The average target price of SYH.V is 0.79 and suggests 151% 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 1.0. This translates into 224% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 0.6. This suggests 75% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Skyharbour Resources Ltd., a uranium and thorium exploration company, engages in the acquisition, exploration, and evaluation of mineral properties in Saskatchewan, Canada. The company's flagship project is the Moore Lake Uranium project covering 35,705 hectares located on the eastern portion of the Athabasca Basin. The company was formerly known as Skyharbour Developments, Ltd. and changed its name to Skyharbour Resources Ltd. in October 2002. Skyharbour Resources Ltd. was incorporated in 1970 and is headquartered in Vancouver, Canada.

Canada

Skyharbour Resources Ltd.

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. 

SYH.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. EPS fell 54% 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 26ppts and its growth decelerated by 5ppts 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.

Skyharbour Resources Ltd. reported a return on equity (RoE) of -6.0% in the last 12 months, up from -14.6% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to -5.8% in the last 12 months, an increase from -14.5% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to -6.0%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.8 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.

SYH.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 usually quite stable and is somewhat unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. 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 and we point to weak positions in its industry, negligible return on capital. We note an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, SYH.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, SYH.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 fairly valued relative to its peers. 

Skyharbour Resources Ltd.

CA$ 0.3

3

Skyharbour Resources Ltd.

CA$ 0.3

3

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Profitability factor

Risk / Profitability

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Profitability factor

CA$ 0.3

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