NexMetals Mining Corp. (NASDAQ: NEXM)

Sector: Basic Materials Industry: Other Industrial Metals & Mining CIK: 0000795800
Market Cap 46.65 Mn
P/B 2.98
P/E -1.12
P/S 0.00
ROIC (Qtr) -232.70
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 1.23 Mn
Debt/Equity (Qtr) 0.08
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About

Investment thesis

Bull case

  • Healthy cash reserves of 10.23M provide 36.06x coverage of short-term debt 283690.58, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 24.67M provides 20.06x coverage of total debt 1.23M, indicating robust asset backing and low credit risk.
  • Tangible assets of 24.67M provide robust 175.58x coverage of other current liabilities 140484.06, indicating strong asset backing.
  • Strong cash position of 10.23M provides 72.82x coverage of other current liabilities 140484.06, indicating excellent liquidity.
  • Robust tangible asset base of 24.67M provides 3.41x coverage of working capital 7.23M, indicating strong operational backing.

Bear case

  • The company's operating cash flow of (32.58M) shows concerning coverage of stock compensation expenses of 1.65M, with a -19.72 ratio indicating potential earnings quality issues.
  • Free cash flow of (34.52M) provides weak coverage of capital expenditures of 1.94M, with a -17.79 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (41.17M) show weak coverage of depreciation charges of 1.49M, with a -27.66 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (32.58M) barely covers operating expenses of 690831.88 with a -47.16 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Free cash flow of (34.52M) represents just -63.15x of debt issuance 546592.03, suggesting concerning reliance on leverage rather than internal cash generation for growth.

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 188.54 Bn 18.41 3.49 29.90 Bn
2 TECK Teck Resources Ltd 28.53 Bn 31.70 3.75 3.67 Bn
3 MP MP Materials Corp. / DE 9.57 Bn -81.36 41.12 1.00 Bn
4 SKE Skeena Resources Ltd 3.70 Bn -44.17 0.00 0.04 Bn
5 MTRN MATERION Corp 3.18 Bn 42.47 1.78 0.53 Bn
6 ALM Almonty Industries Inc. 2.45 Bn -216.48 122.35 0.14 Bn
7 USAS Americas Gold & Silver Corp 1.71 Bn -27.92 15.69 0.06 Bn
8 USAR USA Rare Earth, Inc. 1.68 Bn -6.60 0.00 0.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.01 2.89
EV to Cash from Ops. EV/CFO -0.01 -38.49
EV to Debt EV to Debt 0.18 537.19
EV to EBIT EV/EBIT -0.01 -24.27
EV to EBITDA EV/EBITDA -0.01 458.80
EV to Free Cash Flow [EV/FCF] EV/FCF -0.01 -18.50
EV to Market Cap EV to Market Cap 0.00 0.42
EV to Revenue EV to Revenue 0.00 34.60
Price to Book Value [P/B] P/B 2.98 10.18
Price to Earnings [P/E] P/E -1.12 -32.46
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -16.19
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.36
Dividend per Basic Share Div per Share (Qtr) 0.00 0.05
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -4.32
Interest Coverage Int. cover (Qtr) -72.78 412.60
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 13.32 -7,554.56
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -19.85 2,335.82
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -2.77
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -46.95 -76.97
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -30.05 -2.67
EBIT Growth (1y) % EBIT 1y % (Qtr) -45.11 -36.91
EBT Growth (1y) % EBT 1y % (Qtr) -35.64 -100.70
EPS Growth (1y) % EPS 1y % (Qtr) 22.50 -24.28
FCF Growth (1y) % FCF 1y % (Qtr) -34.59 -5,480.62
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 9.93
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 2.16 3.63
Current Ratio Curr Ratio (Qtr) 2.53 5.14
Debt to Equity Ratio Debt/Equity (Qtr) 0.08 0.74
Interest Cover Ratio Int Coverage (Qtr) -72.78 412.60
Times Interest Earned Times Interest Earned (Qtr) -72.78 412.60
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -684.08
EBIT Margin % EBIT Margin % 0.00 -696.03
EBT Margin % EBT Margin % 0.00 -788.18
Gross Margin % Gross Margin % 0.00 11.20
Net Profit Margin % Net Profit Margin % 0.00 -790.68