Majestic Gold (MJS) AI Stock Analysis

• Market Cap: C$114.69M
• Dividend Yield: N/A
• Average Volume (3M): 624.13K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.48
• Revenue Growth: 30.95%
• EPS Growth: 32.65%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Gold
• EPS (TTM): 0.01
• Shares Outstanding: 1,042,664,400
• 10 Day Avg. Volume: 687,070
• 30 Day Avg. Volume: 624,126
• PEG Ratio: 0.26
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.15
• Price to Cash Flow (P/CF): 2.50
• P/FCF Ratio: 2.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Majestic Gold's strong financial performance, positive technical trends, and strategic growth initiatives contribute to a robust stock evaluation. While the company shows potential undervaluation, the absence of a dividend yield may limit its appeal to certain investors. Overall, the company is well-positioned for future growth.

Majestic Gold Business Overview & Revenue Model

Company Description

Majestic Gold (MJS) is a gold mining and exploration company dedicated to the extraction and production of gold. Operating primarily in the mining sector, Majestic Gold focuses on identifying, acquiring, and developing gold-rich properties. The company is committed to sustainable mining practices, ensuring environmental responsibility while maximizing mineral extraction from its assets. Its core products include raw and refined gold, which are sold to various markets, including jewelry manufacturers, financial institutions, and industrial sectors.

How the Company Makes Money

Majestic Gold generates revenue primarily through the extraction and sale of gold. The company's key revenue streams include the sale of raw gold ore and processed gold to various buyers, including jewelry manufacturers, financial institutions, and industrial clients. Majestic Gold may also engage in forward sales or hedging contracts to stabilize its income against market fluctuations. Additionally, strategic partnerships with other mining companies or technology providers can enhance its operational efficiency and profitability. Factors contributing to its earnings include gold market prices, operational efficiency, and the successful management of its mining operations.

Majestic Gold Financial Statement Overview

Summary

Majestic Gold demonstrates a solid financial foundation with strong operational margins and a stable balance sheet. Revenue growth is promising, yet net income has not followed the same trajectory, indicating potential profitability issues. The company maintains low leverage and a robust equity position, supporting long-term financial health. Cash flow performance is satisfactory with opportunities for improvement.

Income Statement

Majestic Gold shows consistent revenue growth with a notable increase from $55 million to $66 million in the TTM. The gross profit margin is strong at 56.7%, although the net profit margin remains modest at 14.2%. EBIT and EBITDA margins are robust, indicating efficient operations. However, net income has decreased compared to the previous year, pointing to potential profitability challenges.

Balance Sheet

The balance sheet is solid with a very low debt-to-equity ratio due to minimal debt levels, enhancing financial stability. The equity ratio is strong at 59.2%, reflecting a healthy capital structure. Return on equity is modest at 8.2%, indicating room for improving shareholder returns. Overall, the company maintains a stable financial position.

Cash Flow

The operating cash flow to net income ratio is strong, suggesting effective cash generation from operations. Free cash flow growth is positive at 11.1%, indicating good cash management, but it could be higher. The free cash flow to net income ratio shows efficient conversion of profits into cash, though there's potential to enhance cash flow dynamics further.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
66.19M	55.03M	63.47M	38.45M	52.36M	32.30M
	Gross Profit
37.53M	34.75M	33.88M	21.71M	28.18M	17.33M
	EBIT
26.50M	18.83M	27.86M	12.68M	24.09M	13.67M
	EBITDA
35.94M	26.35M	35.19M	18.21M	30.10M	12.03M
	Net Income Common Stockholders
9.41M	7.56M	17.42M	7.72M	15.06M	1.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.30M	15.21M	12.31M	6.35M	33.77M	23.92M
	Total Assets
188.31M	187.23M	139.61M	128.04M	126.72M	98.68M
	Total Debt
4.28M	4.29M	4.38M	4.81M	4.60M	12.92M
	Net Debt
-41.03M	-10.92M	-546.99K	-1.54M	-29.18M	-11.00M
	Total Liabilities
31.45M	34.93M	30.27M	35.23M	36.62M	28.93M
	Stockholders Equity
107.86M	105.75M	87.05M	82.40M	76.72M	64.58M
Cash Flow		Free Cash Flow
15.19M	13.67M	22.85M	6.51M	19.36M	5.53M
	Operating Cash Flow
23.36M	24.49M	30.29M	15.46M	36.82M	6.46M
	Investing Cash Flow
-1.19M	-3.67M	-15.10M	-8.04M	-19.93M	-814.59K
	Financing Cash Flow
22.77M	32.04M	-1.48M	-6.95M	-8.88M	-1.33M

Majestic Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MJS, the sentiment is Positive. The current price of 0.11 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.21 is Neutral, neither overbought nor oversold. The STOCH value of 76.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MJS.

Majestic Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNT	81 Outperform	C$3.12B	20.10	26.82%	―	77.93%	236.93%
MJS	79 Outperform	C$114.69M	8.46	9.20%	―	30.95%	32.65%
Sector *	48 Neutral	$1.91B	-1.66	-22.29%	3.86%	0.68%	-27.44%
AMX	46 Neutral	C$124.54M	117.05	1.20%	―	―	―
ELO	35 Underperform	C$85.87M	―	-17.56%	―	―	13.39%

Majestic Gold Corporate Events

Majestic Gold Corp. Reports Strong 2024 Financial Results and Strategic Expansion

Majestic Gold Corp. reported a significant financial performance for the year ending December 31, 2024, with a net income of $20.5 million, marking a 68% increase from the previous year. The company’s revenue rose to $71 million, driven by a 23.3% increase in the average realized gold sales price. Despite challenges from ongoing expansion work at the SJG open pit, gold production increased by 3.6% to 31,949 ounces. The company maintained a strong financial position with cash reserves of $100.7 million and working capital of $86.3 million. Majestic also expanded its operations by acquiring a 52% equity stake in Yantai City Mujin Mining Company Limited and the Muping Gold Project, indicating strategic growth and investment in new projects.

Majestic Gold Completes Strategic Acquisition of Muping Gold Project

Majestic Gold Corp. has completed the acquisition of a 52% interest in the Target Company and the Muping Gold Project through its subsidiary, Persistence Resources Group Ltd. This acquisition makes Majestic the controlling shareholder, allowing it to consolidate the Target Company’s financial results into its own statements, potentially enhancing its market position and operational scale.