Latest news with #ForacoInternational
Yahoo
01-08-2025
- Business
- Yahoo
Foraco International SA (FRACF) Q2 2025 Earnings Call Highlights: Navigating Challenges and ...
Revenue: $69 million in Q2 2025, or $72 million excluding Forex variants, compared to $77 million in Q2 2024. EBITDA: $15 million excluding one-off costs, representing 22% of revenue, compared to $17 million or 23% in Q2 2024. Gross Margin: $14 million, 21% of revenue, or $15 million, 22% of revenue excluding one-off costs, compared to $18 million, 23% in Q2 2024. SG&A Expenses: Decreased by 19% to $4.7 million compared to $5.8 million in Q2 2024. Net Debt: $76.5 million as of June 30, 2025, compared to $61 million at December 31, 2024. CapEx: $10 million, same as H1 2024, mainly for new rigs and equipment. Geographical Revenue Split: North America 37%, Asia Pacific 36%, South America 16%, EMEA 11% in Q2 2025. Commodity Exposure: Gold increased from 11% to 16%, water from 11% to 18%, copper from 22% to 23%. Warning! GuruFocus has detected 8 Warning Signs with PATK. Release Date: July 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Foraco International SA (FRACF) reported a 26% increase in revenue for Q2 2025 compared to Q1, demonstrating strong operational performance. The company successfully doubled its EBITDA compared to the previous quarter, highlighting effective cost control and operational efficiency. Revenue in the Asia Pacific region increased by 11%, reflecting successful operations and the commissioning of new proprietary rigs. Foraco secured a new 3-year, $34 million contract with Glencore at the Lomas Bayas copper mine in Chile, indicating strong demand for its services. The company is expanding its high-quality customer base globally, with a focus on copper, gold, and water, positioning itself well for future growth. Negative Points Overall revenue for Q2 2025 decreased to $69 million compared to $77 million in the same period last year, indicating a decline in top-line performance. Revenue in North America decreased by 21% due to the discontinuation of certain client programs and delays in starting new contracts. South America saw a revenue decrease from $18 million to $12 million, impacted by the start of new contracts and associated mobilization costs. The company's net debt increased to $76.5 million as of June 30, 2025, compared to $61 million at the end of 2024, reflecting higher financial obligations. CapEx was higher than anticipated, impacting free cash flow for the quarter, partly due to the acceleration of the NGBF program and expansion into the US. Q & A Highlights Q: Can you provide details on the movement of rigs between regions and any regions showing more promise as we enter the second half of the year? A: The rigs are generally moving north to south, including from Canada to the US and into Latin America. Parts of our business in Latin America are ramping up nicely, with opportunities for deeper holes. We have excess capacity in some of our deeper rigs that meet customer requirements in Latin America, making it sensible to move them. This includes both surface and underground rigs. (Timothy Bremner, CEO) Q: Can you explain the higher CapEx this quarter and its impact on free cash flow? A: The higher CapEx is partly due to the acceleration of our NGBF program, with opportunities in Latin America prompting us to bring forward plans. Additionally, a relatively quiet Q1 pushed some CapEx into Q2, and ongoing expansion into the US required specific CapEx. It's partially a timing issue reflecting increased demand. (Timothy Bremner, CEO) Q: What is the revenue split this quarter between major and junior clients? A: Juniors accounted for about 10% of the revenue this quarter, and we anticipate this to increase. Much of the work picked up in the US is for junior customers, reflecting relief in equity markets and stronger gold prices. (Timothy Bremner, CEO) Q: Can you comment on the market valuation of Foraco compared to peers and the company's strategy in the US? A: Foraco is undervalued compared to peers, and we are working to improve liquidity and shareholder profile. In the US, we are securing longer-term work with Tier one customers and have a significant tender pipeline for copper and gold projects. We are operational and gaining momentum, aiming for a significant win with a Tier one customer soon. (Timothy Bremner, CEO) Q: What is the outlook for South America in the second half of the year, considering recent contract wins? A: The outlook for Latin America is improved, with projects in Chile and Brazil showing growth. The order book and tender pipeline are robust, and we expect growth in the region, especially with the Glencore contract coming into play. (Timothy Bremner, CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
24-07-2025
- Business
- Yahoo
We Think Foraco International (TSE:FAR) Might Have The DNA Of A Multi-Bagger
