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 817 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making CG a very profitable company, without any liquidiy or solvency issues. CG is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make CG a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- In the past year CG was profitable.
- CG had a positive operating cash flow in the past year.
- In multiple years CG reported negative net income over the last 5 years.
- Of the past 5 years CG 4 years had a positive operating cash flow.
1.2 Ratios
- CG has a better Return On Assets (12.59%) than 94.86% of its industry peers.
- The Return On Equity of CG (17.46%) is better than 94.74% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.87%, CG belongs to the top of the industry, outperforming 93.88% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CG is significantly below the industry average of 11.97%.
- The 3 year average ROIC (5.20%) for CG is below the current ROIC(9.87%), indicating increased profibility in the last year.
| 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
- CG's Profit Margin of 26.35% is amongst the best of the industry. CG outperforms 95.96% of its industry peers.
- CG has a Operating Margin of 24.73%. This is amongst the best in the industry. CG outperforms 93.27% of its industry peers.
- 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.
- CG's Gross Margin has been stable in the last couple of years.
| 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
- CG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, CG has less shares outstanding
- Compared to 5 years ago, CG has less shares outstanding
- CG has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.70 indicates that CG is not in any danger for bankruptcy at the moment.
- CG has a Altman-Z score (4.70) which is in line with its industry peers.
- 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.
- With an excellent Debt to FCF ratio value of 0.14, CG belongs to the best of the industry, outperforming 96.33% of the companies in the same industry.
- CG has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
- CG has a Debt to Equity ratio of 0.01. This is comparable to the rest of the industry: CG outperforms 49.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 4.7 |
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.
- The Current ratio of CG (2.89) is better than 61.81% of its industry peers.
- 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
- The Earnings Per Share has been growing slightly by 3.57% over the past year.
- The Earnings Per Share has been growing slightly by 3.32% on average over the past years.
- The Revenue has been growing slightly by 2.66% in the past year.
- The Revenue has been decreasing by -2.46% on average over the past years.
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 Y46.03%
EPS Next 2Y44.2%
EPS Next 3Y22.16%
EPS Next 5Y13.59%
Revenue Next Year10.21%
Revenue Next 2Y11.41%
Revenue Next 3Y9.84%
Revenue Next 5Y2.44%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- CG is valuated rather expensively with a Price/Earnings ratio of 20.99.
- Based on the Price/Earnings ratio, CG is valued cheaper than 93.76% of the companies in the same industry.
- CG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 12.01 indicates a correct valuation of CG.
- Based on the Price/Forward Earnings ratio, CG is valued cheaply inside the industry as 93.39% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of CG to the average of the S&P500 Index (24.26), we can say CG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.99 | ||
| Fwd PE | 12.01 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CG indicates a rather cheap valuation: CG is cheaper than 96.94% of the companies listed 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 | 28.28 | ||
| EV/EBITDA | 7.05 |
4.3 Compensation for Growth
- CG's 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 22.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)6.32
EPS Next 2Y44.2%
EPS Next 3Y22.16%
5. Dividend
5.1 Amount
- CG has a Yearly Dividend Yield of 1.25%.
- Compared to an average industry Dividend Yield of 0.64, CG pays a better dividend. On top of this CG pays more dividend than 97.43% of the companies listed in the same industry.
- CG's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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.
- CG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP12.28%
EPS Next 2Y44.2%
EPS Next 3Y22.16%
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%.