TSXV:EVX

Stock Analysis Report

European Electric Metals

Executive Summary

European Electric Metals Inc. engages in the acquisition and exploration of mineral properties.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

EVX

3.5%

CA Metals and Mining

-1.5%

CA Market


1 Year Return

-81.8%

EVX

6.8%

CA Metals and Mining

2.5%

CA Market

Return vs Industry: EVX underperformed the Canadian Metals and Mining industry which returned 5.4% over the past year.

Return vs Market: EVX underperformed the Canadian Market which returned 4.5% over the past year.


Shareholder returns

EVXIndustryMarket
7 Day0%3.5%-1.5%
30 Day33.3%5.0%-0.7%
90 Day100.0%14.3%1.8%
1 Year-81.8%-81.8%7.5%6.8%5.7%2.5%
3 Year-97.1%-97.1%2.8%1.0%16.8%6.2%
5 Year-99.1%-99.1%29.1%25.4%32.0%12.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is European Electric 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 European Electric Metals is trading at an attractive price based on the cash flow it is expected to produce in the future. But as European Electric 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 EVX’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 European Electric Metals regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

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

13.0%

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 European Electric 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 European Electric Metals performed over the past 5 years?

36.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EVX is currently unprofitable.

Growing Profit Margin: EVX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EVX is unprofitable, but has reduced losses over the past 5 years at a rate of 36.3% per year.

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

Earnings vs Industry: EVX is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: EVX's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is European Electric Metals's financial position?


Financial Position Analysis

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

Long Term Liabilities: EVX 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: EVX is debt free.

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


Balance Sheet

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

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

Forecast Cash Runway: EVX has less than a year of cash runway if free cash flow continues to reduce at historical rates of -4.1% each year


Next Steps

Dividend

What is European Electric Metals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

6.2yrs

Average management tenure


CEO

Fred Antonio Tejada (61yo)

2.3yrs

Tenure

CA$165,000

Compensation

Mr. Fred Antonio C. Tejada, P.Geo., has been the Chief Executive Officer of European Electric Metals Inc. (formerly, Tirex Resources Ltd.) since November 30, 2017. Mr. Tejada has been a Director of Cricket ...


CEO Compensation Analysis

Compensation vs Market: Fred Antonio's total compensation ($USD124.87K) is about average for companies of similar size in the Canadian market ($USD154.65K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Fred Antonio Tejada
CEO, President2.3yrsCA$165.00k0.36% CA$3.1k
Jonathan Richards
Chief Financial Officer10.2yrsCA$120.00kno data
Jose Branco
Chief Geologist2yrsno datano data
Shoni Bernard
Corporate Secretary12.8yrsno datano data

6.2yrs

Average Tenure

61yo

Average Age

Experienced Management: EVX's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fred Antonio Tejada
CEO, President2.3yrsCA$165.00k0.36% CA$3.1k
George Gorzynski
1.1yrsCA$20.00kno data
John Booth
Independent Chairman of the Board1.8yrsCA$42.00k1.9% CA$16.4k
Jeffrey Steiner
Special Advisor7.4yrsno datano data
John Stalker
1.3yrsno datano data
Erton Kaleshi
Member of Albanian Advisory Team0yrsno datano data
Mark Crawford
Member of Advisory Board & Independent Director1.8yrsno data0.46% CA$4.0k

1.8yrs

Average Tenure

62yo

Average Age

Experienced Board: EVX's board of directors are not considered experienced ( 1.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24.3%.


Top Shareholders

Company Information

European Electric Metals Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: European Electric Metals Inc.
  • Ticker: EVX
  • Exchange: TSXV
  • Founded: 2006
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$861.262k
  • Shares outstanding: 43.06m
  • Website: https://www.europeanelectricmetals.com

Location

  • European Electric Metals Inc.
  • 1090 West Georgia Street
  • Suite 488
  • Vancouver
  • British Columbia
  • V6E 3V7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EVXTSXV (TSX Venture Exchange)YesCommon SharesCACADOct 2007
EVXX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2007

Biography

European Electric Metals Inc. engages in the acquisition and exploration of mineral properties. It has an option to acquire 100% interest in the Borba 2 copper project located in Portugal. The company was formerly known as Tirex Resources Ltd. and changed its name to European Electric Metals Inc. in January 2018. European Electric Metals Inc. was founded in 2006 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 Analysis2020/02/24 02:08
End of Day Share Price2020/02/21 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


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.