Kutcho Copper Corp., a resource development company, engages in the acquisition and exploration of resource properties in Canada. It holds a 100% interest in the Kutcho copper-zinc-gold-silver project that consists of one mining lease and 65 mineral exploration claims covering an area of approximately 24,233 hectares located in northern British Columbia. The company was formerly known as Desert Star Resources Ltd. and changed its name to Kutcho Copper Corp. in December 2017. Kutcho Copper Corp. was founded in 2015 and is headquartered in Vancouver, Canada.

Canada

Kutcho Copper Corp.

Basic Materials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

KC.V reported revenue of CAD 0mn in the last 12 months, down 0% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. 

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 5ppts and its growth decelerated by 20ppts in the past month. There is a distinction between the stock's performance and that of its peers from the same country and industry. Over six months its performance trailed that of this peer group by 22ppts and its growth decelerated by 20ppts in the previous month. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

Kutcho Copper Corp. reported a return on equity (RoE) of -7.9% in the last 12 months, down from -7.7% in FY24. 

Another important profitability metric, return on assets (RoA), amounted to -4.5% in the last 12 months, a decrease from -4.5% in FY24. 

In the last 12 months, the return on capital employed (RoCE) grew to -4.5%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.6 in the past several years. This ratio implies a poor shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

KC.V has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is relatively stable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, negligible return on capital, and inadequate interest coverage. We note an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, KC.V is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, KC.V is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

From both historical and forecast perspectives, the stock is considerably overpriced compared to similar stocks. In particular, the stock is overvalued on P/FCF. 

Kutcho Copper Corp.

CA$ 0.14

1

Kutcho Copper Corp.

CA$ 0.14

1

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CA$ 0.14

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