ELDORADO GOLD CORP (EGO) Stock Fundamental Analysis
NYSE:EGO - New York Stock Exchange, Inc. - CA2849021035 - Common Stock - Currency: USD
Overall EGO gets a fundamental rating of 6 out of 10. We evaluated EGO against 154 industry peers in the Metals & Mining industry. While EGO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EGO is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
EGO had positive earnings in the past year.
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's Return On Assets of 5.50% is fine compared to the rest of the industry. EGO outperforms 76.62% of its industry peers.
The Return On Equity of EGO (8.20%) is better than 74.03% of its industry peers.
EGO has a Return On Invested Capital of 5.89%. This is in the better half of the industry: EGO outperforms 66.88% of its industry peers.
EGO had an Average Return On Invested Capital over the past 3 years of 2.90%. This 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
Looking at the Profit Margin, with a value of 23.06%, EGO belongs to the top of the industry, outperforming 91.56% of the companies in the same industry.
In the last couple of years the Profit Margin of EGO has grown nicely.
With an excellent Operating Margin value of 33.97%, EGO belongs to the best 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 better Gross Margin (40.37%) than 81.82% of its industry peers.
EGO's Gross Margin has improved in the last couple of years.
| 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
EGO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for EGO has been increased compared to 1 year ago.
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 1.48, we must say that EGO is in the distress zone and has some risk of bankruptcy.
EGO has a worse Altman-Z score (1.48) than 68.18% of its industry peers.
The Debt to FCF ratio of EGO is 16.62, which is on the high side as it means it would take EGO, 16.62 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 16.62, EGO is doing good in 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 of 0.24. This is comparable to the rest of the industry: EGO outperforms 46.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 16.62 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.72
WACC8.17%
2.3 Liquidity
A Current Ratio of 3.12 indicates that EGO has no problem at all paying its short term obligations.
EGO has a Current ratio of 3.12. This is in the better half of the industry: EGO outperforms 66.23% of its industry peers.
A Quick Ratio of 2.53 indicates that EGO has no problem at all paying its short term obligations.
EGO has a better Quick ratio (2.53) than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.12 | ||
| Quick Ratio | 2.53 |
3. Growth
3.1 Past
EGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 90.91%, which is quite impressive.
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.
EGO shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.90%.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 13.44, the valuation of EGO can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of EGO indicates a rather cheap valuation: EGO is cheaper than 89.61% of the companies listed in the same industry.
EGO is valuated cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.71 indicates a rather cheap valuation of EGO.
85.71% of the companies in the same industry are more expensive than EGO, based on the Price/Forward Earnings ratio.
EGO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 7.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EGO is valued cheaply inside the industry as 84.42% of the companies are valued more expensively.
EGO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EGO is cheaper than 62.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.13 | ||
| EV/EBITDA | 6.74 |
4.3 Compensation for Growth
EGO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent 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
EGO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.75
-0.38 (-1.89%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners85.38%
Inst Owner Change0%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap4.06B
Analysts72.31
Price Target23.61 (19.54%)
Short Float %1.58%
Short Ratio1.69
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)4.1%
PT rev (3m)25.13%
EPS NQ rev (1m)12.63%
EPS NQ rev (3m)32.92%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)6.54%
Revenue NQ rev (3m)16.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 7.71 | ||
| P/S | 2.86 | ||
| P/FCF | 71.13 | ||
| P/OCF | 5.89 | ||
| P/B | 1.02 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 6.74 |
EPS(TTM)1.47
EY7.44%
EPS(NY)2.56
Fwd EY12.97%
FCF(TTM)0.28
FCFY1.41%
OCF(TTM)3.35
OCFY16.97%
SpS6.91
BVpS19.43
TBVpS18.98
PEG (NY)1.46
PEG (5Y)0.15
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 | 1.48 |
F-Score6
WACC8.17%
ROIC/WACC0.72
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%