DB:OUW

Stock Analysis Report

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Executive Summary

Capstone Mining Corp. engages in the exploration and production of base metals in the United States, Mexico, Canada, and Chile.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Capstone Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

16.9%

OUW

15.0%

DE Metals and Mining

6.8%

DE Market


1 Year Return

30.1%

OUW

-23.8%

DE Metals and Mining

5.6%

DE Market

Return vs Industry: OUW exceeded the German Metals and Mining industry which returned -28% over the past year.

Return vs Market: OUW exceeded the German Market which returned 4.4% over the past year.


Shareholder returns

OUWIndustryMarket
7 Day16.9%15.0%6.8%
30 Day34.6%26.8%14.0%
90 Day5.9%11.1%7.5%
1 Year30.1%30.1%-23.2%-23.8%7.4%5.6%
3 Year-25.4%-25.4%-58.3%-59.6%0.3%-7.3%
5 Year-52.6%-52.6%-54.1%-56.5%12.4%-2.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Capstone Mining undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OUW (€0.43) is trading below our estimate of fair value (€2.69)

Significantly Below Fair Value: OUW is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: OUW is good value based on its PB Ratio (0.3x) compared to the DE Metals and Mining industry average (4.2x).


Next Steps

Future Growth

How is Capstone Mining forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

42.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OUW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: OUW is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OUW's is expected to become profitable in the next 3 years.

Revenue vs Market: OUW's revenue (13.4% per year) is forecast to grow faster than the German market (5.7% per year).

High Growth Revenue: OUW's revenue (13.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OUW's Return on Equity is forecast to be low in 3 years time (0.5%).


Next Steps

Past Performance

How has Capstone Mining performed over the past 5 years?

46.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OUW is currently unprofitable.

Growing Profit Margin: OUW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OUW is unprofitable, but has reduced losses over the past 5 years at a rate of 46.6% per year.

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

Earnings vs Industry: OUW is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-0.7%).


Return on Equity

High ROE: OUW has a negative Return on Equity (-2.72%), as it is currently unprofitable.


Next Steps

Financial Health

How is Capstone Mining's financial position?


Financial Position Analysis

Short Term Liabilities: OUW's short term assets ($107.9M) exceed its short term liabilities ($59.0M).

Long Term Liabilities: OUW's short term assets ($107.9M) do not cover its long term liabilities ($402.4M).


Debt to Equity History and Analysis

Debt Level: OUW's debt to equity ratio (25.6%) is considered satisfactory.

Reducing Debt: OUW's debt to equity ratio has increased from 23.9% to 25.6% over the past 5 years.


Balance Sheet


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: Insufficient data to determine if OUW has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if OUW has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Capstone Mining's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if OUW'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 OUW'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?

1.5yrs

Average management tenure


CEO

Darren Pylot (51yo)

25.33yrs

Tenure

US$2,887,612

Compensation

Mr. Darren M. Pylot founded Capstone Mining Corp. and has been its Chief Executive Officer since February 13, 1995 and serves as its President. Mr. Pylot serves as the Chief Executive Officer and President ...


CEO Compensation Analysis

Compensation vs Market: Darren's total compensation ($USD2.14M) is above average for companies of similar size in the German market ($USD697.68K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Darren Pylot
President25.33yrsUS$2.89m0.83% $1.5m
Raman Randhawa
CFO & Senior VP1.42yrsUS$1.05m0.042% $77.0k
Bradley Mercer
Senior Vice President of Operations & Exploration1.42yrsUS$1.07m0.11% $208.0k
Jason Howe
Senior Vice President of Corporate Development3.67yrsUS$925.42k0.26% $485.0k
Wendy King
Senior VP of Legal6.33yrsno data0.17% $314.2k
Virginia Morgan
Manager of IR & Communicationsno datano datano data
Jerrold Annett
Vice President of Strategy & Capital Markets0.75yrno data1% $1.9m
Mike Wickersham
General Manager of Pinto Valley Mine1.67yrsno datano data
Cindy Burnett
Consultant1.42yrsno datano data

1.5yrs

Average Tenure

48yo

Average Age

Experienced Management: OUW's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Darren Pylot
President25.33yrsUS$2.89m0.83% $1.5m
Peter Meredith
Independent Director1.17yrsUS$153.33k0.016% $29.3k
George Brack
Independent Non-Executive Chairman9.42yrsUS$285.00k0.50% $923.9k
Robert Gallagher
Independent Director3.58yrsUS$179.67kno data
Dale Peniuk
Independent Director11.08yrsUS$193.00k0.025% $45.7k
Richard Zimmer
Independent Director9yrsUS$183.00k0.019% $35.6k
SeungWan Shon
Independent Director0.33yrno datano data

9.0yrs

Average Tenure

60yo

Average Age

Experienced Board: OUW's board of directors are considered experienced (9 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Capstone Mining Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Capstone Mining Corp.
  • Ticker: OUW
  • Exchange: DB
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$280.032m
  • Listing Market Cap: CA$184.795m
  • Shares outstanding: 400.05m
  • Website: https://www.capstonemining.com

Number of Employees


Location

  • Capstone Mining Corp.
  • 510 West Georgia Street
  • Suite 2100
  • Vancouver
  • British Columbia
  • V6B 0M3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSTSX (The Toronto Stock Exchange)YesNew Common SharesCACADJan 2008
OUWDB (Deutsche Boerse AG)YesNew Common SharesDEEURJan 2008
CSFF.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDJan 2008

Biography

Capstone Mining Corp. engages in the exploration and production of base metals in the United States, Mexico, Canada, and Chile. The company explores for copper, molybdenum, silver, zinc, lead, iron, and gold deposits. It holds interests in the Pinto Valley, an open pit copper mine located in Arizona, the United States; and the Cozamin, an underground, copper-silver mine located in the state of Zacatecas, Mexico. The company also owns a 70% interest in copper-iron-gold Santo Domingo development project in Region III, Chile. The company is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 09:45
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.