Turquoise Hill Resources Ltd (TRQ.CA) Stock Fundamental Analysis
TSX:TRQ - Toronto Stock Exchange - CA9004352071 - Common Stock - Currency: CAD
TRQ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 818 industry peers in the Metals & Mining industry. TRQ has a medium profitability rating, but doesn't score so well on its financial health evaluation. TRQ is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year TRQ was profitable.
TRQ had a positive operating cash flow in the past year.
1.2 Ratios
With an excellent Return On Assets value of 3.80%, TRQ belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
TRQ has a better Return On Equity (6.12%) than 89.68% of its industry peers.
The Return On Invested Capital of TRQ (2.66%) is better than 90.68% of its industry peers.
TRQ had an Average Return On Invested Capital over the past 3 years of 2.58%. This is significantly below the industry average of 11.82%.
The last Return On Invested Capital (2.66%) for TRQ is above the 3 year average (2.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 6.12% | ||
| ROIC | 2.66% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.58%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of TRQ (32.99%) is better than 98.11% of its industry peers.
In the last couple of years the Profit Margin of TRQ has grown nicely.
TRQ's Operating Margin of 30.81% is amongst the best of the industry. TRQ outperforms 96.89% of its industry peers.
In the last couple of years the Operating Margin of TRQ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.81% | ||
| PM (TTM) | 32.99% | ||
| GM | N/A |
OM growth 3Y54.65%
OM growth 5Y93.75%
PM growth 3Y-8.57%
PM growth 5Y8.76%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRQ is destroying value.
The number of shares outstanding for TRQ remains at a similar level compared to 1 year ago.
TRQ has a better debt/assets ratio than last year.
2.2 Solvency
TRQ has an Altman-Z score of 0.49. This is a bad value and indicates that TRQ is not financially healthy and even has some risk of bankruptcy.
TRQ has a Altman-Z score (0.49) which is comparable to the rest of the industry.
TRQ has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
TRQ's Debt to Equity ratio of 0.37 is on the low side compared to the rest of the industry. TRQ is outperformed by 78.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.49 |
ROIC/WACC0.27
WACC9.68%
2.3 Liquidity
TRQ has a Current Ratio of 0.42. This is a bad value and indicates that TRQ is not financially healthy enough and could expect problems in meeting its short term obligations.
TRQ has a worse Current ratio (0.42) than 77.36% of its industry peers.
TRQ has a Quick Ratio of 0.42. This is a bad value and indicates that TRQ is not financially healthy enough and could expect problems in meeting its short term obligations.
TRQ's Quick ratio of 0.24 is on the low side compared to the rest of the industry. TRQ is outperformed by 82.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
TRQ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.49%.
The Earnings Per Share has been growing by 21.15% on average over the past years. This is a very strong growth
TRQ shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.63%.
TRQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.37% yearly.
EPS 1Y (TTM)6.49%
EPS 3Y7.52%
EPS 5Y21.15%
EPS Q2Q%35.29%
Revenue 1Y (TTM)-11.63%
Revenue growth 3Y18.65%
Revenue growth 5Y10.37%
Sales Q2Q%-40.94%
3.2 Future
The Earnings Per Share is expected to grow by 37.99% on average over the next years. This is a very strong growth
TRQ is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.56% yearly.
EPS Next Y-22.59%
EPS Next 2Y-40.66%
EPS Next 3Y7.83%
EPS Next 5Y37.99%
Revenue Next Year-25.18%
Revenue Next 2Y-22.26%
Revenue Next 3Y3.52%
Revenue Next 5Y20.56%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
TRQ is valuated reasonably with a Price/Earnings ratio of 11.37.
92.23% of the companies in the same industry are more expensive than TRQ, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.62. TRQ is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 34.55, TRQ can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRQ indicates a rather cheap valuation: TRQ is cheaper than 87.90% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TRQ to the average of the S&P500 Index (22.70), we can say TRQ is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 34.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRQ is valued cheaper than 89.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.78 |
4.3 Compensation for Growth
The decent profitability rating of TRQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y-40.66%
EPS Next 3Y7.83%
5. Dividend
5.1 Amount
No dividends for TRQ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:TRQ (12/19/2022, 7:00:00 PM)
42.99
-0.02 (-0.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners16.41%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.65B
Analysts75
Price Target42.64 (-0.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)41.24%
Min EPS beat(2)20.28%
Max EPS beat(2)62.2%
EPS beat(4)4
Avg EPS beat(4)141.2%
Min EPS beat(4)20.28%
Max EPS beat(4)456.83%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)14.94%
Min Revenue beat(2)0.81%
Max Revenue beat(2)29.08%
Revenue beat(4)3
Avg Revenue beat(4)7.5%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)29.08%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)14.53%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)7.19%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)5.26%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 34.55 | ||
| P/S | 3.76 | ||
| P/FCF | N/A | ||
| P/OCF | 13.68 | ||
| P/B | 0.7 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 14.78 |
EPS(TTM)3.78
EY8.79%
EPS(NY)1.24
Fwd EY2.89%
FCF(TTM)-3.97
FCFYN/A
OCF(TTM)3.14
OCFY7.31%
SpS11.44
BVpS61.61
TBVpS45.51
PEG (NY)N/A
PEG (5Y)0.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 6.12% | ||
| ROCE | N/A | ||
| ROIC | 2.66% | ||
| ROICexc | 2.7% | ||
| ROICexgc | 2.7% | ||
| OM | 30.81% | ||
| PM (TTM) | 32.99% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.58%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y76.41%
ROICexcg growth 5Y107.27%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y54.65%
OM growth 5Y93.75%
PM growth 3Y-8.57%
PM growth 5Y8.76%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.94 | ||
| Cap/Depr | 605.25% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 0.49 |
F-Score3
WACC9.68%
ROIC/WACC0.27
Cap/Depr(3y)626.59%
Cap/Depr(5y)559.12%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.49%
EPS 3Y7.52%
EPS 5Y21.15%
EPS Q2Q%35.29%
EPS Next Y-22.59%
EPS Next 2Y-40.66%
EPS Next 3Y7.83%
EPS Next 5Y37.99%
Revenue 1Y (TTM)-11.63%
Revenue growth 3Y18.65%
Revenue growth 5Y10.37%
Sales Q2Q%-40.94%
Revenue Next Year-25.18%
Revenue Next 2Y-22.26%
Revenue Next 3Y3.52%
Revenue Next 5Y20.56%
EBIT growth 1Y-46.38%
EBIT growth 3Y83.49%
EBIT growth 5Y113.85%
EBIT Next Year-52.47%
EBIT Next 3Y5.72%
EBIT Next 5Y54.94%
FCF growth 1Y55.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y356.43%
OCF growth 3Y47.37%
OCF growth 5Y20.1%