TSXV:WA

Stock Analysis Report

Western Atlas Resources

Executive Summary

Western Atlas Resources Inc. focuses on discovering, acquiring, and developing mineral deposits in Canada.

Snowflake

Fundamentals

Imperfect balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-9.1%

WA

-0.8%

CA Metals and Mining

0.2%

CA Market


1 Year Return

-44.4%

WA

13.6%

CA Metals and Mining

2.4%

CA Market

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

Return vs Market: WA underperformed the Canadian Market which returned 2.4% over the past year.


Shareholder returns

WAIndustryMarket
7 Day-9.1%-0.8%0.2%
30 Day-47.4%-8.4%-3.3%
90 Day-33.3%-7.6%-1.8%
1 Year-44.4%-44.4%14.5%13.6%6.0%2.4%
3 Yearn/a-10.6%-12.2%14.2%4.0%
5 Yearn/a16.7%12.9%27.2%8.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.12x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: WA is good value based on its PB Ratio (1.1x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Western Atlas 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 Western Atlas 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 Western Atlas Resources performed over the past 5 years?

33.4%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WA is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

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

Earnings vs Industry: WA 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: WA has a negative Return on Equity (-31.24%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Western Atlas Resources's financial position?


Financial Position Analysis

Short Term Liabilities: WA's short term assets (CA$71.7K) exceeds its short term liabilities (CA$22.4K)

Long Term Liabilities: WA's short term assets (71.7K) do not cover its long term liabilities (100.0K)


Debt to Equity History and Analysis

Debt Level: WA's debt to equity ratio (4%) is considered satisfactory

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


Balance Sheet

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

Debt Coverage by Assets: WA'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: WA has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: WA has less than a year of cash runway if free cash flow continues to reduce at historical rates of -59.5% each year


Next Steps

Dividend

What is Western Atlas 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 WA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

1.3yrs

Average management tenure


CEO

Fabio Capponi (46yo)

1.3yrs

Tenure

CA$32,000

Compensation

Mr. Fabio Capponi has been President, Chief Executive Officer and Director of Western Atlas Resources Inc. since June 15, 2018. He serves as an External Consultant of Endeavour Financial and Assistant Vice ...


CEO Compensation Analysis

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

Compensation vs Earnings: Insufficient data to compare Fabio's compensation with company performance.


Management Age and Tenure

1.3yrs

Average Tenure

Experienced Management: WA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: WA's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: WA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$1,352,39911 Oct 19
Gran Colombia Gold Corp.
EntityCompany
Shares15,910,588
Max PriceCA$0.085
BuyCA$2,07510 Oct 19
Fabio Capponi
EntityIndividual
Role
Chief Executive Officer
President
Shares24,412
Max PriceCA$0.085

Ownership Breakdown


Management Team

  • Fabio Capponi (46yo)

    President

    • Tenure: 1.3yrs
    • Compensation: CA$32.00k
  • Susan Rubin (65yo)

    Corporate Secretary & CFO

    • Tenure: 1.3yrs
    • Compensation: CA$33.00k
  • David Laing

    Head of Corporate Development & Technical Advisor

    • Tenure: 0.8yrs

Board Members

  • Serafino Iacono (58yo)

    Chairman of the Board

    • Tenure: 1.3yrs
  • Miguel de la Campa (74yo)

    Director

    • Tenure: 0yrs
  • Jose Arata (61yo)

    Director

    • Tenure: 1.3yrs
  • Fabio Capponi (46yo)

    President

    • Tenure: 1.3yrs
    • Compensation: CA$32.00k

Company Information

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


Key Information

  • Name: Western Atlas Resources Inc.
  • Ticker: WA
  • Exchange: TSXV
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$3.999m
  • Shares outstanding: 79.98m
  • Website: https://westernar.com

Location

  • Western Atlas Resources Inc.
  • Park Place
  • Suite 1700
  • Vancouver
  • British Columbia
  • V6C 2X8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WATSXV (TSX Venture Exchange)YesCommon sharesCACADJun 2018
PPZR.FOTCPK (Pink Sheets LLC)YesCommon sharesUSUSDJun 2018
8PT3DB (Deutsche Boerse AG)YesCommon sharesDEEURJun 2018

Biography

Western Atlas Resources Inc. focuses on discovering, acquiring, and developing mineral deposits in Canada. It owns 100% interest in the Meadowbank precious metal project consisting of 3 non-contiguous bloc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:37
End of Day Share Price2019/10/22 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.