Kinder Morgan Canada (KML:TSE) and Trillium Therapeutics (TRIL:TSE) Trading at Less than Cash Value

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Trading at Less than Cash Value

Today we are looking at companies trading at less than cash value meaning companies whose current share price is less than the cash per share on the balance sheet. We also show the value of cash net debt per share to show how much cash per share would be left if the debt was paid off.

What this Means…

Companies can have more cash per share than the actual share price for a number of reasons including they just raised capital, are in industries that experience high burn rates and will eat through the cash quickly or if there is a lot of uncertainty about the future of the company. Companies earning a positive net income will have a P/E greater than 0 and are worth exploring in more detail.

Today’s Data on TSE

Today’s data is for companies listed on the Toronto Stock Exchange.

Symbol Name Close Price Shares Outstanding P/E P/B Cash per Share Net Cash per Share
KML Kinder Morgan Canada Ltd 16.040000 116298813 13.1491 2.8721 37.30 -0.17
CF Canaccord Genuity Group Inc 6.120000 114857175 18.0000 1.1095 8.10 6.28
NMX Nemaska Lithium Inc 0.345000 847134338 None 0.4918 0.43 -0.25
TRZ Transat A.T. Inc 5.040000 37605151 48.5000 0.3431 16.50 13.70
GMP GMP Capital Inc 2.360000 72721000 16.8571 0.9654 7.09 6.70
S Sherritt International Corp 0.425000 397281686 0.2390 0.1493 0.52 -1.26
TRIL Trillium Therapeutics Inc 0.950000 21238831 None 7.6668 0.98 0.57
FGE Fortress Global Enterprises Inc 1.200000 14949895 None 0.1652 1.68 -12.34
CQE Cequence Energy Ltd 0.500000 24553000 0.3432 0.0806 0.59 -1.85
XCT exactEarth Ltd 0.345000 21646417 None 0.8164 0.67 0.20
IPCI IntelliPharmaCeutics International Inc 0.295000 21925577 None 1.1822 0.30 0.22
EGL Eagle Energy Inc 0.085000 44244000 None 0.0472 0.17 -0.66
NKO.DL Niko Resources Ltd 0.015000 94049967 None None 0.05 -2.15
FTU US Financial 15 Split Corp 0.530000 1902494 None None 1.19 None
MNS Royal Canadian Mint 11.950000 4000 None None 23651.75 11260.75
MNT Royal Canadian Mint 18.490000 4000 None None 23651.75 11260.75

Let’s look at a few companies…

Lets look at a couple of the companies on this list to get a better understanding of them.

KML:TSE Kinder Morgan Canada

http://www.kindermorgancanadaltd.com
Kinder Morgan Canada has 153 employees and is headquartered in Canada.
Kinder Morgan Canada Ltd owns and operates pipelines for transport of natural gas.

TRIL:TSE Trillium Therapeutics

http://www.trilliumtherapeutics.com
Trillium Therapeutics has 60 employees and is headquartered in Canada.
Trillium Therapeutics Inc is an immuno-oncology company developing therapies for the treatment of cancer. Its SIRPaFc and CD200 monoclonal antibody targets immuno regulatory pathways that tumor cells exploit to evade the host immune system.

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GMP Capital (GMP:TSE) and Street Capital Group (SCB:TSE) Trading at Less than Cash Value

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Trading at Less than Cash Value

Today we are looking at companies trading at less than cash value meaning companies whose current share price is less than the cash per share on the balance sheet. We also show the value of cash net debt per share to show how much cash per share would be left if the debt was paid off.

What this Means…

Companies can have more cash per share than the actual share price for a number of reasons including they just raised capital, are in industries that experience high burn rates and will eat through the cash quickly or if there is a lot of uncertainty about the future of the company. Companies earning a positive net income will have a P/E greater than 0 and are worth exploring in more detail.

Today’s Data on TSE

Today’s data is for companies listed on the Toronto Stock Exchange.

