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Fairmont Resources

TSXV:FMR
Snowflake Description

Mediocre balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FMR
TSXV
CA$468K
Market Cap
  1. Home
  2. CA
  3. Materials
Company description

Fairmont Resources Inc. engages in the acquisition, exploration, and development of mineral properties in Canada. The last earnings update was 30 days ago. More info.


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  • Fairmont Resources has significant price volatility in the past 3 months.
FMR Share Price and Events
Price Volatility
FMR
Industry
5yr Volatility vs Market

FMR Value

 Is Fairmont Resources undervalued based on future cash flows and its price relative to the stock market?

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 undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Fairmont Resources to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Fairmont Resources.

TSXV:FMR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 15.6%
Perpetual Growth Rate 10-Year CA Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSXV:FMR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 7.7%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.728 (1 + (1- 26.5%) (0%))
1.728
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.73
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.34% + (1.728 * 7.66%)
15.57%

Discounted Cash Flow Calculation for TSXV:FMR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Fairmont Resources is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

TSXV:FMR DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (CAD, Millions) 0.54 0.58 0.62 0.67 0.72
Source Est @ 7.59% Est @ 7.59% Est @ 7.59% Est @ 7.59% Est @ 7.59%
Present Value
Discounted (@ 15.57%)
0.46 0.43 0.40 0.37 0.35
Present value of next 5 years cash flows CA$2.02
TSXV:FMR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= CA$0.72 × (1 + 2.34%) ÷ (15.57% – 2.34%)
CA$5.55
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= CA$5.55 ÷ (1 + 15.57%)5
CA$2.69
TSXV:FMR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= CA$2.02 + CA$2.69
CA$4.71
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$4.71 / 4.07
CA$1.16
TSXV:FMR Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$1.16
Current discount Discount to share price of CA$0.12
= -1 x (CA$0.12 - CA$1.16) / CA$1.16
90.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Fairmont Resources is available for.
Intrinsic value
>50%
Share price is CA$0.12 vs Future cash flow value of CA$1.16
Current Discount Checks
For Fairmont Resources to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Fairmont Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Fairmont Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Fairmont Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Fairmont Resources's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSXV:FMR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-07-31) in CAD CA$-0.17
TSXV:FMR Share Price ** TSXV (2018-10-25) in CAD CA$0.12
Canada Metals and Mining Industry PE Ratio Median Figure of 128 Publicly-Listed Metals and Mining Companies 9.66x
Canada Market PE Ratio Median Figure of 555 Publicly-Listed Companies 14.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Fairmont Resources.

TSXV:FMR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSXV:FMR Share Price ÷ EPS (both in CAD)

= 0.12 ÷ -0.17

-0.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fairmont Resources is loss making, we can't compare its value to the CA Metals and Mining industry average.
  • Fairmont Resources is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Fairmont Resources's expected growth come at a high price?
Raw Data
TSXV:FMR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Canada Metals and Mining Industry PEG Ratio Median Figure of 48 Publicly-Listed Metals and Mining Companies 0.38x
Canada Market PEG Ratio Median Figure of 259 Publicly-Listed Companies 1.1x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Fairmont Resources, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Fairmont Resources's assets?
Raw Data
TSXV:FMR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-07-31) in CAD CA$-0.28
TSXV:FMR Share Price * TSXV (2018-10-25) in CAD CA$0.12
Canada Metals and Mining Industry PB Ratio Median Figure of 1,052 Publicly-Listed Metals and Mining Companies 1.37x
Canada Market PB Ratio Median Figure of 2,238 Publicly-Listed Companies 1.53x
TSXV:FMR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSXV:FMR Share Price ÷ Book Value per Share (both in CAD)

= 0.12 ÷ -0.28

-0.41x

* Primary Listing of Fairmont Resources.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fairmont Resources has negative assets, we can't compare the value of its assets to the CA Metals and Mining industry average.
X
Value checks
We assess Fairmont Resources's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Fairmont Resources has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FMR Future Performance

