Latest news with #AmerigoResources'
Yahoo
15-05-2025
- Business
- Yahoo
Statutory Profit Doesn't Reflect How Good Amerigo Resources' (TSE:ARG) Earnings Are
Even though Amerigo Resources Ltd.'s (TSE:ARG) recent earnings release was robust, the market didn't seem to notice. Our analysis suggests that investors might be missing some promising details. Our free stock report includes 2 warning signs investors should be aware of before investing in Amerigo Resources. Read for free now. One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. This ratio tells us how much of a company's profit is not backed by free cashflow. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". For the year to March 2025, Amerigo Resources had an accrual ratio of -0.25. That indicates that its free cash flow quite significantly exceeded its statutory profit. In fact, it had free cash flow of US$43m in the last year, which was a lot more than its statutory profit of US$18.3m. Given that Amerigo Resources had negative free cash flow in the prior corresponding period, the trailing twelve month resul of US$43m would seem to be a step in the right direction. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Happily for shareholders, Amerigo Resources produced plenty of free cash flow to back up its statutory profit numbers. Based on this observation, we consider it possible that Amerigo Resources' statutory profit actually understates its earnings potential! And it's also positive that the company showed enough improvement to book a profit this year, after losing money last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of Amerigo Resources. Today we've zoomed in on a single data point to better understand the nature of Amerigo Resources' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
18-04-2025
- Business
- Yahoo
TSX Penny Stocks Spotlight: Amerigo Resources Plus Two More Hidden Opportunities
The Canadian TSX has shown resilience, rising over 2% recently despite global market volatility driven by tariff uncertainties and economic policy shifts. In such a fluctuating landscape, identifying stocks with solid fundamentals becomes crucial, especially when exploring the niche area of penny stocks. Although the term "penny stocks" might seem outdated, these smaller or newer companies can still offer unique growth opportunities for investors willing to look beyond larger-cap options. Name Share Price Market Cap Financial Health Rating Westbridge Renewable Energy (TSXV:WEB) CA$0.61 CA$61.7M ★★★★★★ NTG Clarity Networks (TSXV:NCI) CA$1.69 CA$69.98M ★★★★★★ Orezone Gold (TSX:ORE) CA$1.31 CA$685.19M ★★★★★☆ Dynacor Group (TSX:DNG) CA$4.70 CA$198.39M ★★★★★★ Amerigo Resources (TSX:ARG) CA$1.69 CA$282.4M ★★★★★☆ PetroTal (TSX:TAL) CA$0.57 CA$521.69M ★★★★★☆ McCoy Global (TSX:MCB) CA$2.66 CA$70.94M ★★★★★★ Findev (TSXV:FDI) CA$0.48 CA$13.18M ★★★★★★ BluMetric Environmental (TSXV:BLM) CA$1.21 CA$43.57M ★★★★★★ Enterprise Group (TSX:E) CA$1.26 CA$98.46M ★★★★★☆ Click here to see the full list of 930 stocks from our TSX Penny Stocks screener. Let's dive into some prime choices out of the screener. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Amerigo Resources Ltd., with a market cap of CA$282.40 million, operates through its subsidiary Minera Valle Central S.A. to produce copper and molybdenum concentrates in Chile. Operations: The company generates revenue of $192.77 million from producing copper concentrates under a tolling agreement with DET. Market Cap: CA$282.4M Amerigo Resources Ltd. has shown strong financial performance, with earnings growth of 468.9% over the past year and net income rising to US$19.24 million for 2024. The company benefits from a stable management team and board, both seasoned with significant tenure. Its debt is well-covered by operating cash flow, and it holds more cash than total debt, reflecting prudent financial management. However, short-term liabilities exceed short-term assets slightly at US$64.6 million versus US$58.1 million respectively, which may require attention despite the company's robust profitability and strategic share buybacks enhancing shareholder value. Get an in-depth perspective on Amerigo Resources' performance by reading our balance sheet health report here. Explore Amerigo Resources' analyst forecasts in our growth report. Simply Wall St Financial Health Rating: ★★★★★★ Overview: Sintana Energy Inc. is involved in crude oil and natural gas exploration and development in Colombia, with a market cap of CA$182.91 million. Operations: Sintana Energy Inc. currently does not