Northern Dynasty Minerals Ltd (NYSE: NAK)

Sector: Basic Materials Industry: Other Industrial Metals & Mining CIK: 0001164771
Market Cap 1.18 Bn
P/B 26.86
P/E -19.60
P/S 0.00
ROIC (Qtr) -58.77
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 1.86 Mn
Debt/Equity (Qtr) 0.04

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 32.50M provide 17.46x coverage of short-term debt 1.86M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 92.24M provides 49.57x coverage of total debt 1.86M, indicating robust asset backing and low credit risk.
  • Free cash flow of 9.22M provides exceptional 13.99x coverage of interest expense 658695.65, showing strong debt service ability.
  • Cash reserves of 32.50M provide solid 110.19x coverage of other non-current liabilities 294927.54, indicating strong liquidity.
  • Free cash flow of 9.22M provides solid 18.54x coverage of operating expenses 497101.45, showing operational efficiency.

Bear case

  • Operating cash flow of (14.84M) barely covers its investment activities of 24.45M, with a coverage ratio of -0.61, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of (14.84M) shows concerning coverage of stock compensation expenses of 497101.45, with a -29.84 ratio indicating potential earnings quality issues.
  • Operating cash flow of (14.84M) provides minimal -155.10x coverage of tax expenses of 95652.17, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (59.24M) show weak coverage of depreciation charges of 124637.68, with a -475.33 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 9.22M provides weak coverage of capital expenditures of (24.05M), with a -0.38 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Other Industrial Metals & Mining
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BHP BHP Group Ltd 162.30 Bn 17.99 3.17 -
2 TECK Teck Resources Ltd 24.54 Bn 27.27 3.23 3.67 Bn
3 MP MP Materials Corp. / DE 10.73 Bn -91.17 46.08 1.00 Bn
4 SKE Skeena Resources Ltd 3.07 Bn -36.58 0.00 0.04 Bn
5 MTRN MATERION Corp 2.85 Bn 87.35 2.45 0.53 Bn
6 VZLA Vizsla Silver Corp. 2.28 Bn -205.10 0.00 0.00 Bn
7 SGML Sigma Lithium Corp 1.76 Bn -65.03 15.16 0.12 Bn
8 ALM Almonty Industries Inc. 1.65 Bn -145.44 82.20 0.14 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 10.68 3.13
EV to Cash from Ops. EV/CFO -66.40 -51.74
EV to Debt EV to Debt 529.35 863.55
EV to EBIT EV/EBIT -16.63 -27.66
EV to EBITDA EV/EBITDA -61.70 566.13
EV to Free Cash Flow [EV/FCF] EV/FCF 106.89 -24.46
EV to Market Cap EV to Market Cap 0.84 0.59
EV to Revenue EV to Revenue 0.00 42.69
Price to Book Value [P/B] P/B 26.86 10.60
Price to Earnings [P/E] P/E -19.60 -35.19
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -16.20
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.46
Dividend per Basic Share Div per Share (Qtr) 0.00 0.08
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.53
Interest Coverage Int. cover (Qtr) -89.94 51.59
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 97.20 -444.92
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 102.41 3,116.99
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.80
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -388.89 -69.51
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -24.18 20.12
EBIT Growth (1y) % EBIT 1y % (Qtr) -386.55 -24.32
EBT Growth (1y) % EBT 1y % (Qtr) -373.87 -92.39
EPS Growth (1y) % EPS 1y % (Qtr) -269.57 -31.76
FCF Growth (1y) % FCF 1y % (Qtr) 482.33 -5,473.04
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 9.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.13
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.67 5.35
Current Ratio Curr Ratio (Qtr) 0.68 6.87
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 0.74
Interest Cover Ratio Int Coverage (Qtr) -89.94 51.59
Times Interest Earned Times Interest Earned (Qtr) -89.94 51.59
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -684.18
EBIT Margin % EBIT Margin % 0.00 -696.12
EBT Margin % EBT Margin % 0.00 -788.27
Gross Margin % Gross Margin % 0.00 11.29
Net Profit Margin % Net Profit Margin % 0.00 -790.78