CENTERRA GOLD INC (CG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CG - CA1520061021 - Common Stock
25.19 CAD
+0.26 (+1.04%)
CG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 820 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make CG suitable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year CG was profitable.
- 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.
- CG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 12.59%, CG belongs to the top of the industry, outperforming 94.86% of the companies in the same industry.
- CG has a better Return On Equity (17.46%) than 94.74% of its industry peers.
- CG's Return On Invested Capital of 9.87% is amongst the best of the industry. CG outperforms 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 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 has a better Profit Margin (26.35%) than 95.96% of its industry peers.
- CG's Operating Margin of 24.73% is amongst the best of the industry. CG outperforms 93.27% of its industry peers.
- In the last couple of years the Operating Margin of CG has grown nicely.
- The Gross Margin of CG (29.57%) is better than 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CG is still creating some value.
- CG has less shares outstanding than it did 1 year ago.
- CG has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for CG has been reduced compared to a year ago.
2.2 Solvency
- CG has an Altman-Z score of 4.74. This indicates that CG is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of CG (4.74) 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.
- 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 (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
- CG has a Current Ratio of 2.89. This indicates that CG is financially healthy and has no problem in meeting 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.
- A Quick Ratio of 2.10 indicates that CG has no problem at all paying its short term obligations.
- CG's Quick ratio of 2.10 is in line compared to the rest of the industry. CG outperforms 55.20% of its industry peers.
| 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%.
- 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.
- CG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.46% yearly.
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.
- CG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.44% yearly.
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
- 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.
- 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
- With a Price/Earnings ratio of 20.99, CG is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of CG indicates a rather cheap valuation: CG is cheaper than 93.76% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of CG to the average of the S&P500 Index (27.21), we can say CG is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 12.12, the valuation of CG can be described as correct.
- 93.15% of the companies in the same industry are more expensive than CG, based on the Price/Forward Earnings ratio.
- CG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| 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.
- CG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CG is 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.
- A more expensive valuation may be justified as CG's earnings are expected to grow with 28.68% in the coming years.
PEG (NY)0.5
PEG (5Y)6.32
EPS Next 2Y43.82%
EPS Next 3Y28.68%
5. Dividend
5.1 Amount
- CG has a Yearly Dividend Yield of 1.12%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.56, CG pays a better dividend. On top of this CG pays more dividend than 97.43% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.81, CG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
- The dividend of CG is nicely growing with an annual growth rate of 18.78%!
- 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 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%.