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. Speaking of which, we noticed some great changes in Foraco International's (TSE:FAR) returns on capital, so let's have a look. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. What Is Return On Capital Employed (ROCE)? For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Foraco International: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.21 = US$33m ÷ (US$236m - US$78m) (Based on the trailing twelve months to March 2025). Thus, Foraco International has an ROCE of 21%. In absolute terms that's a great return and it's even better than the Metals and Mining industry average of 4.1%. Check out our latest analysis for Foraco International Above you can see how the current ROCE for Foraco International compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Foraco International . So How Is Foraco International's ROCE Trending? Foraco International is showing promise given that its ROCE is trending up and to the right. The figures show that over the last five years, ROCE has grown 161% whilst employing roughly the same amount of capital. Basically the business is generating higher returns from the same amount of capital and that is proof that there are improvements in the company's efficiencies. On that front, things are looking good so it's worth exploring what management has said about growth plans going forward. Our Take On Foraco International's ROCE To bring it all together, Foraco International has done well to increase the returns it's generating from its capital employed. Since the stock has returned a staggering 420% to shareholders over the last five years, it looks like investors are recognizing these changes. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. On a final note, we've found 1 warning sign for Foraco International that we think you should be aware of. If you'd like to see other companies earning high returns, check out our free list of companies earning high returns with solid balance sheets here. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-07-2025
- Business
- Yahoo
We Think Foraco International (TSE:FAR) Might Have The DNA Of A Multi-Bagger
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. Speaking of which, we noticed some great changes in Foraco International's (TSE:FAR) returns on capital, so let's have a look. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. What Is Return On Capital Employed (ROCE)? For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Foraco International: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.21 = US$33m ÷ (US$236m - US$78m) (Based on the trailing twelve months to March 2025). Thus, Foraco International has an ROCE of 21%. In absolute terms that's a great return and it's even better than the Metals and Mining industry average of 4.1%. Check out our latest analysis for Foraco International Above you can see how the current ROCE for Foraco International compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Foraco International . So How Is Foraco International's ROCE Trending? Foraco International is showing promise given that its ROCE is trending up and to the right. The figures show that over the last five years, ROCE has grown 161% whilst employing roughly the same amount of capital. Basically the business is generating higher returns from the same amount of capital and that is proof that there are improvements in the company's efficiencies. On that front, things are looking good so it's worth exploring what management has said about growth plans going forward. Our Take On Foraco International's ROCE To bring it all together, Foraco International has done well to increase the returns it's generating from its capital employed. Since the stock has returned a staggering 420% to shareholders over the last five years, it looks like investors are recognizing these changes. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. On a final note, we've found 1 warning sign for Foraco International that we think you should be aware of. If you'd like to see other companies earning high returns, check out our free list of companies earning high returns with solid balance sheets here. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-07-2025
- Business
- Yahoo
Are Strong Financial Prospects The Force That Is Driving The Momentum In Foraco International SA's TSE:FAR) Stock?
Foraco International (TSE:FAR) has had a great run on the share market with its stock up by a significant 7.6% over the last month. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Particularly, we will be paying attention to Foraco International's ROE today. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Foraco International is: 21% = US$19m ÷ US$89m (Based on the trailing twelve months to March 2025). The 'return' is the profit over the last twelve months. So, this means that for every CA$1 of its shareholder's investments, the company generates a profit of CA$0.21. See our latest analysis for Foraco International Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. To begin with, Foraco International seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 10%. Probably as a result of this, Foraco International was able to see an impressive net income growth of 22% over the last five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. Next, on comparing with the industry net income growth, we found that Foraco International's growth is quite high when compared to the industry average growth of 18% in the same period, which is great to see. Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. Is FAR fairly valued? This infographic on the company's intrinsic value has everything you need to know. While the company did pay out a portion of its dividend in the past, it currently doesn't pay a regular dividend. This is likely what's driving the high earnings growth number discussed above. On the whole, we feel that Foraco International's performance has been quite good. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Let's not forget, business risk is also one of the factors that affects the price of the stock. So this is also an important area that investors need to pay attention to before making a decision on any business. To know the 1 risk we have identified for Foraco International visit our risks dashboard for free. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
