CENTERRA GOLD INC (CG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CG - CA1520061021 - Common Stock
25.95 CAD
+0.76 (+3.02%)
CG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 820 industry peers in the Metals & Mining industry. CG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CG may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, CG could be worth investigating further 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
- With an excellent Return On Assets value of 12.59%, CG belongs to the best of the industry, outperforming 94.76% of the companies in the same industry.
- CG has a Return On Equity of 17.46%. This is amongst the best in the industry. CG outperforms 94.76% of its industry peers.
- CG's Return On Invested Capital of 9.87% is amongst the best of the industry. CG outperforms 93.90% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- CG has a Profit Margin of 26.35%. This is amongst the best in the industry. CG outperforms 95.98% of its industry peers.
- CG has a better Operating Margin (24.73%) than 93.29% of its industry peers.
- In the last couple of years the Operating Margin of CG has grown nicely.
- CG has a Gross Margin of 29.57%. This is amongst the best in the industry. CG outperforms 90.85% 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
- 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
- CG has less shares outstanding than it did 5 years ago.
- CG has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.74 indicates that CG is not in any danger for bankruptcy at the moment.
- CG's Altman-Z score of 4.74 is in line compared to the rest of the industry. CG outperforms 52.20% of its industry peers.
- The Debt to FCF ratio of CG is 0.14, which is an excellent value as it means it would take CG, only 0.14 years of fcf income to pay off all of its debts.
- CG's Debt to FCF ratio of 0.14 is amongst the best of the industry. CG outperforms 96.22% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that CG is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.01, CG is in line with its industry, outperforming 49.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 4.74 |
ROIC/WACC1.01
WACC9.76%
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.
- CG has a better Current ratio (2.89) than 61.83% of its industry peers.
- A Quick Ratio of 2.10 indicates that CG has no problem at all paying its short term obligations.
- The Quick ratio of CG (2.10) 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.
- CG shows a small growth in Revenue. In the last year, the Revenue has grown by 2.66%.
- 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
- CG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.59% yearly.
- 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 21.63, which indicates a rather expensive current valuation of CG.
- Based on the Price/Earnings ratio, CG is valued cheaper than 93.66% 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 27.25.
- With a Price/Forward Earnings ratio of 12.49, CG is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CG indicates a rather cheap valuation: CG is cheaper than 93.17% of the companies listed in the same industry.
- 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 | 21.63 | ||
| Fwd PE | 12.49 |
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 96.95% of the companies listed in the same industry.
- CG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CG is cheaper than 95.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.24 | ||
| 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.
- CG has a very decent profitability rating, which 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)0.51
PEG (5Y)6.51
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.
- CG's Dividend Yield is rather good when compared to the industry average which is at 0.56. CG pays more dividend than 97.44% of the companies 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 | 1.12% |
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.
- 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 21.63 and the Price/Book (PB) ratio is 1.96.
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%.