EQUINOX GOLD CORP (EQX) Stock Fundamental Analysis
NYSEARCA:EQX - NYSE Arca - CA29446Y5020 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to EQX. EQX was compared to 154 industry peers in the Metals & Mining industry. While EQX is still in line with the averages on profitability rating, there are concerns on its financial health. EQX is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
EQX had positive earnings in the past year.
In the past year EQX had a positive cash flow from operations.
Of the past 5 years EQX 4 years were profitable.
In the past 5 years EQX always reported a positive cash flow from operatings.
1.2 Ratios
EQX has a better Return On Assets (5.05%) than 75.97% of its industry peers.
EQX's Return On Equity of 9.99% is fine compared to the rest of the industry. EQX outperforms 77.27% of its industry peers.
EQX has a Return On Invested Capital (3.12%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for EQX is significantly below the industry average of 8.82%.
The last Return On Invested Capital (3.12%) for EQX is above the 3 year average (1.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 9.99% | ||
| ROIC | 3.12% |
ROA(3y)0.99%
ROA(5y)3.56%
ROE(3y)2.22%
ROE(5y)5.93%
ROIC(3y)1.45%
ROIC(5y)2.87%
1.3 Margins
EQX's Profit Margin of 22.41% is amongst the best of the industry. EQX outperforms 91.56% of its industry peers.
In the last couple of years the Profit Margin of EQX has declined.
EQX has a better Operating Margin (15.72%) than 71.43% of its industry peers.
EQX's Operating Margin has declined in the last couple of years.
EQX has a better Gross Margin (34.64%) than 75.32% of its industry peers.
EQX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.72% | ||
| PM (TTM) | 22.41% | ||
| GM | 34.64% |
OM growth 3Y1.42%
OM growth 5Y-4.29%
PM growth 3Y-24.11%
PM growth 5YN/A
GM growth 3Y-4.28%
GM growth 5Y-4.45%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EQX is destroying value.
The number of shares outstanding for EQX has been increased compared to 1 year ago.
The number of shares outstanding for EQX has been increased compared to 5 years ago.
The debt/assets ratio for EQX is higher compared to a year ago.
2.2 Solvency
EQX has an Altman-Z score of 1.06. This is a bad value and indicates that EQX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.06, EQX is doing worse than 74.03% of the companies in the same industry.
EQX has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
EQX has a worse Debt to Equity ratio (0.36) than 66.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.06 |
ROIC/WACC0.33
WACC9.59%
2.3 Liquidity
A Current Ratio of 1.14 indicates that EQX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.14, EQX is doing worse than 80.52% of the companies in the same industry.
EQX has a Quick Ratio of 1.14. This is a bad value and indicates that EQX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.53, EQX is doing worse than 87.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
EQX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 684.78%, which is quite impressive.
EQX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.64% yearly.
The Revenue has grown by 39.14% in the past year. This is a very strong growth!
Measured over the past years, EQX shows a very strong growth in Revenue. The Revenue has been growing by 39.98% on average per year.
EPS 1Y (TTM)684.78%
EPS 3Y-18.64%
EPS 5YN/A
EPS Q2Q%-100%
Revenue 1Y (TTM)39.14%
Revenue growth 3Y11.84%
Revenue growth 5Y39.98%
Sales Q2Q%75.58%
3.2 Future
The Earnings Per Share is expected to grow by 21.03% on average over the next years. This is a very strong growth
EQX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.25% yearly.
EPS Next Y341.1%
EPS Next 2Y152.51%
EPS Next 3Y82.44%
EPS Next 5Y21.03%
Revenue Next Year33.06%
Revenue Next 2Y23.47%
Revenue Next 3Y12.23%
Revenue Next 5Y6.25%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 39.53 indicates a quite expensive valuation of EQX.
EQX's Price/Earnings ratio is in line with the industry average.
EQX is valuated expensively when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 5.02, the valuation of EQX can be described as very cheap.
EQX's Price/Forward Earnings ratio is rather cheap when compared to the industry. EQX is cheaper than 95.45% of the companies in the same industry.
