ELDORADO GOLD CORP (EGO) Stock Fundamental Analysis
NYSE:EGO - New York Stock Exchange, Inc. - CA2849021035 - Common Stock - Currency: USD
Taking everything into account, EGO scores 6 out of 10 in our fundamental rating. EGO was compared to 154 industry peers in the Metals & Mining industry. EGO scores excellent on profitability, but there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: EGO is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year EGO was profitable.
EGO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: EGO reported negative net income in multiple years.
In the past 5 years EGO always reported a positive cash flow from operatings.
1.2 Ratios
EGO has a better Return On Assets (5.50%) than 76.62% of its industry peers.
Looking at the Return On Equity, with a value of 8.20%, EGO is in the better half of the industry, outperforming 73.38% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.89%, EGO is in the better half of the industry, outperforming 66.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EGO is significantly below the industry average of 11.67%.
The last Return On Invested Capital (5.89%) for EGO is above the 3 year average (2.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 8.2% | ||
| ROIC | 5.89% |
ROA(3y)-0.29%
ROA(5y)-0.3%
ROE(3y)-0.22%
ROE(5y)-0.31%
ROIC(3y)2.9%
ROIC(5y)3.1%
1.3 Margins
EGO has a Profit Margin of 23.06%. This is amongst the best in the industry. EGO outperforms 91.56% of its industry peers.
In the last couple of years the Profit Margin of EGO has grown nicely.
With an excellent Operating Margin value of 33.97%, EGO belongs to the best of the industry, outperforming 88.31% of the companies in the same industry.
In the last couple of years the Operating Margin of EGO has grown nicely.
Looking at the Gross Margin, with a value of 40.37%, EGO belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
EGO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.97% | ||
| PM (TTM) | 23.06% | ||
| GM | 40.37% |
OM growth 3Y12.58%
OM growth 5Y28.7%
PM growth 3YN/A
PM growth 5Y10.88%
GM growth 3Y7.51%
GM growth 5Y12.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EGO is destroying value.
The number of shares outstanding for EGO has been increased compared to 1 year ago.
The number of shares outstanding for EGO has been increased compared to 5 years ago.
The debt/assets ratio for EGO is higher compared to a year ago.
2.2 Solvency
EGO has an Altman-Z score of 1.54. This is a bad value and indicates that EGO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of EGO (1.54) is worse than 65.58% of its industry peers.
The Debt to FCF ratio of EGO is 16.62, which is on the high side as it means it would take EGO, 16.62 years of fcf income to pay off all of its debts.
EGO has a better Debt to FCF ratio (16.62) than 61.69% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that EGO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, EGO is in line with its industry, outperforming 46.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 16.62 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.8
WACC7.35%
2.3 Liquidity
A Current Ratio of 3.12 indicates that EGO has no problem at all paying its short term obligations.
The Current ratio of EGO (3.12) is better than 67.53% of its industry peers.
A Quick Ratio of 2.53 indicates that EGO has no problem at all paying its short term obligations.
EGO's Quick ratio of 2.53 is fine compared to the rest of the industry. EGO outperforms 68.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.12 | ||
| Quick Ratio | 2.53 |
3. Growth
3.1 Past
EGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 90.91%, which is quite impressive.
Measured over the past years, EGO shows a very strong growth in Earnings Per Share. The EPS has been growing by 89.34% on average per year.
Looking at the last year, EGO shows a very strong growth in Revenue. The Revenue has grown by 36.90%.
Measured over the past years, EGO shows a quite strong growth in Revenue. The Revenue has been growing by 16.44% on average per year.
EPS 1Y (TTM)90.91%
EPS 3Y31.64%
EPS 5Y89.34%
EPS Q2Q%3.7%
Revenue 1Y (TTM)36.9%
Revenue growth 3Y12.02%
Revenue growth 5Y16.44%
Sales Q2Q%37.71%
3.2 Future
The Earnings Per Share is expected to grow by 14.62% on average over the next years. This is quite good.
Based on estimates for the next years, EGO will show a quite strong growth in Revenue. The Revenue will grow by 13.20% on average per year.
EPS Next Y9.23%
EPS Next 2Y32.48%
EPS Next 3Y23.36%
EPS Next 5Y14.62%
Revenue Next Year14.83%
Revenue Next 2Y26.59%
Revenue Next 3Y22.24%
Revenue Next 5Y13.2%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.13, which indicates a correct valuation of EGO.
EGO's Price/Earnings ratio is rather cheap when compared to the industry. EGO is cheaper than 87.66% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, EGO is valued a bit cheaper.
With a Price/Forward Earnings ratio of 8.11, the valuation of EGO can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EGO is valued cheaply inside the industry as 85.06% of the companies are valued more expensively.
