Mongolia Growth Group (YAK) AI Stock Analysis

• Market Cap: C$26.44M
• Dividend Yield: N/A
• Average Volume (3M): 9.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -26.88%
• EPS Growth: 41.25%
• Country: CA
• Employees: 30
• Sector: Real Estate
• Sector Strength: 76
• Industry: Real Estate - Services
• EPS (TTM): -0.29
• Shares Outstanding: 25,667,300
• 10 Day Avg. Volume: 12,173
• 30 Day Avg. Volume: 9,618
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

Mongolia Growth Group's stock is currently facing challenges, primarily due to its weak financial performance marked by negative profitability and cash flow issues. Additionally, technical indicators reflect a downward trend. While the share buyback program is a positive development, it does not significantly offset the financial and technical weaknesses. Investors should exercise caution given the current financial and market conditions.

Mongolia Growth Group Business Overview & Revenue Model

Company Description

Mongolia Growth Group Ltd. (YAK) is a Canadian publicly traded company focused on the real estate sector in Mongolia. The company primarily engages in the acquisition, development, and management of retail, residential, and office properties in Ulaanbaatar, Mongolia's capital and largest city. Through its real estate holdings, Mongolia Growth Group aims to capitalize on the economic growth and urbanization trends within the country.

How the Company Makes Money

Mongolia Growth Group makes money through leasing its real estate properties, including retail, residential, and office spaces, to tenants in Ulaanbaatar. The company generates revenue by collecting rent from its tenants, which provides a consistent stream of income. Additionally, the company may engage in the sale of property assets when market conditions are favorable, which can result in capital gains. Key factors contributing to its earnings include the performance of the Mongolian real estate market, occupancy rates, rental rate trends, and the overall economic environment in Mongolia. The company may also explore partnerships or joint ventures to enhance its portfolio and expand its revenue streams.

Mongolia Growth Group Financial Statement Overview

Summary

Mongolia Growth Group faces challenges with profitability and cash flow management, despite maintaining a strong balance sheet with significant equity and minimal debt. The negative trends in income and cash flows highlight risks in operational and cost management, requiring strategic adjustments to improve financial health and sustainability.

Income Statement

The company has struggled with consistent revenue growth, showing a decline in revenue from previous periods. Both EBIT and EBITDA margins are negative, indicating operational inefficiencies or high costs relative to revenue. The net profit margin is also negative, reflecting ongoing losses. While some gross profit is generated, it is insufficient to cover operating expenses, resulting in negative profitability metrics.

Balance Sheet

The company maintains a strong equity position with a high equity ratio and minimal debt, reflected in a debt-to-equity ratio of zero for TTM. However, the return on equity is negative due to net losses, which weighs on overall balance sheet strength. The strong cash position supports liquidity but is offset by ongoing operational losses.

Cash Flow

The company's cash flow from operations is negative, indicating challenges in generating cash through core activities. Free cash flow is also negative, highlighting the company’s reliance on cash reserves. The ratios comparing cash flow to net income are unfavorable, further stressing liquidity concerns despite a strong cash position.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
3.32M	3.93M	1.78M	931.22K	1.14M
	Gross Profit
3.24M	3.05M	1.68M	853.95K	1.03M
	EBIT
-79.42K	-10.84M	-18.87M	-1.17M	-1.21M
	EBITDA
-408.97K	255.00K	-1.32M	-1.11M	-1.13M
	Net Income Common Stockholders
-13.18M	7.94M	15.55M	3.73M	-3.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.49M	51.29M	40.20M	11.98M	4.43M
	Total Assets
58.20M	64.56M	55.03M	27.97M	26.08M
	Total Debt
20.00K	60.00K	60.00K	40.00K	0.00
	Net Debt
-7.03M	-1.99M	-2.34M	-1.32M	-737.25K
	Total Liabilities
9.03M	18.43M	14.85M	1.12M	1.41M
	Stockholders Equity
49.16M	46.12M	40.18M	26.85M	24.67M
Cash Flow		Free Cash Flow
-4.28M	-1.84M	7.73M	-354.52K	-504.38K
	Operating Cash Flow
-4.28M	-1.13M	8.99M	-353.81K	-502.84K
	Investing Cash Flow
12.68M	1.32M	-5.77M	1.77M	1.49M
	Financing Cash Flow
-814.05K	-456.99K	-2.14M	-886.01K	-801.20K

Mongolia Growth Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:YAK, the sentiment is Negative. The current price of 1.1 is above the 20-day moving average (MA) of 1.06, below the 50-day MA of 1.12, and below the 200-day MA of 1.33, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 35.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:YAK.

Mongolia Growth Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEK.B	75 Outperform	C$24.01M	8.17	8.86%	6.03%	1.61%	251.38%
Sector *	60 Neutral	$2.79B	11.37	0.20%	8519.74%	6.07%	-14.95%
BRE	48 Neutral	C$135.71M	―	4.67%	9.30%	622.68%	-395.54%
IEI	47 Neutral	C$34.02M	―	-1.46%	2.22%	-2.71%	-172.51%
YAK	46 Neutral	C$26.44M	―	-16.12%	―	-26.88%	41.25%

Mongolia Growth Group Corporate Events

Mongolia Growth Group Renews Share Buyback Program

Mongolia Growth Group Ltd. has announced the renewal of its normal course issuer bid, allowing the company to purchase up to 1,700,000 of its common shares over the next 12 months. This move is aimed at enhancing market stability and reflecting the company’s belief that its share price may not fully represent its underlying value and growth prospects. The company may sell investment properties to finance these purchases, and the shares will be bought for cancellation on the open market, subject to TSX Venture Exchange approval.