DB:8PY

Stock Analysis Report

Executive Summary

PyroGenesis Canada Inc. designs, develops, manufactures, and commercializes advanced plasma processes and systems in Canada and internationally.

Risk Analysis

Earnings have declined by -17.23% per year over past 5 years

Has less than 1 year of cash runway

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

Highly volatile share price over past 3 months

+ 3 more risks


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has PyroGenesis Canada's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8PY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.0%

8PY

1.1%

DE Commercial Services

1.7%

DE Market


1 Year Return

-30.3%

8PY

-0.5%

DE Commercial Services

15.0%

DE Market

Return vs Industry: 8PY underperformed the German Commercial Services industry which returned -0.5% over the past year.

Return vs Market: 8PY underperformed the German Market which returned 15% over the past year.


Shareholder returns

8PYIndustryMarket
7 Day3.0%1.1%1.7%
30 Day0%1.0%0.8%
90 Day-18.0%6.6%3.7%
1 Year-30.3%-30.3%3.0%-0.5%18.5%15.0%
3 Yearn/a11.3%1.6%17.1%6.9%
5 Yearn/a2.6%-11.7%24.3%7.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is PyroGenesis Canada undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether PyroGenesis Canada is trading at an attractive price based on the cash flow it is expected to produce in the future. But as PyroGenesis Canada 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 8PY’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 size of the opportunity, the company's ability to deliver and scale, and the strength 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 PyroGenesis Canada regulatory filings.
  • Explore potentially undervalued companies in the Commercial Services industry.

Future Growth

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

29.0%

Forecasted Commercial Services 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 PyroGenesis Canada 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 PyroGenesis Canada performed over the past 5 years?

-17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8PY is currently unprofitable.

Growing Profit Margin: 8PY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8PY is unprofitable, and losses have increased over the past 5 years at a rate of -17.2% per year.

Accelerating Growth: Unable to compare 8PY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8PY is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (9.4%).


Return on Equity

High ROE: 8PY'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 PyroGenesis Canada's financial position?


Financial Position Analysis

Short Term Liabilities: 8PY has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 8PY 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: 8PY has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 8PY's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 8PY has a high level of physical assets or inventory.

Debt Coverage by Assets: 8PY 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: 8PY has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 8PY has less than a year of cash runway if free cash flow continues to reduce at historical rates of -9.4% each year


Next Steps

Dividend

What is PyroGenesis Canada's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage3.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8PY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8PY'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 8PY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8PY'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 8PY's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.4yrs

Average board tenure


CEO

Photis Pascali (59yo)

13.7yrs

Tenure

CA$256,527

Compensation

Mr. Photis Peter Pascali, Jr., serves as Interim Chairman of the Board at PyroGenesis Canada Inc. since September 29, 2019. He has been the Chief Executive Officer and President of PyroGenesis Canada Inc,  ...


CEO Compensation Analysis

Compensation vs Market: Photis's total compensation ($USD193.57K) is below average for companies of similar size in the German market ($USD412.37K).

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


Board Members

NamePositionTenureCompensationOwnership
Photis Pascali
Interim Chairman of the Board13.7yrsCA$256.53k46.66% CA$20.4m
Michael Blank
Acting CFO & Independent Director0.4yrsno datano data
Robert Radin
Independent Director8yrsCA$17.00k0.46% CA$199.0k
Andrew Abdalla
Independent Director1.8yrsCA$159.45kno data
Virendra Jha
Independent Director0.4yrsno datano data

0.4yrs

Average Tenure

Experienced Board: 8PY's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.8%.


Top Shareholders

Company Information

PyroGenesis Canada Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PyroGenesis Canada Inc.
  • Ticker: 8PY
  • Exchange: DB
  • Founded:
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: CA$62.764m
  • Listing Market Cap: CA$43.681m
  • Shares outstanding: 142.64m
  • Website: https://www.pyrogenesis.com

Location

  • PyroGenesis Canada Inc.
  • 1744, William Street
  • Suite 200
  • Montréal
  • Quebec
  • H3J 1R4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PYRTSXV (TSX Venture Exchange)YesCommon SharesCACADJul 2011
PYRN.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2011
8PYDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2011

Biography

PyroGenesis Canada Inc. designs, develops, manufactures, and commercializes advanced plasma processes and systems in Canada and internationally. It offers DROSRITE, a sustainable process for enhancing metal recovery from dross targeting primarily aluminum and zinc industries; plasma atomization process; PUREVAP, a process to produce high purity silicon and solar grade silicon; contact pyrogenesis additives; process/product development services, such as process and equipment design, equipment and infrastructure for lab and pilot work, analytical services, and thermodynamic process simulation and modelling services; custom reactors and furnaces for use in advanced materials, metallurgical, environmental, and chemical fields; and plasma atomized spherical metal powders. The company also provides plasma torches, including APT for waste treatment, gas heating, research and development, and advanced materials production applications; Minigun, which offers a solution for thermal treatment of metals, for nanotechnology, and for small-scale high-tech material fabrication; reverse polarity torches for use in the production of high purity materials and nanomaterials, research and development, waste treatment, and thermal spray coatings; and SPT plasma torches for use in destruction of refrigerants and other substances. In addition, it offers plasma waste processes, such as plasma arc gasification and vitrification system; plasma arc waste destruction system for land; plasma arc waste destruction system; PRRS, a plasma waste-to-energy solution; SPARC, a process for the destruction of ozone depleting substances and other environmentally noxious chemicals; and Tactical plasma arc chemical warfare agents destruction system, which destroys a range of chemical warfare agents and precursors reagents in the field. The company serves defence, metallurgical, mining, advanced materials, oil and gas, and environmental industries. PyroGenesis Canada Inc. is based in Montréal, 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 22:28
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.