TASEKO MINES LTD (TKO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TKO - CA8765111064 - Common Stock
10.45 CAD
+0.53 (+5.34%)
TKO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 820 industry peers in the Metals & Mining industry. There are concerns on the financial health of TKO while its profitability can be described as average. TKO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- TKO had negative earnings in the past year.
- TKO had a positive operating cash flow in the past year.
- In multiple years TKO reported negative net income over the last 5 years.
- TKO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TKO has a Return On Assets of -2.39%. This is in the better half of the industry: TKO outperforms 79.19% of its industry peers.
- TKO's Return On Equity of -10.18% is fine compared to the rest of the industry. TKO outperforms 65.12% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 1.55%, TKO belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
- TKO had an Average Return On Invested Capital over the past 3 years of 4.20%. This is significantly below the industry average of 12.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.39% | ||
| ROE | -10.18% | ||
| ROIC | 1.55% |
ROA(3y)0.88%
ROA(5y)0.63%
ROE(3y)3.03%
ROE(5y)2.37%
ROIC(3y)4.2%
ROIC(5y)4.5%
1.3 Margins
- TKO's Operating Margin of 7.58% is amongst the best of the industry. TKO outperforms 89.35% of its industry peers.
- In the last couple of years the Operating Margin of TKO has declined.
- TKO has a better Gross Margin (14.04%) than 87.03% of its industry peers.
- TKO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.58% | ||
| PM (TTM) | N/A | ||
| GM | 14.04% |
OM growth 3Y-21.05%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-18.43%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TKO is destroying value.
- The number of shares outstanding for TKO has been increased compared to 1 year ago.
- TKO has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, TKO has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.52, we must say that TKO is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of TKO (1.52) is comparable to the rest of the industry.
- The Debt to FCF ratio of TKO is 7.31, which is on the high side as it means it would take TKO, 7.31 years of fcf income to pay off all of its debts.
- TKO has a better Debt to FCF ratio (7.31) than 90.70% of its industry peers.
- TKO has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.52, TKO is not doing good in the industry: 74.66% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 7.31 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.16
WACC9.89%
2.3 Liquidity
- A Current Ratio of 0.97 indicates that TKO may have some problems paying its short term obligations.
- The Current ratio of TKO (0.97) is worse than 60.22% of its industry peers.
- TKO has a Quick Ratio of 0.97. This is a bad value and indicates that TKO is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of TKO (0.47) is worse than 68.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
- TKO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -104.17%.
- The Earnings Per Share has been growing slightly by 3.78% on average over the past years.
- TKO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.50%.
- Measured over the past years, TKO shows a quite strong growth in Revenue. The Revenue has been growing by 13.06% on average per year.
EPS 1Y (TTM)-104.17%
EPS 3Y3.78%
EPS 5YN/A
EPS Q2Q%-33.33%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y11.96%
Revenue growth 5Y13.06%
Sales Q2Q%11.75%
3.2 Future
- Based on estimates for the next years, TKO will show a very strong growth in Earnings Per Share. The EPS will grow by 50.73% on average per year.
- The Revenue is expected to grow by 21.09% on average over the next years. This is a very strong growth
EPS Next Y-41.98%
EPS Next 2Y75.37%
EPS Next 3Y63.35%
EPS Next 5Y50.73%
Revenue Next Year8.05%
Revenue Next 2Y32.05%
Revenue Next 3Y29.89%
Revenue Next 5Y21.09%
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
- TKO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- TKO is valuated rather expensively with a Price/Forward Earnings ratio of 17.88.
- TKO's Price/Forward Earnings ratio is rather cheap when compared to the industry. TKO is cheaper than 91.06% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of TKO to the average of the S&P500 Index (25.98), we can say TKO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.88 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TKO indicates a rather cheap valuation: TKO is cheaper than 90.70% of the companies listed in the same industry.
- TKO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TKO is cheaper than 94.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.58 | ||
| EV/EBITDA | 31.08 |
4.3 Compensation for Growth
- TKO's earnings are expected to grow with 63.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y75.37%
EPS Next 3Y63.35%
5. Dividend
5.1 Amount
- No dividends for TKO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TASEKO MINES LTD / TKO.CA FAQ
Can you provide the ChartMill fundamental rating for TASEKO MINES LTD?
ChartMill assigns a fundamental rating of 4 / 10 to TKO.CA.
Can you provide the valuation status for TASEKO MINES LTD?
ChartMill assigns a valuation rating of 5 / 10 to TASEKO MINES LTD (TKO.CA). This can be considered as Fairly Valued.
How profitable is TASEKO MINES LTD (TKO.CA) stock?
TASEKO MINES LTD (TKO.CA) has a profitability rating of 5 / 10.