TSXV:HBK

Stock Analysis Report

Highbank Resources

Executive Summary

Highbank Resources Ltd. engages in the acquisition, exploration, and development of mineral properties primarily in Canada.


Snowflake Analysis

Overvalued with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-33.3%

HBK

-1.5%

CA Metals and Mining

-3.8%

CA Market


1 Year Return

-50.0%

HBK

4.9%

CA Metals and Mining

0.5%

CA Market

Return vs Industry: HBK underperformed the Canadian Metals and Mining industry which returned 4.9% over the past year.

Return vs Market: HBK underperformed the Canadian Market which returned 0.5% over the past year.


Shareholder returns

HBKIndustryMarket
7 Day-33.3%-1.5%-3.8%
30 Day0%3.2%-2.0%
90 Day0%10.2%-0.3%
1 Year-50.0%-50.0%5.6%4.9%3.7%0.5%
3 Year-77.8%-77.8%-1.9%-3.6%13.6%3.4%
5 Year-94.4%-94.4%28.2%24.6%30.2%11.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Highbank Resources undervalued compared to its fair value and its price relative to the market?

0.63x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: HBK 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 HBK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HBK is good value based on its PB Ratio (0.6x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

13.7%

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 Highbank 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 SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Highbank Resources performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBK is currently unprofitable.

Growing Profit Margin: HBK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HBK is unprofitable, but has reduced losses over the past 5 years at a rate of 3.1% per year.

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

Earnings vs Industry: HBK is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.8%).


Return on Equity

High ROE: HBK has a negative Return on Equity (-47.9%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Highbank Resources's financial position?


Financial Position Analysis

Short Term Liabilities: HBK's short term assets (CA$52.2K) do not cover its short term liabilities (CA$5.3M).

Long Term Liabilities: HBK's short term assets (CA$52.2K) do not cover its long term liabilities (CA$4.1M).


Debt to Equity History and Analysis

Debt Level: HBK's debt to equity ratio (334.2%) is considered high.

Reducing Debt: HBK's debt to equity ratio has increased from 170.1% to 334.2% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: HBK's debt is not covered by short term assets (assets are 0x 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: HBK has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: HBK has less than a year of cash runway if free cash flow continues to grow at historical rates of 33.9% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

5.5yrs

Average board tenure


CEO

Jim Place (57yo)

4.3yrs

Tenure

CA$97,793

Compensation

Mr. James H. Place, also known as Jim, P.Geo., serves as Director at Lodge Resources Inc since October 24, 2018. Mr. Place served as President and Chief Executive Officer of Belmont Resources Inc until Nov ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD73.59K) is below average for companies of similar size in the Canadian market ($USD155.12K).

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


Board Members

NamePositionTenureCompensationOwnership
James Place
President4.3yrsCA$97.79k0.096% CA$2.0k
Gary Musil
CFO, Corporate Secretary & Director31.2yrsCA$66.75k1.21% CA$25.4k
Luard Manning
Independent Director17.7yrsCA$2.60k0.046% CA$975.0
Hans Smit
Advisory Board Member3.8yrsno datano data
William Loucks
Independent Director5.5yrsCA$6.23k3.19% CA$66.9k

5.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: HBK's board of directors are considered experienced (5.5 years average tenure).


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 5.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Highbank Resources Ltd.
  • Ticker: HBK
  • Exchange: TSXV
  • Founded: 1980
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$2.099m
  • Shares outstanding: 139.91m
  • Website: https://www.highbankresources.com

Location

  • Highbank Resources Ltd.
  • 625 Howe Street
  • Suite 600
  • Vancouver
  • British Columbia
  • V6C 2T6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBKTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1988
V7ODB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
HBKR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988

Biography

Highbank Resources Ltd. engages in the acquisition, exploration, and development of mineral properties primarily in Canada. The company primarily mines for sand and gravel resources. It holds 100% working ownership interest in the Swamp Point Gravel deposit located in Portland Canal, British Columbia. Highbank Resources Ltd. was founded in 1980 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 Analysis2020/02/26 00:10
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
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.