PERPETUA RESOURCES CORP. (PPTA) Stock Analysis
PERPETUA RESOURCES CORP. (PPTA) Stock Analysis
Overall Grade: F (Concerning)
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PERPETUA RESOURCES CORP. faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | -29.5% | Below expectations |
| FCF Margin | 0.0% | Cash flow pressure |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is PERPETUA RESOURCES CORP.'s Profitability and ROIC?
PERPETUA RESOURCES CORP.'s return on invested capital of -29.5% is below the typical cost of capital.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -29.5% | Red flag | Below cost of capital |
| Return on Equity (ROE) | -17.3% | Red flag | Moderate equity returns |
How Strong is PERPETUA RESOURCES CORP.'s Cash Flow Quality?
PERPETUA RESOURCES CORP. generated $-44.4M in free cash flow over the trailing twelve months, representing a 0.0% margin. Cash earnings quality is strong, with operating cash flow exceeding net income by 1.0x.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | 0.0% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-44.4M | Red flag | Cash burn |
| OCF/Net Income | 1.0x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is PERPETUA RESOURCES CORP.'s Financial Health?
PERPETUA RESOURCES CORP.'s debt-to-equity ratio of 0.0x indicates conservative leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Is PERPETUA RESOURCES CORP. Stock Overvalued or Undervalued?
PERPETUA RESOURCES CORP. trades at a P/E of -40.5x, representing a premium to the sector median of N/A. Free cash flow yield of -2.7% reflects market expectations for growth.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | -40.5x | Red flag | Reasonable valuation |
| EV/Sales | 0.0x | Excellent | Attractive revenue multiple |
| FCF Yield | -2.7% | Warning | Lower cash yield |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -29.5% | Bottom 10% | -2.9x below |
| Free Cash Flow Margin | 0.0% | Bottom 10% | 0.0x below |
| Return on Equity (ROE) | -17.3% | Top 5% | -1.4x below |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: -29.5% (Red flag)
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: 0.0% (Red flag)
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 0.0% (Excellent)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: -2.7% (Red flag)
Frequently Asked Questions
Q: What is PERPETUA RESOURCES CORP.'s Return on Invested Capital (ROIC)?
PERPETUA RESOURCES CORP. (PPTA) has a trailing twelve-month Return on Invested Capital (ROIC) of -29.5%. This compares below the sector median of 10.2%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is PERPETUA RESOURCES CORP.'s Free Cash Flow Margin?
PERPETUA RESOURCES CORP. (PPTA) has a free cash flow margin of 0.0%, generating $-44.4 million in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is PERPETUA RESOURCES CORP. stock overvalued or undervalued?
PERPETUA RESOURCES CORP. (PPTA) trades at a P/E ratio of -40.5x, which is above the sector median of N/A. The EV/Sales multiple is 0.0x.
Q: What is PERPETUA RESOURCES CORP.'s revenue and earnings growth?
PERPETUA RESOURCES CORP. (PPTA) Earnings per share increased by 28.6% compared to the prior year.
Q: How does PERPETUA RESOURCES CORP. compare to competitors in Materials?
Compared to other companies in Materials, PERPETUA RESOURCES CORP. (PPTA) shows: ROIC of -29.5% is below the sector median of 10.2% (-2.9x median). FCF margin of 0.0% trails the sector median of 4.7%. These rankings are based on MetricDuck's analysis of all Materials companies with available SEC filings.
Q: What warning signs should I watch for with PERPETUA RESOURCES CORP.?
Investors in PERPETUA RESOURCES CORP. (PPTA) should monitor these potential warning signs: 1) FCF margin is thin at 0.0%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-14. TTM metrics as of Q3 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.