Trilogy Metals Inc. (NYSE: TMQ)

Sector: Basic Materials Industry: Other Industrial Metals & Mining CIK: 0001543418
Market Cap 956.87 Mn
P/B 7.44
P/E -104.20
P/S 0.00
ROIC (Qtr) -5.87
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 122,000.00
Debt/Equity (Qtr) 0.00

About

Trilogy Metals Inc., known by its ticker symbol TMQ, is a company that operates in the mineral exploration and development industry, with a specific focus on copper in the Ambler Mining District of Northwest Alaska. The company's primary business activities involve advancing its Upper Kobuk Mineral Projects, which encompass the Arctic Project and the Bornite Project. The Arctic Project is a high-grade polymetallic volcanogenic massive sulfide (VMS) deposit, while the Bornite Project is a carbonate-hosted copper-cobalt deposit. Trilogy Metals aims...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 23.37M provide 584.30x coverage of short-term debt 40000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 129.12M provides 1058.36x coverage of total debt 122000, indicating robust asset backing and low credit risk.
  • Long-term investments of 105.26M provide solid 1283.67x coverage of long-term debt 82000, indicating strategic financial planning.
  • Robust tangible asset base of 129.12M provides 5.53x coverage of working capital 23.36M, indicating strong operational backing.
  • Long-term investments of 105.26M provide solid 4.51x backing of working capital 23.36M, showing strategic capital allocation.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 48000, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (2.66M) shows concerning coverage of stock compensation expenses of 3.48M, with a -0.77 ratio indicating potential earnings quality issues.
  • Long-term investments of 105.26M represent a high 835.40x of fixed assets 126000, indicating potential overexposure to financial assets versus operational capabilities.
  • Operating cash flow of (2.66M) barely covers operating expenses of 1.70M with a -1.57 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • R&D investment of 48000 represents just 0.01x of SG&A expenses of 5.85M, indicating potential underinvestment in innovation relative to administrative overhead.

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 7.22 3.13
EV to Cash from Ops. EV/CFO -349.99 -51.74
EV to Debt EV to Debt 7,642.50 863.55
EV to EBIT EV/EBIT -101.53 -27.66
EV to EBITDA EV/EBITDA -122.75 566.13
EV to Free Cash Flow [EV/FCF] EV/FCF -349.99 -24.46
EV to Market Cap EV to Market Cap 0.97 0.59
EV to Revenue EV to Revenue 0.00 42.69
Price to Book Value [P/B] P/B 7.44 10.60
Price to Earnings [P/E] P/E -104.20 -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 Interest Coverage 0.00 51.59
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -444.92
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -9.19 3,116.99
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.80
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 7.94 -69.51
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -19.04 20.12
EBIT Growth (1y) % EBIT 1y % (Qtr) 7.94 -24.32
EBT Growth (1y) % EBT 1y % (Qtr) 7.94 -92.39
EPS Growth (1y) % EPS 1y % (Qtr) 16.67 -31.76
FCF Growth (1y) % FCF 1y % (Qtr) -15.18 -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 (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 62.66 5.35
Current Ratio Curr Ratio (Qtr) 63.63 6.87
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.74
Interest Cover Ratio Interest Cover Ratio 0.00 51.59
Times Interest Earned Times Interest Earned 0.00 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