Turquoise Hill Resources Ltd (TRQ) Stock Fundamental Analysis
NYSE:TRQ - New York Stock Exchange, Inc. - CA9004352071 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to TRQ. TRQ was compared to 155 industry peers in the Metals & Mining industry. There are concerns on the financial health of TRQ while its profitability can be described as average. TRQ is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year TRQ was profitable.
In the past year TRQ had a positive cash flow from operations.
1.2 Ratios
TRQ's Return On Assets of 3.80% is in line compared 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.
TRQ's Return On Invested Capital of 2.66% is in line compared to the rest of the industry. TRQ outperforms 50.34% 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 11.61%.
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
Looking at the Profit Margin, with a value of 32.99%, TRQ belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
TRQ's Profit Margin has improved in the last couple of years.
TRQ has a better Operating Margin (30.81%) than 85.71% of its industry peers.
TRQ's Operating Margin has improved in the last couple of years.
| 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
TRQ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TRQ has about the same amount of shares outstanding.
Compared to 1 year ago, TRQ has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.48, we must say that TRQ is in the distress zone and has some risk of bankruptcy.
TRQ has a worse Altman-Z score (0.48) than 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 Debt to Equity ratio of 0.37. This is in the lower half of the industry: TRQ underperforms 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
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.
The Current ratio of TRQ (0.42) is worse than 95.24% of its industry peers.
A Quick Ratio of 0.24 indicates that TRQ may have some problems paying 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 95.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.24 |
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.
Looking at the last year, TRQ shows a very negative growth in Revenue. The Revenue has decreased by -11.63% in the last year.
The Revenue has been growing by 10.37% on average over the past years. This is quite good.
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
TRQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.99% yearly.
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
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
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 is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 34.17, TRQ can be considered very expensive at the moment.
TRQ's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TRQ to the average of the S&P500 Index (21.76), we can say TRQ is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.26 | ||
| Fwd PE | 34.17 |
4.2 Price Multiples
TRQ's Enterprise Value to EBITDA is on the same level as the industry average.
| 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%
5. Dividend
5.1 Amount
No dividends for TRQ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.41
-0.29 (-0.91%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
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%