Nevsun Resources Ltd. relative valuation is OVERVALUED and it has a fundamental analysis score of 53.
Our analysis is based on comparing Nevsun Resources Ltd. with the following peers – Cameo Resources Corp., IAMGOLD Corporation, Caledonia Mining Corporation PLC, African Queen Mines Ltd., Teranga Gold Corporation, Asanko Gold, Inc., Klondex Mines Ltd. and Avesoro Resources Inc. (CRU-CA, IMG-CA, CAL-CA, AQ-CA, TGZ-CA, AKG-CA, KDX-CA and ASO-CA).
Nevsun Resources Ltd. has shown underwhelming performance over the last one year while growing strongly over the last month. Nevsun Resources Ltd.’s price momentum over the last month, at 11.70% has been better than that over the last year, which was -20.43%. Also from a peer group perspective, Nevsun Resources Ltd. has performed better, since the peer group performance was -4.07% over the last month.
- From a peer analysis perspective, relative outperformance last month is up from a median performance last year.
- It trades at a lower Price/Book multiple (0.69) than its peer median (0.88).
- The market expects faster earnings growth from NSU-CA than from its peers and also a turnaround in its current ROE.
- NSU-CA’s relatively low net margins and poor asset turns suggest a problematic operating strategy.
- Changes in annual earnings are in line with its chosen peers but lags in terms of revenue, implying the company is cost conscious and selective about spending for growth.
- Over the last five years, NSU-CA’s return on assets has eroded from above median to below median among its peers suggesting declining relative operating performance.
- The company’s relatively low gross and pre-tax margins suggest a non-differentiated product portfolio and not much control on operating costs relative to peers.
- Compared with the peers chosen, NSU-CA has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
- The company’s level of capital investment seems appropriate to support the company’s growth.
- NSU-CA currently does not have any debt.
- Our analysis rates Nevsun Resources Ltd. as OVERVALUED relative to its peers.
Share Price Performance
From a peer analysis perspective, relative outperformance last month is up from a median performance last year.
While NSU-CA’s change in share price of -20.43% for the last 12 months is in line with its peer median, its more recent 30-day share price performance of 11.70% is above the peer median. This suggests the company’s performance has improved more recently relative to peers.
Quadrant label definitions. Hover to know more
Nevsun Resources Ltd.’s price of CAD 2.96 is greater than CapitalCube’s implied price of CAD 1.98. At this level, CapitalCube believes that Nevsun Resources Ltd. is overvalued. Over the last 52 week period, the stock has fluctuated between CAD 2.49 and CAD 4.63.
Valuation & Peer Metrics
A complete list of valuation metrics is available on the company page.
Nevsun Resources Ltd. is a mineral resource company, which engages in the acquisition, exploration, development and production of mineral properties through its subsidiaries. Its operations include Bisha Mine and Timok Project. The company was founded by Craig A. Angus and Scott Angus on July 19, 1965 and is headquartered in Vancouver, Canada.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.