TSXV:LL

Stock Analysis Report

Canada Rare Earth

Executive Summary

Canada Rare Earth Corp., a development stage company, engages in the exploration and development of rare earth elements in Canada and internationally.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

How has Canada Rare Earth's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.0%

LL

-6.0%

CA Metals and Mining

-6.2%

CA Market


1 Year Return

10.0%

LL

2.2%

CA Metals and Mining

-2.0%

CA Market

Return vs Industry: LL exceeded the Canadian Metals and Mining industry which returned 2.2% over the past year.

Return vs Market: LL exceeded the Canadian Market which returned -2% over the past year.


Shareholder returns

LLIndustryMarket
7 Day10.0%-6.0%-6.2%
30 Day0%-1.0%-5.0%
90 Day22.2%4.9%-2.8%
1 Year10.0%10.0%2.9%2.2%1.1%-2.0%
3 Year0%0%-2.8%-4.5%10.7%0.6%
5 Year83.3%83.3%25.0%21.4%27.6%8.9%

Price Volatility Vs. Market

How volatile is Canada Rare Earth's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Canada Rare Earth undervalued compared to its fair value and its price relative to the market?

75.45x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: LL is overvalued based on its PB Ratio (75.4x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Canada Rare Earth forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.0%

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 Canada Rare Earth 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 Canada Rare Earth performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LL is currently unprofitable.

Growing Profit Margin: LL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LL is unprofitable, but has reduced losses over the past 5 years at a rate of 1.4% per year.

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

Earnings vs Industry: LL 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: LL has a negative Return on Equity (-786.9%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Canada Rare Earth's financial position?


Financial Position Analysis

Short Term Liabilities: LL's short term assets (CA$792.6K) exceed its short term liabilities (CA$606.0K).

Long Term Liabilities: LL's short term assets (CA$792.6K) exceed its long term liabilities (CA$187.5K).


Debt to Equity History and Analysis

Debt Level: LL is debt free.

Reducing Debt: LL had no debt 5 years ago.


Balance Sheet

Inventory Level: LL has a low level of unsold assets or inventory.

Debt Coverage by Assets: LL's debt is covered by short term assets (assets are 5.7111407882583E+16x 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: LL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: LL has sufficient cash runway for 1 years if free cash flow continues to grow at historical rates of 19.5% each year.


Next Steps

Dividend

What is Canada Rare Earth's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.1%markettop25%5.9%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

4.7yrs

Average management tenure


CEO

Tracy Moore (66yo)

7.4yrs

Tenure

CA$85,230

Compensation

Mr. Tracy Allin Moore, CA has been the Chief Financial Officer of New Legend Group Ltd. since January 2006. Mr. Moore has been the Chief Executive Officer and Director of Canada Rare Earth Corporation (alt ...


CEO Compensation Analysis

Compensation vs Market: Tracy's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD157.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tracy Moore
CEO & Director7.4yrsCA$85.23k2.89% CA$306.6k
Salil Dhaumya
Chief Financial Officer5.1yrsCA$35.05kno data
Peter Shearing
COO & Director7.4yrsCA$55.23k3.46% CA$367.1k
Christopher Goodman
MD of Brazil & Director0yrsno datano data
Gordon Fretwell
Director4.2yrsCA$8.83k4.12% CA$437.3k
Qiufeng Li
Co-Founder & Chairman of Advisory Board7.3yrsCA$170.13kno data

4.7yrs

Average Tenure

66yo

Average Age

Experienced Management: LL's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tracy Moore
CEO & Director7.4yrsCA$85.23k2.89% CA$306.6k
Peter Shearing
COO & Director7.4yrsCA$55.23k3.46% CA$367.1k
Christopher Goodman
MD of Brazil & Director0yrsno datano data
Gordon Fretwell
Director4.2yrsCA$8.83k4.12% CA$437.3k
Qiufeng Li
Co-Founder & Chairman of Advisory Board7.3yrsCA$170.13kno data
Robert Schafer
Member of Advisory Board7.3yrsno datano data
William Purcell
Independent Director7.4yrsCA$3.79k0.69% CA$73.1k
Mike Fillipoff
Member of Advisory Board7.3yrsno datano data
John Treleaven
Member of Advisory Board7.3yrsno datano data
Wencai Zhu
Member of Advisory Board0yrsno datano data

7.3yrs

Average Tenure

66yo

Average Age

Experienced Board: LL's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LL 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 4.7%.


Top Shareholders

Company Information

Canada Rare Earth Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Canada Rare Earth Corp.
  • Ticker: LL
  • Exchange: TSXV
  • Founded: 1987
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$10.616m
  • Shares outstanding: 193.02m
  • Website: https://www.canadarareearth.com

Location

  • Canada Rare Earth Corp.
  • 1040 West Georgia Street
  • 15th Floor
  • Vancouver
  • British Columbia
  • V6E 4H1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LLTSXV (TSX Venture Exchange)YesCommon SharesCACADDec 2009
RARE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2009

Biography

Canada Rare Earth Corp., a development stage company, engages in the exploration and development of rare earth elements in Canada and internationally. Its products include high-purity rare earth oxides, rare earth fluorides, larger particle/nano rare earth oxides, and other products. The company was formerly known as Rare Earth Metals Inc. and changed its name to Canada Rare Earth Corp. in February 2013. Canada Rare Earth Corp. was incorporated in 1987 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 Analysis2020/02/28 01:28
End of Day Share Price2020/02/27 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.