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

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 Fairmont 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 growth 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 it right!
Annual Growth Rate
23%
Expected Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Fairmont Resources expected to grow at an attractive rate?
  • Unable to compare Fairmont Resources's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Fairmont Resources's earnings growth to the Canada market average as no estimate data is available.
  • Unable to compare Fairmont Resources's revenue growth to the Canada market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
TSXV:FMR Future Growth Rates Data Sources
Data Point Source Value (per year)
Canada Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 23%
Canada Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 7.6%
Canada Market Earnings Growth Rate Market Cap Weighted Average 15.3%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSXV:FMR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSXV:FMR Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-07-31 0 -1
2018-04-30 -0 -2
2018-01-31 -0 -2
2017-10-31 -0 -2
2017-07-31 -0 -2
2017-04-30 -0 -1
2017-01-31 -0 -1
2016-10-31 -0 -1
2016-07-31 -0 -1
2016-04-30 -0 -0
2016-01-31 -0 -0
2015-10-31 -0 -0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Fairmont Resources is high growth as no earnings estimate data is available.
  • Unable to determine if Fairmont 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.
Raw Data
TSXV:FMR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Fairmont Resources Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSXV:FMR Past Financials Data
Date (Data in CAD Millions) EPS *
2018-07-31 -0.17
2018-04-30 -0.57
2018-01-31 -0.62
2017-10-31 -0.70
2017-07-31 -0.46
2017-04-30 -0.30
2017-01-31 -0.32
2016-10-31 -0.30
2016-07-31 -0.35
2016-04-30 -0.18
2016-01-31 -0.23
2015-10-31 -0.26

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Fairmont Resources will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Take a look at our analysis of FMR’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.
  2. Fairmont Resources's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Materials companies here
  3. Fairmont Resources's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Fairmont Resources's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Fairmont Resources has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FMR Past Performance

  How has Fairmont Resources performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Fairmont Resources's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Fairmont Resources does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Fairmont Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Fairmont Resources's 1-year growth to the CA Metals and Mining industry average as it is not currently profitable.
Earnings and Revenue History
Fairmont Resources's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Fairmont Resources Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSXV:FMR Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-07-31 -0.53 0.41
2018-04-30 -1.77 0.45
2018-01-31 -1.90 0.43
2017-10-31 -2.05 0.52
2017-07-31 -1.64 0.41
2017-04-30 -0.98 0.78
2017-01-31 -0.94 0.77
2016-10-31 -0.80 0.72
2016-07-31 -0.76 0.64
2016-04-30 -0.37 0.27
2016-01-31 -0.44 0.35
2015-10-31 -0.48 0.39
2015-07-31 -0.51 0.48
2015-04-30 -0.65 0.54
2015-01-31 -1.33 0.42
2014-10-31 -1.27 0.37
2014-07-31 -2.18 0.27
2014-04-30 -2.03 0.18
2014-01-31 -1.31 0.21
2013-10-31 -1.37 0.24
2013-07-31 -0.43 0.28
2013-04-30 -0.47 0.32
2013-01-31 -0.60 0.48
2012-10-31 -0.63 0.52
2012-07-31 -0.71 0.61
2012-04-30 -0.88 0.60
2012-01-31 -0.78 0.53
2011-10-31 -0.99 0.75

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Fairmont Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • It is difficult to establish if Fairmont Resources has efficiently used its assets last year compared to the CA Metals and Mining industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Fairmont Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to its liabilities exceeding its assets.
X
Past performance checks
We assess Fairmont Resources's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
Fairmont Resources 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.

Full details on the Past part of the Simply Wall St company analysis model.

FMR Health

 How is Fairmont Resources's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Fairmont Resources's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Fairmont Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Fairmont Resources has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Fairmont 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 checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Fairmont Resources has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, 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.
Raw Data

All data from Fairmont Resources Company Filings, last reported 2 months ago.

