CHINA GOLD INTERNATIONAL RES (CGG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CGG - CA16890P1036 - Common Stock
39.19 CAD
+1.95 (+5.24%)
We assign a fundamental rating of 8 out of 10 to CGG. CGG was compared to 817 industry peers in the Metals & Mining industry. CGG gets an excellent profitability rating and is at the same time showing great financial health properties. CGG is evaluated to be cheap and growing strongly. This does not happen too often! With these ratings, CGG could be worth investigating further for value and growth and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year CGG was profitable.
- CGG had a positive operating cash flow in the past year.
- CGG had positive earnings in 4 of the past 5 years.
- CGG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 9.48%, CGG belongs to the best of the industry, outperforming 92.29% of the companies in the same industry.
- With an excellent Return On Equity value of 15.06%, CGG belongs to the best of the industry, outperforming 93.51% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 10.00%, CGG belongs to the best of the industry, outperforming 94.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CGG is significantly below the industry average of 11.97%.
- The last Return On Invested Capital (10.00%) for CGG is above the 3 year average (4.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.48% | ||
| ROE | 15.06% | ||
| ROIC | 10% |
ROA(3y)2.74%
ROA(5y)3.96%
ROE(3y)4.63%
ROE(5y)7.14%
ROIC(3y)4.3%
ROIC(5y)4.93%
1.3 Margins
- CGG has a Profit Margin of 26.11%. This is amongst the best in the industry. CGG outperforms 95.72% of its industry peers.
- CGG's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 32.93%, CGG belongs to the top of the industry, outperforming 94.86% of the companies in the same industry.
- CGG's Operating Margin has declined in the last couple of years.
- CGG has a better Gross Margin (39.52%) than 92.90% of its industry peers.
- CGG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.93% | ||
| PM (TTM) | 26.11% | ||
| GM | 39.52% |
OM growth 3Y-17.77%
OM growth 5YN/A
PM growth 3Y-29.35%
PM growth 5YN/A
GM growth 3Y-11.41%
GM growth 5Y20.4%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CGG is still creating some value.
- CGG has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for CGG remains at a similar level compared to 5 years ago.
- Compared to 1 year ago, CGG has an improved debt to assets ratio.
2.2 Solvency
- CGG has an Altman-Z score of 6.76. This indicates that CGG is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of CGG (6.76) is comparable to the rest of the industry.
- CGG has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.42, CGG belongs to the top of the industry, outperforming 93.15% of the companies in the same industry.
- CGG has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
- CGG's Debt to Equity ratio of 0.21 is on the low side compared to the rest of the industry. CGG is outperformed by 67.07% of its industry peers.
- Although CGG does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 6.76 |
ROIC/WACC1.06
WACC9.43%
2.3 Liquidity
- CGG has a Current Ratio of 1.70. This is a normal value and indicates that CGG is financially healthy and should not expect problems in meeting its short term obligations.
- CGG has a Current ratio (1.70) which is in line with its industry peers.
- CGG has a Quick Ratio of 1.12. This is a normal value and indicates that CGG is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of CGG (1.12) is comparable to the rest of the industry.
- CGG does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 1918.34% over the past year.
- Measured over the past years, CGG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -38.18% on average per year.
- The Revenue has grown by 128.10% in the past year. This is a very strong growth!
- CGG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.85% yearly.
EPS 1Y (TTM)1918.34%
EPS 3Y-38.18%
EPS 5YN/A
EPS Q2Q%420.47%
Revenue 1Y (TTM)128.1%
Revenue growth 3Y-12.7%
Revenue growth 5Y2.85%
Sales Q2Q%35.53%
3.2 Future
- The Earnings Per Share is expected to grow by 106.17% on average over the next years. This is a very strong growth
- Based on estimates for the next years, CGG will show a very strong growth in Revenue. The Revenue will grow by 26.65% on average per year.
EPS Next Y528.95%
EPS Next 2Y179.1%
EPS Next 3Y106.17%
EPS Next 5YN/A
Revenue Next Year69.48%
Revenue Next 2Y36.1%
Revenue Next 3Y26.65%
Revenue Next 5YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 27.60, the valuation of CGG can be described as expensive.
- Based on the Price/Earnings ratio, CGG is valued cheaply inside the industry as 92.29% of the companies are valued more expensively.
- CGG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 18.79, CGG is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, CGG is valued cheaply inside the industry as 90.94% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. CGG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.6 | ||
| Fwd PE | 18.79 |
4.2 Price Multiples
- CGG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CGG is cheaper than 91.68% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CGG is valued cheaper than 96.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.38 | ||
| EV/EBITDA | 20.65 |
4.3 Compensation for Growth
- CGG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CGG has an outstanding profitability rating, which may justify a higher PE ratio.
- CGG's earnings are expected to grow with 106.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y179.1%
EPS Next 3Y106.17%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.15%, CGG is not a good candidate for dividend investing.
- CGG's Dividend Yield is rather good when compared to the industry average which is at 0.64. CGG pays more dividend than 94.74% of the companies in the same industry.
- With a Dividend Yield of 0.15, CGG pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
5.2 History
- CGG has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 10.76% of the earnings are spent on dividend by CGG. This is a low number and sustainable payout ratio.
DP10.76%
EPS Next 2Y179.1%
EPS Next 3Y106.17%
CHINA GOLD INTERNATIONAL RES / CGG.CA FAQ
Can you provide the ChartMill fundamental rating for CHINA GOLD INTERNATIONAL RES?
ChartMill assigns a fundamental rating of 8 / 10 to CGG.CA.
What is the valuation status for CGG stock?
ChartMill assigns a valuation rating of 8 / 10 to CHINA GOLD INTERNATIONAL RES (CGG.CA). This can be considered as Undervalued.
Can you provide the profitability details for CHINA GOLD INTERNATIONAL RES?
CHINA GOLD INTERNATIONAL RES (CGG.CA) has a profitability rating of 8 / 10.
What is the valuation of CHINA GOLD INTERNATIONAL RES based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CHINA GOLD INTERNATIONAL RES (CGG.CA) is 27.6 and the Price/Book (PB) ratio is 5.75.
What is the earnings growth outlook for CHINA GOLD INTERNATIONAL RES?
The Earnings per Share (EPS) of CHINA GOLD INTERNATIONAL RES (CGG.CA) is expected to grow by 528.95% in the next year.