TRQ Fundamental Analysis - Turquoise Hill Resources Ltd

Fundamental Rating

Overall TRQ gets a fundamental rating of 4 out of 10. We evaluated TRQ against 156 industry peers in the Metals & Mining industry. While TRQ is still in line with the averages on profitability rating, there are concerns on its financial health. TRQ is valued quite expensive, but it does show an excellent growth.

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1. Profitability

1.1 Basic Checks

TRQ had positive earnings in the past year.

In the past year TRQ had a positive cash flow from operations.

1.2 Ratios

TRQ has a Return On Assets of 3.80%. This is comparable to the rest of the industry: TRQ outperforms 59.86% of its industry peers.

TRQ has a Return On Equity of 6.12%. This is in the better half of the industry: TRQ outperforms 61.22% of its industry peers.

Looking at the Return On Invested Capital, with a value of 2.66%, TRQ is in line with its industry, outperforming 50.34% of the companies in the same industry.

Measured over the past 3 years, the Average Return On Invested Capital for TRQ is significantly below the industry average of 12.92%.

The 3 year average ROIC (2.58%) for TRQ is below the current ROIC(2.66%), indicating increased profibility in the last year.

		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

TRQ has a Profit Margin of 32.99%. This is amongst the best in the industry. TRQ outperforms 90.48% of its industry peers.

TRQ's Profit Margin has improved in the last couple of years.

With an excellent Operating Margin value of 30.81%, TRQ belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.

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

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ROA

ROE

ROIC

Operating and Profit Margin

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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 0.48. This is a bad value and indicates that TRQ is not financially healthy and even has some risk of bankruptcy.

TRQ's Altman-Z score of 0.48 is on the low side compared to the rest of the industry. TRQ is outperformed by 79.59% of its industry peers.

A Debt/Equity ratio of 0.37 indicates that TRQ is not too dependend on debt financing.

TRQ has a worse Debt to Equity ratio (0.37) than 72.79% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.37
Debt/FCF	N/A
Altman-Z	0.48

ROIC/WACC0.27

WACC9.84%

2.3 Liquidity

A Current Ratio of 0.42 indicates that TRQ may have some problems paying its short term obligations.

TRQ has a Current ratio of 0.42. This is amonst the worse of the industry: TRQ underperforms 95.24% of its industry peers.

A Quick Ratio of 0.24 indicates that TRQ may have some problems paying its short term obligations.

The Quick ratio of TRQ (0.24) is worse than 95.24% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.42
Quick Ratio	0.24

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.49% over the past year.

Measured over the past years, TRQ shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.15% on average per year.

The Revenue for TRQ has decreased by -11.63% in the past year. This is quite bad

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

Based on estimates for the next years, TRQ will show a very strong growth in Earnings Per Share. The EPS will grow by 37.99% on average per year.

Based on estimates for the next years, TRQ will show a very strong growth in Revenue. The Revenue will grow by 20.56% on average per year.

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 11.26, the valuation of TRQ can be described as very reasonable.

Based on the Price/Earnings ratio, TRQ is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.

TRQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.

The Price/Forward Earnings ratio is 34.17, which means the current valuation is very expensive for TRQ.

TRQ's Price/Forward Earnings ratio is in line with the industry average.

The average S&P500 Price/Forward Earnings ratio is at 22.71. TRQ is valued rather expensively when compared to this.

		Industry Rank	Sector Rank
PE	11.26
Fwd PE	34.17

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRQ.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	14.68

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)0.53

EPS Next 2Y-40.66%

EPS Next 3Y7.83%

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5. Dividend

5.1 Amount

No dividends for TRQ!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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Turquoise Hill Resources Ltd

NYSE:TRQ (12/15/2022, 8:04:00 PM)

After market: 31.48 +0.07 (+0.22%)

31.41

-0.29 (-0.91%)

Chartmill FA Rating

GICS SectorMaterials

GICS IndustryGroupMaterials

GICS IndustryMetals & Mining

Earnings (Last)11-14 2022-11-14/bmo

Earnings (Next)02-28 2023-02-28

Inst Owners0%

Inst Owner Change0%

Ins OwnersN/A

Ins Owner ChangeN/A

Market Cap6.32B

Analysts75

Price Target31.86 (1.43%)

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)1.71%

PT rev (3m)N/A

EPS NQ rev (1m)-113.69%

EPS NQ rev (3m)N/A

EPS NY rev (1m)14.53%

EPS NY rev (3m)N/A

Revenue NQ rev (1m)-11.02%

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)5.26%

Revenue NY rev (3m)N/A

Valuation

		Industry Rank	Sector Rank
PE	11.26
Fwd PE	34.17
P/S	3.72
P/FCF	N/A
P/OCF	13.53
P/B	0.69
P/tB	0.69
EV/EBITDA	14.68

EPS(TTM)2.79

EY8.88%

EPS(NY)0.92

Fwd EY2.93%

FCF(TTM)-2.94

FCFYN/A

OCF(TTM)2.32

OCFY7.39%

SpS8.45

BVpS45.51

TBVpS45.51

PEG (NY)N/A

PEG (5Y)0.53

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	0.48

F-Score3

WACC9.84%

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%

Turquoise Hill Resources Ltd (TRQ) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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