TSXV:FPC

Stock Analysis Report

Executive Summary

Falco Resources Ltd., a junior resource exploration company, engages in the exploring, evaluating, and developing mineral properties in Canada.

Snowflake

Fundamentals

Overvalued with worrying balance sheet.

Risks

  • Falco Resources has significant price volatility in the past 3 months.
  • Falco Resources is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

7.3%

TSXV:FPC

-1.9%

CA Metals and Mining

1.3%

CA Market


1 Year Return

-50.6%

TSXV:FPC

20.7%

CA Metals and Mining

-0.3%

CA Market

FPC underperformed the Metals and Mining industry which returned 21.7% over the past year.

FPC underperformed the Market in Canada which returned -0.1% over the past year.


Share holder returns

FPCIndustryMarket
7 Day7.3%-1.9%1.3%
30 Day-17.0%-1.1%3.4%
90 Day-12.0%9.8%1.1%
1 Year-50.6%-50.6%21.7%20.7%3.2%-0.3%
3 Year-83.6%-83.6%-11.1%-12.8%19.1%8.4%
5 Year-56.0%-56.0%-0.3%-4.0%19.5%2.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.5x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Falco Resources to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Falco Resources to establish if it is available at substantial discount.


Price Based on Earnings

Falco Resources is loss making, we can't compare its value to the CA Metals and Mining industry average.

Falco Resources is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Falco Resources, we can't assess if its growth is good value.


Price Based on Value of Assets

Falco Resources is good value based on assets compared to the CA Metals and Mining industry average.


Next Steps

Future Growth

How is Falco Resources expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

-37.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Falco Resources is high growth as no revenue estimate data is available.

Falco Resources is not considered high growth as it is expected to be loss making for the next 1-3 years.

Unable to compare Falco Resources's revenue growth to the Canada market average as no estimate data is available.

Unable to compare Falco Resources's earnings growth to the Canada market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Falco Resources's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Falco Resources will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Falco Resources performed over the past 5 years?

-13.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Falco Resources does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Falco Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Falco Resources's 1-year growth to the CA Metals and Mining industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Falco Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Falco 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.


Return on Capital Employed

It is difficult to establish if Falco Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Falco Resources's financial position?


Financial Position Analysis

Falco Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Falco Resources's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Falco Resources's level of debt (11%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Falco Resources's debt level has increased without past 5-year debt data.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x 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.

Falco Resources has less than a year of cash runway based on current free cash flow.

Falco Resources has less than a year of cash runway if free cash flow continues to grow at historical rates of 47.3% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Falco Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Falco Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Falco Resources has not reported any payouts.

Unable to verify if Falco Resources's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Falco 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.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Luc Lessard (55yo)

4.6yrs

Tenure

CA$514,696

Compensation

Mr. Luc Lessard, B.A.Sc., Eng., has been Senior Vice President of Technical Services at Osisko Gold Royalties Ltd. since June 30, 2015. Mr. Lessard was Chief Operating Officer of Barkerville Gold Mines Ltd ...


CEO Compensation Analysis

Luc's remuneration is higher than average for companies of similar size in Canada.

Luc's compensation has increased whilst company is loss making.


Management Age and Tenure

3.5yrs

Average Tenure

53yo

Average Age

The tenure for the Falco Resources management team is about average.


Board Age and Tenure

3.8yrs

Average Tenure

58yo

Average Age

The tenure for the Falco Resources board of directors is about average.


Insider Trading

More shares have been bought than sold by Falco Resources individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyCA$10,80004 Jul 19
Bryan Coates
EntityIndividual
Role
Chairman of the Board
Chairman
Shares40,000
Max PriceCA$0.27
BuyCA$10,34505 Apr 19
Paola Farnesi
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares32,089
Max PriceCA$0.33
BuyCA$6,999,99830 Nov 18
Osisko Gold Royalties Ltd
EntityCompany
Shares12,104,444
Max PriceCA$0.58
BuyCA$129,65919 Nov 18
Luc Lessard
EntityIndividual
Role
Chief Executive Officer
President
Shares439,521
Max PriceCA$0.29
BuyCA$31,84008 Nov 18
François Vézina
EntityIndividual
Role
Chief Technology Officer
Vice President of Technical Services
Shares99,500
Max PriceCA$0.32
SellCA$13,62105 Oct 18
Mario Caron
EntityIndividual
Role
Lead Director
Lead Director
Shares35,845
Max PriceCA$0.38

Ownership Breakdown


Management Team

  • André Le Bel (51yo)

    VP of Legal Affairs & Corporate Secretary

    • Tenure: 4.6yrs
  • François Vézina

    Vice President of Technical Services

    • Tenure: 2.5yrs
    • Compensation: CA$311.61k
  • Luc Lessard (55yo)

    President

    • Tenure: 4.6yrs
    • Compensation: CA$514.70k
  • Hélène Cartier (56yo)

    Vice President of Environment & Sustainable Development

    • Tenure: 2.5yrs
    • Compensation: CA$86.20k
  • Marshall House (51yo)

    Controller

    • Tenure: 0yrs
    • Compensation: CA$40.98k
  • Claude Léveillée

    Vice-President of Community Relations & Human Resources

    • Tenure: 4.8yrs
    • Compensation: CA$178.40k
  • Anthony Glavac

    Interim CFO

    • Tenure: 0.9yrs

Board Members

  • Mario Caron (66yo)

    Lead Director

    • Tenure: 3.8yrs
    • Compensation: CA$33.21k
  • Bryan Coates (61yo)

    Chairman

    • Tenure: 0.5yrs
    • Compensation: CA$22.00k
  • Jim Franklin (76yo)

    Member of Technical Advisory Board

    • Tenure: 6.9yrs
  • Luc Lessard (55yo)

    President

    • Tenure: 4.6yrs
    • Compensation: CA$514.70k
  • Paola Farnesi (52yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: CA$27.90k
  • Harold Gibson

    Member of Technical Advisory Board

    • Tenure: 6.9yrs
  • Howard Poulsen

    Member of Technical Advisory Board

    • Tenure: 6.9yrs
  • Angelina Mehta

    Independent Director

    • Tenure: 0.7yrs
  • Chantal Sorel (54yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: CA$24.00k

Company Information

Falco Resources Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Falco Resources Ltd.
  • Ticker: FPC
  • Exchange: TSXV
  • Founded: 2010
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$45.733m
  • Shares outstanding: 207.88m
  • Website: https://www.falcores.com

Location

  • Falco Resources Ltd.
  • 1100, avenue des Canadiens-de-Montréal
  • Suite 300
  • Montreal
  • Quebec
  • H3B 2S2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FPCTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 2010
FPRG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2010
8FPDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2010

Biography

Falco Resources Ltd., a junior resource exploration company, engages in the exploring, evaluating, and developing mineral properties in Canada. It explores for base and precious metals, such as gold, zinc, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 00:27
End of Day Share Price2019/09/13 00:00
Earnings2019/03/31
Annual Earnings2018/06/30


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.