West High Yield (W.H.Y.) Resources Ltd. engages in the acquisition, exploration, and development of mineral properties in Canada. The company explores for gold, nickel, iron, silica, and magnesium deposits. It holds 100% interest in the Record Ridge property comprising 29 contiguous mineral claims, eight crown granted claims, and one privately owned claim covering an area of 8,972 hectares located in British Columbia. West High Yield (W.H.Y.) Resources Ltd. was incorporated in 2003 and is headquartered in Calgary, Canada.

Canada

West High Yield (W.H.Y.) 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. 

WHY.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 27% from FY23 to CAD -0.05.

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). Over the past six months the stock has exceeded the performance of this peer group by 19ppts and its growth accelerated by 4ppts 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 mildly favourable.

Another important profitability metric, return on assets (RoA), amounted to -227.0% in the last 12 months, a decrease from -133.3% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 82.5%, above the peers. 

West High Yield (W.H.Y.) Resources Ltd. reported a return on equity (RoE) of 82.7% in the last 12 months, down from 87.3% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 20.9 in the past several years. This ratio implies a excellent 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.

WHY.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 becomes extremely 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, 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, WHY.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, WHY.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. 

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

West High Yield (W.H.Y.) Resources Ltd.

CA$ 0.3

3

West High Yield (W.H.Y.) Resources Ltd.

CA$ 0.3

3

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Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CA$ 0.3

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