Puma Exploration Inc., a junior mining exploration company, acquires, explores for, and develops mining properties in Canada. The company explores for gold, silver, and copper deposits. Its flagship project is the Williams Brook Gold project covering an area of approximately 20,662 hectares located in New Brunswick. The company is headquartered in Rimouski, Canada.

Canada

Puma Exploration Inc.

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. 

PUMXF 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. EPS fell 43% from FY23 to CAD -0.01.

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 13ppts and its growth accelerated by 15ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

In the last 12 months, the return on capital employed (RoCE) grew to -8.2%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to -8.0% in the last 12 months, an increase from -12.9% in FY23. 

Puma Exploration Inc. reported a return on equity (RoE) of -8.2% in the last 12 months, up from -13.2% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -1.1 in the past several years. This ratio implies a fragile 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.

PUMXF 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, PUMXF 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, PUMXF 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. 

Considering past and projected metrics, the stock is distinctly 'cheaper' than its peers. 

Puma Exploration Inc.

$ 0.06

3

Puma Exploration Inc.

$ 0.06

3

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Profitability factor

Risk / Profitability

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Profitability factor

$ 0.06

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