OTCPK:PRSR.F

Stock Analysis Report

Executive Summary

Para Resources Inc., a natural resource company, engages in acquiring, exploring, developing, and mining properties in North and South America.


Snowflake Analysis

Overvalued with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-33.0%

PRSR.F

2.1%

US Metals and Mining

-1.1%

US Market


1 Year Return

-72.5%

PRSR.F

-2.3%

US Metals and Mining

17.8%

US Market

Return vs Industry: PRSR.F underperformed the US Metals and Mining industry which returned -2.3% over the past year.

Return vs Market: PRSR.F underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

PRSR.FIndustryMarket
7 Day-33.0%2.1%-1.1%
30 Day-46.4%-1.3%1.5%
90 Day-61.3%0.3%6.6%
1 Year-72.5%-72.5%0.2%-2.3%20.2%17.8%
3 Yearn/a-0.4%-5.8%47.5%38.1%
5 Yearn/a21.0%11.6%71.2%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.72x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: PRSR.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PRSR.F is good value based on its PB Ratio (0.7x) compared to the US Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

13.3%

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 Para 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

  • Take a look at our analysis of PRSR.F’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.
  • 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 Para Resources's filings and announcements here.
  • Explore growth companies in the Materials industry.

Past Performance

How has Para Resources performed over the past 5 years?

-54.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRSR.F is currently unprofitable.

Growing Profit Margin: PRSR.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PRSR.F is unprofitable, and losses have increased over the past 5 years at a rate of -54.5% per year.

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

Earnings vs Industry: PRSR.F is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-32.4%).


Return on Equity

High ROE: PRSR.F has a negative Return on Equity (-124.76%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Para Resources's financial position?


Financial Position Analysis

Short Term Liabilities: PRSR.F's short term assets (CA$2.2M) do not cover its short term liabilities (CA$10.0M).

Long Term Liabilities: PRSR.F's short term assets (CA$2.2M) do not cover its long term liabilities (CA$36.3M).


Debt to Equity History and Analysis

Debt Level: PRSR.F's debt to equity ratio (82%) is considered high.

Reducing Debt: PRSR.F's debt to equity ratio has increased from 81.5% to 82% over the past 5 years.


Balance Sheet

Inventory Level: PRSR.F has a high level of physical assets or inventory.

Debt Coverage by Assets: PRSR.F's debt is not covered by short term assets (assets are 0.2x 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: PRSR.F has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: PRSR.F has less than a year of cash runway if free cash flow continues to reduce at historical rates of -52.2% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

7.3yrs

Average board tenure


CEO

Javier F. Unda 0

0

Mr. Javier F. Cordova Unda has been President and Chief Executive Officer Para Resources Inc. since February 19, 2020 and served as its Special Advisor for Business Development at since January 30, 2018 un ...


Board Members

NamePositionTenureCompensationOwnership
C. Hampson
Executive Chairman & Secretary6.8yrsCA$243.59k6.92% CA$716.2k
Larry Timlick
Independent Director9.8yrsno data0.48% CA$49.6k
Ioannis Tsitos
Independent Director7.8yrsno datano data
Glenn Walsh
Independent Director3.8yrsno data54.48% CA$5.6m

7.3yrs

Average Tenure

61yo

Average Age

Experienced Board: PRSR.F's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PRSR.F insiders have only sold shares 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 29.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Para Resources Inc.
  • Ticker: PRSR.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$13.677m
  • Listing Market Cap: CA$10.351m
  • Shares outstanding: 303.93m
  • Website: https://www.pararesourcesinc.com

Location

  • Para Resources Inc.
  • 970-1050 West Pender Street
  • Vancouver
  • British Columbia
  • V6E 3S7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PBRTSXV (TSX Venture Exchange)YesCommon SharesCACADMay 2012
8PRDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2012
PRSR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2012

Biography

Para Resources Inc., a natural resource company, engages in acquiring, exploring, developing, and mining properties in North and South America. The company holds interest in the El Limon project, a gold mine located near the town of Zaragoza, Colombia; and a 100% interest in the Tucumã copper/gold exploration project, which consists of six mineral concessions covering a total of 11,456 hectares located in the Carajas metallogenic province in the State of Pará, Brazil. It also holds interests in the North Otu properties located in the Republic of Colombia; and the Gold Road Mine in Mohave County, Arizona. The company was formerly known as Kensington Court Ventures Inc. and changed its name to Para Resources Inc. in March 2014. Para Resources Inc. 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 Analysis2020/02/24 00:52
End of Day Share Price2020/02/21 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.