Symbol Name Close Price Shares Outstanding P/E P/B Cash per Share Net Cash per Share
KML Kinder Morgan Canada Ltd 15.750000 116298813 13.1491 2.8202 37.30 -0.17
CF Canaccord Genuity Group Inc 6.180000 114857175 18.1765 1.1204 8.10 6.28
NMX Nemaska Lithium Inc 0.345000 847134338 None 0.4918 0.43 -0.25
TRZ Transat A.T. Inc 5.370000 37583687 53.7000 0.3367 15.80 13.71
GMP GMP Capital Inc 2.400000 72721000 17.1429 0.9818 7.09 6.70
S Sherritt International Corp 0.435000 397281686 0.2390 0.1528 0.52 -1.26
SCB Street Capital Group Inc 0.580000 122184000 39.3300 0.5071 0.63 0.60
TRIL Trillium Therapeutics Inc 0.930000 21238831 None 7.6668 0.98 0.57
FGE Fortress Global Enterprises Inc 1.270000 14949895 None 0.1748 1.68 -12.34
CQE Cequence Energy Ltd 0.490000 24552788 0.3173 0.0771 0.55 -1.90
KRN Karnalyte Resources Inc 0.215000 42174282 None 0.6182 0.22 0.60
EGL Eagle Energy Inc 0.095000 44244000 None 0.0527 0.17 -0.66
NKO Niko Resources Ltd 0.010000 94049967 None None 0.05 -2.15
FTU US Financial 15 Split Corp 0.480000 1904206 None None 1.18 None
MNT Royal Canadian Mint 18.490000 4000 None None 23651.75 11260.75
MNS Royal Canadian Mint 12.050000 4000 None None 23651.75 11260.75

Let’s look at a few companies…

Lets look at a couple of the companies on this list to get a better understanding of them.

GMP:TSE GMP Capital

https://www.gmpcapital.com
GMP Capital has 213 employees and is headquartered in Canada.
GMP Capital Inc is an investment dealer located in Canada. It provides diversified financial services such as investment banking, institutional sales, trading and research services to corporate clients and institutional investors.

SCB:TSE Street Capital Group

https://www.streetcapital.ca
Street Capital Group has 218 employees and is headquartered in Canada.
Street Capital Group Inc is a financial services company which offers a broad range of deposit and residential mortgage solutions in Canada.

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Cequence Energy (CQE:TSE) and Karnalyte Resources (KRN:TSE) Trading at Less than Cash Value

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Trading at Less than Cash Value

Today we are looking at companies trading at less than cash value meaning companies whose current share price is less than the cash per share on the balance sheet. We also show the value of cash net debt per share to show how much cash per share would be left if the debt was paid off.

What this Means…

Companies can have more cash per share than the actual share price for a number of reasons including they just raised capital, are in industries that experience high burn rates and will eat through the cash quickly or if there is a lot of uncertainty about the future of the company. Companies earning a positive net income will have a P/E greater than 0 and are worth exploring in more detail.

Today’s Data on TSE

Today’s data is for companies listed on the Toronto Stock Exchange.

Symbol Name Close Price Shares Outstanding P/E P/B Cash per Share Net Cash per Share
KML Kinder Morgan Canada Ltd 15.440000 116298813 13.1491 2.7647 37.30 -0.17
CF Canaccord Genuity Group Inc 6.300000 114857175 18.5294 1.1422 8.10 6.28
NMX Nemaska Lithium Inc 0.370000 847134338 None 0.5275 0.43 -0.25
TRZ Transat A.T. Inc 5.400000 37583687 54.0000 0.3386 15.80 13.71
S Sherritt International Corp 0.495000 397281686 0.2390 0.1739 0.52 -1.26
GMP GMP Capital Inc 2.370000 72721000 16.9286 0.9695 7.09 6.70
SCB Street Capital Group Inc 0.630000 122184000 42.7206 0.5508 0.63 0.60
FGE Fortress Global Enterprises Inc 1.310000 14949895 None 0.1803 1.68 -12.34
CQE Cequence Energy Ltd 0.520000 24552788 0.3367 0.0818 0.55 -1.90
KRN Karnalyte Resources Inc 0.220000 42174282 None 0.6326 0.22 0.60
EGL Eagle Energy Inc 0.090000 44244000 None 0.0500 0.17 -0.66
NKO Niko Resources Ltd 0.015000 94049967 None None 0.05 -2.15
FTU US Financial 15 Split Corp 0.480000 1904884 None None 1.18 None
MNT Royal Canadian Mint 18.190000 4000 None None 23651.75 11260.75
MNS Royal Canadian Mint 11.900000 4000 None None 23651.75 11260.75

Let’s look at a few companies…

Lets look at a couple of the companies on this list to get a better understanding of them.

