TSXV:TRA

Stock Analysis Report

Executive Summary

Teras Resources Inc. engages in the acquisition, exploration, and development of mineral properties in Montana, Nevada, and Cahuilla in California.

Risk Analysis

Earnings have declined by -6.25% per year over past 5 years

Has less than 1 year of cash runway

Makes less than USD$1m in revenue (CA$0)

Does not have a meaningful market cap (CA$10M)

+ 3 more risks


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.3%

TRA

1.2%

CA Metals and Mining

-1.4%

CA Market


1 Year Return

37.5%

TRA

24.3%

CA Metals and Mining

8.6%

CA Market

Return vs Industry: TRA exceeded the Canadian Metals and Mining industry which returned 24.3% over the past year.

Return vs Market: TRA exceeded the Canadian Market which returned 8.6% over the past year.


Shareholder returns

TRAIndustryMarket
7 Day-8.3%1.2%-1.4%
30 Day-8.3%1.4%0.4%
90 Day0%-2.4%0.9%
1 Year37.5%37.5%25.4%24.3%12.2%8.6%
3 Year-62.1%-62.1%5.0%3.0%14.9%4.6%
5 Year-45.0%-45.0%33.1%28.9%38.2%17.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.43x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TRA is good value based on its PB Ratio (0.4x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

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

19.2%

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 Teras 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 Teras Resources performed over the past 5 years?

-6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRA is currently unprofitable.

Growing Profit Margin: TRA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TRA is unprofitable, and losses have increased over the past 5 years at a rate of -6.2% per year.

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

Earnings vs Industry: TRA is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (3.9%).


Return on Equity

High ROE: TRA has a negative Return on Equity (-3.21%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Teras Resources's financial position?


Financial Position Analysis

Short Term Liabilities: TRA's short term assets (CA$322.8K) do not cover its short term liabilities (CA$680.2K).

Long Term Liabilities: TRA has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: TRA's debt to equity ratio (1.6%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: TRA's debt is not covered by short term assets (assets are 0.8x 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: TRA has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: TRA has less than a year of cash runway if free cash flow continues to grow at historical rates of 7.9% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

8.7yrs

Average management tenure


CEO

Peter Leger (59yo)

13.6yrs

Tenure

CA$250,000

Compensation

Mr. Peter J. Leger, AB is the Founder of TIEX Inc. and Vindt Resources Inc. Mr. Leger has been the Chief Executive Officer and President of Teras Resources, Inc. since September, 2006. Mr. Leger has been t ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD136.16K).

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


Management Age and Tenure

8.7yrs

Average Tenure

59yo

Average Age

Experienced Management: TRA's management team is seasoned and experienced (8.7 years average tenure).


Board Age and Tenure

11.7yrs

Average Tenure

Experienced Board: TRA's board of directors are seasoned and experienced ( 11.7 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 5.9%.


Management Team

  • Toby Mancuso (59yo)

    VP & Director

    • Tenure: 1.6yrs
    • Compensation: CA$11.25k
  • Jim Hutch

    Advisor of the Board

    • Tenure: 0yrs
  • Peter Leger (59yo)

    President

    • Tenure: 13.6yrs
    • Compensation: CA$250.00k
  • Kuldip Baid (71yo)

    Chief Financial Officer

    • Tenure: 11.3yrs
    • Compensation: CA$103.14k
  • Wayne Pineau

    Corporate Secretary

    • Tenure: 8.7yrs
  • Paul Stubbe

    Vice President of Project Development

    • Tenure: 5.8yrs
    • Compensation: CA$33.44k

Board Members

  • Toby Mancuso (59yo)

    VP & Director

    • Tenure: 1.6yrs
    • Compensation: CA$11.25k
  • Peter Leger (59yo)

    President

    • Tenure: 13.6yrs
    • Compensation: CA$250.00k
  • Mike Attaway

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: CA$6.00k
  • John Batiuk

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: CA$22.04k
  • Dennis LaPoint

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: CA$19.25k

Company Information

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


Key Information

  • Name: Teras Resources Inc.
  • Ticker: TRA
  • Exchange: TSXV
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$9.810m
  • Shares outstanding: 196.21m
  • Website: https://www.teras.ca

Location

  • Teras Resources Inc.
  • 6025 - 12th Street SE
  • Suite 206
  • Calgary
  • Alberta
  • T2H 2K1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRATSXV (TSX Venture Exchange)YesCommon SharesCACADJan 1996
TRAR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1996
2RUDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1996

Biography

Teras Resources Inc. engages in the acquisition, exploration, and development of mineral properties in Montana, Nevada, and Cahuilla in California. The company explores for gold, silver, and base metals. I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 23:58
End of Day Share Price2019/12/05 00:00
Earnings2019/08/31
Annual Earnings2019/05/31


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.