAU's debt to equity ratio (4.9%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: EAU's debt is not covered by short term assets (assets are 1x 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: EAU has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: EAU has less than a year of cash runway if free cash flow continues to reduce at historical rates of -74.3% each year


Next Steps

Dividend

What is Engineer Gold Mines's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.1%markettop25%5.9%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

2.1yrs

Average board tenure


CEO

Tom Kennedy (68yo)

CA$50,000

Compensation

Mr. Thomas John Kennedy, also known as Tom, B.Com, LL.B, J.D., serves as Chief Executive Officer and also serves as Director since January 17, 2018 at Engineer Gold Mines Ltd. Mr. Kennedy has been the Chie ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD37.59K) is below average for companies of similar size in the Canadian market ($USD156.06K).

Compensation vs Earnings: Insufficient data to compare Tom's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Thomas Kennedy
CEO, Secretary & Director0yrsCA$50.00kno data
Glen MacDonald
Independent Director2.1yrsCA$8.00kno data
Andrew Rees
Independent Director2.1yrsCA$8.00k0.49% CA$10.5k
Brian Fowler
Director2.1yrsCA$85.00k1.24% CA$26.3k

2.1yrs

Average Tenure

63.5yo

Average Age

Experienced Board: EAU's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EAU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

Engineer Gold Mines Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Engineer Gold Mines Ltd.
  • Ticker: EAU
  • Exchange: TSXV
  • Founded: 2018
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: CA$2.129m
  • Shares outstanding: 38.71m
  • Website: https://www.engineergoldmines.com

Location

  • Engineer Gold Mines Ltd.
  • 750 West Pender Street
  • Suite 804
  • Vancouver
  • British Columbia
  • V6C 2T7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EAUTSXV (TSX Venture Exchange)YesCommon SharesCACADJun 2018

Biography

Engineer Gold Mines Ltd., an exploration stage junior mining company, engages in the identification, acquisition, exploration, and development of mineral properties in Canada. The company explores for gold and silver properties. It owns a 100% interest in the Engineer Gold Mine property that covers an area of 14,020 hectares located in the British Colombia. The company was founded in 2018 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 Analysis2020/02/28 02:40
End of Day Share Price2020/02/26 00:00
Earnings2019/08/31
Annual Earnings2018/11/30


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.