West African Resources Ltd
ASX:WAF
Intrinsic Value
West African Resources Ltd. engages in exploration and development of mineral properties. [ Read More ]
The intrinsic value of one
WAF
stock under the Base Case scenario is
3.438
AUD.
Compared to the current market price of 1.315 AUD,
West African Resources Ltd
is
Undervalued by 62%.
WAF could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
West African Resources Ltd's market capitalization is 1.3B AUD.
WAF stock price is 1.315 AUD.
WAF stock price (1.315 AUD) is 62% less than its Intrinsic Value (3.438 AUD).
WAF stock price (1.315 AUD) is 53% less than its Relative Value (2.801 AUD). Open Relative Valuation
WAF has upside potential of 33% compared to the average analyst price target.
Open Wall St Estimates
WAF's Revenue has grown by 9% over the past 12 months.
WAF's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 19%.
WAF's ROE (Return on Equity) for the past 12 months is positive and is equal to 19%.
WAF has negative Net Debt. This means that the company has more cash and short-term investments (135m AUD) than debt (133m AUD).
WAF's ROIC (Return on Invested Capital) has significantly decreased in the last 3 years from 33% to 19%.
WAF's Revenue is forecast to grow at a rate of 23% per year over the next 3 years.
WAF has positive Net Income for the last twelve months.
WAF's ROE (Return on Equity) has significantly decreased in the last 3 years from 74% to 19%.
WAF's Revenue has been growing by an exceptional 29% per year for the last 3 years.
WAF has positive Operating Income for the last twelve months.
WAF has positive Gross Profit for the last twelve months.
WAF has negative Free Cash Flow for the last twelve months.
WAF's Altman Z-Score is very high and is equal to 3.59.
WAF has very high three-year average ROIC (Return on Invested Capital): 37%. The company is very efficient at using invested capital to generate operating income.
WAF's long-term assets (1B AUD) exceed its long-term liabilties (360m AUD).
WAF's D/E (Debt to Equity) is very low and is equal to 0.15.
WAF's short-term assets (474m AUD) exceed its short-term liabilties (129m AUD).
WAF has very high three-year average ROE (Return on Equity): 49%. The company is very efficient at transforming stockholders' equity into net income.
WAF doesn't generate enough operating income (236m AUD) to safely cover interest payments on its debt (-334k AUD).
Valuation Backtest
West African Resources Ltd
Run backtest to discover the historical profit from buying and selling
WAF
stocks based on their intrinsic value.
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Fundamental Analysis
West African Resources Ltd
Balance Sheet Decomposition
West African Resources Ltd
| Current Assets | 474.2m |
| Cash & Short-Term Investments | 135.1m |
| Receivables | 221.7m |
| Other Current Assets | 117.5m |
| Non-Current Assets | 746.7m |
| PP&E | 746.7m |
| Current Liabilities | 128.6m |
| Accounts Payable | 46.3m |
| Accrued Liabilities | 35.2m |
| Other Current Liabilities | 47.2m |
| Non-Current Liabilities | 231m |
| Long-Term Debt | 133.1m |
| Other Non-Current Liabilities | 97.9m |
Earnings Waterfall
West African Resources Ltd
|
Revenue
|
661.2m
AUD
|
|
Cost of Revenue
|
-390.9m
AUD
|
|
Gross Profit
|
270.4m
AUD
|
|
Operating Expenses
|
-33.9m
AUD
|
|
Operating Income
|
236.4m
AUD
|
|
Other Expenses
|
-89.5m
AUD
|
|
Net Income
|
146.9m
AUD
|
Free Cash Flow Analysis
West African Resources Ltd
WAF Profitability Score
Profitability Due Diligence
West African Resources Ltd's profitability score is 75/100. The higher the profitability score, the more profitable the company is.
Score
West African Resources Ltd's profitability score is 75/100. The higher the profitability score, the more profitable the company is.
WAF Solvency Score
Solvency Due Diligence
West African Resources Ltd's solvency score is 61/100. The higher the solvency score, the more solvent the company is.
Score
West African Resources Ltd's solvency score is 61/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
WAF Price Targets Summary
West African Resources Ltd
According to Wall Street analysts, the average 1-year price target for
WAF
is 1.747 AUD
with a low forecast of 1.515 AUD and a high forecast of 2.1 AUD.
Shareholder Return
WAF Price
West African Resources Ltd
| Average Annual Return | 51.83% |
| Standard Deviation of Annual Returns | 72.85% |
| Max Drawdown | -55% |
| Market Capitalization | 1.3B AUD |
| Shares Outstanding | 1 026 570 000 |
| Percentage of Shares Shorted |
N/A
|
Company Profile
West African Resources Ltd
Country
Industry
Market Cap
Dividend Yield
Description
West African Resources Ltd. engages in exploration and development of mineral properties. The company is headquartered in Subiaco, Western Australia. The company went IPO on 2010-06-11. The firm is principally engaged in developing and operating its key asset, the Sanbrado Gold Project, located in Burkina Faso. The Company’s operating segments include Mining Operations and Exploration. The Sanbrado Gold project is located approximately 90 kilometers east-southeast of Ouagadougou, the capital of Burkina Faso. The Sanbrado covers an aggregate area of approximately 116 square kilometer, comprising one granted mining permit and one granted exploration license. The Sanbrado also includes several open pits, all within one to two kilometers of the plant site, and an underground mine accessed through a box-cut and portal immediately to the southwest of the M1 South open pit. Its projects also include Toega Gold Project, which is located 14 kilometers from its existing Sanbrado gold operation.
Contact
IPO
Employees
Officers
The intrinsic value of one
WAF
stock under the Base Case scenario is
3.438
AUD.
Compared to the current market price of 1.315 AUD,
West African Resources Ltd
is
Undervalued by 62%.
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