Turquoise Hill Resources Ltd (TRQ) Fundamental Analysis & Valuation

NYSE:TRQ • CA9004352071

Current stock price

31.41 USD
-0.29 (-0.91%)
At close:
31.48 USD
+0.07 (+0.22%)
After Hours:

This TRQ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. TRQ Profitability Analysis

1.1 Basic Checks

  • In the past year TRQ was profitable.
  • In the past year TRQ had a positive cash flow from operations.
TRQ Yearly Net Income VS EBIT VS OCF VS FCFTRQ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 500M -500M 1B -1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.80%, TRQ is in line with its industry, outperforming 59.86% of the companies in the same industry.
  • The Return On Equity of TRQ (6.12%) is better than 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 11.64%.
  • 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 RankSector 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
TRQ Yearly ROA, ROE, ROICTRQ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 2 4 6

1.3 Margins

  • The Profit Margin of TRQ (32.99%) is better than 90.48% of its industry peers.
  • In the last couple of years the Profit Margin of TRQ has grown nicely.
  • Looking at the Operating Margin, with a value of 30.81%, TRQ belongs to the top 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 RankSector 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
TRQ Yearly Profit, Operating, Gross MarginsTRQ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. TRQ Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRQ is destroying value.
  • TRQ has about the same amout of shares outstanding than it did 1 year ago.
  • The debt/assets ratio for TRQ has been reduced compared to a year ago.
TRQ Yearly Shares OutstandingTRQ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 50M 100M 150M 200M
TRQ Yearly Total Debt VS Total AssetsTRQ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 5B 10B

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 Altman-Z score of 0.48. This is in the lower half of the industry: TRQ underperforms 79.59% of its industry peers.
  • A Debt/Equity ratio of 0.37 indicates that TRQ is not too dependend on debt financing.
  • The Debt to Equity ratio of TRQ (0.37) is worse than 72.79% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF N/A
Altman-Z 0.48
ROIC/WACC0.27
WACC9.84%
TRQ Yearly LT Debt VS Equity VS FCFTRQ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 0.42 indicates that TRQ may have some problems paying its short term obligations.
  • TRQ has a worse Current ratio (0.42) 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.
  • With a Quick ratio value of 0.24, TRQ is not doing good in the industry: 95.24% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.42
Quick Ratio 0.24
TRQ Yearly Current Assets VS Current LiabilitesTRQ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. TRQ Growth Analysis

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
  • 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.
  • 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

  • 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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
TRQ Yearly Revenue VS EstimatesTRQ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B
TRQ Yearly EPS VS EstimatesTRQ Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

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Find the best growth stocksShow best growing peers

2

4. TRQ Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.26 indicates a reasonable valuation of TRQ.
  • TRQ's Price/Earnings ratio is a bit cheaper when compared to the industry. TRQ is cheaper than 71.43% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, TRQ is valued rather cheaply.
  • 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.
  • TRQ is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.26
Fwd PE 34.17
TRQ Price Earnings VS Forward Price EarningsTRQ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • TRQ's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.68
TRQ Per share dataTRQ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y-40.66%
EPS Next 3Y7.83%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. TRQ Dividend Analysis

5.1 Amount

  • No dividends for TRQ!.
Industry RankSector Rank
Dividend Yield N/A

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Find the best dividend stocksShow peers with best dividend

TRQ Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)02-28
Inst Owners0%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.32B
Revenue(TTM)1.70B
Net Income(TTM)560.78M
Analysts75
Price Target31.86 (1.43%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Graham NumberN/A
Profitability
Industry RankSector 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
ROICexgc growth 3Y76.41%
ROICexgc 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 RankSector 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 Fundamental Analysis FAQ

What is the fundamental rating for TRQ stock?

ChartMill assigns a fundamental rating of 3 / 10 to TRQ.


Can you provide the valuation status for Turquoise Hill Resources Ltd?

ChartMill assigns a valuation rating of 6 / 10 to Turquoise Hill Resources Ltd (TRQ). This can be considered as Fairly Valued.


Can you provide the profitability details for Turquoise Hill Resources Ltd?

Turquoise Hill Resources Ltd (TRQ) has a profitability rating of 2 / 10.


What is the financial health of Turquoise Hill Resources Ltd (TRQ) stock?

The financial health rating of Turquoise Hill Resources Ltd (TRQ) is 0 / 10.


What is the expected EPS growth for Turquoise Hill Resources Ltd (TRQ) stock?

The Earnings per Share (EPS) of Turquoise Hill Resources Ltd (TRQ) is expected to decline by -22.59% in the next year.