TSXV:MDV

Stock Analysis Report

Megastar Development

Executive Summary

Megastar Development Corp., an exploration stage company, acquires, explores for, and develops mineral properties in Canada and Mexico.


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Megastar Development's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-26.9%

MDV

-6.0%

CA Metals and Mining

-6.2%

CA Market


1 Year Return

72.7%

MDV

2.2%

CA Metals and Mining

-2.0%

CA Market

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

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


Shareholder returns

MDVIndustryMarket
7 Day-26.9%-6.0%-6.2%
30 Day-9.5%-1.0%-5.0%
90 Day11.8%4.9%-2.8%
1 Year72.7%72.7%2.9%2.2%1.1%-2.0%
3 Year90.0%90.0%-2.8%-4.5%10.7%0.6%
5 Year137.5%137.5%25.0%21.4%27.6%8.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Megastar Development undervalued compared to its fair value and its price relative to the market?

3.68x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: MDV is overvalued based on its PB Ratio (3.7x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Megastar Development 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 Megastar Development 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 Megastar Development performed over the past 5 years?

-46.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDV is currently unprofitable.

Growing Profit Margin: MDV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MDV is unprofitable, and losses have increased over the past 5 years at a rate of -46% per year.

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

Earnings vs Industry: MDV 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: MDV has a negative Return on Equity (-42.93%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Megastar Development's financial position?


Financial Position Analysis

Short Term Liabilities: MDV's short term assets (CA$261.8K) exceed its short term liabilities (CA$65.4K).

Long Term Liabilities: MDV has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: MDV is debt free.

Reducing Debt: MDV has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if MDV's debt is covered by short term assets.


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: MDV has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MDV has less than a year of cash runway if free cash flow continues to reduce at historical rates of -22.5% each year


Next Steps

Dividend

What is Megastar Development'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 MDV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

8.4yrs

Average management tenure


CEO

Dušan Berka (73yo)

11.8yrs

Tenure

CA$36,000

Compensation

Mr. Dušan Berka, P.Eng. serve as Board of Directors at Prospera Energy Inc. since December 2019. Mr. Berka has been the Chief Executive Officer and President of Megastar Development Corp. since May 22, 200 ...


CEO Compensation Analysis

Compensation vs Market: Dušan's total compensation ($USD26.94K) is below average for companies of similar size in the Canadian market ($USD157.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dušan Berka
President11.8yrsCA$36.00k5.62% CA$235.7k
Zahara Kanji-Aquino
Chief Financial Officer8.4yrsCA$40.83kno data
Carl Pelletier
Head of Program Design and Quality Control -Exploration0yrsno datano data
Kelly Pladson
Corporate Secretary0.6yrsno datano data

8.4yrs

Average Tenure

Experienced Management: MDV's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dušan Berka
President11.8yrsCA$36.00k5.62% CA$235.7k
Robert Archer
Independent Director0.7yrsno data1.13% CA$47.5k
Martin Bourgoin
Technical Advisor11yrsno datano data
David Jones
Independent Director1.5yrsCA$68.64k0.61% CA$25.6k
Paul Smith
Independent Director7.3yrsno data2.83% CA$118.8k

7.3yrs

Average Tenure

Experienced Board: MDV'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: MDV 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 27.7%.


Top Shareholders

Company Information

Megastar Development Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Megastar Development Corp.
  • Ticker: MDV
  • Exchange: TSXV
  • Founded: 1984
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$4.193m
  • Shares outstanding: 44.13m
  • Website: https://www.megastardevelopment.com

Location

  • Megastar Development Corp.
  • 789 West Pender Street
  • Suite 1450
  • Vancouver
  • British Columbia
  • V6C 1H2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MDVTSXV (TSX Venture Exchange)YesCommon SharesCACADJan 1989
MSTX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1989

Biography

Megastar Development Corp., an exploration stage company, acquires, explores for, and develops mineral properties in Canada and Mexico. It owns a 100% interest in the Ralleau copper-zinc property that comprises 59 mineral claims covering an area of approximately 3,324 hectares located in Quevillon, Quebec. The company also has an option agreement to acquire 100% interests in the Rama de Oro, Yautepec, and Magdalena projects located in Oaxaca, Mexico. Megastar Development Corp. was incorporated in 1984 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 00:13
End of Day Share Price2020/02/27 00:00
Earnings2019/11/30
Annual Earnings2019/02/28


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.