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.

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

0%

FPC

0.5%

CA Metals and Mining

0.2%

CA Market


1 Year Return

-32.4%

FPC

15.0%

CA Metals and Mining

3.5%

CA Market

Return vs Industry: FPC underperformed the Canadian Metals and Mining industry which returned 15% over the past year.

Return vs Market: FPC underperformed the Canadian Market which returned 3.5% over the past year.


Shareholder returns

FPCIndustryMarket
7 Day0%0.5%0.2%
30 Day-4.2%-8.9%-3.3%
90 Day-4.2%-8.0%-1.9%
1 Year-32.4%-32.4%15.9%15.0%7.3%3.5%
3 Year-79.3%-79.3%-11.6%-13.2%14.7%4.4%
5 Year-37.8%-37.8%15.4%11.6%26.2%7.7%

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 compared to its fair value and its price relative to the market?

0.55x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FPC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FPC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: FPC is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: FPC is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FPC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FPC is good value based on its PB Ratio (0.6x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Falco Resources forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FPC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FPC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FPC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if FPC's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if FPC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FPC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Falco Resources performed over the past 5 years?

-12.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

Earnings vs Industry: FPC 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: FPC has a negative Return on Equity (-10.33%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: FPC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: FPC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Falco Resources's financial position?


Financial Position Analysis

Short Term Liabilities: FPC's short term assets (CA$3.4M) do not cover its short term liabilities (CA$14.1M)

Long Term Liabilities: FPC's short term assets (3.4M) do not cover its long term liabilities (35.6M)


Debt to Equity History and Analysis

Debt Level: FPC's debt to equity ratio (11.6%) is considered satisfactory

Reducing Debt: Insufficient data to determine if FPC's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: FPC's debt is not covered by short term assets (assets are 0.3x 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.

Stable Cash Runway: FPC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: FPC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -33.5% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.9%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if FPC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FPC'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 FPC's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Luc Lessard (55yo)

4.7yrs

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

Compensation vs. Market: Insufficient data to establish whether Luc's total compensation is reasonable compared to companies of similar size in the Canadian market.

Compensation vs Earnings: Luc's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.6yrs

Average Tenure

55yo

Average Age

Experienced Management: FPC's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

55yo

Average Age

Experienced Board: FPC's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: FPC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$26,03714 Oct 19
Chantal Sorel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares110,000
Max PriceCA$0.24
BuyCA$16,26307 Oct 19
Paola Farnesi
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares65,000
Max PriceCA$0.25
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

Ownership Breakdown


Management Team

  • André Le Bel (51yo)

    VP of Legal Affairs & Corporate Secretary

    • Tenure: 4.7yrs
  • François Vézina

    Vice President of Technical Services

    • Tenure: 2.6yrs
    • Compensation: CA$311.61k
  • Luc Lessard (55yo)

    President

    • Tenure: 4.7yrs
    • Compensation: CA$514.70k
  • Hélène Cartier (56yo)

    Vice President of Environment & Sustainable Development

    • Tenure: 2.6yrs
    • Compensation: CA$86.20k
  • Claude Léveillée

    Vice-President of Community Relations & Human Resources

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

    Interim CFO

    • Tenure: 1yrs

Board Members

  • Mario Caron (66yo)

    Lead Director

    • Tenure: 3.9yrs
    • Compensation: CA$33.21k
  • Bryan Coates (61yo)

    Chairman

    • Tenure: 0.6yrs
    • Compensation: CA$22.00k
  • Jim Franklin (76yo)

    Member of Technical Advisory Board

    • Tenure: 7yrs
  • Luc Lessard (55yo)

    President

    • Tenure: 4.7yrs
    • Compensation: CA$514.70k
  • Paola Farnesi (52yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: CA$27.90k
  • Harold Gibson

    Member of Technical Advisory Board

    • Tenure: 7yrs
  • Howard Poulsen

    Member of Technical Advisory Board

    • Tenure: 7yrs
  • Angelina Mehta (44yo)

    Independent Director

    • Tenure: 0.8yrs
  • Chantal Sorel (54yo)

    Independent Director

    • Tenure: 2.4yrs
    • 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$47.812m
  • 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 Analysis2019/10/23 00:08
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.