Nouveau Monde Graphite Inc. (NYSE: NMG)

Sector: Basic Materials Industry: Other Industrial Metals & Mining CIK: 0001649752
Market Cap 441.20 Mn
P/B 12.44
P/E -4.61
P/S 0.00
ROIC (Qtr) -82.60
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 14.34 Mn
Debt/Equity (Qtr) 0.40

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 44.76M provide 3.44x coverage of short-term debt 13.02M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 116.89M provides 8.15x coverage of total debt 14.34M, indicating robust asset backing and low credit risk.
  • Long-term investments of 794202.90 provide solid 0.60x coverage of long-term debt 1.32M, indicating strategic financial planning.
  • Cash reserves of 44.76M provide solid 39.27x coverage of other non-current liabilities 1.14M, indicating strong liquidity.
  • Operating cash flow of (35.04M) exceeds working capital of (30.16M) by 1.16x, showing strong operational efficiency.

Bear case

  • Investment activities of (11.76M) provide weak support for R&D spending of (17.27M), which is 0.68x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (35.04M) shows concerning coverage of stock compensation expenses of 1.69M, with a -20.70 ratio indicating potential earnings quality issues.
  • Operating cash flow of (35.04M) provides minimal -120.88x coverage of tax expenses of 289855.07, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (46.57M) provides weak coverage of capital expenditures of 11.53M, with a -4.04 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (46.08M) show weak coverage of depreciation charges of 5.64M, with a -8.17 ratio indicating high capital intensity and potential reinvestment needs.

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 2.51 3.13
EV to Cash from Ops. EV/CFO -8.37 -51.74
EV to Debt EV to Debt 20.44 863.55
EV to EBIT EV/EBIT -6.36 -27.66
EV to EBITDA EV/EBITDA -7.25 566.13
EV to Free Cash Flow [EV/FCF] EV/FCF -6.29 -24.46
EV to Market Cap EV to Market Cap 0.66 0.59
EV to Revenue EV to Revenue 0.00 42.69
Price to Book Value [P/B] P/B 12.44 10.60
Price to Earnings [P/E] P/E -4.61 -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) -0.93 51.59
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -54.69 -444.92
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 7.73 3,116.99
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.80
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 27.37 -69.51
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 27.98 20.12
EBIT Growth (1y) % EBIT 1y % (Qtr) 27.16 -24.32
EBT Growth (1y) % EBT 1y % (Qtr) -92.07 -92.39
EPS Growth (1y) % EPS 1y % (Qtr) -3.08 -31.76
FCF Growth (1y) % FCF 1y % (Qtr) -13.36 -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) 0.57 5.35
Current Ratio Curr Ratio (Qtr) 0.62 6.87
Debt to Equity Ratio Debt/Equity (Qtr) 0.40 0.74
Interest Cover Ratio Int Coverage (Qtr) -0.93 51.59
Times Interest Earned Times Interest Earned (Qtr) -0.93 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