DB:2RU

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.


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: 2RU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.3%

2RU

-2.5%

DE Metals and Mining

2.2%

DE Market


1 Year Return

-60.5%

2RU

-54.4%

DE Metals and Mining

-17.2%

DE Market

Return vs Industry: 2RU exceeded the German Metals and Mining industry which returned -54.1% over the past year.

Return vs Market: 2RU underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

2RUIndustryMarket
7 Day-6.3%-2.5%2.2%
30 Day-60.5%-32.6%-15.7%
90 Day-53.1%-50.6%-24.0%
1 Year-60.5%-60.5%-54.0%-54.4%-14.9%-17.2%
3 Yearn/a-69.2%-70.2%-16.4%-23.3%
5 Yearn/a-69.7%-71.2%-16.5%-27.8%

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

No news available

Valuation

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

0.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 2RU's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 2RU's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 2RU is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: 2RU is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2RU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2RU is good value based on its PB Ratio (0.3x) compared to the DE Metals and Mining industry average (2x).


Next Steps

Future Growth

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

10.6%

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 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?

-5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2RU is currently unprofitable.

Growing Profit Margin: 2RU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2RU is unprofitable, and losses have increased over the past 5 years at a rate of -5.9% per year.

Accelerating Growth: Unable to compare 2RU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2RU 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: 2RU has a negative Return on Equity (-3.04%), as it is currently unprofitable.


Next Steps

Financial Health

How is Teras Resources's financial position?


Financial Position Analysis

Short Term Liabilities: 2RU's short term assets (CA$152.3K) do not cover its short term liabilities (CA$752.2K).

Long Term Liabilities: 2RU has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 2RU's debt to equity ratio (1.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 2RU's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 2RU has a high level of physical assets or inventory.

Debt Coverage by Assets: 2RU's debt is not covered by short term assets (assets are 0.3x 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: 2RU has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 2RU has less than a year of cash runway if free cash flow continues to grow at historical rates of 20.7% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2RU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2RU'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 2RU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2RU'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 2RU'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?

4.0yrs

Average management tenure


CEO

Joe Carrabba (66yo)

0.25

Tenure

Mr. Joseph A. Carrabba, also known as Joe, serves as President, Chief Executive Officer and Director at Teras Resources Inc. since January 23, 2020. Mr. Carrabba serves as President, Chief Executive Office ...


Leadership Team

NamePositionTenureCompensationOwnership
Kuldip Baid
Chief Financial Officer11.58yrsCA$66.06kno data
Peter Leger
Director & Senior Consultant13.92yrsCA$250.00k1.5% CA$79.5k
Thomas Mancuso
VP of Corporation & Director1.92yrsCA$34.22k0.77% CA$40.8k
Joseph Carrabba
President0.25yrno data1.21% CA$64.2k
Wayne Pineau
Corporate Secretary9yrsno datano data
Paul Stubbe
Vice President of Project Development6.08yrsCA$33.44kno data
James Hutch
Advisor of the Boardno datano datano data

4.0yrs

Average Tenure

62.5yo

Average Age

Experienced Management: 2RU's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Leger
Director & Senior Consultant13.92yrsCA$250.00k1.5% CA$79.5k
Thomas Mancuso
VP of Corporation & Director1.92yrsCA$34.22k0.77% CA$40.8k
Joseph Carrabba
President0.25yrno data1.21% CA$64.2k
Micheal Attaway
Independent Director5.92yrsno data0.0048% CA$256.6
Dennis LaPoint
Independent Director12yrsno data0.0048% CA$256.6

5.9yrs

Average Tenure

59yo

Average Age

Experienced Board: 2RU's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 2RU 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 9.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Teras Resources Inc.
  • Ticker: 2RU
  • Exchange: DB
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$8.258m
  • Listing Market Cap: CA$5.301m
  • Shares outstanding: 206.44m
  • 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. Its flagship property is the Cahuilla gold/silver project located in Imperial County, California. The company was formerly known as Profile Resources Inc. and changed its name to Teras Resources Inc. in September 2006. Teras Resources Inc. is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 02:53
End of Day Share Price2020/03/31 00:00
Earnings2019/11/30
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.