ELDORADO GOLD CORP (EGO) Stock Fundamental Analysis
NYSE:EGO - New York Stock Exchange, Inc. - CA2849021035 - Common Stock - Currency: USD
Taking everything into account, EGO scores 6 out of 10 in our fundamental rating. EGO was compared to 154 industry peers in the Metals & Mining industry. While EGO has a great profitability rating, there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: EGO is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year EGO was profitable.
EGO had a positive operating cash flow in the past year.
In multiple years EGO reported negative net income over the last 5 years.
Each year in the past 5 years EGO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.95%, EGO is in the better half of the industry, outperforming 74.03% of the companies in the same industry.
With a decent Return On Equity value of 7.42%, EGO is doing good in the industry, outperforming 72.73% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.18%, EGO is in the better half of the industry, outperforming 66.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EGO is significantly below the industry average of 8.82%.
The last Return On Invested Capital (5.18%) for EGO is above the 3 year average (2.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 7.42% | ||
| ROIC | 5.18% |
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
EGO's Profit Margin of 21.86% is amongst the best of the industry. EGO outperforms 90.26% of its industry peers.
In the last couple of years the Profit Margin of EGO has grown nicely.
Looking at the Operating Margin, with a value of 31.77%, EGO belongs to the top of the industry, outperforming 88.31% of the companies in the same industry.
EGO's Operating Margin has improved in the last couple of years.
EGO has a Gross Margin of 38.33%. This is in the better half of the industry: EGO outperforms 79.22% of its industry peers.
EGO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.77% | ||
| PM (TTM) | 21.86% | ||
| GM | 38.33% |
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.
The number of shares outstanding for EGO has been increased compared to 1 year ago.
Compared to 5 years ago, EGO has more shares outstanding
EGO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that EGO is in the distress zone and has some risk of bankruptcy.
EGO has a Altman-Z score of 1.39. This is in the lower half of the industry: EGO underperforms 66.88% of its industry peers.
EGO has a debt to FCF ratio of 18.05. This is a negative value and a sign of low solvency as EGO would need 18.05 years to pay back of all of its debts.
The Debt to FCF ratio of EGO (18.05) is better than 62.34% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that EGO is not too dependend on debt financing.
EGO's Debt to Equity ratio of 0.24 is in line compared to the rest of the industry. EGO outperforms 46.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 18.05 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.63
WACC8.24%
2.3 Liquidity
EGO has a Current Ratio of 3.60. This indicates that EGO is financially healthy and has no problem in meeting its short term obligations.
EGO has a Current ratio of 3.60. This is in the better half of the industry: EGO outperforms 72.73% of its industry peers.
EGO has a Quick Ratio of 2.92. This indicates that EGO is financially healthy and has no problem in meeting its short term obligations.
EGO has a Quick ratio of 2.92. This is in the better half of the industry: EGO outperforms 73.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.6 | ||
| Quick Ratio | 2.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 90.91% over the past year.
Measured over the past years, EGO shows a very strong growth in Earnings Per Share. The EPS has been growing by 89.34% on average per year.
The Revenue has grown by 36.90% in the past year. This is a very strong growth!
EGO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.44% yearly.
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
EGO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.62% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.48, the valuation of EGO can be described as correct.
88.31% of the companies in the same industry are more expensive than EGO, based on the Price/Earnings ratio.
EGO is valuated rather cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.73, the valuation of EGO can be described as very cheap.
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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 7.73 |
4.2 Price Multiples
87.01% of the companies in the same industry are more expensive than EGO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EGO is valued a bit cheaper than 60.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.81 | ||
| EV/EBITDA | 5.6 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of EGO may justify a higher PE ratio.
A more expensive valuation may be justified as EGO's earnings are expected to grow with 23.36% in the coming years.
PEG (NY)1.46
PEG (5Y)0.15
EPS Next 2Y32.48%
EPS Next 3Y23.36%
5. Dividend
5.1 Amount
No dividends for EGO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.81
+0.37 (+1.9%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners85.47%
Inst Owner Change1.57%
Ins Owners0.55%
Ins Owner ChangeN/A
Market Cap4.07B
Analysts72.86
Price Target22.35 (12.82%)
Short Float %2.08%
Short Ratio1.85
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)2
Avg EPS beat(2)3.01%
Min EPS beat(2)1.55%
Max EPS beat(2)4.47%
EPS beat(4)4
Avg EPS beat(4)29.07%
Min EPS beat(4)1.55%
Max EPS beat(4)79.55%
EPS beat(8)8
Avg EPS beat(8)61.79%
EPS beat(12)9
Avg EPS beat(12)22.85%
EPS beat(16)12
Avg EPS beat(16)18.07%
Revenue beat(2)0
Avg Revenue beat(2)-4.44%
Min Revenue beat(2)-8.86%
Max Revenue beat(2)-0.02%
Revenue beat(4)0
Avg Revenue beat(4)-6.79%
Min Revenue beat(4)-13.29%
Max Revenue beat(4)-0.02%
Revenue beat(8)1
Avg Revenue beat(8)-5.54%
Revenue beat(12)1
Avg Revenue beat(12)-8.37%
Revenue beat(16)2
Avg Revenue beat(16)-6.79%
PT rev (1m)18.44%
PT rev (3m)7.06%
EPS NQ rev (1m)-7.01%
EPS NQ rev (3m)-16.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)2.97%
Revenue NY rev (3m)-8.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 7.73 | ||
| P/S | 3.07 | ||
| P/FCF | 78.81 | ||
| P/OCF | 6.29 | ||
| P/B | 1.04 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 5.6 |
EPS(TTM)1.47
EY7.42%
EPS(NY)2.56
Fwd EY12.94%
FCF(TTM)0.25
FCFY1.27%
OCF(TTM)3.15
OCFY15.9%
SpS6.45
BVpS19.01
TBVpS18.56
PEG (NY)1.46
PEG (5Y)0.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 7.42% | ||
| ROCE | 7.75% | ||
| ROIC | 5.18% | ||
| ROICexc | 6.35% | ||
| ROICexgc | 6.49% | ||
| OM | 31.77% | ||
| PM (TTM) | 21.86% | ||
| GM | 38.33% | ||
| FCFM | 3.9% |
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-Score7
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 18.05 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 233.01% | ||
| Cap/Sales | 44.92% | ||
| Interest Coverage | 21.11 | ||
| Cash Conversion | 95.62% | ||
| Profit Quality | 17.82% | ||
| Current Ratio | 3.6 | ||
| Quick Ratio | 2.92 | ||
| Altman-Z | 1.39 |
F-Score7
WACC8.24%
ROIC/WACC0.63
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 1Y139.13%
EBIT growth 3Y26.11%
EBIT growth 5Y49.86%
EBIT Next Year80.79%
EBIT Next 3Y41.44%
EBIT Next 5Y21.39%
FCF growth 1Y366.54%
FCF growth 3Y-13.74%
FCF growth 5YN/A
OCF growth 1Y68.78%
OCF growth 3Y21.23%
OCF growth 5Y31.25%