CQE:TSE Cequence Energy

http://www.cequence-energy.com
Cequence Energy has 17 employees and is headquartered in Canada.
Cequence Energy Ltd is engaged in the acquisition, exploration and production of petroleum and natural gas reserves in Western Canada.

KRN:TSE Karnalyte Resources

http://www.karnalyte.com
Karnalyte Resources has 5 employees and is headquartered in Canada.
Karnalyte Resources Inc is engaged in in the business of exploration and development of agricultural and industrial potash. The company has the business segment which is Potash and Magnesium.

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The content presented here is in part from the website stockcalc.com and is provided on an as is or as available basis with all faults and may not be current in all cases. You should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment decision.

Canaccord Genuity Group (CF:TSE) and Transat A.T. (TRZ:TSE) Trading at Less than Cash Value

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I have used the analysis tools on the website stockcalc.com to generate some of the content of this blog post. These tools and reports are available for free at www.stockcalc.com/TopPicks.aspx.

Trading at Less than Cash Value

Today we are looking at companies trading at less than cash value meaning companies whose current share price is less than the cash per share on the balance sheet. We also show the value of cash net debt per share to show how much cash per share would be left if the debt was paid off.

What this Means…

Companies can have more cash per share than the actual share price for a number of reasons including they just raised capital, are in industries that experience high burn rates and will eat through the cash quickly or if there is a lot of uncertainty about the future of the company. Companies earning a positive net income will have a P/E greater than 0 and are worth exploring in more detail.

Today’s Data on TSE

Today’s data is for companies listed on the Toronto Stock Exchange.

Symbol Name Close Price Shares Outstanding P/E P/B Cash per Share Net Cash per Share
KML Kinder Morgan Canada Ltd 15.270000 116298813 13.1491 2.7342 37.30 -0.17
CF Canaccord Genuity Group Inc 6.480000 114857175 19.0588 1.1748 8.10 6.28
NMX Nemaska Lithium Inc 0.405000 847134338 None 0.5774 0.43 -0.25
TRZ Transat A.T. Inc 5.500000 37583687 55.0000 0.3449 15.80 13.71
S Sherritt International Corp 0.500000 397281686 0.2390 0.1756 0.52 -1.26
GMP GMP Capital Inc 2.590000 72721000 18.5000 1.0258 6.79 6.39
SCB Street Capital Group Inc 0.590000 122184000 40.0081 0.5159 0.63 0.60
FGE Fortress Global Enterprises Inc 1.350000 14949895 None 0.1859 1.68 -12.34
EGL Eagle Energy Inc 0.120000 44244000 None 0.0666 0.17 -0.66
NKO Niko Resources Ltd 0.015000 94049967 None None 0.05 -2.15
FTU US Financial 15 Split Corp 0.490000 1904884 None None 1.18 None
MNT Royal Canadian Mint 18.450000 4000 None None 23651.75 11260.75
MNS Royal Canadian Mint 12.290000 4000 None None 23651.75 11260.75

Let’s look at a few companies…

Lets look at a couple of the companies on this list to get a better understanding of them.

CF:TSE Canaccord Genuity Group

http://www.canaccordgenuitygroup.com
Canaccord Genuity Group has 1956 employees and is headquartered in Canada.
Canaccord Genuity Group Inc is a Canada-based financial services company. It operates in two segments of the securities industry: wealth management and capital markets.

TRZ:TSE Transat A.T.

http://www.transat.com
Transat A.T. has 5000 employees and is headquartered in Canada.
Transat A.T. Inc company specializes in the organization, marketing and distribution of holiday travel in the tourism industry. The core of its business consists of tour operators based in Canada and Europe.

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The content presented here is in part from the website stockcalc.com and is provided on an as is or as available basis with all faults and may not be current in all cases. You should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment decision.

Nemaska Lithium (NMX:TSE) and Sherritt International (S:TSE) Trading at Less than Cash Value

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Trading at Less than Cash Value

Today we are looking at companies trading at less than cash value meaning companies whose current share price is less than the cash per share on the balance sheet. We also show the value of cash net debt per share to show how much cash per share would be left if the debt was paid off.

