Is Caledonia Mining Stock a Good Investment?

Caledonia Mining Investment Advice

  CMCL
To provide specific investment advice or recommendations on Caledonia Mining stock, we recommend investors consider the following general factors when evaluating Caledonia Mining. This will help you to make an informed decision on whether to include Caledonia Mining in one of your diversified portfolios:
  • Examine Caledonia Mining's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Caledonia Mining's leadership team and their track record. Good management can help Caledonia Mining navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Metals & Mining space and any emerging trends that could impact Caledonia Mining's business and its evolving consumer preferences.
  • Compare Caledonia Mining's performance and market position to its competitors. Analyze how Caledonia Mining is positioned in terms of product offerings, innovation, and market share.
  • Check if Caledonia Mining pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Caledonia Mining's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Caledonia Mining stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Caledonia Mining is a good investment.
 
Sell
 
Buy
Strong Sell
Our trade advice tool can cross-verify current analyst consensus on Caledonia Mining and to analyze the company potential to grow in the current economic cycle. To make sure Caledonia Mining is not overpriced, please confirm all Caledonia Mining fundamentals, including its number of shares shorted, cash and equivalents, earnings per share, as well as the relationship between the revenue and current ratio . Given that Caledonia Mining has a number of shares shorted of 170.84 K, we suggest you to validate Caledonia Mining market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance

Very WeakDetails

Volatility

Not too volatileDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

FrailDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Caledonia Mining Stock

Researching Caledonia Mining's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 15.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.83. Some equities with similar Price to Book (P/B) outperform the market in the long run. Caledonia Mining last dividend was issued on the 22nd of November 2024. The entity had 1:5 split on the 27th of June 2017.
To determine if Caledonia Mining is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Caledonia Mining's research are outlined below:
Caledonia Mining generated a negative expected return over the last 90 days
The company reported the previous year's revenue of 138.68 M. Net Loss for the year was (4.2 M) with profit before overhead, payroll, taxes, and interest of 62.72 M.
Caledonia Mining has a frail financial position based on the latest SEC disclosures
About 15.0% of the company shares are held by company insiders
Latest headline from globenewswire.com: Caledonia Mining Corporation Plc Notifications of relevant change to significant shareholder

Caledonia Mining Quarterly Liabilities And Stockholders Equity

315.25 Million

Caledonia Mining uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Caledonia Mining. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Caledonia Mining's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
22nd of March 2024
Upcoming Quarterly Report
View
31st of December 2023
Next Fiscal Quarter End
View
Earnings surprises can significantly impact Caledonia Mining's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Caledonia Mining's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2022-08-11
2022-06-300.670.750.0811 
2021-03-22
2020-12-310.670.750.0811 
2020-08-13
2020-06-300.460.37-0.0919 
2020-05-12
2020-03-310.340.570.2367 
2020-11-12
2020-09-300.680.29-0.3957 
2020-03-18
2019-12-310.540.12-0.4277 

Caledonia Mining's market capitalization trends

The company currently falls under 'Small-Cap' category with a current market capitalization of 206.17 M.

Market Cap

214.73 Million

Caledonia Mining's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets(0.01)(0.01)
Return On Capital Employed 0.05  0.06 
Return On Assets(0.01)(0.01)
Return On Equity(0.02)(0.02)
The company has Profit Margin (PM) of 0.06 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.27 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.27.
Determining Caledonia Mining's profitability involves analyzing its financial statements and using various financial metrics to determine if Caledonia Mining is a good buy. For example, gross profit margin measures Caledonia Mining's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Caledonia Mining's profitability and make more informed investment decisions.

Evaluate Caledonia Mining's management efficiency

Caledonia Mining has return on total asset (ROA) of 0.0876 % which means that it generated a profit of $0.0876 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.0526 %, meaning that it created $0.0526 on every $100 dollars invested by stockholders. Caledonia Mining's management efficiency ratios could be used to measure how well Caledonia Mining manages its routine affairs as well as how well it operates its assets and liabilities. Return On Capital Employed is expected to rise to 0.06 this year, although the value of Return On Tangible Assets will most likely fall to (0.01). At this time, Caledonia Mining's Intangible Assets are quite stable compared to the past year. Net Tangible Assets is expected to rise to about 194.8 M this year, although Tangible Asset Value will most likely fall to about 18.5 M.
Last ReportedProjected for Next Year
Book Value Per Share 14.18  13.48 
Tangible Asset Value35.3 M18.5 M
Tangible Book Value Per Share 14.18  28.30 
Enterprise Value Over EBITDA 8.27  14.25 
Price Book Value Ratio 0.95  1.54 
Enterprise Value Multiple 8.27  14.25 
Price Fair Value 0.95  1.54 
Enterprise Value221 M232.1 M
Caledonia Mining showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.
Dividend Yield
0.0522
Forward Dividend Yield
0.0522
Forward Dividend Rate
0.56
Beta
0.72

Basic technical analysis of Caledonia Stock

As of the 23rd of November, Caledonia Mining shows the Risk Adjusted Performance of (0.05), mean deviation of 2.13, and Standard Deviation of 2.96. Caledonia Mining technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Caledonia Mining standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and kurtosis to decide if Caledonia Mining is priced correctly, providing market reflects its regular price of 10.73 per share. Given that Caledonia Mining has information ratio of (0.11), we suggest you to validate Caledonia Mining's prevailing market performance to make sure the company can sustain itself at a future point.

Caledonia Mining's Outstanding Corporate Bonds

Caledonia Mining issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Caledonia Mining uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Caledonia bonds can be classified according to their maturity, which is the date when Caledonia Mining has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Caledonia Mining's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Caledonia Mining's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Caledonia Mining's intraday indicators

Caledonia Mining intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Caledonia Mining stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Caledonia Mining Corporate Filings

6K
21st of November 2024
A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.
ViewVerify
26th of September 2024
Other Reports
ViewVerify
9th of August 2024
Other Reports
ViewVerify
Caledonia Mining time-series forecasting models is one of many Caledonia Mining's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Caledonia Mining's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Caledonia Stock media impact

Far too much social signal, news, headlines, and media speculation about Caledonia Mining that are available to investors today. That information is available publicly through Caledonia media outlets and privately through word of mouth or via Caledonia internal channels. However, regardless of the origin, that massive amount of Caledonia data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Caledonia Mining news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Caledonia Mining relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Caledonia Mining's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Caledonia Mining alpha.

Caledonia Mining Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Caledonia Mining can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Caledonia Mining Corporate Management

When determining whether Caledonia Mining is a strong investment it is important to analyze Caledonia Mining's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Caledonia Mining's future performance. For an informed investment choice regarding Caledonia Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Caledonia Mining. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
For more information on how to buy Caledonia Stock please use our How to buy in Caledonia Stock guide.
You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Is Metals & Mining space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Caledonia Mining. If investors know Caledonia will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Caledonia Mining listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.50)
Dividend Share
0.56
Earnings Share
0.48
Revenue Per Share
8.621
Quarterly Revenue Growth
0.14
The market value of Caledonia Mining is measured differently than its book value, which is the value of Caledonia that is recorded on the company's balance sheet. Investors also form their own opinion of Caledonia Mining's value that differs from its market value or its book value, called intrinsic value, which is Caledonia Mining's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Caledonia Mining's market value can be influenced by many factors that don't directly affect Caledonia Mining's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Caledonia Mining's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Caledonia Mining is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Caledonia Mining's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.