The average target price of RPX.V is 0.31 and suggests 158% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 0.4. This translates into 233% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 0.2. This suggests 67% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Red Pine Exploration Inc. engages in the acquisition, exploration, and development of mining properties in Canada. Its flagship project is the Wawa Gold Project that covers an area of 6,800 hectares located to the east of the Town of Wawa in northern Ontario. The company was formerly known as Vencan Gold Corporation and changed its name to Red Pine Exploration Inc. in March 2009. Red Pine Exploration Inc. was incorporated in 1936 and is headquartered in Toronto, Canada.

Canada

Red Pine 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. 

RPX.V reported revenue of CAD 0mn in the last 12 months, down 0% from FY23. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS grew 56% from FY23 to CAD -0.05. Market expects EPS to reach CAD -0.02 in FY25.

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 23ppts and its growth decelerated by 3ppts 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.

Red Pine Exploration Inc. reported a return on equity (RoE) of -160.7% in the last 12 months, down from -151.6% in FY24. The market consensus projects an RoE of -64.3% in FY25, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to -127.6% in the last 12 months, a decrease from -124.9% in FY24. The market analysts predict that RoA will be -51.0% in FY25, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to -158.3%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -26.5 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.

RPX.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 unstable 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, inadequate interest coverage, and poor cash flow generation. We note an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, RPX.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, RPX.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. 

Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. 

Red Pine Exploration Inc.

CA$ 0.12

2

Red Pine Exploration Inc.

CA$ 0.12

2

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Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CA$ 0.12

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