What this Means…

Companies can have more cash per share than the actual share price for a number of reasons including they just raised capital, are in industries that experience high burn rates and will eat through the cash quickly or if there is a lot of uncertainty about the future of the company. Companies earning a positive net income will have a P/E greater than 0 and are worth exploring in more detail.

Today’s Data on TSE

Today’s data is for companies listed on the Toronto Stock Exchange.

Symbol Name Close Price Shares Outstanding P/E P/B Cash per Share Net Cash per Share
KML Kinder Morgan Canada Ltd 14.970000 116298813 13.1316 1.3188 37.40 -0.17
CF Canaccord Genuity Group Inc 6.460000 114857175 19.0000 1.1712 8.10 6.28
NMX Nemaska Lithium Inc 0.310000 847134338 None 0.4419 0.43 -0.25
TRZ Transat A.T. Inc 5.450000 37583687 54.5000 0.3417 15.80 13.71
GMP GMP Capital Inc 2.740000 72721000 19.5714 1.0852 6.79 6.39
S Sherritt International Corp 0.450000 397281686 0.2390 0.1581 0.52 -1.26
SCB Street Capital Group Inc 0.580000 122184000 39.3300 0.5071 0.63 0.60
FGE Fortress Global Enterprises Inc 1.400000 14949895 None 0.1927 1.68 -12.34
CQE Cequence Energy Ltd 0.520000 24552788 0.3367 0.0818 0.55 -1.90
KRN Karnalyte Resources Inc 0.220000 42174282 None 0.6326 0.22 0.60
EGL Eagle Energy Inc 0.050000 44244000 None 0.0278 0.17 -0.66
NKO Niko Resources Ltd 0.015000 94049967 None None 0.05 -2.15
FTU US Financial 15 Split Corp 0.480000 1904884 None None 1.20 None
MNS Royal Canadian Mint 12.440000 4000 None None 23651.75 11260.75
MNT Royal Canadian Mint 18.600000 4000 None None 23651.75 11260.75

Let’s look at a few companies…

Lets look at a couple of the companies on this list to get a better understanding of them.

NMX:TSE Nemaska Lithium

http://www.nemaskalithium.com
Nemaska Lithium has 83 employees and is headquartered in Canada.
Nemaska Lithium Inc is an exploration stage lithium mining company in Quebec, Canada. It supplies lithium hydroxide and lithium carbonate to the lithium battery industry used in electric vehicles, cell phones, tablets and other consumer products.

S:TSE Sherritt International

http://www.sherritt.com
Sherritt International has 6963 employees and is headquartered in Canada.
Sherritt International Corp is engaged in the mining and refining of nickel from lateritic ores with projects and operations in Canada, Cuba, and Madagascar.

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The content presented here is in part from the website stockcalc.com and is provided on an as is or as available basis with all faults and may not be current in all cases. You should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment decision.

Major Drilling Group Intl (MDI:TSE) Fundamental Valuation Report

Fundamental Valuation Report

Major Drilling Group Intl(MDI:TSE)

Basic Materials:Industrial Metals & Minerals

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$4.81 (CAD) 09/01/2019

Weighted Valuation
$5.45 (CAD)

Overall Rating
Undervalued by 13.3%

Valuation Models Analyst Consensus: $6.17 (CAD)
(in order of importance) Discounted Cash Flow: $4.70 (CAD)
Comparables: $4.81 (CAD)
Valuation Methods This company is:
Cash Flow: Fairly valued on a Cash Flow Valuation
Comparable Company: Fairly valued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (MDI:TSE CAD)

Price 4.81
Range 4.69 – 4.82
52 week 4.22 – 7.75
Open 4.74
Vol / Avg. 92632/86467
Mkt cap 386.24M
P/E 0.00
Div/yield 0.00/0.00
EPS -0.28
Shares 80.3M
Beta 0.68

Company Description

Major Drilling Group International Inc is engaged in the business of contract drilling. Basically, it provides services to companies which are involved in mining and mineral exploration. It offers surface and underground coring, directional, reverse circulation, sonic, geotechnical, environmental, water-well, coal-bed methane, shallow gas, and underground percussive/long hole drilling services, as well as various drilling-related mine services. The company has operations in Canada, the United States, Mexico, South America, Asia, Africa and Europe. Revenue for the company is generated through contracts and from ancillary services for the customers.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for MDI:TSE