TSXV:FMR Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-07-31 -1.04 0.00 0.15
2018-04-30 -1.15 0.00 0.00
2018-01-31 -1.14 0.27 0.00
2017-10-31 -1.09 0.27 0.00
2017-07-31 -0.51 0.24 0.00
2017-04-30 0.58 0.21 0.01
2017-01-31 0.65 0.20 0.03
2016-10-31 0.55 0.18 0.02
2016-07-31 0.67 0.13 0.03
2016-04-30 0.26 0.13 0.03
2016-01-31 0.36 0.10 0.01
2015-10-31 0.22 0.07 0.01
2015-07-31 0.64 0.00 0.01
2015-04-30 0.39 0.00 0.01
2015-01-31 0.41 0.00 0.01
2014-10-31 0.44 0.00 0.16
2014-07-31 0.15 0.00 0.04
2014-04-30 0.16 0.00 0.02
2014-01-31 0.99 0.00 0.08
2013-10-31 0.68 0.00 0.00
2013-07-31 1.74 0.00 0.01
2013-04-30 1.81 0.00 0.07
2013-01-31 1.94 0.00 0.11
2012-10-31 2.03 0.00 0.25
2012-07-31 2.12 0.00 0.45
2012-04-30 2.24 0.00 0.71
2012-01-31 1.92 0.00 0.65
2011-10-31 2.04 0.00 0.83
  • Fairmont Resources has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Fairmont Resources's debt level has increased considering it has negative shareholder equity.
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.

  • Whilst loss making Fairmont Resources has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Fairmont Resources has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -84.3% per year.
X
Financial health checks
We assess Fairmont Resources's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Fairmont Resources has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FMR Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Fairmont Resources dividends.
If you bought CA$2,000 of Fairmont Resources shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Fairmont Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Fairmont Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSXV:FMR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Canada Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 27 Stocks 1.2%
Canada Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Fairmont Resources has not reported any payouts.
  • Unable to verify if Fairmont Resources's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Fairmont Resources's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Fairmont Resources has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Fairmont Resources's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Fairmont Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Fairmont Resources has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FMR Management

 What is the CEO of Fairmont Resources's salary, the management and board of directors tenure and is there insider trading?

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.
CEO
Michael Lerner
COMPENSATION CA$0
TENURE AS CEO 0.8 years
CEO Bio

Mr. Michael Lerner served as Chief Executive Officer of Navasota Resources Inc. since January 2017 until October 12, 2018 and also served as its Director since October 2016 until October 12, 2018. Mr. Lerner served as President at Navasota Resources Inc until October 12, 2018. He has been appointed as President, Chief Executive Officer and Director of Fairmont, effective December 13, 2017. He served as the President, Chief Executive Officer and Director of Jiminex Inc. since October 24, 2016 until September 20, 2018. Mr. Lerner served as Chief Executive Officer and Director of Happy Creek Minerals Ltd. from 2012 to 2013 and Deep-South Resources Inc. from April 2014 to November 2014. Mr. Lerner has been working in capital markets and institution equity for the last 20 years. Mr. Michael has more than 20 years of experience in the natural resources market, starting as an institutional trader at CIBC and Wellington West and then as a professional trader and financier focused on junior mining stocks at Dominic and Dominic. Since 2012, he has become more involved in the operations of junior mining companies as an officer or director of public companies including Navasota Resources where he has helped to turn around these companies.

CEO Compensation
  • Insufficient data for Michael to compare compensation growth.
  • Michael's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Fairmont Resources management team in years:

0.8
Average Tenure
  • The average tenure for the Fairmont Resources management team is less than 2 years, this suggests a new team.
Management Team

Michael Lerner

TITLE
President
TENURE
0.8 yrs

Balu Gopalakrishnan

TITLE
CFO & Director
TENURE
0.6 yrs

Mark Huntley

TITLE
GM & Regional Vice President
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure of the Fairmont Resources board of directors in years:

0.8
Average Tenure
  • The average tenure for the Fairmont Resources board of directors is less than 3 years, this suggests a new board.
Board of Directors

Michael Lerner

TITLE
President
TENURE
0.8 yrs

Balu Gopalakrishnan

TITLE
CFO & Director
TENURE
0.6 yrs

Harvey McKenzie

TITLE
Director
AGE
72
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Start End Shares Max Price (CAD) Value (CAD)
X
Management checks
We assess Fairmont Resources's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Fairmont Resources has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FMR News

External News
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Simply Wall St News

Who Owns Most Of Fairmont Resources Inc (CVE:FMR)?