report any revenue segments. Market Cap: CA$182.91M Sintana Energy Inc., with a market cap of CA$182.91 million, is pre-revenue and involved in oil and gas exploration in Colombia and Namibia. Recent updates highlight its indirect 49% interest in Custos, participating in promising drilling activities within Namibia's Orange Basin. Despite the absence of revenue, Sintana maintains a solid cash runway exceeding one year without debt, although it faces high share price volatility and significant insider selling recently. The seasoned management team provides stability amidst ongoing efforts to secure partners for exploration funding, following Woodside Energy's decision not to farm-in on PEL 87 projects. Navigate through the intricacies of Sintana Energy with our comprehensive balance sheet health report here. Assess Sintana Energy's previous results with our detailed historical performance reports. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Zentek Ltd., with a market cap of CA$158.55 million, is involved in the research and development of graphene and related nanomaterials in Canada. Operations: The company's revenue is derived from its Metals & Mining - Miscellaneous segment, amounting to CA$0.06 million. Market Cap: CA$158.55M Zentek Ltd., with a market cap of CA$158.55 million, is pre-revenue and engaged in the development of graphene-based technologies. Recent collaborations, including one with Jazeera Paints for corrosion protection products and another with Filtration Solutions Industrial Co. for ZenGUARD™ Enhanced Air Filters, highlight its strategic expansion into the Gulf Cooperation Council region. The company has raised additional capital through a private placement to support its operations but remains unprofitable with limited cash runway despite having more cash than debt. Zentek's management and board are experienced, providing some stability amid its financial challenges. Unlock comprehensive insights into our analysis of Zentek stock in this financial health report. Gain insights into Zentek's historical outcomes by reviewing our past performance report. Click through to start exploring the rest of the 927 TSX Penny Stocks now. Interested In Other Possibilities? Rare earth metals are the new gold rush. Find out which 24 stocks are leading the charge. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TSX:ARG TSXV:SEI and TSXV:ZEN. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
01-03-2025
- Business
- Yahoo
Amerigo Resources (TSE:ARG) Is Paying Out A Dividend Of $0.03
Amerigo Resources Ltd. (TSE:ARG) will pay a dividend of $0.03 on the 20th of March. The dividend yield will be 6.6% based on this payment which is still above the industry average. See our latest analysis for Amerigo Resources Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Prior to this announcement, Amerigo Resources' dividend made up quite a large proportion of earnings but only 26% of free cash flows. This leaves plenty of cash for reinvestment into the business. EPS is set to grow by 9.6% over the next year if recent trends continue. Assuming the dividend continues along recent trends, we think the payout ratio could reach 125%, which probably can't continue without starting to put some pressure on the balance sheet. The track record isn't the longest, but we are already seeing a bit of instability in the payments. The annual payment during the last 3 years was $0.0618 in 2022, and the most recent fiscal year payment was $0.0824. This means that it has been growing its distributions at 10% per annum over that time. Amerigo Resources has grown distributions at a rapid rate despite cutting the dividend at least once in the past. Companies that cut once often cut again, so we would be cautious about buying this stock solely for the dividend income. Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. We are encouraged to see that Amerigo Resources has grown earnings per share at 9.6% per year over the past five years. Recently, the company has been able to grow earnings at a decent rate, but with the payout ratio on the higher end we don't think the dividend has many prospects for growth. Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All of these factors considered, we think this has solid potential as a dividend stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Taking the debate a bit further, we've identified 1 warning sign for Amerigo Resources that investors need to be conscious of moving forward. Is Amerigo Resources not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
