TSXV:TGX

Stock Analysis Report

Executive Summary

True North Gems Inc. does not have significant operations.

Rewards

Earnings have grown 21.8% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (CA$950K)

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



Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has True North Gems's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-41.7%

TGX

2.4%

CA Metals and Mining

0.6%

CA Market


1 Year Return

-41.7%

TGX

4.4%

CA Metals and Mining

5.8%

CA Market

Return vs Industry: TGX underperformed the Canadian Metals and Mining industry which returned 4.3% over the past year.

Return vs Market: TGX underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

TGXIndustryMarket
7 Day-41.7%2.4%0.6%
30 Day-17.6%1.2%0.5%
90 Day-12.5%6.6%3.6%
1 Year-41.7%-41.7%5.0%4.4%9.1%5.8%
3 Year-86.0%-86.0%-10.4%-11.9%15.4%5.0%
5 Year-99.6%-99.6%22.9%19.2%33.6%14.0%

Price Volatility Vs. Market

How volatile is True North Gems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is True North Gems undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether True North Gems is trading at an attractive price based on the cash flow it is expected to produce in the future. But as True North Gems has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of TGX’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through True North Gems regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

How is True North Gems forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.6%

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 True North Gems 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 True North Gems performed over the past 5 years?

21.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TGX is currently unprofitable.

Growing Profit Margin: TGX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TGX is unprofitable, but has reduced losses over the past 5 years at a rate of 21.8% per year.

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

Earnings vs Industry: TGX is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: TGX's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is True North Gems's financial position?


Financial Position Analysis

Short Term Liabilities: TGX has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: TGX has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: TGX has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: TGX's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: TGX has negative shareholder equity (liabilities exceed assets) therefore debt is not 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: TGX has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: TGX has less than a year of cash runway if free cash flow continues to grow at historical rates of 36% each year.


Next Steps

Dividend

What is True North Gems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

6.4yrs

Average board tenure


CEO

Andy Smith (62yo)

3yrs

Tenure

CA$104,865

Compensation

Mr. Andrew Lee Smith, also known as Andy, B.Sc., P.Geo. has been an Interim Chief Executive Officer of True North Gems Inc. since February 20, 2017. Mr. Smith has been Director of Nickel North Exploration  ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD155.16K).

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


Board Members

NamePositionTenureCompensationOwnership
Andrew Smith
Interim CEO & Director3yrsCA$104.87k0.15% CA$1.4k
Rock Lee
Member of Advisory Board12.3yrsno datano data
Wilson Yuen
Member of Advisory Board0yrsno datano data
Zygmunt Riddle
Director0.5yrsno datano data
Ralf Hillebrand
Director0.5yrsno datano data

6.4yrs

Average Tenure

Experienced Board: TGX's board of directors are considered experienced (6.4 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 been substantially diluted in the past year, with total shares outstanding growing by 213.1%.


Top Shareholders

Company Information

True North Gems Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: True North Gems Inc.
  • Ticker: TGX
  • Exchange: TSXV
  • Founded: 2001
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: CA$950.414k
  • Shares outstanding: 13.58m
  • Website: https://www.truenorthgems.com

Location

  • True North Gems Inc.
  • 595 Howe Street
  • Suite 1100
  • Vancouver
  • British Columbia
  • V6C 2T5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TGXTSXV (TSX Venture Exchange)YesCommon SharesCACADNov 2002
TNGM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2002

Biography

True North Gems Inc. does not have significant operations. It intends to pursue business development opportunities in the resource sector. Previously, it was engaged in the exploration of colored gemstone deposits. True North Gems Inc. was founded in 2001 and is based in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:48
End of Day Share Price2020/02/14 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.