AIM:GCM

Stock Analysis Report

Executive Summary

GCM Resources Plc operates as a resource exploration and development company.

Snowflake

Fundamentals

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.1%

GCM

-1.3%

GB Oil and Gas

-0.3%

GB Market


1 Year Return

-8.8%

GCM

7.2%

GB Oil and Gas

3.9%

GB Market

Return vs Industry: GCM underperformed the UK Oil and Gas industry which returned 7.2% over the past year.

Return vs Market: GCM underperformed the UK Market which returned 3.9% over the past year.


Shareholder returns

GCMIndustryMarket
7 Day-7.1%-1.3%-0.3%
30 Day-17.5%4.6%1.8%
90 Day-32.5%7.1%4.9%
1 Year-8.8%-8.8%12.6%7.2%9.3%3.9%
3 Year-64.9%-64.9%49.6%30.2%23.2%7.6%
5 Year-37.0%-37.0%38.2%12.6%34.3%3.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.34x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: GCM is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: GCM is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GCM is good value based on its PB Ratio (0.3x) compared to the GB Oil and Gas industry average (0.8x).


Next Steps

Future Growth

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

7.3%

Forecasted Energy 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 GCM 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 GCM Resources performed over the past 5 years?

-35.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GCM has high quality earnings.

Growing Profit Margin: Insufficient data to determine if GCM's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: GCM is unprofitable, and losses have increased over the past 5 years at a rate of -35.8% per year.

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

Earnings vs Industry: GCM is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (24.7%).


Return on Equity

High ROE: GCM has a negative Return on Equity (-14.09%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GCM Resources's financial position?


Financial Position Analysis

Short Term Liabilities: GCM's short term assets (£233.0K) do not cover its short term liabilities (£3.6M)

Long Term Liabilities: GCM has no long term liabilities


Debt to Equity History and Analysis

Debt Level: GCM's debt to equity ratio (4.4%) is considered satisfactory

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


Balance Sheet

Inventory Level: GCM has a low level of unsold assets or inventory.

Debt Coverage by Assets: GCM's debt is not covered by short term assets (assets are 0.1x 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: Insufficient data to determine if GCM has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.3%industryaverage5.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

What is the CEO of GCM Resources's salary, the management and board of directors tenure and is there insider trading?


CEO

Michael Tang (46yo)

0yrs

Tenure

0

Datuk Vee Mun Tang, also known as Michael, PJN is its Independent Non-Executive Director since June 25, 2019. He was Non Independent & Non Executive Director of Tropicana Corporation Berhad since November  ...


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 32.7%.


Management Team

  • Gary Lye (66yo)

    Chief Operating Officer

    • Tenure: 6.4yrs
  • Brian Mooney

    Head of Corporate Affairs

    • Tenure: 0yrs
  • Michael Tang (46yo)

    CEO & Executive Chairman

    • Tenure: 0yrs
  • Keith Fulton (48yo)

    Finance Director & Company Secretary

    • Tenure: 0.4yrs

Board Members

  • Michael Tang (46yo)

    CEO & Executive Chairman

    • Tenure: 0yrs
  • Mohd Najib Bin Aziz (46yo)

    Non- Executive Director

    • Tenure: 0.4yrs

Company Information

GCM Resources Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GCM Resources Plc
  • Ticker: GCM
  • Exchange: AIM
  • Founded: 2003
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: UK£12.823m
  • Shares outstanding: 98.64m
  • Website: https://www.gcmplc.com

Number of Employees


Location

  • GCM Resources Plc
  • 3 Bunhill Row
  • London
  • Greater London
  • EC1Y 8YZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LFDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2004
GCMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPApr 2004
GCLM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2004

Biography

GCM Resources Plc operates as a resource exploration and development company. It primarily develops the Phulbari coal and power project that relates to thermal coal and semi-soft coking coal located in Ban ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 20:33
End of Day Share Price2019/11/12 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.