ELDORADO GOLD CORP (EGO) Stock Fundamental Analysis
NYSE:EGO - New York Stock Exchange, Inc. - CA2849021035 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to EGO. EGO was compared to 154 industry peers in the Metals & Mining industry. EGO has an excellent profitability rating, but there are some minor concerns on its financial health. EGO has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
In the past year EGO was profitable.
In the past year EGO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: EGO reported negative net income in multiple years.
Each year in the past 5 years EGO had a positive operating cash flow.
1.2 Ratios
EGO has a Return On Assets of 5.50%. This is in the better half of the industry: EGO outperforms 76.62% of its industry peers.
With a decent Return On Equity value of 8.20%, EGO is doing good in the industry, outperforming 73.38% of the companies in the same industry.
EGO has a better Return On Invested Capital (5.89%) than 66.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EGO is significantly below the industry average of 11.67%.
The 3 year average ROIC (2.90%) for EGO is below the current ROIC(5.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 8.2% | ||
| ROIC | 5.89% |
ROA(3y)-0.29%
ROA(5y)-0.3%
ROE(3y)-0.22%
ROE(5y)-0.31%
ROIC(3y)2.9%
ROIC(5y)3.1%
1.3 Margins
With an excellent Profit Margin value of 23.06%, EGO belongs to the best of the industry, outperforming 91.56% of the companies in the same industry.
EGO's Profit Margin has improved in the last couple of years.
EGO has a Operating Margin of 33.97%. This is amongst the best in the industry. EGO outperforms 88.31% of its industry peers.
In the last couple of years the Operating Margin of EGO has grown nicely.
With an excellent Gross Margin value of 40.37%, EGO belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Gross Margin of EGO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.97% | ||
| PM (TTM) | 23.06% | ||
| GM | 40.37% |
OM growth 3Y12.58%
OM growth 5Y28.7%
PM growth 3YN/A
PM growth 5Y10.88%
GM growth 3Y7.51%
GM growth 5Y12.76%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EGO is destroying value.
Compared to 1 year ago, EGO has more shares outstanding
The number of shares outstanding for EGO has been increased compared to 5 years ago.
EGO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.54, we must say that EGO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.54, EGO is doing worse than 65.58% of the companies in the same industry.
EGO has a debt to FCF ratio of 16.62. This is a negative value and a sign of low solvency as EGO would need 16.62 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.62, EGO is in the better half of the industry, outperforming 61.69% of the companies in the same industry.
EGO has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
EGO has a Debt to Equity ratio (0.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 16.62 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.73
WACC8.05%
2.3 Liquidity
A Current Ratio of 3.12 indicates that EGO has no problem at all paying its short term obligations.
EGO's Current ratio of 3.12 is fine compared to the rest of the industry. EGO outperforms 67.53% of its industry peers.
EGO has a Quick Ratio of 2.53. This indicates that EGO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.53, EGO is in the better half of the industry, outperforming 68.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.12 | ||
| Quick Ratio | 2.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 90.91% over the past year.
EGO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 89.34% yearly.
The Revenue has grown by 36.90% in the past year. This is a very strong growth!
Measured over the past years, EGO shows a quite strong growth in Revenue. The Revenue has been growing by 16.44% on average per year.
EPS 1Y (TTM)90.91%
EPS 3Y31.64%
EPS 5Y89.34%
EPS Q2Q%3.7%
Revenue 1Y (TTM)36.9%
Revenue growth 3Y12.02%
Revenue growth 5Y16.44%
Sales Q2Q%37.71%
3.2 Future
Based on estimates for the next years, EGO will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.62% on average per year.
Based on estimates for the next years, EGO will show a quite strong growth in Revenue. The Revenue will grow by 13.20% on average per year.
EPS Next Y9.23%
EPS Next 2Y32.48%
EPS Next 3Y23.36%
EPS Next 5Y14.62%
Revenue Next Year14.83%
Revenue Next 2Y26.59%
Revenue Next 3Y22.24%
Revenue Next 5Y13.2%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.13 indicates a correct valuation of EGO.
Based on the Price/Earnings ratio, EGO is valued cheaper than 87.66% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. EGO is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 8.11 indicates a reasonable valuation of EGO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EGO indicates a rather cheap valuation: EGO is cheaper than 85.06% of the companies listed in the same industry.
EGO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
EGO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EGO is cheaper than 83.77% of the companies in the same industry.
61.69% of the companies in the same industry are more expensive than EGO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.8 | ||
| EV/EBITDA | 7.02 |
4.3 Compensation for Growth
EGO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EGO has an outstanding profitability rating, which may justify a higher PE ratio.
