TSXV:ENRG

Stock Analysis Report

New Energy Metals

Executive Summary

New Energy Metals Corp. engages in the acquisition, exploration, and development of mineral properties with a focus on San Juan district in Chile.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

How has New Energy Metals's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

14.3%

ENRG

3.1%

CA Metals and Mining

0.6%

CA Market


1 Year Return

-91.7%

ENRG

4.7%

CA Metals and Mining

5.3%

CA Market

Return vs Industry: ENRG underperformed the Canadian Metals and Mining industry which returned 4.7% over the past year.

Return vs Market: ENRG underperformed the Canadian Market which returned 5.3% over the past year.


Shareholder returns

ENRGIndustryMarket
7 Day14.3%3.1%0.6%
30 Day0%3.5%1.0%
90 Dayn/a11.9%4.5%
1 Year-91.7%-91.7%5.4%4.7%8.6%5.3%
3 Yearn/a-4.3%-5.9%18.0%7.4%
5 Yearn/a24.6%21.0%34.4%14.9%

Price Volatility Vs. Market

How volatile is New Energy Metals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is New Energy Metals undervalued compared to its fair value and its price relative to the market?


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

Future Growth

How is New Energy Metals forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.9%

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 New Energy Metals 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 New Energy Metals performed over the past 5 years?

-48.8%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: ENRG is currently unprofitable.

Growing Profit Margin: ENRG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ENRG's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: ENRG is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.7%).


Return on Equity

High ROE: ENRG'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 New Energy Metals's financial position?


Financial Position Analysis

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

Long Term Liabilities: ENRG 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: ENRG is debt free.

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


Balance Sheet

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

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

Forecast Cash Runway: ENRG has less than a year of cash runway if free cash flow continues to reduce at historical rates of -21.7% each year


Next Steps

Dividend

What is New Energy Metals'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 ENRG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

1.1yrs

Average management tenure


CEO

Cesar Lopez (54yo)

1.3yrs

Tenure

0

Mr. Cesar A. Lopez, LLM has been President and Chief Executive Officer of New Energy Metals Corp. since November 26, 2018. Mr. Lopez has been Director since December 2018 at New Energy Metals Corp. From 20 ...


Leadership Team

NamePositionTenureCompensationOwnership
Cesar Lopez
President1.3yrsno data1.09% CA$9.4k
David Cross
Chief Financial Officer1.2yrsno datano data
Thomas Henricksen
Chief Geologist & Member of Board of Advisors1yrsno datano data
Marla Ritchie
Corporate Secretary1.1yrsno datano data

1.1yrs

Average Tenure

54yo

Average Age

Experienced Management: ENRG's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Cesar Lopez
President1.3yrsno data1.09% CA$9.4k
Thomas Henricksen
Chief Geologist & Member of Board of Advisors1yrsno datano data
Darryl Lindsay
Director0.7yrsno data0.046% CA$400.0
Kelly Earle
Director1.2yrsno datano data

1.1yrs

Average Tenure

Experienced Board: ENRG's board of directors are not considered experienced ( 1.1 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: 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 been substantially diluted in the past year, with total shares outstanding growing by 196.3%.


Top Shareholders

Company Information

New Energy Metals Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Energy Metals Corp.
  • Ticker: ENRG
  • Exchange: TSXV
  • Founded: 2017
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$862.030k
  • Shares outstanding: 21.55m
  • Website: https://www.newenergymetals.ca

Location

  • New Energy Metals Corp.
  • 1177 West Hastings Street
  • Suite 2300
  • Vancouver
  • British Columbia
  • V6E 2K3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENRGTSXV (TSX Venture Exchange)YesCommon SharesCACADJan 2018
NEMC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 2018

Biography

New Energy Metals Corp. engages in the acquisition, exploration, and development of mineral properties with a focus on San Juan district in Chile. It primarily explores for cobalt, as well as for copper. The company was formerly known as Darien Resource Development Corp. and changed its name to New Energy Metals Corp. in April 2018. New Energy Metals Corp. was founded in 2017 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 Analysis2020/02/21 02:16
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.