TSX Penny Stock Opportunities For May 2025
The Canadian market is currently experiencing gains as global trade tensions ease, with recent trade agreements and discussions providing a more stable backdrop for investors. Amid these developments, the concept of penny stocks remains relevant, offering potential opportunities for growth in smaller or newer companies. These stocks can be attractive due to their affordability and the possibility of significant returns when backed by strong financials, making them an intriguing area for investors seeking hidden value. Name Share Price Market Cap Financial Health Rating Westbridge Renewable Energy (TSXV:WEB) CA$0.81 CA$81.93M ★★★★★★ NTG Clarity Networks (TSXV:NCI) CA$2.35 CA$92.67M ★★★★★★ Silvercorp Metals (TSX:SVM) CA$4.97 CA$1.11B ★★★★★☆ Orezone Gold (TSX:ORE) CA$1.02 CA$563.85M ★★★★★☆ Mandalay Resources (TSX:MND) CA$4.75 CA$456.27M ★★★★★★ McChip Resources (TSXV:MCS) CA$0.63 CA$3.6M ★★★★☆☆ PetroTal (TSX:TAL) CA$0.59 CA$530.84M ★★★★★☆ Pulse Seismic (TSX:PSD) CA$2.53 CA$129.43M ★★★★★★ Findev (TSXV:FDI) CA$0.495 CA$13.32M ★★★★★★ BluMetric Environmental (TSXV:BLM) CA$1.33 CA$53.26M ★★★★★★ Click here to see the full list of 909 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: Foraco International SA, with a market cap of CA$177.53 million, offers drilling services across North America, South America, the Asia Pacific, the Middle East, Africa, and Europe. Operations: The company generates revenue from its Water segment, contributing $41.38 million, and its Mining segment, which brings in $230.00 million. Market Cap: CA$177.53M Foraco International SA, with a market cap of CA$177.53 million, has seen its earnings decline recently, reporting net income of US$1.54 million for Q1 2025 compared to US$8.85 million the previous year. Despite this setback, the company maintains high-quality past earnings and robust financial health with short-term assets exceeding both short and long-term liabilities. Its return on equity is strong at 21%, though it faces challenges with high debt levels and declining profit margins from 8.6% to 7.6%. Analysts are optimistic about future stock price growth, forecasting a significant increase in value. Take a closer look at Foraco International's potential here in our financial health report. Assess Foraco International's future earnings estimates with our detailed growth reports. Simply Wall St Financial Health Rating: ★★★★★★ Overview: Gatekeeper Systems Inc. designs, manufactures, markets, and sells video security solutions for mobile and transportation environments focused on children, passengers, and public safety in Canada and the United States with a market cap of CA$44.16 million. Operations: The company generates CA$31.33 million in revenue from its Electronic Security Devices segment. Market Cap: CA$44.16M Gatekeeper Systems Inc., with a market cap of CA$44.16 million, has faced financial challenges recently, reporting a net loss of CA$1.06 million for Q2 2025 compared to a net income the previous year. Despite being unprofitable, the company remains debt-free and has not significantly diluted shareholders over the past year. Recent contracts in Ontario and Nova Scotia for supplying mobile data collectors and video systems indicate potential growth opportunities. The company also supports new Transport Canada regulations requiring perimeter visibility systems on school buses, potentially expanding its market presence in safety solutions for transportation environments. Click here and access our complete financial health analysis report to understand the dynamics of Gatekeeper Systems. Understand Gatekeeper Systems' track record by examining our performance history report. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Tornado Infrastructure Equipment Ltd. designs, fabricates, manufactures, and sells hydrovac trucks in North America and China, with a market cap of CA$231.86 million. Operations: The company generates revenue from two geographical segments, with CA$36.36 million from Canada and CA$100.53 million from the United States. Market Cap: CA$231.86M Tornado Infrastructure Equipment Ltd. has shown robust financial performance, with sales reaching CA$136.89 million for the year ending December 2024, up from CA$105.01 million the previous year. The company's net income increased to CA$10.3 million, reflecting improved profitability and operational efficiency under its seasoned management team and board of directors. Tornado's strategic focus on innovation is evident in its recent product launches, including the EF4 Tornado Hydrovac and Coring Machine, which could enhance market competitiveness. Additionally, strong financial health is supported by well-covered debt obligations and a high return on equity of 28.4%. Click to explore a detailed breakdown of our findings in Tornado Infrastructure Equipment's financial health report. Review our growth performance report to gain insights into Tornado Infrastructure Equipment's future. Explore the 909 names from our TSX Penny Stocks screener here. Looking For Alternative Opportunities? AI is about to change healthcare. These 22 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. 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:FAR TSXV:GSI and TSXV:TGH. 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
