For investors looking for growth chances without entering expensive areas, the "Growth at a Reasonable Price" (GARP) or "Affordable Growth" method gives a measured path. This approach looks for companies with good growth paths, but importantly, it combines that growth with solid basic financials and a price that does not seem high. The aim is to sidestep the high risk of costly, speculative growth stocks while still taking part in a company's progress. One stock that recently came up from such a filter is Coeur Mining Inc (NYSE:CDE), a varied precious metals producer.
A Look at Growth and Value
The center of an affordable growth filter depends on two main scores: Growth and Valuation. Coeur Mining’s basic report from ChartMill points out its good standing in these parts. The company gets a solid Growth Score of 8 out of 10, pushed by very good recent results and positive future guesses.
- Very Strong Recent Growth: Over the last year, Coeur has shown very high growth numbers, like a 1,525% rise in Earnings Per Share and a 68.28% jump in Revenue. This shows the company is effectively turning operational gains into final profit results.
- Good Future Guesses: Experts think this speed will keep going, with guessed average yearly EPS growth of 37.92% and Revenue growth of 23.09% in the next years. This future growth view is a main part for GARP investors.
On the valuation side, Coeur gets a good Score of 6. While its normal Price-to-Earnings (P/E) ratio looks high, a closer view shows a more acceptable image when growth is considered.
- Future Measures Are Important: The more fitting Price/Forward Earnings ratio is at 16.38, which is seen as a fair price and is less expensive than 70% of similar companies in the Metals & Mining field.
- Growth Adjustment: The review states that the low PEG ratio, which changes the P/E for guessed growth, "shows a rather low price of the company." This is the heart of the GARP method, paying a fair price for future growth possibility.
You can see the full details of these numbers in the full basic review report for CDE.
Supporting Basics: Profit and Financial Soundness
An affordable growth method needs more than just growth and value, it needs a steady base. This is where the "acceptable profit and soundness" filters work, making sure the company is financially stable enough to support its growth plans. Coeur Mining gets a 7 for Profit and a 6 for Financial Soundness.
The company’s profit numbers are a specific strong point, doing better than a large part of its field peers.
- It has very good margins, with a Gross Margin of 50.52% and an Operating Margin of 28.40%, both placed in the high group of the field.
- Returns on money are also good, with a Return on Invested Capital (ROIC) of 9.13% that is better than over three-fourths of its rivals.
Financial soundness shows a varied but workable image. The company keeps a very easy debt situation, with a low Debt-to-Equity ratio of 0.11 and a very good Debt-to-Free-Cash-Flow ratio of 0.99, meaning it can soon pay off debts. Still, investors should see points like a recent rise in shares available and that its ROIC, while acceptable, is now under its cost of capital. These things are counted in the total soundness score but do not overcome the good solvency and cash positions.
Is Coeur Mining a Pick for Affordable Growth?
Coeur Mining Inc shows a strong example for the affordable growth filter. It displays the effective mix this method looks for: very strong recent growth paired with good future guesses, all priced at a fair forward earnings multiple. The company’s very good profit and mostly good financial soundness give a believable base from which this growth can be followed. For investors, this picture suggests a company that is not only stating growth but is operationally working to get it while keeping balance sheet care.
It is key to recall that filtering is a first step for more study. Things like material price changes, political risks in mining regions, and results on growth projects are vital thoughts for any investment in the mining field.
This review of Coeur Mining was found using a specific Affordable Growth filter. If this method fits your investment way, you can look for other possible picks by seeing the full filter results here.
Disclaimer: This article is for information only and is not financial advice, a suggestion, or an offer to buy or sell any securities. The review is based on given data and filter methods that may shift. Investors should do their own full study and think about their personal money situation and risk comfort before making any investment choices.
