Metals Corp (MTAL) AI Stock Analysis

• Market Cap: $1.01B
• Dividend Yield: N/A
• Average Volume (3M): 573.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 506
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Shell Companies
• EPS (TTM): 0.13
• Shares Outstanding: 82,462,036
• 10 Day Avg. Volume: 480,774
• 30 Day Avg. Volume: 573,576
• PEG Ratio: 0.00
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -308.71
• Enterprise Value/Market Cap: 0.32
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 2.73
• Enterprise Value/Ebitda: 0.70
• 1Y Price Target: $12.52
• Price Target Upside: 2.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: $13.50 ▲(10.66%Upside)

Metals Corp's overall stock score is driven by strong operational improvements and positive momentum, despite ongoing profitability challenges. The earnings call provided confidence in future growth, although valuation concerns due to the negative P/E ratio and lack of dividend are notable.

Positive Factors

Acquisition

Several key shareholders, who collectively own about 20% of the shares outstanding, have confirmed that they will vote in favor of the acquisition.

Financial Performance

MAC paid off the Mezz facility and upsized its revolving credit facility to US$125m, resulting in a ~30% reduction in debt costs.

Operational Improvements

MTAL has been focused on improving operations by increasing throughput, reducing dilution, and reducing costs by driving productivity.

Negative Factors

Bid Valuation

While a bump or alternative bid is possible, it is not expected to be a material increase to the approximately 32% premium offered by Harmony.

Stock Rating

The stock is downgraded to Market Perform due to insufficient upside to the target price.

Target Price

Our target price has been adjusted to $12.25 from $11.00 to reflect the bid made by Harmony Gold.

Metals Corp Business Overview & Revenue Model

Company Description

Metals Acquisition Corp does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. The company intends to focus its search on metals and mining businesses. Metals Acquisition Corp was incorporated in 2021 and is based in Fort Worth, Texas.

How the Company Makes Money

Metals Corp generates revenue primarily through the sale of its extracted and processed metal products. The company operates large-scale mining operations to extract raw materials, which are then processed in its facilities to produce refined metals. These metals are sold to various industries that require them for manufacturing and construction purposes. Additionally, Metals Corp engages in strategic partnerships with industrial firms, enhancing its distribution network and securing long-term supply contracts. The company also invests in research and development to innovate new metal products and improve operational efficiencies, which can lead to cost savings and increased profit margins.

Metals Corp Financial Statement Overview

Summary

Metals Corp is on a positive trajectory with significant revenue growth and improved operational margins. The balance sheet reflects moderate leverage and a stable equity position. Although profitability metrics are still recovering, cash flow improvements provide a promising outlook. Continued focus on enhancing profitability and cash flows will be key for sustained financial health.

Income Statement

Metals Corp has demonstrated significant revenue growth, with TTM (Trailing-Twelve-Months) revenue increasing from the previous year. Gross profit margin improved to 34.44% from 11.22%, and EBIT margin turned positive at 22.61% compared to negative in the past. However, the net profit margin remains negative at -20.61%, indicating ongoing profitability challenges despite operational improvements.

Balance Sheet

The company shows a solid equity ratio of 40.28% in TTM, indicating a stable financial structure. The debt-to-equity ratio is 0.73, which is relatively moderate for the mining industry. Return on equity remains negative due to continued net losses, but improvements in operational performance suggest potential future profitability.

Cash Flow

Metals Corp's free cash flow turned positive to $56.33M in TTM from a negative position. The operating cash flow to net income ratio shows improvement, though the free cash flow to net income ratio is impacted by negative net income. Continued positive cash flow generation is crucial for financial stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
340.74M	159.00M	0.00	0.00
	Gross Profit
117.34M	17.83M	-2.12M	0.00
	EBIT
77.04M	-74.95M	-9.97M	-1.12M
	EBITDA
59.02M	-72.23M	-4.74M	10.81M
	Net Income Common Stockholders
-81.69M	-144.55M	-13.28M	10.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
171.90M	32.37M	42.31K	954.97K
	Total Assets
1.41B	1.31B	270.19M	266.64M
	Total Debt
413.75M	411.44M	786.10K	0.00
	Net Debt
241.85M	409.07M	743.78K	-954.97K
	Total Liabilities
840.63M	1.04B	25.68M	18.32M
	Stockholders Equity
566.96M	268.03M	244.52M	248.31M
Cash Flow		Free Cash Flow
56.33M	-36.86M	-2.90M	-1.04M
	Operating Cash Flow
116.74M	-11.71M	-2.90M	-1.04M
	Investing Cash Flow
-165.34M	-779.11M	0.00	-265.15M
	Financing Cash Flow
194.90M	823.14M	1.99M	267.14M

Metals Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.20
• 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 MTAL, the sentiment is Positive. The current price of 12.2 is above the 20-day moving average (MA) of 11.57, above the 50-day MA of 10.03, and above the 200-day MA of 11.13, indicating a bullish trend. The MACD of 0.65 indicates Positive momentum. The RSI at 69.08 is Neutral, neither overbought nor oversold. The STOCH value of 20.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTAL.

Metals Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTAL	66 Neutral	$1.01B	―	-53.93%	―	―	―
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%
AACT		$699.01M	31.27	4.34%	―	―	―
ANSC		$465.32M	56.43	2.40%	―	―	―
CLBR		$315.77M	77.96	2.38%	―	―	―
LEGT		$230.07M	―	4.77%	―	―	―
GPAT		$380.58M	32.70	8.15%	―	―	―