Using a discounted cash flow model we generated an intrinsic value of $4.70 (CAD) for MDI:TSE

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

MDI:TSE Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $4.70 1% 5% 1% 5%
WACC (or Ke) 9.73 $5.56 $4.07
Terminal Growth Rate 3.00 $4.14 $5.46
Tax Rate 0.08 $4.95 $4.46
Cash Flow 36,444,430 $4.42 $4.98
Capital Expenditures -10,538,600 $4.63 $4.77
Long Term Debt 10,235,000 $4.71 $4.70

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $4.32 (CAD) for MDI:TSE. We also generated a valuation of $4.81 (CAD) using other metrics and comparables.
The comparable companies were Altius Minerals (ALS:TSE), Continental Gold (CNL:TSE), Denison Mines (DML:TSE), Nemaska Lithium (NMX:TSE) and Osisko Mining (OSK:TSE).

Company MDI:TSE End Date Value
Earnings/Share ($0.15) (CAD)
Book Value/Share $4.68 (CAD)
Sales/Share $4.66 (CAD)
Cash Flow/Share $0.21 (CAD)
EBITDA/Share $0.31 (CAD)
Price Based on Comps Adjustment Factor (%)
$0.00 (CAD) -29.1
$6.05 (CAD) -37.1
$0.00 (CAD) -91.8
$5.84 (CAD) -20.5
$0.00 (CAD) 0.0
MDI:TSE Ratios Used Average Values ALS:TSE CNL:TSE DML:TSE NMX:TSE OSK:TSE
0.00 PE Ratio 0.00 0.00 0.00 0.00 0.00 0.00
0.98 PB Ratio 1.29 1.30 0.86 1.73 0.97 1.61
0.99 PS Ratio 19.10 12.69 0.00 25.50 0.00 0.00
21.60 PCF Ratio 28.54 28.54 0.00 0.00 0.00 0.00
9.86 EV to EBITDA 0.00 0.00 0.00 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $6.97 (CAD) for MDI:TSE

Company MDI:TSE End Date Value
Earnings/Share ($0.15) (CAD)
Book Value/Share $4.68 (CAD)
Sales/Share $4.66 (CAD)
Cash Flow/Share $0.21 (CAD)
EBITDA/Share $0.31 (CAD)
Price Based on Comps Adjustment Factor
$0.00 (CAD) 0
$5.79 (CAD) 0
$7.90 (CAD) 0
$7.23 (CAD) 0
$0.00 (CAD) 0
Ratios Ratio Average
PE Ratio 0.00
PB Ratio 1.24
PS Ratio 1.70
PCF Ratio 33.96
EV to EBITDA 0.00

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  MDI:TSE for the last 10 years was  1.27

We ran the Adjusted Book Value for  MDI:TSE and generated a book value of  $4.68 (CAD)
By multiplying these we get an adjusted valuation of  $5.96 (CAD)

Analyst Data

In the Stockcalc database there are 3 analysts that provide a valuation for MDI:TSE. The 3 analysts have a concensus valuation for MDI:TSE for 2020 of $6.17 (CAD).

MDI:TSE Major Drilling Group Intl

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
0 3 0 3.0000 Hold 2019-1-8

Current Price: 4.81 CAD

Analyst Consensus
CAD Millions 2019 2020 2021
Mean EPS -0.04 0.17 0.37
# EPS Analysts 3 2 1
Mean Revenue 406.30 451.10 491.20
# Revenue Analysts 3 2 1
Mean Target Price 6.17
Mean Cash Flow 0.53 0.70 0.92
Mean EBITDA
Mean Net Income
Mean Debt Outstanding
Mean Tax Rate
Mean Growth Rate
Mean Capital Expenditure

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
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Major Drilling Group Intl (MDI:TSE) Fundamental Valuation Report


This Report was generated using the tools available on StockCalc.com. Patchell Brook Equity Analytics Inc. emphasizes that the user assumes all risks associated with the use of this report or the Stockcalc website including, but not limited to, all terms and conditions mentioned in the legal disclaimer.
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Major Drilling Group Intl $6.95 (CAD) Close Price as of 13/06/2018

Based on the analysis conducted in this report, Major Drilling Group Intl, (MDI:TSE) is found to be  Undervalued.

