Majestic Gold (MJS) AI Stock Analysis

• Market Cap: C$145.97M
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.41
• Revenue Growth: 30.95%
• EPS Growth: 32.65%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Gold
• EPS (TTM): N/A
• Shares Outstanding: 1,042,664,400
• 10 Day Avg. Volume: 986,384
• 30 Day Avg. Volume: 1,171,692
• PEG Ratio: 0.58
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.29
• 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

• Rating: 79 Outperform
• Price Target: C$0.00 ▼(-100.00%Downside)

Majestic Gold's overall stock score is driven by its strong financial performance, robust technical indicators, and strategic corporate events, which all contribute to a positive outlook. The reasonable valuation supports further growth potential despite the absence of dividend yield. The company is well-positioned in the market, leveraging its strong cash flows and strategic expansions.

Majestic Gold Business Overview & Revenue Model

Company Description

Majestic Gold (MJS) is a mining company that operates within the precious metals sector, primarily focusing on the extraction, development, and production of gold. The company owns and manages multiple mining sites, utilizing advanced technology and sustainable practices to optimize gold recovery and ensure environmental responsibility. Majestic Gold is committed to delivering high-quality gold products to meet the demands of global markets.

How the Company Makes Money

Majestic Gold makes money through the exploration, extraction, and sale of gold. Its primary revenue stream comes from selling the gold produced at its mining sites to refineries, gold dealers, and through direct sales to jewelry manufacturers and investors. The company may also engage in hedging strategies, entering into forward contracts to stabilize revenue against gold price fluctuations. Additionally, partnerships with other mining firms and investments in joint ventures can contribute to its earnings by expanding its operational capabilities and reducing costs through shared resources.

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: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.14 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.11, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.79 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, 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
MJS	79 Outperform	C$145.97M	10.77	9.20%	―	30.95%	32.65%
SANU	51 Neutral	C$134.21M	―	2.75%	―	―	60.14%
STLR	51 Neutral	C$94.19M	―	-23.25%	―	―	26.82%
Sector *	50 Neutral	$2.00B	-1.14	-21.15%	3.68%	2.17%	-31.00%
AMX	46 Neutral	C$165.26M	118.75	-1.27%	―	―	-169.35%
TUD	39 Underperform	C$132.90M	―	-5.21%	―	―	36.41%
NCAU	38 Underperform	C$157.28M	―	-9.41%	―	―	-64.81%

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.