EQX'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 | 39.53 | ||
| Fwd PE | 5.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQX is valued a bit cheaper than 68.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.03 |
4.3 Compensation for Growth
EQX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of EQX may justify a higher PE ratio.
A more expensive valuation may be justified as EQX's earnings are expected to grow with 82.44% in the coming years.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y152.51%
EPS Next 3Y82.44%
5. Dividend
5.1 Amount
EQX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.72
+0.16 (+2.44%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners59.41%
Inst Owner Change5.58%
Ins Owners5.43%
Ins Owner ChangeN/A
Market Cap3.06B
Analysts80
Price Target15.81 (135.27%)
Short Float %5.61%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.78%
Min EPS beat(2)-24.27%
Max EPS beat(2)-21.28%
EPS beat(4)2
Avg EPS beat(4)8.29%
Min EPS beat(4)-24.27%
Max EPS beat(4)44.74%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-3.12%
Max Revenue beat(2)0.27%
Revenue beat(4)1
Avg Revenue beat(4)-7.42%
Min Revenue beat(4)-13.9%
Max Revenue beat(4)0.27%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)10.71%
PT rev (3m)37.78%
EPS NQ rev (1m)-13.2%
EPS NQ rev (3m)-24.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-25.28%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-12.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.53 | ||
| Fwd PE | 5.02 | ||
| P/S | 2.02 | ||
| P/FCF | N/A | ||
| P/OCF | 8.23 | ||
| P/B | 0.9 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 9.03 |
EPS(TTM)0.17
EY2.53%
EPS(NY)1.34
Fwd EY19.93%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)0.82
OCFY12.14%
SpS3.32
BVpS7.45
TBVpS7.45
PEG (NY)0.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 9.99% | ||
| ROCE | 3.95% | ||
| ROIC | 3.12% | ||
| ROICexc | 3.25% | ||
| ROICexgc | 3.25% | ||
| OM | 15.72% | ||
| PM (TTM) | 22.41% | ||
| GM | 34.64% | ||
| FCFM | N/A |
ROA(3y)0.99%
ROA(5y)3.56%
ROE(3y)2.22%
ROE(5y)5.93%
ROIC(3y)1.45%
ROIC(5y)2.87%
ROICexc(3y)1.53%
ROICexc(5y)3.25%
ROICexgc(3y)1.53%
ROICexgc(5y)3.25%
ROCE(3y)1.84%
ROCE(5y)3.63%
ROICexcg growth 3Y-8.65%
ROICexcg growth 5Y-13.76%
ROICexc growth 3Y-8.65%
ROICexc growth 5Y-13.76%
OM growth 3Y1.42%
OM growth 5Y-4.29%
PM growth 3Y-24.11%
PM growth 5YN/A
GM growth 3Y-4.28%
GM growth 5Y-4.45%
F-Score6
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.63 | ||
| Cap/Depr | 185.11% | ||
| Cap/Sales | 27.22% | ||
| Interest Coverage | 2.11 | ||
| Cash Conversion | 80.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 1.06 |
F-Score6
WACC9.59%
ROIC/WACC0.33
Cap/Depr(3y)240.75%
Cap/Depr(5y)202.16%
Cap/Sales(3y)44.6%
Cap/Sales(5y)37.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)684.78%
EPS 3Y-18.64%
EPS 5YN/A
EPS Q2Q%-100%
EPS Next Y341.1%
EPS Next 2Y152.51%
EPS Next 3Y82.44%
EPS Next 5Y21.03%
Revenue 1Y (TTM)39.14%
Revenue growth 3Y11.84%
Revenue growth 5Y39.98%
Sales Q2Q%75.58%
Revenue Next Year33.06%
Revenue Next 2Y23.47%
Revenue Next 3Y12.23%
Revenue Next 5Y6.25%
EBIT growth 1Y379.57%
EBIT growth 3Y13.43%
EBIT growth 5Y33.98%
EBIT Next Year95.85%
EBIT Next 3Y40.32%
EBIT Next 5Y28.14%
FCF growth 1Y75.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.83%
OCF growth 3Y5.08%
OCF growth 5Y44.19%