Scotiabank Capital maintains Copper Mountain Mining Corp. stock with an Outperform rating and lowers the target price to $4.50 from $4.75 per share.
Based on the Copper Mountain Mining Corporation stock forecasts from 4 analysts, the average analyst target price for Copper Mountain Mining Corporation is CAD 4.66 over the next 12 months. Copper Mountain Mining Corporation’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Copper Mountain Mining Corporation is Slightly Bullish , which is based on 8 positive signals and 4 negative signals. At the last closing, Copper Mountain Mining Corporation’s stock price was CAD 2.79. Copper Mountain Mining Corporation’s stock price has changed by -25.80% over the past week, -27.15% over the past month and -32.12% over the last year.
What we like:
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.
Underpriced on free cash flow basis
The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.
Superior Earnings Growth
This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.
High Gross Profit to Asset Ratio
This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.
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.
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.
The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.