TSXV:EMO

Stock Analysis Report

Emerita Resources

Executive Summary

Emerita Resources Corp., a natural resource company, engages in the acquisition, exploration, and development of mineral properties primarily in Spain.

Risk Analysis

Earnings have declined by -12.52% per year over past 5 years

Has less than 1 year of cash runway

Does not have a meaningful market cap (CA$4M)

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

+ 2 more risks


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has Emerita Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-11.1%

EMO

4.6%

CA Metals and Mining

0.2%

CA Market


1 Year Return

-20.0%

EMO

4.5%

CA Metals and Mining

4.9%

CA Market

Return vs Industry: EMO underperformed the Canadian Metals and Mining industry which returned 4.5% over the past year.

Return vs Market: EMO underperformed the Canadian Market which returned 4.9% over the past year.


Shareholder returns

EMOIndustryMarket
7 Day-11.1%4.6%0.2%
30 Day23.1%3.7%0.4%
90 Day-20.0%10.7%3.7%
1 Year-20.0%-20.0%5.1%4.5%8.2%4.9%
3 Year-89.7%-89.7%-5.4%-7.0%15.9%5.5%
5 Year-54.3%-54.3%26.4%22.6%33.8%14.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Emerita Resources undervalued compared to its fair value and its price relative to the market?


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

Future Growth

How is Emerita Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.8%

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 Emerita 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 SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Emerita Resources performed over the past 5 years?

-12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMO is currently unprofitable.

Growing Profit Margin: EMO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EMO is unprofitable, and losses have increased over the past 5 years at a rate of -12.5% per year.

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

Earnings vs Industry: EMO is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (10.1%).


Return on Equity

High ROE: EMO'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 Emerita Resources's financial position?


Financial Position Analysis

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

Long Term Liabilities: EMO 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: EMO has negative shareholder equity, which is a more serious situation than a high debt level.

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


Balance Sheet

Inventory Level: EMO has a low level of unsold assets or inventory.

Debt Coverage by Assets: EMO has negative shareholder equity (liabilities exceed assets) therefore debt is not 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: EMO has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: EMO has less than a year of cash runway if free cash flow continues to reduce at historical rates of -7.7% each year


Next Steps

Dividend

What is Emerita Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

5.7yrs

Average management tenure


CEO

David Gower (61yo)

1.5yrs

Tenure

CA$90,000

Compensation

Mr. David Patrick Gower, M. Sc., P. Geo., has been Chief Executive Officer of Emerita Resources Corp., since August 1, 2018. He serves as an Advisor of Belo Sun Mining Corporation (formerly Verena Minerals ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD67.87K) is below average for companies of similar size in the Canadian market ($USD154.66K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Gower
CEO & Director1.5yrsCA$90.00k2.46% CA$99.7k
Joaquín Merino-Márquez
President & Director7.1yrsCA$271.85k0.51% CA$20.8k
Gregory Duras
Chief Financial Officer7.1yrsCA$60.00k0.20% CA$8.0k
Damian Lopez
Corporate Secretary4.3yrsno datano data

5.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: EMO's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Gower
CEO & Director1.5yrsCA$90.00k2.46% CA$99.7k
Joaquín Merino-Márquez
President & Director7.1yrsCA$271.85k0.51% CA$20.8k
Lawrence Guy
Independent Director1.3yrsno datano data
Catherine Stretch
Independent Director6.2yrsCA$30.00k0.33% CA$13.3k
Marilia Bento
Independent Director7.3yrsCA$30.00k0.24% CA$9.9k

7.1yrs

Average Tenure

51yo

Average Age

Experienced Board: EMO's board of directors are considered experienced (7.1 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 37.3%.


Top Shareholders

Company Information

Emerita Resources Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Emerita Resources Corp.
  • Ticker: EMO
  • Exchange: TSXV
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$4.049m
  • Shares outstanding: 50.61m
  • Website: https://www.emeritaresources.com

Location

  • Emerita Resources Corp.
  • 65 Queen Street West
  • Suite 800
  • Toronto
  • Ontario
  • M5H 2M5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EMOTSXV (TSX Venture Exchange)YesCommon SharesCACADJan 2013
LLJADB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2013

Biography

Emerita Resources Corp., a natural resource company, engages in the acquisition, exploration, and development of mineral properties primarily in Spain. The company primarily explores for gold and zinc deposits. Its flagship project includes the 100% owned the Plaza Norte Project comprising 120 claims covering an area of 3,600 hectares located in the Cantabria region of northern Spain. The company also holds interest in the Sierra Alta property with 90 mining claims covering an area of 2,700 hectares located in the Asturias region in northwestern Spain. Emerita Resources Corp. is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:11
End of Day Share Price2020/02/18 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.