CENTERRA GOLD INC (CG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CG - CA1520061021 - Common Stock
25.19 CAD
+0.26 (+1.04%)
We assign a fundamental rating of 7 out of 10 to CG. CG was compared to 820 industry peers in the Metals & Mining industry. CG gets an excellent profitability rating and is at the same time showing great financial health properties. CG scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, CG could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- CG had positive earnings in the past year.
- In the past year CG had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: CG reported negative net income in multiple years.
- Of the past 5 years CG 4 years had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 12.59%, CG belongs to the best of the industry, outperforming 94.86% of the companies in the same industry.
- CG's Return On Equity of 17.46% is amongst the best of the industry. CG outperforms 94.74% of its industry peers.
- The Return On Invested Capital of CG (9.87%) is better than 93.88% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CG is significantly below the industry average of 12.04%.
- The last Return On Invested Capital (9.87%) for CG is above the 3 year average (5.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.59% | ||
| ROE | 17.46% | ||
| ROIC | 9.87% |
ROA(3y)-1.11%
ROA(5y)-0.91%
ROE(3y)-1.42%
ROE(5y)-1.28%
ROIC(3y)5.2%
ROIC(5y)6.35%
1.3 Margins
- Looking at the Profit Margin, with a value of 26.35%, CG belongs to the top of the industry, outperforming 95.96% of the companies in the same industry.
- With an excellent Operating Margin value of 24.73%, CG belongs to the best of the industry, outperforming 93.27% of the companies in the same industry.
- CG's Operating Margin has improved in the last couple of years.
- CG has a Gross Margin of 29.57%. This is amongst the best in the industry. CG outperforms 90.82% of its industry peers.
- In the last couple of years the Gross Margin of CG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.73% | ||
| PM (TTM) | 26.35% | ||
| GM | 29.57% |
OM growth 3Y5.12%
OM growth 5Y14.8%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.36%
GM growth 5Y-1.39%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CG is still creating some value.
- The number of shares outstanding for CG has been reduced compared to 1 year ago.
- CG has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CG has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.74 indicates that CG is not in any danger for bankruptcy at the moment.
- CG has a Altman-Z score (4.74) which is comparable to the rest of the industry.
- CG has a debt to FCF ratio of 0.14. This is a very positive value and a sign of high solvency as it would only need 0.14 years to pay back of all of its debts.
- The Debt to FCF ratio of CG (0.14) is better than 96.33% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that CG is not too dependend on debt financing.
- CG has a Debt to Equity ratio (0.01) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 4.74 |
ROIC/WACC1.03
WACC9.59%
2.3 Liquidity
- A Current Ratio of 2.89 indicates that CG has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.89, CG is in the better half of the industry, outperforming 61.81% of the companies in the same industry.
- CG has a Quick Ratio of 2.10. This indicates that CG is financially healthy and has no problem in meeting its short term obligations.
- CG has a Quick ratio (2.10) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
- CG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.57%.
- Measured over the past 5 years, CG shows a small growth in Earnings Per Share. The EPS has been growing by 3.32% on average per year.
- Looking at the last year, CG shows a small growth in Revenue. The Revenue has grown by 2.66% in the last year.
- Measured over the past years, CG shows a decrease in Revenue. The Revenue has been decreasing by -2.46% on average per year.
EPS 1Y (TTM)3.57%
EPS 3Y-2.18%
EPS 5Y3.32%
EPS Q2Q%77.78%
Revenue 1Y (TTM)2.66%
Revenue growth 3Y10.5%
Revenue growth 5Y-2.46%
Sales Q2Q%22%
3.2 Future
- Based on estimates for the next years, CG will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.59% on average per year.
- The Revenue is expected to grow by 2.44% on average over the next years.
EPS Next Y42.04%
EPS Next 2Y43.82%
EPS Next 3Y28.68%
EPS Next 5Y13.59%
Revenue Next Year10.21%
Revenue Next 2Y11.41%
Revenue Next 3Y9.84%
Revenue Next 5Y2.44%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 20.99, which indicates a rather expensive current valuation of CG.
- CG's Price/Earnings ratio is rather cheap when compared to the industry. CG is cheaper than 93.76% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, CG is valued a bit cheaper.
- CG is valuated correctly with a Price/Forward Earnings ratio of 12.12.
- Based on the Price/Forward Earnings ratio, CG is valued cheaper than 93.15% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of CG to the average of the S&P500 Index (25.98), we can say CG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.99 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CG is valued cheaper than 96.94% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CG is valued cheaper than 95.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.38 | ||
| EV/EBITDA | 7.17 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of CG may justify a higher PE ratio.
- CG's earnings are expected to grow with 28.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)6.32
EPS Next 2Y43.82%
EPS Next 3Y28.68%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.12%, CG has a reasonable but not impressive dividend return.
- CG's Dividend Yield is rather good when compared to the industry average which is at 0.56. CG pays more dividend than 97.43% of the companies in the same industry.
- CG's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
- On average, the dividend of CG grows each year by 18.78%, which is quite nice.
- CG has paid a dividend for at least 10 years, which is a reliable track record.
- CG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)18.78%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- 12.28% of the earnings are spent on dividend by CG. This is a low number and sustainable payout ratio.
- The dividend of CG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP12.28%
EPS Next 2Y43.82%
EPS Next 3Y28.68%
CENTERRA GOLD INC / CG.CA FAQ
Can you provide the ChartMill fundamental rating for CENTERRA GOLD INC?
ChartMill assigns a fundamental rating of 7 / 10 to CG.CA.
What is the valuation status for CG stock?
ChartMill assigns a valuation rating of 8 / 10 to CENTERRA GOLD INC (CG.CA). This can be considered as Undervalued.
Can you provide the profitability details for CENTERRA GOLD INC?
CENTERRA GOLD INC (CG.CA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for CG stock?
The Price/Earnings (PE) ratio for CENTERRA GOLD INC (CG.CA) is 20.99 and the Price/Book (PB) ratio is 1.9.
How sustainable is the dividend of CENTERRA GOLD INC (CG.CA) stock?
The dividend rating of CENTERRA GOLD INC (CG.CA) is 5 / 10 and the dividend payout ratio is 12.28%.