TSXV:FURA

Stock Analysis Report

Executive Summary

Fura Gems Inc., a natural resource company, engages in the acquisition, exploration, and evaluation of properties in Colombia and Mozambique.

Snowflake

Fundamentals

Slightly overvalued with imperfect balance sheet.

Share Price & News

How has Fura Gems's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.9%

FURA

-2.3%

CA Metals and Mining

-0.3%

CA Market


1 Year Return

-51.4%

FURA

11.3%

CA Metals and Mining

0.9%

CA Market

Return vs Industry: FURA underperformed the Canadian Metals and Mining industry which returned 11.3% over the past year.

Return vs Market: FURA underperformed the Canadian Market which returned 0.9% over the past year.


Share holder returns

FURAIndustryMarket
7 Day-2.9%-2.3%-0.3%
30 Day-10.5%-2.9%-2.1%
90 Day0%0.5%-1.5%
1 Year-51.4%-51.4%12.3%11.3%4.4%0.9%
3 Year0%0%-6.6%-8.4%15.7%5.4%
5 Year142.9%142.9%4.8%0.8%26.1%7.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: FURA (CA$0.17) is trading below our estimate of fair value (CA$10.56)

Significantly Undervalued: FURA is trading below fair value by more than 20%.


Price Based on Earnings

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

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


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: FURA is overvalued based on its PB Ratio (2.3x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Fura Gems expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

103.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

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

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

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: FURA's Return on Equity is forecast to be low in 3 years time (17.5%).


Next Steps

Past Performance

How has Fura Gems performed over the past 5 years?

-71.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FURA is unprofitable, and losses have increased over the past 5 years at a rate of -71.1% per year.

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

Earnings vs Industry: FURA is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-13.7%).


Return on Equity

High ROE: FURA has a negative Return on Equity (-232.63%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Fura Gems's financial position?


Financial Position Analysis

Short Term Liabilities: FURA's short term assets (CA$4.4M) do not cover its short term liabilities (CA$22.1M)

Long Term Liabilities: FURA's short term assets (4.4M) exceeds its long term liabilities (3.2M)


Debt to Equity History and Analysis

Debt Level: FURA's debt to equity ratio (24.9%) is considered satisfactory

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


Balance Sheet

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

Debt Coverage by Assets: FURA's debt is covered by short term assets (assets are 1.600600x 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: FURA has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: FURA has less than a year of cash runway if free cash flow continues to reduce at historical rates of -78.7% each year


Next Steps

Dividend

What is Fura Gems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

Growing Dividend: Insufficient data to determine if FURA'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 FURA'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 Fura Gems's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Dev Shetty (42yo)

2.8yrs

Tenure

CA$647,709

Compensation

Mr. Devidas Shetty, also known as Dev, serves as the Chief Operating Officer at Faberge. Mr. Shetty has been the Chief Executive Officer and President at Fura Emeralds Inc. since January 23, 2017 and respo ...


CEO Compensation Analysis

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

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


Management Age and Tenure

2.5yrs

Average Tenure

42yo

Average Age

Experienced Management: FURA's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

0.5yrs

Average Tenure

Experienced Board: FURA's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyCA$2,250,00111 Oct 19
Devidas Shetty
EntityIndividual
Role
Chief Executive Officer
President
Shares9,000,000
Max PriceCA$0.25
BuyCA$62,50011 Oct 19
Damian Lopez
EntityIndividual
Role
Chief Legal Officer
Legal Counsel & Company Secretary
Shares250,000
Max PriceCA$0.25
BuyCA$18,75011 Oct 19
Ryan Ptolemy
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares75,000
Max PriceCA$0.25
BuyCA$125,00011 Oct 19
Ashim Roy
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares500,000
Max PriceCA$0.25
BuyCA$45,00004 Apr 19
Ashim Roy
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares112,500
Max PriceCA$0.40

Ownership Breakdown


Management Team

  • Danson Tolman

    Vice President of Exploration

    • Tenure: 0yrs
  • Ryan Ptolemy (43yo)

    Chief Financial Officer

    • Tenure: 2.6yrs
    • Compensation: CA$18.00k
  • Dev Shetty (42yo)

    President

    • Tenure: 2.8yrs
    • Compensation: CA$647.71k
  • Michael Leahy

    Vice President of Communications

    • Tenure: 8.8yrs
  • Damian Lopez (36yo)

    Legal Counsel & Company Secretary

    • Tenure: 2.5yrs
  • Ashim Roy

    Vice President of Operations

    • Tenure: 2.4yrs
    • Compensation: CA$446.79k
  • Dibya Baral

    Director of Technical Services

    • Tenure: 1.3yrs
  • Rupak Sen

    Vice President of Marketing & Sales

    • Tenure: 1.9yrs
  • Amit Sharma

    Head of Geology - Mozambique

    • Tenure: 1.3yrs
  • Brad Scharfe

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Stan Bharti (67yo)

    Director

    • Tenure: 0.2yrs
  • Michael Kuan

    Director

    • Tenure: 0.2yrs
  • Dev Shetty (42yo)

    President

    • Tenure: 2.8yrs
    • Compensation: CA$647.71k
  • Gaurav Gupta

    Director

    • Tenure: 0.8yrs

Company Information

Fura Gems Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fura Gems Inc.
  • Ticker: FURA
  • Exchange: TSXV
  • Founded: 2006
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: CA$41.126m
  • Shares outstanding: 241.92m
  • Website: https://www.furagems.com

Location

  • Fura Gems Inc.
  • 65 Queen Street West
  • Suite 800
  • Toronto
  • Ontario
  • M5H 2M5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FURATSXV (TSX Venture Exchange)YesCommon SharesCACADOct 2007
BJ43DB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2007
FUGM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2007

Biography

Fura Gems Inc., a natural resource company, engages in the acquisition, exploration, and evaluation of properties in Colombia and Mozambique. It owns an 80% interests in four ruby licenses in the Montepuez ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:00
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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