Scotiabank Capital cuts Excelsior Mining(MIN:TSX) to $.55 from $.65, Sector Perform

STA Research
by: STA Research

Scotiabank Capital cuts Excelsior Mining to $.55 from $.65, and maintained the Sector Perform rating on the miner’s stock.

STA Research assigned the stock with a Buy rating, with a .70 target.

Based on the Excelsior Mining Corp stock forecasts from 2 analysts, the average analyst target price for Excelsior Mining Corp is CAD 0.73 over the next 12 months. Excelsior Mining Corp’s average analyst rating is . Stock Target Advisor’s own stock analysis of Excelsior Mining Corp is Bearish, which is based on 2 positive signals and 7 negative signals. At the last closing, Excelsior Mining Corp’s stock price was CAD 0.38. Excelsior Mining Corp’s stock price has changed by +0.00% over the past week, -0.04% over the past month and -50.00% over the last year.

What we like:

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Positive free cash flow

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

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

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

Negative cashflow

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

Overpriced on free cash flow basis

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

Low Earnings Growth

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

 

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