Company Major Drilling Group Intl
Symbol:Exchange MDI:TSE
Industry Basic Materials:Industrial Metals & Minerals
Close Price/Date $6.95 (CAD) 13/06/2018
Weighted Average Valuation $8.00 (CAD)
Summary MDI:TSE is found to be  Undervalued by 15.1% using the 3 valuation models shown below.
Valuation Models Used Analyst Consensus: $8.44 (CAD)
(in order of importance) Comparables: $8.34 (CAD)
Adjusted Book Value: $5.99 (CAD)
Valuation Methods Analysis This company is:
Cash Flow Basis: Overvalued on a Cash Flow Valuation basis
Comparable Company Basis: Undervalued on a Comparable Valuation basis
Asset Basis: Overvalued on an Asset Valuation basis

Valuation Details

Major Drilling Group Intl Valuations

Summary chart

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for MDI:TSE

Using a discounted cash flow model we generated an intrinsic value of $1.30 (CAD) for MDI:TSE

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

MDI:TSE Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $1.30 1% 5% 1% 5%
WACC (or Ke) 10.67 $1.53 $1.12
Terminal Growth Rate 3.00 $1.14 $1.51
Tax Rate 0.07 $1.33 $1.27
Cash Flow 17,278,647 $1.19 $1.42
Capital Expenditures
Long Term Debt 10,235,000 $1.31 $1.30

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $4.84 (CAD) for MDI:TSE. We also generated a valuation of $8.34 (CAD) using other metrics and comparables.
The comparable companies were Altius Minerals (ALS:TSE), Continental Gold (CNL:TSE), Klondex Mines (KDX:TSE), Nemaska Lithium (NMX:TSE) and NexGen Energy (NXE:ASE).

Company MDI:TSE End Date Value
Cash/Share $0.00 (CAD)
Book Value/Share $4.64 (CAD)
MarketCap 558,084,888
1 Year Return -0.181
NetPPE 0
Price Based on Comps Adjustment Factor (%)
$0.00 (CAD) 0
$8.83 (CAD) 0
$7.79 (CAD) 0
$8.41 (CAD) 0
$0.00 (CAD) 0
Ratios Used Average Values ALS:TSE CNL:TSE KDX:TSE NMX:TSE NXE:ASE
Cash / Share 0.16 0.00 0.00 0.13 0.18 0.50
Book Value / Share 2.45 7.18 2.40 1.98 0.37 0.30
Market Cap 625,477,264 554,025,580 646,782,799 610,111,068 571,454,884 745,011,991
1 Year Return -0.01 0.30 0.02 -0.29 -0.08 0.02
Net PPE 133,180,841 0 0 289,450,000 105,109,448 4,983,074

Multiples

Using a multiples approach we generated a valuation of  $4.41 (CAD) for MDI:TSE

Company MDI:TSE End Date Value
Earnings/Share ($0.33) (CAD)
Book Value/Share $4.64 (CAD)
Sales/Share $4.26 (CAD)
Cash Flow/Share $0.13 (CAD)
EBITDA/Share $0.12 (CAD)
Price Based on Comps Adjustment Factor
$0.00 (CAD) 0
$5.89 (CAD) 0
$7.34 (CAD) 0
$3.78 (CAD) 0
$0.63 (CAD) 0
Ratios Ratio Average
PE Ratio 17.97
PB Ratio 1.27
PS Ratio 1.72
PCF Ratio 29.83
EV to EBITDA 5.08

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  MDI:TSE for the last 10 years was  1.31

We ran the Adjusted Book Value for  MDI:TSE and generated a book value of  $4.57 (CAD)
By multiplying these we get an adjusted valuation of  $5.99 (CAD)

Analyst Data

In the Stockcalc database there are 4 analysts that provide a valuation for MDI:TSE. The 4 analysts have a concensus valuation for MDI:TSE for 2019 of $8.44 (CAD).

Company Overview (MDI:TSE CAD)

Price 6.95
Range 6.81 – 7.09
52 week 6.12 – 8.61
Open 6.92
Vol / Avg. 126480/192423
Mkt cap 558.08M
P/E 0.00
Div/yield 0.00/0.00
EPS -0.52
Shares 80.3M
Beta 1.95

Summary chart

Detailed Company Description

Major Drilling Group International Inc. is engaged in the business of contract drilling. Basically it provides services to companies which are involved in mining and mineral exploration.

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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