Platinum Group Metals Ltd (NYSE: PLG)

Sector: Basic Materials Industry: Other Precious Metals & Mining CIK: 0001095052
Market Cap 251.00 Mn
P/B 5.65
P/E -55.25
P/S 0.00
ROIC (Qtr) -12.72
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 182,000.00
Debt/Equity (Qtr) 0.00
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About

Investment thesis

Bull case

  • Strong tangible asset base of 71.76M provides 394.27x coverage of total debt 182000, indicating robust asset backing and low credit risk.
  • Strong free cash flow of (6.46M) provides 129.16x coverage of acquisition spending (50000), indicating disciplined M&A strategy.
  • Long-term investments of 441000 provide solid 2.42x coverage of long-term debt 182000, indicating strategic financial planning.
  • Robust tangible asset base of 71.76M provides 3.74x coverage of working capital 19.18M, indicating strong operational backing.
  • Cash reserves of 5.37M provide robust 10.45x coverage of current liabilities 514000, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (4.49M) barely covers its investment activities of (14.72M), with a coverage ratio of 0.31, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 5.37M provide limited coverage of acquisition spending of (50000), which is -107.42x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (4.49M) shows concerning coverage of stock compensation expenses of 1.80M, with a -2.50 ratio indicating potential earnings quality issues.
  • Operating cash flow of (4.49M) provides minimal -249.67x coverage of tax expenses of 18000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (6.46M) provides weak coverage of capital expenditures of 1.96M, with a -3.29 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Other Precious Metals & Mining
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 HL Hecla Mining Co/De/ 13.92 Bn 43.35 9.78 275.80 Mn
2 TFPM Triple Flag Precious Metals Corp. 7.13 Bn 34.87 20.73 14.50 Mn
3 PPTA Perpetua Resources Corp. 2.49 Bn -56.16 0.00 0.05 Mn
4 ASM Avino Silver & Gold Mines Ltd 1.28 Bn 82.71 20.45 3.38 Mn
5 MUX McEwen Inc. 1.25 Bn -104.83 7.51 127.73 Mn
6 MTA Metalla Royalty & Streaming Ltd. 0.74 Bn -347.30 96.23 8.77 Mn
7 NEWP New Pacific Metals Corp 0.58 Bn -195.22 0.00 0.00 Mn
8 ELE Elemental Royalty Corp 0.30 Bn -829.72 18.50 0.00 Mn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.49 0.38
EV to Cash from Ops. EV/CFO -55.80 46.96
EV to Debt EV to Debt 1,377.94 3,165.55
EV to EBIT EV/EBIT -55.42 -95.38
EV to EBITDA EV/EBITDA -49.74 4.86
EV to Free Cash Flow [EV/FCF] EV/FCF -38.83 31.14
EV to Market Cap EV to Market Cap 1.00 0.86
EV to Revenue EV to Revenue 0.00 13.34
Price to Book Value [P/B] P/B 5.65 6.32
Price to Earnings [P/E] P/E -55.25 -125.76
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.56
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -10.52
Dividend per Basic Share Div per Share (Qtr) 0.00 0.02
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 3.93
Interest Coverage Int. cover (Qtr) 0.00 9.92
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 30.13 -825.54
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 155.28 689.03
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -3.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 6.98 85.08
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1.50 150.70
EBIT Growth (1y) % EBIT 1y % (Qtr) 6.76 97.21
EBT Growth (1y) % EBT 1y % (Qtr) 6.76 107.49
EPS Growth (1y) % EPS 1y % (Qtr) 33.33 129.12
FCF Growth (1y) % FCF 1y % (Qtr) -23.74 414.62
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 41.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.15
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 10.45 9.29
Current Ratio Curr Ratio (Qtr) 38.32 12.32
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.07
Interest Cover Ratio Int Coverage (Qtr) 0.00 9.92
Times Interest Earned Times Interest Earned (Qtr) 0.00 9.92
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -110.37
EBIT Margin % EBIT Margin % 0.00 -125.82
EBT Margin % EBT Margin % 0.00 -136.05
Gross Margin % Gross Margin % 0.00 27.60
Net Profit Margin % Net Profit Margin % 0.00 -140.71