FOS.TO  Phos

Exchange

TSX

Sector

Mining

Industry

Market Cap.

34.26M

Vuru Grade

38.00/100

Current Price

$0.23
-0.010 (-4.255%)

Stability Price

$0.33
Undervalued by 45.57%

Company Metrics

  • P/E 26
  • P/S 0
  • P/B 0.623
  • EPS -0.524
  • Cash ROIC 0.98%
  • Cash Ratio 357.20
  • Dividend 0 / 0%
  • Avg. Vol. 218,500.00
  • Shares 152.27M
  • Market Cap. 34.26M

Company Description

Phoscan Chemical Corp., a development-stage company, engages in acquiring, exploring, and developing mineral and natural resource properties. It holds 100% interest in the Martison Phosphate project consisting of phosphate deposits located near Hearst, Ontario, Canada. The company was formerly known as MCK Mining Corp. and changed its name to Phoscan Chemical Corp. in July 2006. Phoscan Chemical C... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Petrus Resources Announces Term Loan Refinancing, Production and Operations ...
Yahoo Finance - Jan 24, 2017
Petrus has entered into an agreement with Macquarie Bank Limited to extend the Company's $42 million second lien term loan by two years; now due October 2019.
Petrus Resources Ltd. Announces Major Acquisition and Financing and Provides ...
Marketwired (press release) - Sep 3, 2014
Petrus Resources Ltd. ("Petrus" or the "Company") is pleased to announce a series of transactions that will, among other things, increase daily production to approximately 10,000 boe/d and significantly expand the Company's drilling inventory. The ...
Phoscan Announces Plan of Arrangement With Petrus Resources Ltd. and Related ...
Marketwired (press release) - Nov 30, 2015
(TSX:FOS) ("PhosCan") is pleased to announce that it has entered into an arrangement agreement (the "Arrangement Agreement") with Petrus Resources Ltd. ("Petrus"), Petrus Acquisition Corp. ... with a syndicate of underwriters led by FirstEnergy Capital ...
Oil price optimism fuels Petrus Resources' plan to trade on public markets - Calgary Herald
Petrus Resources Announces Management Succession
Marketwired (press release) - Nov 8, 2016
CALGARY, ALBERTA--(Marketwired - Nov. 7, 2016) - Petrus Resources Ltd. ("Petrus" or the "Company") (TSX:PRQ) announces that Mr. Kevin Adair has resigned from his positions as President and Chief Executive Officer, and as a director of Petrus.
Petrus Resources Announces Closing of Arrangement
BOE Report (press release) - Feb 2, 2016
2, 2016) - Petrus Resources Ltd. (“Petrus” or the “Company“) is pleased to announce that the previously announced plan of arrangement (the “Arrangement“) involving Petrus, Petrus Resources Corp.
Petrus Resources Ltd. and Arriva Energy Inc. Announce Offer to Be Made by ...
Marketwired (press release) - Jul 22, 2014
Petrus Resources Ltd. ("Petrus") and Arriva Energy Inc. ("Arriva") are pleased to announce that they have entered into a pre-acquisition agreement (the "Pre-Acquisition Agreement") pursuant to which Petrus will, subject to the satisfaction or waiver of ...
Petrus Resources Ltd. Announces Closing of Acquisition and Debt Financing and ...
Marketwired (press release) - Oct 8, 2014
Petrus Resources Ltd. ("Petrus" or the "Company") is pleased to announce that it has completed its previously announced take-over of Ravenwood Energy Corp.
The Q1 2017 EPS Estimates for Petrus Resources Ltd Increased by Analyst (PRQ)
DailyQuint - Dec 15, 2016
Cormark also issued estimates for Petrus Resources' Q1 2018 earnings at $0.01 EPS, Q2 2018 earnings at $0.00 EPS and Q3 2018 earnings at $0.02 EPS.
The Insider Buying: Petrus Resources Ltd (PRQ) Director Acquires C$159068.00 ...
DailyQuint - Jan 20, 2017
Petrus Resources Ltd (TSE:PRQ) opened at 2.90 on Friday. Petrus Resources Ltd has a 52 week low of $1.71 and a 52 week high of $4.99.
Petrus Resources Announces Acquisition of Arriva Energy, Additional Asset ...
Marketwired (press release) - Sep 9, 2014
Petrus Resources Ltd. ("Petrus" or the "Company") is pleased to announce that it has closed the previously announced take-over of Arriva Energy Inc. ("Arriva"), completed an asset acquisition in the Ferrier area to expand the Company's land position ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for FOS.TO to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate FOS.TO's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$0.23 Current Price

$-0.02 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$0.33 Stability Price (EPV)

Undervalued by 45.57%


Discount Rate: 15.0%

$0.36 NCA Price

Undervalued by 59.03%


Poor Cash Return on Invested Capital over the past 5 years

FOS.TO has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

FOS.TO has only created $0.98 of cash for every $100 invested.
Figures in CAD. Fiscal year ends in January
20112012201320142015
Free Cash Flow -111,020.00 1.37M -798,960.00 -262,000.00 -563,000.00
divided by
Invested Capital 87.29M 90.47M -44.09M -40.18M -55.01M
Cash ROIC -0.13% 1.52% 1.81% 0.65% 1.02%

Poor Return on Equity over the past 5 years

FOS.TO has shown an inability to deliver strong results for shareholders. This could be due to poor management, FOS.TO operating in a highly competitive industry, or having a weak business in general.

