TSXV:TORQ

Stock Analysis Report

Executive Summary

Torq Resources Inc., a junior exploration company, engages in the acquisition, exploration, and development of mineral resource properties in the Americas.

Snowflake

Fundamentals

Flawless balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

18.3%

TORQ

-0.8%

CA Metals and Mining

0.2%

CA Market


1 Year Return

2.4%

TORQ

13.6%

CA Metals and Mining

2.4%

CA Market

Return vs Industry: TORQ underperformed the Canadian Metals and Mining industry which returned 13.6% over the past year.

Return vs Market: TORQ matched the Canadian Market which returned 2.4% over the past year.


Shareholder returns

TORQIndustryMarket
7 Day18.3%-0.8%0.2%
30 Day5.0%-8.4%-3.3%
90 Day-6.7%-7.6%-1.8%
1 Year2.4%2.4%14.5%13.6%6.0%2.4%
3 Year-27.6%-27.6%-10.6%-12.2%14.2%4.0%
5 Year320.0%320.0%16.7%12.9%27.2%8.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.83x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TORQ is overvalued based on its PB Ratio (2.8x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

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

38.6%

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 Torq 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 Torq Resources performed over the past 5 years?

-59.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TORQ is unprofitable, and losses have increased over the past 5 years at a rate of -59.5% per year.

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

Earnings vs Industry: TORQ 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: TORQ has a negative Return on Equity (-33.74%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: TORQ is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: TORQ is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Torq Resources's financial position?


Financial Position Analysis

Short Term Liabilities: TORQ's short term assets (CA$11.7M) exceeds its short term liabilities (CA$176.4K)

Long Term Liabilities: TORQ has no long term liabilities


Debt to Equity History and Analysis

Debt Level: TORQ is debt free.

Reducing Debt: TORQ has no debt compared to 5 years ago when its debt to equity ratio was 628%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if TORQ'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: TORQ has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: TORQ has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -49.3% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

2.6yrs

Average management tenure


CEO

Michael Kosowan 0

2.6yrs

Tenure

CA$241,562

Compensation

Mr. Michael Kosowan has been the Chief Executive Officer of Torq Resources Inc. since March 02, 2017 and its President since March 2017. Mr. Kosowan was an Investment Advisor of Sprott Private Wealth (Cana ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Michael's total compensation is reasonable compared to companies of similar size in the Canadian market.

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


Management Age and Tenure

2.6yrs

Average Tenure

Experienced Management: TORQ's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

49yo

Average Age

Experienced Board: TORQ's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$37,50027 May 19
Michael Kosowan
EntityIndividual
Role
Chief Executive Officer
President
Shares100,000
Max PriceCA$0.38
BuyCA$10,00014 May 19
Michael Kosowan
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceCA$0.40
BuyCA$132,02008 Apr 19
Jeffrey Mason
EntityIndividual
Role
Member of the Board of Directors
Director
Shares322,000
Max PriceCA$0.41
BuyCA$6,30005 Nov 18
Ivan Bebek
EntityIndividual
Role
Co-Chairman of the Board
Co-Chairman of the Board
Shares15,000
Max PriceCA$0.42

Ownership Breakdown


Management Team

  • George Nicholson (54yo)

    Vice President of Exploration

    • Tenure: 8.3yrs
  • Michael Kosowan

    President

    • Tenure: 2.6yrs
    • Compensation: CA$241.56k
  • Stacy Rowa

    Chief Financial Officer

    • Tenure: 0.5yrs

Board Members

  • Jeffrey Mason (62yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: CA$7.50k
  • Ivan Bebek (40yo)

    Co-Chairman of the Board

    • Tenure: 2.6yrs
  • Steve Cook

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: CA$7.50k
  • Shawn Wallace (49yo)

    Co-Chairman of the Board

    • Tenure: 2.6yrs
    • Compensation: CA$45.00k
  • Michael Kosowan

    President

    • Tenure: 2.6yrs
    • Compensation: CA$241.56k

Company Information

Torq Resources Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Torq Resources Inc.
  • Ticker: TORQ
  • Exchange: TSXV
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$32.476m
  • Shares outstanding: 77.32m
  • Website: https://www.torqresources.com

Location

  • Torq Resources Inc.
  • 1199 West Hastings Street
  • Suite 600
  • Vancouver
  • British Columbia
  • V6E 3T5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TORQTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1988
TRBM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988

Biography

Torq Resources Inc., a junior exploration company, engages in the acquisition, exploration, and development of mineral resource properties in the Americas. The company was formerly known as Stratton Resour ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:03
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.