TSXV:MJS

Stock Analysis Report

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Executive Summary

Majestic Gold Corp., a mining company, focuses on exploration, development, and operation of mining properties in China. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Majestic Gold's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.1%

MJS

-1.1%

CA Metals and Mining

-0.4%

CA Market


1 Year Return

18.2%

MJS

54.7%

CA Metals and Mining

-3.8%

CA Market

Return vs Industry: MJS underperformed the Canadian Metals and Mining industry which returned 54.7% over the past year.

Return vs Market: MJS exceeded the Canadian Market which returned -3.8% over the past year.


Shareholder returns

MJSIndustryMarket
7 Day-7.1%-1.1%-0.4%
30 Day-7.1%-5.1%0.9%
90 Day0%-1.0%2.1%
1 Year18.2%18.2%55.9%54.7%-0.3%-3.8%
3 Year8.3%8.3%51.8%48.8%7.5%-3.0%
5 Year8.3%8.3%140.8%133.5%34.6%13.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Majestic Gold undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MJS (CA$0.07) is trading below our estimate of fair value (CA$0.49)

Significantly Below Fair Value: MJS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MJS is good value based on its PE Ratio (11.3x) compared to the CA Metals and Mining industry average (24.4x).

PE vs Market: MJS is good value based on its PE Ratio (11.3x) compared to the Canadian market (16.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MJS is good value based on its PB Ratio (0.8x) compared to the CA Metals and Mining industry average (2.9x).


Next Steps

Future Growth

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

23.0%

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 Majestic Gold 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 Majestic Gold performed over the past 5 years?

59.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MJS has high quality earnings.

Growing Profit Margin: MJS's current net profit margins (12.1%) are higher than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: MJS has become profitable over the past 5 years, growing earnings by 59.1% per year.

Accelerating Growth: MJS's earnings growth over the past year (24.3%) is below its 5-year average (59.1% per year).

Earnings vs Industry: MJS earnings growth over the past year (24.3%) underperformed the Metals and Mining industry 78.5%.


Return on Equity

High ROE: MJS's Return on Equity (9.7%) is considered low.


Next Steps

Financial Health

How is Majestic Gold's financial position?


Financial Position Analysis

Short Term Liabilities: MJS's short term assets ($31.9M) do not cover its short term liabilities ($32.4M).

Long Term Liabilities: MJS's short term assets ($31.9M) exceed its long term liabilities ($4.5M).


Debt to Equity History and Analysis

Debt Level: MJS's debt to equity ratio (13.2%) is considered satisfactory.

Reducing Debt: MJS's debt to equity ratio has reduced from 28.7% to 13.2% over the past 5 years.

Debt Coverage: MJS's debt is well covered by operating cash flow (224.8%).

Interest Coverage: MJS's interest payments on its debt are well covered by EBIT (64.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Majestic Gold current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

6.9yrs

Average board tenure


CEO

Steve Kenwood (60 yo)

6.67yrs

Tenure

US$130,000

Compensation

Mr. Stephen Patrick Kenwood, also known as Steve, BSc, PGeo, serves as Corporate Secretary at Ely Gold Royalties Inc. since June 30, 2019 and its Qualified Person. Mr. Kenwood has been the Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD170.66K).

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


Board Members

NamePositionTenureCompensationOwnership
Stephen Kenwood
President6.67yrsUS$130.00k0.0067%
$ 4.5k
John Campbell
Independent Director6.92yrsUS$24.75kno data
Shou Chen
Independent Director6.92yrsUS$18.50kno data
Fan Zhong Kong
Chairman of Yantai Zhongjia Donghu Mining Company Limitedno datano data12.72%
$ 8.7m

6.9yrs

Average Tenure

60yo

Average Age

Experienced Board: MJS's board of directors are considered experienced (6.9 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Majestic Gold Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Majestic Gold Corp.
  • Ticker: MJS
  • Exchange: TSXV
  • Founded:
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$68.102m
  • Shares outstanding: 1.05b
  • Website: https://www.majesticgold.com

Location

  • Majestic Gold Corp.
  • 306-1688 152nd Street
  • Surrey
  • British Columbia
  • V4A 4N2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MJSTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1988
MJTDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
MJGC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988

Biography

Majestic Gold Corp., a mining company, focuses on exploration, development, and operation of mining properties in China. The company explores for gold ores. It principally holds an interest in the Songjiag ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 23:59
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.