Check out our latest analysis for Fairmont Resources TSXV:FMR Ownership_summary Apr 24th 18 Insider Ownership Another important group of shareholders are company insiders. … With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors. … Private Company Ownership Potential investors in FMR should also look at another important group of investors: private companies, with a stake of 0.80%, who are primarily invested because of strategic and capital gain interests.

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Is Fairmont Resources Inc (CVE:FMR) Still A Cheap Basic Materials Stock?

Fairmont Resources Inc (TSXV:FMR), a CA$934.23K small-cap, is a metals and mining operating in an industry which supplies materials for construction. … Check out our latest analysis for Fairmont Resources What’s the catalyst for Fairmont Resources's sector growth? … Next Steps: Fairmont Resources has been a metals and mining industry laggard in the past year.

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Should You Be Concerned About Fairmont Resources Inc's (CVE:FMR) Investors?

In general, this level of insider ownership has negatively affected underperforming (consistently low PE ratio) companies and positively affected the companies that outperform (consistently high PE ratio). … General Public Ownership The general public holds a substantial 85.52% stake in FMR, making it a highly popular stock among retail investors. … With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors.

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Can Fairmont Resources Inc (CVE:FMR) Improve Your Portfolio Returns?

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … According to this value of beta, FMR may be a stock for investors with a portfolio mainly made up of low-beta stocks. … A market capitalisation of CA$934.23K puts FMR in the category of small-cap stocks, which tends to possess higher beta than larger companies.

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Basic Materials Industry Trends And Its Impact On Fairmont Resources Inc (TSXV:FMR)

TSXV:FMR PE PEG Gauge Nov 7th 17 The metals and mining industry is trading at a PE ratio of 11x, lower than the rest of the Canadian stock market PE of 17x. … If your initial investment thesis is around the growth prospects of FMR, there are other metals and mining companies that have delivered higher growth, and perhaps trading at a discount to the industry average. … Although its growth has delivered lower growth relative to its metals and mining peers in the near term, the market may be pessimistic on the stock, leading to a potential undervaluation.

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FMR Company Info

Map
Description

Fairmont Resources Inc. engages in the acquisition, exploration, and development of mineral properties in Canada. It explores for iron, titanium, vanadium, lithium, and quartz properties. The company holds 100% interests in the Buttercup property located in Saguenay, Quebec; the Lac Bouchette Quartz property covering 435 hectare area situated in the province of Quebec; the Forestville Quartzite property located in the town of Forestville, Quebec; and the Baie Comeau Quartzite property situated in Baie Comeau, Quebec. It also has an option agreement to acquire Rome Lithium property located near Val d’Or, Quebec. The company was formerly known as Strike Explorations Corp. and changed its name to Fairmont Resources Inc. in April 2009. Fairmont Resources Inc. was incorporated in 2007 and is headquartered in Vancouver, Canada.

Details
Name: Fairmont Resources Inc.
FMR
Exchange: TSXV
Founded: 2007
CA$467,857
4,068,329
Website: http://www.fairmontresources.ca
Address: Fairmont Resources Inc.
1130 West Pender Street,
Suite 820,
Vancouver,
British Columbia, V6E 4A4,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSXV FMR Common Shares TSX Venture Exchange CA CAD 15. Apr 2010
OTCPK FRSS.D Common Shares Pink Sheets LLC US USD 15. Apr 2010
DB F0O2 COM NPV(POST REV SPLIT) Deutsche Boerse AG DE CAD 28. Oct 2018
Number of employees
Current staff
Staff numbers
0
Fairmont Resources employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/10/28 21:24
End of day share price update: 2018/10/25 00:00
Last earnings filing: 2018/09/28
Last earnings reported: 2018/07/31
Last annual earnings reported: 2017/10/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.