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 157 industry peers in the Metals & Mining industry. EGO scores excellent on profitability, but there are some minor concerns on its financial health. EGO is evaluated to be cheap and growing strongly. This does not happen too often!
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.
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
EGO has a Return On Assets of 5.50%. This is in the better half of the industry: EGO outperforms 76.43% of its industry peers.
The Return On Equity of EGO (8.20%) is better than 73.25% of its industry peers.
EGO has a better Return On Invested Capital (5.89%) than 66.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EGO is significantly below the industry average of 11.75%.
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
The Profit Margin of EGO (23.06%) is better than 91.08% of its industry peers.
In the last couple of years the Profit Margin of EGO has grown nicely.
EGO has a better Operating Margin (33.97%) than 87.90% of its industry peers.
EGO's Operating Margin has improved in the last couple of years.
The Gross Margin of EGO (40.37%) is better than 81.53% 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
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
The debt/assets ratio for EGO is higher compared to a year ago.
2.2 Solvency
EGO has an Altman-Z score of 1.52. This is a bad value and indicates that EGO is not financially healthy and even has some risk of bankruptcy.
EGO's Altman-Z score of 1.52 is on the low side compared to the rest of the industry. EGO is outperformed by 67.52% 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 61.78% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 16.62 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.72
WACC8.2%
2.3 Liquidity
EGO has a Current Ratio of 3.12. This indicates that EGO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of EGO (3.12) is better than 64.97% 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.
EGO has a Quick ratio of 2.53. This is in the better half of the industry: EGO outperforms 68.79% of its industry peers.
| 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 56.44% 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.
Looking at the last year, EGO shows a very strong growth in Revenue. The Revenue has grown by 31.14%.
The Revenue has been growing by 16.44% on average over the past years. This is quite good.
EPS 1Y (TTM)56.44%
EPS 3Y31.64%
EPS 5Y89.34%
EPS Q2Q%33.33%
Revenue 1Y (TTM)31.14%
Revenue growth 3Y12.02%
Revenue growth 5Y16.44%
Sales Q2Q%52.02%
3.2 Future
The Earnings Per Share is expected to grow by 14.62% on average over the next years. This is quite good.
EGO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.20% yearly.
EPS Next Y9.23%
EPS Next 2Y32.48%
EPS Next 3Y23.36%
EPS Next 5Y14.62%
Revenue Next Year19.88%
Revenue Next 2Y29.56%
Revenue Next 3Y24%
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
EGO is valuated correctly with a Price/Earnings ratio of 13.29.
EGO's Price/Earnings ratio is rather cheap when compared to the industry. EGO is cheaper than 87.26% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. EGO is valued rather cheaply when compared to this.
EGO is valuated reasonably with a Price/Forward Earnings ratio of 8.20.
EGO's Price/Forward Earnings ratio is rather cheap when compared to the industry. EGO is cheaper than 84.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EGO to the average of the S&P500 Index (36.21), we can say EGO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.29 | ||
| Fwd PE | 8.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EGO indicates a rather cheap valuation: EGO is cheaper than 82.80% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EGO indicates a somewhat cheap valuation: EGO is cheaper than 61.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.63 | ||
| EV/EBITDA | 6.95 |
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.
EGO's earnings are expected to grow with 23.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.44
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 |
21
+0.5 (+2.44%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners85.38%
Inst Owner Change-0.6%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap4.31B
Analysts72.31
Price Target23.61 (12.43%)
Short Float %1.45%
Short Ratio1.71
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)1.75%
PT rev (3m)12.63%
EPS NQ rev (1m)21.93%
EPS NQ rev (3m)43.89%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)6.09%
Revenue NQ rev (3m)16.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.29 | ||
| Fwd PE | 8.2 | ||
| P/S | 3.04 | ||
| P/FCF | 75.63 | ||
| P/OCF | 6.27 | ||
| P/B | 1.08 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 6.95 |
EPS(TTM)1.58
EY7.52%
EPS(NY)2.56
Fwd EY12.2%
FCF(TTM)0.28
FCFY1.32%
OCF(TTM)3.35
OCFY15.96%
SpS6.91
BVpS19.43
TBVpS18.98
PEG (NY)1.44
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 | 1.52 |
F-Score6
WACC8.2%
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)56.44%
EPS 3Y31.64%
EPS 5Y89.34%
EPS Q2Q%33.33%
EPS Next Y9.23%
EPS Next 2Y32.48%
EPS Next 3Y23.36%
EPS Next 5Y14.62%
Revenue 1Y (TTM)31.14%
Revenue growth 3Y12.02%
Revenue growth 5Y16.44%
Sales Q2Q%52.02%
Revenue Next Year19.88%
Revenue Next 2Y29.56%
Revenue Next 3Y24%
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%