Ivanhoe Electric Inc. (NYSE: IE)

Sector: Basic Materials Industry: Copper CIK: 0001879016
Market Cap -2.08 Bn
P/B -7.43
P/E 37.85
P/S -565.48
ROIC (Qtr) -29.42
Div Yield % 0.00
Rev 1y % (Qtr) -18.78
Total Debt (Qtr) 74.04 Mn
Debt/Equity (Qtr) 0.26
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About

Ivanhoe Electric Inc., a minerals exploration company based in the United States, operates under the ticker IE on the OTC Markets. The company focuses on discovering and developing mineral deposits, primarily in the United States, with an emphasis on supporting American supply chain independence by finding and delivering critical metals necessary for the electrification of the economy, such as copper. Ivanhoe Electric's primary business activities involve the exploration and development of mineral projects. The company's portfolio includes the...

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Investment thesis

Bull case

  • Strong tangible asset base of 386.15M provides 5.22x coverage of total debt 74.03M, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 386.15M provides 15.04x coverage of working capital 25.68M, indicating strong operational backing.
  • Long-term investments of 62.75M provide solid 2.47x coverage of long-term debt 25.41M, indicating strategic financial planning.
  • Tangible assets of 386.15M provide robust 99.37x coverage of other current liabilities 3.89M, indicating strong asset backing.
  • Cash reserves of 73.46M provide ample 7.58x coverage of acquisition spending 9.70M, enabling strategic growth opportunities.

Bear case

  • Operating cash flow of (94.20M) barely covers its investment activities of 6.10M, with a coverage ratio of -15.43, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 6.10M provide weak support for R&D spending of 64.63M, which is 0.09x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (94.20M) shows concerning coverage of stock compensation expenses of 12.60M, with a -7.48 ratio indicating potential earnings quality issues.
  • Operating cash flow of (94.20M) provides minimal -1624.17x coverage of tax expenses of 58000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (97.79M) provides weak coverage of capital expenditures of 3.59M, with a -27.23 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Copper
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SCCO Southern Copper Corp/ 156.08 Bn 124.92 27.85 7.43 Bn
2 FCX Freeport-Mcmoran Inc 50.61 Bn 20.03 3.37 10.39 Bn
3 HBM Hudbay Minerals Inc. 10.18 Bn 21.72 4.93 1.34 Bn
4 ERO Ero Copper Corp. 3.10 Bn 22.50 5.27 0.64 Bn
5 TGB Taseko Mines Ltd 2.34 Bn -57.89 5.41 0.72 Bn
6 IE Ivanhoe Electric Inc. -2.08 Bn 37.85 -565.48 0.07 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -5.43 1.43
EV to Cash from Ops. EV/CFO 22.27 34.72
EV to Debt EV to Debt -28.33 2.63
EV to EBIT EV/EBIT 42.03 18.51
EV to EBITDA EV/EBITDA 20.39 27.03
EV to Free Cash Flow [EV/FCF] EV/FCF 21.45 -172.92
EV to Market Cap EV to Market Cap 1.01 1.07
EV to Revenue EV/Rev -570.01 -86.78
Price to Book Value [P/B] P/B -7.43 6.28
Price to Earnings [P/E] P/E 37.85 28.19
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 14.62
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 15.85
Dividend per Basic Share Div per Share (Qtr) 0.00 0.58
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 20.37
Interest Coverage Int. cover (Qtr) -9.94 4.49
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 92.40 3.53
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -15.64 37.61
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -4.72
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 73.82 116.37
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 46.52 18.35
EBIT Growth (1y) % EBIT 1y % (Qtr) 73.90 78.94
EBT Growth (1y) % EBT 1y % (Qtr) 71.56 127.40
EPS Growth (1y) % EPS 1y % (Qtr) -74.21 119.98
FCF Growth (1y) % FCF 1y % (Qtr) 55.99 -64.06
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 65.87 14.14
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.32
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.08
Cash Ratio Cash Ratio (Qtr) 1.18 0.91
Current Ratio Curr Ratio (Qtr) 1.41 1.83
Debt to Equity Ratio Debt/Equity (Qtr) 0.26 0.75
Interest Cover Ratio Int Coverage (Qtr) -9.94 4.49
Times Interest Earned Times Interest Earned (Qtr) -9.94 4.49
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1,273.30 -178.60
EBIT Margin % EBIT Margin % (Qtr) -1,356.06 -204.60
EBT Margin % EBT Margin % (Qtr) -1,492.42 -228.80
Gross Margin % Gross Margin % (Qtr) 64.00 39.38
Net Profit Margin % Net Margin % (Qtr) -1,494.00 -236.28