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Fundamental analysis: Caledonia Mining Corporation Plc (CMCL)

Awarener score: 7.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Average) and growth (Very good), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.0

  • Business has been growing at a very good pace. It's been more than average in relation to peer companies.
  • Caledonia Mining Corporation Plc business trend stability is run-of-the-mill. The higher the stability, the lower the risk. It looks slightly worse than rivals.

Margins score: 9.0

  • CMCL profit margins -on goods and services sold- are usually good. They stand somewhat better than rival companies.
  • Business profit on sales tends to be huge. It's top tier when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain in good shape compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still better than most similar companies.
  • Profits -before income taxes- are usually huge considering total sales, and remain top tier when measured against rivals.
  • Total net profit tends to be excellent when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 7.1

  • Caledonia Mining Corporation Plc profit -on goods and services sold- has been growing at a very good pace. It's been a slight improvement compared to competitors.
  • In recent years, earnings -on operations- have been growing at a good step, which has been mediocre against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a good pace, which compares almost average when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a good tempo. It turns to be lacking compared to similar stocks.
  • In past years, profits -before income taxes- grew at a good speed. It was somewhat worse than rivals.
  • In the previous years, growth trend on total net profit has been good, and weak when measured against peer companies.
  • Earnings per share have grown at a good rhythm in past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 3.0

  • CMCL had to pay a lot of income taxes in relation to profits made in the past years. It's been slightly better than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.8

  • Caledonia Mining Corporation Plc usually gets huge returns on the resources it controls. It proves top tier when measured against peer firms.
  • The company normally gets huge proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
  • There's usually excellent profitability -in relation to owned resources-. It ranks top tier when measured against competitors.
  • In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 5.9

  • CMCL usually uses almost all genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is huge. It stands top tier when measured against rival firms.
  • The company is usually heavily investing in new property, plant, and equipment, to expand its operating capabilities, which is more than average in relation to industry peers.
  • In the past twelve months it paid excellent dividends, considering the current stock price. It came top-notch against competitors.
  • Has increased dividend payments in the past years. Business prospects may have improved. The company has behaved in a weak position compared to similar firms.
  • The company pays more dividends than genuine funds is usually able to generate, therefore borrowing more funds. Future payments may be at risk, especially if a downturn in business occurs. Sustainability looks worse than most comparable companies.
  • The company usually enlarges quite a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 6.1

  • Caledonia Mining Corporation Plc has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
  • The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be lacking compared to similar firms.
  • Almost no resources controlled were provided for with financial debt. Financial strength is great. Company could significantly increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains slightly better than rival firms.
  • Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks encouraging in relation to rivals.
  • For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's lacking compared to peer firms.
  • For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is worse than most similar enterprises.
  • Usually, sales are on a month credit. It still ranks weak when measured against peers.
  • Normally has approximately four months of sales worth in inventory. It comes up as in a very weak position compared to competitors.
  • On average, it takes higher than five months from the purchase to charging customers. It happens to be worse than most peers.
  • On average pays suppliers two months after the purchase. It ranks encouraging in relation to industry peers.
  • The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's in a weak position compared to similar companies.
  • Net interest expenses consume a non-significant portion of usual business earnings, and are therefore extremely easily to bear. It stands somewhat better than rival firms.
  • Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks great when measured against comparable enterprises.
  • Last twelve months revenues were non-significant in relation to fixed assets. The company must improve income to take advantage of used resources. It looks excellent in relation to similar firms.
  • Resource exploitation is quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 8.0

  • Caledonia Mining Corporation Plc looks very cheap in relation to profits and financial position. It happens to be more than average in relation to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in good shape compared to peers.
  • In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could get, it reinvested in the business, which stands somewhat worse than similar companies.
  • In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still encouraging in relation to industry firms.
  • In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up a slight improvement compared to peer ventures.
  • The company has substantial more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks well ranked against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks more than average in relation to peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in good shape compared to rival firms.
  • The stock price is at or below the accounting book value. Unless profitability is really low, the stock may be selling a t a discount. Pay attention to the other key indicators for hints. The company remains well ranked against peer firms.
  • In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be great when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still impressive in relation to peer companies.

Total score: 7.0


CMCL logos

Company at a glance: Caledonia Mining Corporation Plc (CMCL)

Sector, industry: Basic Materials, Gold

Market Cap: 0.13 billions

Revenues TTM: 0.13 billions

Caledonia Mining Corporation Plc primarily engages in the operation of a gold mine. It also explores for and develops mineral properties for precious metals. The company holds 64% interest in the Blanket Mine, a gold mine located in Matabeleland South Province, Zimbabwe. It also has an agreement to purchase 100% ownership in the Maligreen project, a brownfield gold exploration project located in Gweru mining district in the Zimbabwe Midlands. The company was formerly known as Caledonia Mining Corporation and changed its name to Caledonia Mining Corporation Plc in March 2016. Caledonia Mining Corporation Plc was incorporated in 1992 and is headquartered in Saint Helier, Jersey.

Awarener score: 7.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Average) and growth (Very good), and the company's inclination to return cash to the stockholders (Good).