FOS.TO has only generated $0.04 of Earnings for every $100 of Shareholders' Equity.
Figures in CAD. Fiscal year ends in January
20112012201320142015
Net Income -290,307.00 542,823.00 - - -
divided by
Stockholders' Equity 139.16M 138.67M - - -
Return on Equity -0.21% 0.39% - - -

Poor Business Performance over the past 10 years

FOS.TO's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

FOS.TO has been losing money for the majority of the past 10 years.
Figures in CAD. Fiscal year ends in January
2006200720082009201020112012201320142015
Free Cash Flow -445,811.00 -499,506.00 -3.05M -3.77M -2.27M -111,020.00 1.37M -798,960.00 -262,000.00 -563,000.00

Very Strong Balance Sheet

FOS.TO has more Cash than its Total Liabilities, resulting in $0.36 Net Cash per share. In other words, if you buy FOS.TO today, the price you're paying for shares is actually $-0.13 because $0.36 of Cash is included in the current share price. This much Cash is very healthy. It can help FOS.TO sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in CAD. Fiscal year ends in January
2006200720082009201020112012201320142015
Cash 80,903.00 1.36M 31.35M 72.76M 68.57M 67.90M 64.24M 60.13M 56.22M 55.01M
Current Assets 121,878.00 1.43M 32.67M 73.03M 68.70M 68.17M 64.44M 60.18M 57.22M 55.06M
Total Assets 2.46M 3.98M 37.67M 157.73M 155.36M 155.48M 155.60M 153.97M 153.15M 56.53M
Current Liabilities 53,240.00 129,334.00 1.03M 1.08M 261,581.00 283,703.00 891,187.00 170,568.00 112,000.00 154,000.00
Total Liabilities 53,240.00 129,334.00 1.03M 19.68M 16.30M 16.32M 16.93M 16.21M 16.15M 154,000.00
Stockholder' Equity 2.40M 3.85M 36.65M 138.05M 139.06M 139.16M 138.67M - - -
Current Ratio 2.29 11.03 31.86 67.68 262.64 240.30 72.31 352.80 510.88 357.55
TL-to-TA 0.02 0.03 0.03 0.12 0.10 0.10 0.11 0.11 0.11 0.00

Low or No Reinvestment of Profits over the past 10 years

FOS.TO has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to FOS.TO operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in CAD. Fiscal year ends in January
2006200720082009201020112012201320142015
Retained Earnings -12.46M -13.04M -13.69M -17.98M -17.64M -17.93M -14.99M -13.86M -6.69M -83.99M
Retained Earnings Growth - -4.64% -4.99% -31.32% 1.93% -1.65% 16.39% 7.54% 51.73% -1,155.66%

Highly Competitive Industry over the past 10 years

It's likely that FOS.TO is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely FOS.TO invests heavily in R&D and Sales, General & Administrative expenses.

Only $- of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in January
2006200720082009201020112012201320142015
Net Income -562,196.00 -578,291.00 -651,168.00 -4.29M 347,027.00 -290,307.00 542,823.00 - - -
divided by
Revenue - - - - - - - - - -
Net Profit Margin - - - - - - - - - -

Weak Pricing Power over the past 10 years

FOS.TO is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that FOS.TO has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in January
2006200720082009201020112012201320142015
Gross Profit - - - - - - - - - -
divided by
Revenue - - - - - - - - - -
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

FOS.TO has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that FOS.TO may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

1.11% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in CAD. Fiscal year ends in January
2006200720082009201020112012201320142015
Capital Expenditure 185,332.00 219,769.00 2.19M 44,227.00 332.00 1,042.00 11,483.00 770.00 5,000.00 -
divided by
Net Income -562,196.00 -578,291.00 -651,168.00 -4.29M 347,027.00 -290,307.00 542,823.00 - - -
Capital Expenditure Ratio -32.97% -38.00% -336.26% -1.03% 0.10% -0.36% 2.12% - - -

No Dividend History over the past 10 years

FOS.TO has never distributed dividends or has recently suspended their dividend distribution.
Figures in CAD. Fiscal year ends in January
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 56.22M 57.83M 65.12M 155.93M 171.62M 171.85M 171.87M 167.91M 161.90M 156.06M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End - - - 0.36 0.50 0.32 0.28 0.30 0.28 0.27
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

FOS.TO has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in CAD. Fiscal year ends in January
2006200720082009201020112012201320142015
Shares Outstanding 56.22M 57.83M 65.12M 155.93M 171.62M 171.85M 171.87M 167.91M 161.90M 156.06M
Stock Bought Back - -2.78% -11.19% -58.24% -9.14% -0.13% -0.01% 2.35% 3.72% 3.74%
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