CENTERRA GOLD INC (CG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CG - CA1520061021 - Common Stock
25.95 CAD
+0.76 (+3.02%)
Overall CG gets a fundamental rating of 7 out of 10. We evaluated CG against 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 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.
- 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 94.76% of its industry peers.
- 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 has a Return On Invested Capital of 9.87%. This is amongst the best in the industry. CG outperforms 93.90% of its industry peers.
- CG had an Average Return On Invested Capital over the past 3 years of 5.20%. This 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
- With an excellent Profit Margin value of 26.35%, CG belongs to the best of the industry, outperforming 95.98% of the companies in the same industry.
- CG has a better Operating Margin (24.73%) than 93.29% of its industry peers.
- CG's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 29.57%, CG belongs to the best of the industry, outperforming 90.85% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CG is creating some value.
- The number of shares outstanding for CG has been reduced compared to 1 year ago.
- The number of shares outstanding for CG has been reduced compared to 5 years ago.
- Compared to 1 year ago, CG has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.84 indicates that CG is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.84, CG is in line with its industry, outperforming 52.07% of the companies in the same 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.
- Looking at the Debt to FCF ratio, with a value of 0.14, CG belongs to the top of the industry, outperforming 96.22% of the companies in the same industry.
- A Debt/Equity ratio of 0.01 indicates that CG is not too dependend on debt financing.
- The Debt to Equity ratio of CG (0.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 4.84 |
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.
- Looking at the Current ratio, with a value of 2.89, CG is in the better half of the industry, outperforming 61.83% 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%.
- The Earnings Per Share has been growing slightly by 3.32% on average over the past years.
- Looking at the last year, CG shows a small growth in Revenue. The Revenue has grown by 2.66% in the last 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.
- 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.
- 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
- The Price/Earnings ratio is 21.81, 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 93.66% of the companies in the same industry.
- CG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 12.53, 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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CG is valued cheaper than 96.95% of the companies in the same industry.
- 95.12% of the companies in the same industry are more expensive than CG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.35 | ||
| EV/EBITDA | 7.45 |
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.
- A more expensive valuation may be justified as CG's earnings are expected to grow with 28.68% in the coming years.
PEG (NY)0.52
PEG (5Y)6.57
EPS Next 2Y43.82%
EPS Next 3Y28.68%
5. Dividend
5.1 Amount
- CG has a Yearly Dividend Yield of 1.12%.
- 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.
- Compared to the average S&P500 Dividend Yield of 1.82, 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
- CG pays out 12.28% of its income as dividend. This is a 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 21.81 and the Price/Book (PB) ratio is 1.97.
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%.