Western Copper & Gold Corp (NYSE: WRN)

Sector: Basic Materials Industry: Other Industrial Metals & Mining CIK: 0001364125
Market Cap 1.26 Bn
P/B 8.99
P/E -462.30
P/S 0.00
ROIC (Qtr) -5.87
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 202,060.87
Debt/Equity (Qtr) 0.00

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 7.54M provide 55.78x coverage of short-term debt 135110.14, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 143.69M provides 711.10x coverage of total debt 202060.87, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 143.69M provides 3.86x coverage of working capital 37.18M, indicating strong operational backing.
  • Short-term investments of 33.12M provide 245.15x coverage of short-term debt 135110.14, showing strong liquidity management.
  • Cash reserves of 7.54M provide robust 1.93x coverage of current liabilities 3.90M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (2.49M) barely covers its investment activities of (4.10M), with a coverage ratio of 0.61, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Short-term investments of 33.12M significantly exceed cash reserves of 7.54M, which is 4.39x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (2.49M) shows concerning coverage of stock compensation expenses of 1.74M, with a -1.43 ratio indicating potential earnings quality issues.
  • Free cash flow of (17.07M) provides weak coverage of capital expenditures of 14.58M, with a -1.17 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (2.72M) show weak coverage of depreciation charges of 58470.29, with a -46.46 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 7.92 3.13
EV to Cash from Ops. EV/CFO -456.66 -51.74
EV to Debt EV to Debt 5,631.13 863.55
EV to EBIT EV/EBIT -418.84 -27.66
EV to EBITDA EV/EBITDA -192.84 566.13
EV to Free Cash Flow [EV/FCF] EV/FCF -66.65 -24.46
EV to Market Cap EV to Market Cap 0.91 0.59
EV to Revenue EV to Revenue 0.00 42.69
Price to Book Value [P/B] P/B 8.99 10.60
Price to Earnings [P/E] P/E -462.30 -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) -27.07 -444.92
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -37.81 3,116.99
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.80
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 36.96 -69.51
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 5.45 20.12
EBIT Growth (1y) % EBIT 1y % (Qtr) 36.96 -24.32
EBT Growth (1y) % EBT 1y % (Qtr) 36.96 -92.39
EPS Growth (1y) % EPS 1y % (Qtr) 67.15 -31.76
FCF Growth (1y) % FCF 1y % (Qtr) -17.72 -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) 1.93 5.35
Current Ratio Curr Ratio (Qtr) 10.53 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