Skeena Resources Ltd (NYSE: SKE)

Sector: Basic Materials Industry: Other Industrial Metals & Mining CIK: 0001713748
Market Cap 3.07 Bn
P/B 49.65
P/E -36.58
P/S 0.00
ROIC (Qtr) -88.90
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 44.73 Mn
Debt/Equity (Qtr) 0.72

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 78.42M provide 7.83x coverage of short-term debt 10.02M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 468.99M provides 10.49x coverage of total debt 44.73M, indicating robust asset backing and low credit risk.
  • Short-term investments of 32.46M provide solid 32.58x coverage of other current liabilities 996376.81, indicating strong liquidity.
  • Tangible assets of 468.99M provide robust 470.69x coverage of other current liabilities 996376.81, indicating strong asset backing.
  • Robust tangible asset base of 468.99M provides 7.66x coverage of working capital 61.24M, indicating strong operational backing.

Bear case

  • Operating cash flow of (71.22M) barely covers its investment activities of (160.94M), with a coverage ratio of 0.44, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (160.94M) provide weak support for R&D spending of 38.66M, which is -4.16x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (71.22M) shows concerning coverage of stock compensation expenses of 16.10M, with a -4.42 ratio indicating potential earnings quality issues.
  • Free cash flow of (213.23M) provides weak coverage of capital expenditures of 142.02M, with a -1.50 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (71.22M) provides minimal -28.39x coverage of tax expenses of 2.51M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

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 5.22 3.13
EV to Cash from Ops. EV/CFO -34.37 -51.74
EV to Debt EV to Debt 54.72 863.55
EV to EBIT EV/EBIT -30.68 -27.66
EV to EBITDA EV/EBITDA -36.26 566.13
EV to Free Cash Flow [EV/FCF] EV/FCF -11.48 -24.46
EV to Market Cap EV to Market Cap 0.80 0.59
EV to Revenue EV to Revenue 0.00 42.69
Price to Book Value [P/B] P/B 49.65 10.60
Price to Earnings [P/E] P/E -36.58 -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) -50.59 51.59
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -975.46 -444.92
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 20.11 3,116.99
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.80
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 37.61 -69.51
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 37.77 20.12
EBIT Growth (1y) % EBIT 1y % (Qtr) 39.70 -24.32
EBT Growth (1y) % EBT 1y % (Qtr) 38.84 -92.39
EPS Growth (1y) % EPS 1y % (Qtr) 47.26 -31.76
FCF Growth (1y) % FCF 1y % (Qtr) -105.27 -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) 1.37 5.35
Current Ratio Curr Ratio (Qtr) 2.07 6.87
Debt to Equity Ratio Debt/Equity (Qtr) 0.72 0.74
Interest Cover Ratio Int Coverage (Qtr) -50.59 51.59
Times Interest Earned Times Interest Earned (Qtr) -50.59 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