Discounted Cash Flow Calculation for CNSX:PTX using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
Note: Free cash flow to equity valuations ignore the company's cash or debt.
CNSX:PTX DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Platinex's share price is below the future cash flow value, and at a moderate discount (> 20%).
Platinex's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Platinex's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Platinex has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Platinex's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Platinex's earnings growth to the Canada market average as no estimate data is available.
Unable to compare Platinex's revenue growth to the Canada market average as no estimate data is available.
Unable to determine if Platinex is high growth as no earnings estimate data is available.
Unable to determine if Platinex is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Platinex's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Metals and Mining
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. James R. Trusler, also known as Jim, is the Founder and Promoter of Platinex Inc. and was its Chairman of the Board since August 12, 1998 until November 2018. Mr. Trusler has been Interim Chief Executive Officer at Platinex Inc. since February 27, 2019 and its Chairman of the Board also its President since March 2019. Mr. Trusler served as President, Chief Executive Officer and Promoter of Platinex Inc. until May 15, 2018. He has been a Director of Platinex Inc. since August 12, 1998His Experience includes: Senior Geologist for Teck Explorations 1980-1983. Vice President Exploration and Director of International Platinum Corporation 1983-1992; Vice President and Director of Platinum Exploration Canada Inc. 1985-1986. President Hellens Eplett Mining 1989-1992; Geological Engineer; Principal, J. R. Trusler & Associates, Mineral Consultants; President, Parrygran Resources, 1991 to Present; President, J. R. Trusler & Associates Ltd., 1995 to present. Mr. Trusler earned BASc Geological Engineering University of Toronto (1967) and MS Geology Michigan Technological University (1972).
Jim's compensation has increased whilst company is loss making.
Jim's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Platinex management team is less than 2 years, this suggests a new team.
Chief Financial Officer
Board of Directors Tenure
Average tenure of the
board of directors in years:
The average tenure for the Platinex board of directors is less than 3 years, this suggests a new board.
Board of Directors
Rob, Bob Blake
Member of Advisory Board
Who owns this company?
Recent Insider Trading
More shares have been bought than sold by Platinex individual insiders in the past 3 months, but not in substantial volumes.
What Does Platinex Inc's (CNSX:PTX) Ownership Structure Look Like?
I am going to take a deep dive into Platinex Inc’s (CNSX:PTX) most recent ownership structure, not a frequent subject of discussion among individual investors. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders. … CNSX:PTX Ownership Summary July 18th 18
Platinex Inc. engages in the acquisition, exploration, evaluation, and development of mineral properties in Canada. The company primarily explores for gold and platinum group elements. It holds interests in the Shining Tree gold property with 139 claim units covering an area of 2,299 hectares located in Ontario. The company was incorporated in 1998 and is based in Newmarket, Canada.
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