TSXV:SGU

Stock Analysis Report

Signature Resources

Executive Summary

Signature Resources Ltd. engages in the acquisition and exploration of mineral properties in Canada.

Risk Analysis

Earnings have declined by -33.18% per year over past 5 years

Has less than 1 year of cash runway

Does not have a meaningful market cap (CA$4M)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 1 more risk


Snowflake Analysis

Overvalued with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SGU

-0.9%

CA Metals and Mining

-0.08%

CA Market


1 Year Return

-38.5%

SGU

21.9%

CA Metals and Mining

10.8%

CA Market

Return vs Industry: SGU underperformed the Canadian Metals and Mining industry which returned 21.9% over the past year.

Return vs Market: SGU underperformed the Canadian Market which returned 10.8% over the past year.


Shareholder returns

SGUIndustryMarket
7 Day0%-0.9%-0.08%
30 Day-20.0%2.5%0.01%
90 Day-33.3%-1.2%1.2%
1 Year-38.5%-38.5%22.9%21.9%14.4%10.8%
3 Year-70.4%-70.4%4.6%2.7%15.0%4.6%
5 Year166.7%166.7%40.1%35.8%40.1%19.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.95x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SGU is good value based on its PB Ratio (1x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

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

17.2%

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 Signature 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 Signature Resources performed over the past 5 years?

-33.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGU is currently unprofitable.

Growing Profit Margin: SGU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SGU is unprofitable, and losses have increased over the past 5 years at a rate of -33.2% per year.

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

Earnings vs Industry: SGU is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (4.1%).


Return on Equity

High ROE: SGU has a negative Return on Equity (-16.62%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Signature Resources's financial position?


Financial Position Analysis

Short Term Liabilities: SGU's short term assets (CA$114.6K) do not cover its short term liabilities (CA$1.7M).

Long Term Liabilities: SGU's short term assets (CA$114.6K) do not cover its long term liabilities (CA$257.4K).


Debt to Equity History and Analysis

Debt Level: SGU's debt to equity ratio (3.9%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: SGU's debt is not covered by short term assets (assets are 0.7x 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: SGU has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SGU has less than a year of cash runway if free cash flow continues to reduce at historical rates of -41.5% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.6%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

7.0yrs

Average management tenure


CEO

Walter Hanych 0

6.8yrs

Tenure

CA$93,187

Compensation

Mr. Walter Hanych, P.Geo., has been the Chief Executive Officer and President of Signature Resources Ltd. since February 14, 2013. Mr. Hanych has 33-years of experience in varied geological environments th ...


CEO Compensation Analysis

Compensation vs Market: Walter's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD136.07K).

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


Management Age and Tenure

7.0yrs

Average Tenure

Experienced Management: SGU's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

Experienced Board: SGU's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 3.6%.


Management Team

  • Verlee Webb (59yo)

    Corporate Secretary

    • Tenure: 9.5yrs
  • Jonathan Held (33yo)

    CFO & Director

    • Tenure: 7yrs
    • Compensation: CA$79.19k
  • Walter Hanych

    President

    • Tenure: 6.8yrs
    • Compensation: CA$93.19k

Board Members

  • Laurence Jobin-Bevans (52yo)

    Member of Advisory Board

    • Tenure: 4yrs
  • Jonathan Held (33yo)

    CFO & Director

    • Tenure: 7yrs
    • Compensation: CA$79.19k
  • Walter Hanych

    President

    • Tenure: 6.8yrs
    • Compensation: CA$93.19k
  • Stephen Timms

    Independent Director

    • Tenure: 4.4yrs
  • Dimitrios Kostopoulos

    Member of Advisory Board

    • Tenure: 1.6yrs
  • John LeLiever

    Member of Advisory Board

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: Signature Resources Ltd.
  • Ticker: SGU
  • Exchange: TSXV
  • Founded: 2010
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$4.334m
  • Shares outstanding: 108.36m
  • Website: https://www.signatureresources.ca

Location

  • Signature Resources Ltd.
  • 366 Bay Street
  • Suite 200
  • Toronto
  • Ontario
  • M5H 4B2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGUTSXV (TSX Venture Exchange)YesCommon StockCACADNov 2011
SGGT.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 2011
3S3DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2011

Biography

Signature Resources Ltd. engages in the acquisition and exploration of mineral properties in Canada. The company primarily focuses on the exploration of gold properties. It owns a 100% interest in the Ling ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 00:09
End of Day Share Price2019/12/06 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.