Majestic Gold (MJS) AI Stock Analysis

• Market Cap: C$187.68M
• Dividend Yield: 8.87%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.75
• Revenue Growth: 28.21%
• EPS Growth: -9.76%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): N/A
• Shares Outstanding: 1,042,664,400
• 10 Day Avg. Volume: 855,354
• 30 Day Avg. Volume: 1,018,969
• PEG Ratio: 0.18
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 2.82
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$0.24 ▲(51.87% Upside)

The score is driven primarily by solid financial fundamentals (strong operating margins and low leverage), tempered by weakening profitability trends (declining net margin and ROE) and a meaningful drop in free cash flow. Technicals are trend-positive with price above key averages, but very overbought RSI/Stoch readings increase near-term pullback risk. Valuation is supported by a moderate P/E and a high dividend yield.

Positive Factors

High Operating Margins

Sustained high gross and EBITDA margins indicate structurally efficient mining operations and cost control. These margins provide persistent buffer against commodity price swings, support internal funding for development and dividends, and improve long-term resilience and reinvestment capacity.

Conservative Leverage

Very low leverage reduces financial risk in cyclical commodity markets and preserves balance sheet flexibility. This conservative capital structure supports funding for capex or acquisitions without stressing liquidity, enabling sustained operations through downcycles and strategic investments.

Positive Revenue Growth & Cash Generation

Modest top-line expansion alongside positive operating cash flow signals ongoing demand and basic cash-generative operations. Over months, this combination underpins the firm's ability to fund maintenance capex, exploration and working capital without relying on external financing.

Negative Factors

Declining Profitability Metrics

A falling net margin and declining ROE point to deteriorating returns on capital and lower conversion of revenue into shareholder value. If persistent, this can constrain reinvestment, lower capital efficiency, and reduce appeal to investors seeking durable returns over the medium term.

Falling Free Cash Flow

A sizable drop in free cash flow reduces the company's capacity to self-fund growth, exploration, and distributions. Over several months, weaker FCF limits strategic optionality, heightens reliance on external capital for projects, and can pressure liquidity during commodity downturns.

Negative EPS Growth

Negative EPS growth signals shrinking earnings per share, potentially from margin pressure, rising costs, or dilution. Persisting EPS declines erode shareholder returns, make dividend sustainability less certain, and can hinder the company's ability to raise equity on favorable terms.

Majestic Gold Business Overview & Revenue Model

Company Description

Majestic Gold (MJS) is a prominent player in the gold mining sector, primarily focused on the exploration, development, and production of gold resources. The company operates in regions with rich mineral deposits, leveraging advanced mining techniques and technologies to optimize extraction processes. MJS is committed to sustainable practices and aims to deliver high-quality gold products to meet the growing global demand for precious metals.

How the Company Makes Money

Majestic Gold generates revenue primarily through the sale of gold and gold-related products. The company operates mining sites where it extracts gold ore, which is then processed and refined into pure gold for sale on the open market. Key revenue streams include direct sales of gold bullion to wholesalers, precious metal exchanges, and jewelry manufacturers. Additionally, MJS may engage in strategic partnerships with other mining companies or trading firms to enhance its market reach and operational efficiency, further contributing to its earnings. The company's financial performance is also influenced by global gold prices, which can fluctuate based on market demand, geopolitical factors, and economic conditions.

Majestic Gold Financial Statement Overview

Summary

Solid operating efficiency and margins (gross margin 50.62%, EBIT margin 40.59%, EBITDA margin 55.78%) and conservative leverage (debt-to-equity 0.15). Offsetting factors include declining net profit margin versus prior years, moderate and declining ROE (7.64%), and weaker cash generation with free cash flow down 26.16% TTM.

Income Statement

Majestic Gold shows a solid revenue growth rate of 3.22% TTM, indicating a positive trajectory. The gross profit margin remains strong at 50.62%, and the net profit margin is healthy at 11.19%. However, the net profit margin has decreased from previous years, suggesting some pressure on profitability. EBIT and EBITDA margins are robust at 40.59% and 55.78% respectively, reflecting efficient operations.

Balance Sheet

The company's debt-to-equity ratio is low at 0.15, indicating conservative leverage. Return on equity is moderate at 7.64%, showing a decline from previous years, which could be a concern for investors seeking high returns. The equity ratio is strong, suggesting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow remains positive, but the free cash flow has decreased by 26.16% TTM, which could impact future investments. The operating cash flow to net income ratio is 0.43, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.53, showing a decrease from previous periods, which may affect liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.65M	70.95M	55.02M	63.47M	38.45M	52.36M
Gross Profit	41.84M	36.36M	26.57M	33.88M	21.71M	28.18M
EBITDA	46.10M	36.83M	26.35M	34.01M	18.21M	30.10M
Net Income	8.23M	9.93M	7.56M	11.08M	4.51M	9.43M
Balance Sheet
Total Assets	382.13M	187.93M	187.23M	139.61M	128.04M	126.72M
Cash, Cash Equivalents and Short-Term Investments	145.59M	11.81M	15.21M	12.31M	6.35M	33.77M
Total Debt	24.71M	131.83K	4.29M	4.38M	4.81M	4.60M
Total Liabilities	125.21M	28.21M	34.93M	30.27M	35.23M	36.62M
Stockholders Equity	165.34M	107.93M	105.75M	87.05M	82.40M	76.72M
Cash Flow
Free Cash Flow	15.41M	20.55M	13.67M	22.85M	6.51M	19.36M
Operating Cash Flow	28.93M	28.53M	24.49M	30.29M	15.46M	36.82M
Investing Cash Flow	-14.70M	-8.39M	-3.67M	-15.10M	-8.04M	-19.93M
Financing Cash Flow	-10.26M	-15.47M	32.04M	-1.48M	-6.95M	-8.88M

Majestic Gold Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 0.16 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.17, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 45.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MJS.

Majestic Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MJS	71 Outperform	C$187.68M	17.12	7.20%	8.87%	28.21%	-9.76%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AU	58 Neutral	C$235.32M	-38.26	-7.79%	―	―	-105.98%
RVG	52 Neutral	C$215.28M	-16.16	-22.63%	―	―	-6.54%
MGG	51 Neutral	C$243.75M	-22.12	-89.19%	―	―	-70.87%
NCAU	49 Neutral	C$205.52M	-47.27	-5.92%	―	―	-7.14%
CBR	46 Neutral	C$191.61M	-11.35	-82.70%	―	―	-9300.00%

Majestic Gold Corporate Events

Majestic Gold Corp. Reports Increased Revenue Amidst Production Challenges

Majestic Gold Corp. reported a 22.5% increase in revenue to $63.7 million for the first nine months of 2025, despite a 9.7% decrease in net income to $15.2 million. The company experienced a decrease in gold production to 22,643 ounces and higher production costs, but maintained a strong financial position with cash and cash equivalents of $104.6 million. The completion of a private placement by its Hong Kong subsidiary, Persistence Resources Group Ltd., raised approximately CAD$85.2 million, potentially enhancing its market capitalization and financial flexibility.

Majestic Gold Resumes Operations at Songjiagou Underground Mine

Majestic Gold Corp. has resumed operations at its Songjiagou Underground Mine after successfully renewing its safety production permit, which had expired on September 1, 2025, leading to a temporary suspension. The renewal and resumption of operations are expected to stabilize the company’s production activities and reinforce its position in the gold mining industry, benefiting stakeholders by ensuring continued output and potential profitability.