EGO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EGO is valued cheaper than 83.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EGO is valued a bit cheaper than 61.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.8 | ||
| EV/EBITDA | 7.02 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of EGO may justify a higher PE ratio.
A more expensive valuation may be justified as EGO's earnings are expected to grow with 23.36% in the coming years.
PEG (NY)1.53
PEG (5Y)0.16
EPS Next 2Y32.48%
EPS Next 3Y23.36%
5. Dividend
5.1 Amount
No dividends for EGO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.77
+0.06 (+0.29%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners85.38%
Inst Owner Change1.71%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap4.27B
Analysts72.31
Price Target23.21 (11.75%)
Short Float %1.81%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.89%
Min EPS beat(2)-6.25%
Max EPS beat(2)4.47%
EPS beat(4)3
Avg EPS beat(4)7.62%
Min EPS beat(4)-6.25%
Max EPS beat(4)30.69%
EPS beat(8)7
Avg EPS beat(8)40.84%
EPS beat(12)9
Avg EPS beat(12)38.41%
EPS beat(16)12
Avg EPS beat(16)19.75%
Revenue beat(2)1
Avg Revenue beat(2)1.96%
Min Revenue beat(2)-0.02%
Max Revenue beat(2)3.93%
Revenue beat(4)1
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-8.86%
Max Revenue beat(4)3.93%
Revenue beat(8)2
Avg Revenue beat(8)-4.75%
Revenue beat(12)2
Avg Revenue beat(12)-6.74%
Revenue beat(16)3
Avg Revenue beat(16)-6.47%
PT rev (1m)3.83%
PT rev (3m)23.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)18.01%
EPS NY rev (1m)0%
EPS NY rev (3m)5.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 8.11 | ||
| P/S | 3.01 | ||
| P/FCF | 74.8 | ||
| P/OCF | 6.2 | ||
| P/B | 1.07 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 7.02 |
EPS(TTM)1.47
EY7.08%
EPS(NY)2.56
Fwd EY12.34%
FCF(TTM)0.28
FCFY1.34%
OCF(TTM)3.35
OCFY16.14%
SpS6.91
BVpS19.43
TBVpS18.98
PEG (NY)1.53
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 8.2% | ||
| ROCE | 8.8% | ||
| ROIC | 5.89% | ||
| ROICexc | 5.89% | ||
| ROICexgc | 5.99% | ||
| OM | 33.97% | ||
| PM (TTM) | 23.06% | ||
| GM | 40.37% | ||
| FCFM | 4.02% |
ROA(3y)-0.29%
ROA(5y)-0.3%
ROE(3y)-0.22%
ROE(5y)-0.31%
ROIC(3y)2.9%
ROIC(5y)3.1%
ROICexc(3y)3.42%
ROICexc(5y)3.57%
ROICexgc(3y)3.5%
ROICexgc(5y)3.65%
ROCE(3y)4.33%
ROCE(5y)4.63%
ROICexcg growth 3Y24.28%
ROICexcg growth 5Y48.55%
ROICexc growth 3Y24.32%
ROICexc growth 5Y48.58%
OM growth 3Y12.58%
OM growth 5Y28.7%
PM growth 3YN/A
PM growth 5Y10.88%
GM growth 3Y7.51%
GM growth 5Y12.76%
F-Score6
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 16.62 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 242.37% | ||
| Cap/Sales | 44.49% | ||
| Interest Coverage | 24.1 | ||
| Cash Conversion | 92.7% | ||
| Profit Quality | 17.42% | ||
| Current Ratio | 3.12 | ||
| Quick Ratio | 2.53 | ||
| Altman-Z | 1.54 |
F-Score6
WACC7.35%
ROIC/WACC0.8
Cap/Depr(3y)168.21%
Cap/Depr(5y)144.08%
Cap/Sales(3y)39.34%
Cap/Sales(5y)33.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)90.91%
EPS 3Y31.64%
EPS 5Y89.34%
EPS Q2Q%3.7%
EPS Next Y9.23%
EPS Next 2Y32.48%
EPS Next 3Y23.36%
EPS Next 5Y14.62%
Revenue 1Y (TTM)36.9%
Revenue growth 3Y12.02%
Revenue growth 5Y16.44%
Sales Q2Q%37.71%
Revenue Next Year14.83%
Revenue Next 2Y26.59%
Revenue Next 3Y22.24%
Revenue Next 5Y13.2%
EBIT growth 1Y137.8%
EBIT growth 3Y26.11%
EBIT growth 5Y49.86%
EBIT Next Year86.25%
EBIT Next 3Y47.77%
EBIT Next 5Y21.35%
FCF growth 1Y160.63%
FCF growth 3Y-13.74%
FCF growth 5YN/A
OCF growth 1Y218.81%
OCF growth 3Y21.23%
OCF growth 5Y31.25%