BMO Financial lowers the target price on Capstone Mining Corp.(CS:TSX) to $7

STA Research
by: STA Research

BMO Financial maintains Capstone Mining Corp. with an Outperform rating and lowers the target price to $7 from $7.25 on the company’s stock.

Based on the Capstone Mining Corp stock forecasts from 9 analysts, the average analyst target price for Capstone Mining Corp is CAD 8.31 over the next 12 months. Capstone Mining Corp’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Capstone Mining Corp is Slightly Bullish , which is based on 7 positive signals and 4 negative signals. At the last closing, Capstone Mining Corp’s stock price was CAD 4.64Capstone Mining Corp’s stock price has changed by -11.45% over the past week, -32.75% over the past month and -20.95% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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