EGO's earnings are expected to grow with 23.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.53
PEG (5Y)0.16
EPS Next 2Y32.48%
EPS Next 3Y23.36%
5. Dividend
5.1 Amount
EGO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.77
+0.06 (+0.29%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners85.38%
Inst Owner Change1.71%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap4.27B
Analysts72.31
Price Target23.21 (11.75%)
Short Float %1.81%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.89%
Min EPS beat(2)-6.25%
Max EPS beat(2)4.47%
EPS beat(4)3
Avg EPS beat(4)7.62%
Min EPS beat(4)-6.25%
Max EPS beat(4)30.69%
EPS beat(8)7
Avg EPS beat(8)40.84%
EPS beat(12)9
Avg EPS beat(12)38.41%
EPS beat(16)12
Avg EPS beat(16)19.75%
Revenue beat(2)1
Avg Revenue beat(2)1.96%
Min Revenue beat(2)-0.02%
Max Revenue beat(2)3.93%
Revenue beat(4)1
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-8.86%
Max Revenue beat(4)3.93%
Revenue beat(8)2
Avg Revenue beat(8)-4.75%
Revenue beat(12)2
Avg Revenue beat(12)-6.74%
Revenue beat(16)3
Avg Revenue beat(16)-6.47%
PT rev (1m)3.83%
PT rev (3m)23.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)18.01%
EPS NY rev (1m)0%
EPS NY rev (3m)5.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 8.11 | ||
| P/S | 3.01 | ||
| P/FCF | 74.8 | ||
| P/OCF | 6.2 | ||
| P/B | 1.07 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 7.02 |
EPS(TTM)1.47
EY7.08%
EPS(NY)2.56
Fwd EY12.34%
FCF(TTM)0.28
FCFY1.34%
OCF(TTM)3.35
OCFY16.14%
SpS6.91
BVpS19.43
TBVpS18.98
PEG (NY)1.53
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 8.2% | ||
| ROCE | 8.8% | ||
| ROIC | 5.89% | ||
| ROICexc | 5.89% | ||
| ROICexgc | 5.99% | ||
| OM | 33.97% | ||
| PM (TTM) | 23.06% | ||
| GM | 40.37% | ||
| FCFM | 4.02% |
ROA(3y)-0.29%
ROA(5y)-0.3%
ROE(3y)-0.22%
ROE(5y)-0.31%
ROIC(3y)2.9%
ROIC(5y)3.1%
ROICexc(3y)3.42%
ROICexc(5y)3.57%
ROICexgc(3y)3.5%
ROICexgc(5y)3.65%
ROCE(3y)4.33%
ROCE(5y)4.63%
ROICexcg growth 3Y24.28%
ROICexcg growth 5Y48.55%
ROICexc growth 3Y24.32%
ROICexc growth 5Y48.58%
OM growth 3Y12.58%
OM growth 5Y28.7%
PM growth 3YN/A
PM growth 5Y10.88%
GM growth 3Y7.51%
GM growth 5Y12.76%
F-Score6
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 16.62 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 242.37% | ||
| Cap/Sales | 44.49% | ||
| Interest Coverage | 24.1 | ||
| Cash Conversion | 92.7% | ||
| Profit Quality | 17.42% | ||
| Current Ratio | 3.12 | ||
| Quick Ratio | 2.53 | ||
| Altman-Z | 1.54 |
F-Score6
WACC8.05%
ROIC/WACC0.73
Cap/Depr(3y)168.21%
Cap/Depr(5y)144.08%
Cap/Sales(3y)39.34%
Cap/Sales(5y)33.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)90.91%
EPS 3Y31.64%
EPS 5Y89.34%
EPS Q2Q%3.7%
EPS Next Y9.23%
EPS Next 2Y32.48%
EPS Next 3Y23.36%
EPS Next 5Y14.62%
Revenue 1Y (TTM)36.9%
Revenue growth 3Y12.02%
Revenue growth 5Y16.44%
Sales Q2Q%37.71%
Revenue Next Year14.83%
Revenue Next 2Y26.59%
Revenue Next 3Y22.24%
Revenue Next 5Y13.2%
EBIT growth 1Y137.8%
EBIT growth 3Y26.11%
EBIT growth 5Y49.86%
EBIT Next Year86.25%
EBIT Next 3Y47.77%
EBIT Next 5Y21.35%
FCF growth 1Y160.63%
FCF growth 3Y-13.74%
FCF growth 5YN/A
OCF growth 1Y218.81%
OCF growth 3Y21.23%
OCF growth 5Y31.25%