OTCPK:NSRP.F

Stock Analysis Report

Executive Summary

Novo Resources Corp., together with its subsidiaries, engages in evaluating, acquiring, and exploring natural resource properties in Canada, Australia, and the United States.

Snowflake

Fundamentals

Flawless balance sheet with weak fundamentals.

Risks

  • Novo Resources is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.6%

OTCPK:NSRP.F

-3.9%

US Metals and Mining

-1.0%

US Market


1 Year Return

-44.7%

OTCPK:NSRP.F

-15.5%

US Metals and Mining

-0.4%

US Market

NSRP.F underperformed the Metals and Mining industry which returned -14.9% over the past year.

NSRP.F underperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

NSRP.FIndustryMarket
7 Day-5.6%-3.9%-1.0%
30 Day-6.6%-8.7%-3.3%
90 Day8.3%0.06%0.4%
1 Year-44.7%-44.7%-13.0%-15.5%1.8%-0.4%
3 Year136.7%136.7%-3.0%-7.9%39.4%30.4%
5 Year63.8%63.8%-17.9%-24.1%54.2%37.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Novo Resources undervalued based on future cash flows and its price relative to the stock market?

2.53x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Novo Resources to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Novo Resources to establish if it is available at substantial discount.


Price Based on Earnings

Novo Resources is loss making, we can't compare its value to the US Metals and Mining industry average.

Novo Resources is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Novo Resources, we can't assess if its growth is good value.


Price Based on Value of Assets

Novo Resources is overvalued based on assets compared to the US Metals and Mining industry average.


Next Steps

Future Growth

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

24.3%

Forecasted Metals and Mining 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 Novo 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

  • Examine Novo Resources's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Novo Resources's filings and announcements here.
  • Explore growth companies in the materials industry.

Past Performance

How has Novo Resources performed over the past 5 years?

-60.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Novo Resources does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Novo Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Novo Resources's 1-year growth to the US Metals and Mining industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Novo Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Novo Resources has efficiently used its assets last year compared to the US Metals and Mining industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Novo Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Novo Resources's financial position?


Financial Position Analysis

Novo Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Novo Resources's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Novo Resources has no debt.

Novo Resources currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

High level of physical assets or inventory.

Novo Resources has no debt, it does not need to be 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.

Novo Resources has sufficient cash runway for 1.2 years based on current free cash flow.

Novo Resources has sufficient cash runway for 1.2 years if free cash flow continues to grow at historical rates of 56.4% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Novo Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Novo Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Novo Resources has not reported any payouts.

Unable to verify if Novo Resources's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Novo Resources has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Rob Humphryson

2.2yrs

Tenure

CA$313,755

Compensation

Mr. Robert Humphryson, also known as Rob, has been Chief Executive Officer at Novo Resources Corp. since June 2017. Mr. Humphryson served as Business Development Manager at Swick Mining Services Limited si ...


CEO Compensation Analysis

Rob's remuneration is lower than average for companies of similar size in United States of America.

Rob's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.8yrs

Average Tenure

The tenure for the Novo Resources management team is about average.


Board Age and Tenure

2.0yrs

Average Tenure

57yo

Average Age

The average tenure for the Novo Resources board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$15107 Jan 19
Michael Barrett
EntityIndividual
Role
Member of the Board of Directors
Shares100
Max PriceUS$1.51
SellUS$21010 Oct 18
Ronan Sabo-Walsh
EntityIndividual
Role
CFO & Corporate Secretary
Shares100
Max PriceUS$2.10

Ownership Breakdown


Management Team

  • Quinton Hennigh (52yo)

    Chairman of the Board & President

    • Tenure: 8.3yrs
    • Compensation: CA$358.44k
  • Leo Karabelas (40yo)

    Vice President of Corporate Communications

    • Tenure: 7.3yrs
    • Compensation: CA$180.00k
  • Rob Humphryson

    Chief Executive Officer & Director

    • Tenure: 2.2yrs
    • Compensation: CA$313.76k
  • Ronan Sabo-Walsh

    CFO & Corporate Secretary

    • Tenure: 2.2yrs
    • Compensation: CA$294.82k
  • Kas De Luca

    General Manager of Exploration


Board Members

  • Eric Sprott (74yo)

    Director

    • Tenure: 1.8yrs
  • Akiko Levinson (64yo)

    Director

    • Tenure: 8.2yrs
    • Compensation: CA$60.70k
  • Quinton Hennigh (52yo)

    Chairman of the Board & President

    • Tenure: 2.2yrs
    • Compensation: CA$358.44k
  • Mike Barrett (50yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: CA$57.92k
  • Greg Gibson (57yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: CA$60.70k
  • Rob Humphryson

    Chief Executive Officer & Director

    • Tenure: 1.8yrs
    • Compensation: CA$313.76k

Company Information

Novo Resources Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Novo Resources Corp.
  • Ticker: NSRP.F
  • Exchange: OTCPK
  • Founded: 2009
  • Industry: gold
  • Sector: materials
  • Market Cap: US$304.062m
  • Shares outstanding: 178.86m
  • Website: Click here

Location

  • Novo Resources Corp.
  • 595 Burrard Street
  • Suite 2900
  • Vancouver
  • British Columbia
  • V7X 1J5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NSRP.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 2012
1NODB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2012
NVOTSXV (TSX Venture Exchange)YesCommon SharesCACADFeb 2012

Biography

Novo Resources Corp., together with its subsidiaries, engages in evaluating, acquiring, and exploring natural resource properties in Canada, Australia, and the United States. It primarily focuses on the Ka ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 00:23
End of Day Share Price2019/08/16 00:00
Earnings2019/04/30
Annual Earnings2019/01/31


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.