Monument Mining (TSXV:MMY) Valuation Check After Special Cash Dividend and Strong Share Price Rally
Monument Mining (TSXV:MMY) just declared a special cash dividend of CA$0.02 per share, a direct payout to shareholders that highlights recent cash generation and prompts a fresh look at the stock’s valuation.
See our latest analysis for Monument Mining.
The special dividend comes on top of a powerful run, with the share price returning 341 percent year to date and a 1-year total shareholder return above 350 percent, signaling strong positive momentum.
If Monument’s jump has you thinking more broadly about growth stories in resources, it could be a good moment to explore fast growing stocks with high insider ownership.
With the stock already up several-fold but still trading below its analyst price target, the key question now is whether Monument remains undervalued or if the market is fully pricing in its future growth potential.
On a Price-to-Earnings ratio of 7.2x versus a CA$1.28 share price, Monument Mining appears notably undervalued relative to its peers.
The Price-to-Earnings multiple compares what investors pay today with the company’s current earnings, a key lens for profitable gold producers like Monument. With earnings up sharply and returns on equity at 26.6 percent, such a low multiple suggests the market may be underpricing the durability of recent profit gains.
Compared with the Canadian Metals and Mining peer average of 15.7x and the wider industry’s 21.9x, Monument’s 7.2x earnings multiple looks deeply discounted. This indicates investors are assigning it a materially lower valuation than comparable miners despite its strong profitability profile.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 7.2x (UNDERVALUED)
However, sustaining this strength depends on stable gold prices and consistent production, with any operational setbacks or exploration disappointments risking a sharp valuation reset.
Find out about the key risks to this Monument Mining narrative.
Our DCF model tells an even stronger story than earnings multiples. At CA$1.28, Monument trades about 93 percent below our estimate of fair value at roughly CA$17.28 per share, implying deep undervaluation. Still, can any gold producer really sustain that kind of gap?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Monument Mining for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 904 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
