CENTERRA GOLD INC (CGAU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CGAU - CA1520061021 - Common Stock
19.52 USD
+0.59 (+3.12%)
19.8 USD
+0.28 (+1.43%)
Taking everything into account, CGAU scores 7 out of 10 in our fundamental rating. CGAU was compared to 154 industry peers in the Metals & Mining industry. CGAU scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on CGAU. With these ratings, CGAU could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- CGAU had positive earnings in the past year.
- In the past year CGAU had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: CGAU reported negative net income in multiple years.
- CGAU 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%, CGAU belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
- CGAU has a better Return On Equity (17.46%) than 89.61% of its industry peers.
- The Return On Invested Capital of CGAU (10.83%) is better than 81.82% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CGAU is below the industry average of 10.32%.
- The 3 year average ROIC (5.71%) for CGAU is below the current ROIC(10.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.59% | ||
| ROE | 17.46% | ||
| ROIC | 10.83% |
ROA(3y)-1.11%
ROA(5y)-0.91%
ROE(3y)-1.42%
ROE(5y)-1.28%
ROIC(3y)5.71%
ROIC(5y)6.97%
1.3 Margins
- Looking at the Profit Margin, with a value of 26.35%, CGAU belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- The Operating Margin of CGAU (24.73%) is better than 73.38% of its industry peers.
- In the last couple of years the Operating Margin of CGAU has grown nicely.
- CGAU has a Gross Margin of 29.57%. This is in the better half of the industry: CGAU outperforms 66.23% of its industry peers.
- CGAU'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 CGAU is still creating some value.
- CGAU has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for CGAU has been reduced compared to 5 years ago.
- Compared to 1 year ago, CGAU has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.94 indicates that CGAU is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.94, CGAU is in line with its industry, outperforming 57.79% of the companies in the same industry.
- CGAU 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 CGAU (0.14) is better than 94.16% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that CGAU is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.01, CGAU is doing good in the industry, outperforming 75.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 4.94 |
ROIC/WACC1.11
WACC9.76%
2.3 Liquidity
- CGAU has a Current Ratio of 2.89. This indicates that CGAU is financially healthy and has no problem in meeting its short term obligations.
- CGAU has a better Current ratio (2.89) than 60.39% of its industry peers.
- CGAU has a Quick Ratio of 2.10. This indicates that CGAU is financially healthy and has no problem in meeting its short term obligations.
- CGAU has a Quick ratio (2.10) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
- CGAU 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, CGAU shows a small growth in Revenue. The Revenue has grown by 2.66% in the last year.
- CGAU 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, CGAU will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.59% on average per year.
- Based on estimates for the next years, CGAU will show a small growth in Revenue. The Revenue will grow by 2.44% on average per year.
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 22.44, which indicates a rather expensive current valuation of CGAU.
- CGAU's Price/Earnings ratio is rather cheap when compared to the industry. CGAU is cheaper than 87.01% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, CGAU is valued a bit cheaper.
- A Price/Forward Earnings ratio of 12.93 indicates a correct valuation of CGAU.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CGAU indicates a somewhat cheap valuation: CGAU is cheaper than 79.87% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. CGAU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.44 | ||
| Fwd PE | 12.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CGAU is valued cheaply inside the industry as 91.56% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, CGAU is valued cheaper than 83.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.27 | ||
| EV/EBITDA | 7.73 |
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.
- CGAU has a very decent profitability rating, which may justify a higher PE ratio.
- CGAU's earnings are expected to grow with 28.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)6.76
EPS Next 2Y43.82%
EPS Next 3Y28.68%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.12%, CGAU has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.02, CGAU pays a bit more dividend than its industry peers.
- CGAU'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
- On average, the dividend of CGAU grows each year by 18.78%, which is quite nice.
- CGAU has been paying a dividend for at least 10 years, so it has a reliable track record.
- CGAU 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 CGAU. This is a low number and sustainable payout ratio.
- The dividend of CGAU 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 / CGAU FAQ
What is the ChartMill fundamental rating of CENTERRA GOLD INC (CGAU) stock?
ChartMill assigns a fundamental rating of 7 / 10 to CGAU.
Can you provide the valuation status for CENTERRA GOLD INC?
ChartMill assigns a valuation rating of 8 / 10 to CENTERRA GOLD INC (CGAU). This can be considered as Undervalued.
Can you provide the profitability details for CENTERRA GOLD INC?
CENTERRA GOLD INC (CGAU) has a profitability rating of 7 / 10.
What are the PE and PB ratios of CENTERRA GOLD INC (CGAU) stock?
The Price/Earnings (PE) ratio for CENTERRA GOLD INC (CGAU) is 22.44 and the Price/Book (PB) ratio is 2.03.
What is the expected EPS growth for CENTERRA GOLD INC (CGAU) stock?
The Earnings per Share (EPS) of CENTERRA GOLD INC (CGAU) is expected to grow by 42.04% in the next year.