Turquoise Hill Resources Ltd (TRQ.CA) Stock Fundamental Analysis
Canada - TSX:TRQ - CA9004352071 - Common Stock
42.99 CAD
-0.02 (-0.05%)
Taking everything into account, TRQ scores 4 out of 10 in our fundamental rating. TRQ was compared to 799 industry peers in the Metals & Mining industry. TRQ has a medium profitability rating, but doesn't score so well on its financial health evaluation. TRQ is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year TRQ was profitable.
In the past year TRQ had a positive cash flow from operations.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.80%, TRQ belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
With an excellent Return On Equity value of 6.12%, TRQ belongs to the best of the industry, outperforming 89.68% of the companies in the same industry.
With an excellent Return On Invested Capital value of 2.66%, TRQ belongs to the best of the industry, outperforming 90.68% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRQ is significantly below the industry average of 12.43%.
The 3 year average ROIC (2.58%) for TRQ is below the current ROIC(2.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 6.12% | ||
| ROIC | 2.66% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.58%
ROIC(5y)N/A
1.3 Margins
TRQ has a better Profit Margin (32.99%) than 98.11% of its industry peers.
In the last couple of years the Profit Margin of TRQ has grown nicely.
TRQ has a better Operating Margin (30.81%) than 96.89% of its industry peers.
TRQ's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.81% | ||
| PM (TTM) | 32.99% | ||
| GM | N/A |
OM growth 3Y54.65%
OM growth 5Y93.75%
PM growth 3Y-8.57%
PM growth 5Y8.76%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRQ is destroying value.
Compared to 1 year ago, TRQ has about the same amount of shares outstanding.
The debt/assets ratio for TRQ has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.49, we must say that TRQ is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.49, TRQ perfoms like the industry average, outperforming 45.17% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that TRQ is not too dependend on debt financing.
TRQ's Debt to Equity ratio of 0.37 is on the low side compared to the rest of the industry. TRQ is outperformed by 78.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.49 |
ROIC/WACC0.27
WACC9.68%
2.3 Liquidity
TRQ has a Current Ratio of 0.42. This is a bad value and indicates that TRQ is not financially healthy enough and could expect problems in meeting its short term obligations.
TRQ has a worse Current ratio (0.42) than 77.36% of its industry peers.
A Quick Ratio of 0.24 indicates that TRQ may have some problems paying its short term obligations.
TRQ has a worse Quick ratio (0.24) than 82.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.49% over the past year.
Measured over the past years, TRQ shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.15% on average per year.
Looking at the last year, TRQ shows a very negative growth in Revenue. The Revenue has decreased by -11.63% in the last year.
Measured over the past years, TRQ shows a quite strong growth in Revenue. The Revenue has been growing by 10.37% on average per year.
EPS 1Y (TTM)6.49%
EPS 3Y7.52%
EPS 5Y21.15%
EPS Q2Q%35.29%
Revenue 1Y (TTM)-11.63%
Revenue growth 3Y18.65%
Revenue growth 5Y10.37%
Sales Q2Q%-40.94%
3.2 Future
The Earnings Per Share is expected to grow by 37.99% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 20.56% on average over the next years. This is a very strong growth
EPS Next Y-22.59%
EPS Next 2Y-40.66%
EPS Next 3Y7.83%
EPS Next 5Y37.99%
Revenue Next Year-25.18%
Revenue Next 2Y-22.26%
Revenue Next 3Y3.52%
Revenue Next 5Y20.56%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TRQ is valuated reasonably with a Price/Earnings ratio of 11.37.
Compared to the rest of the industry, the Price/Earnings ratio of TRQ indicates a rather cheap valuation: TRQ is cheaper than 92.23% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, TRQ is valued rather cheaply.
The Price/Forward Earnings ratio is 34.55, which means the current valuation is very expensive for TRQ.
87.90% of the companies in the same industry are more expensive than TRQ, based on the Price/Forward Earnings ratio.
TRQ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 34.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRQ is valued cheaply inside the industry as 89.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.78 |
4.3 Compensation for Growth
TRQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y-40.66%
EPS Next 3Y7.83%
5. Dividend
5.1 Amount
TRQ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:TRQ (12/19/2022, 7:00:00 PM)
42.99
-0.02 (-0.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners16.41%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.65B
Revenue(TTM)1.70B
Net Income(TTM)560.78M
Analysts75
Price Target42.64 (-0.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)41.24%
Min EPS beat(2)20.28%
Max EPS beat(2)62.2%
EPS beat(4)4
Avg EPS beat(4)141.2%
Min EPS beat(4)20.28%
Max EPS beat(4)456.83%
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)2
Avg Revenue beat(2)14.94%
Min Revenue beat(2)0.81%
Max Revenue beat(2)29.08%
Revenue beat(4)3
Avg Revenue beat(4)7.5%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)29.08%
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)0%
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)14.53%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)7.19%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)5.26%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 34.55 | ||
| P/S | 3.76 | ||
| P/FCF | N/A | ||
| P/OCF | 13.68 | ||
| P/B | 0.7 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 14.78 |
EPS(TTM)3.78
EY8.79%
EPS(NY)1.24
Fwd EY2.89%
FCF(TTM)-3.97
FCFYN/A
OCF(TTM)3.14
OCFY7.31%
SpS11.44
BVpS61.61
TBVpS45.51
PEG (NY)N/A
PEG (5Y)0.54
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 6.12% | ||
| ROCE | N/A | ||
| ROIC | 2.66% | ||
| ROICexc | 2.7% | ||
| ROICexgc | 2.7% | ||
| OM | 30.81% | ||
| PM (TTM) | 32.99% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.58%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y76.41%
ROICexgc growth 5Y107.27%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y54.65%
OM growth 5Y93.75%
PM growth 3Y-8.57%
PM growth 5Y8.76%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.94 | ||
| Cap/Depr | 605.25% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 0.49 |
F-Score3
WACC9.68%
ROIC/WACC0.27
Cap/Depr(3y)626.59%
Cap/Depr(5y)559.12%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.49%
EPS 3Y7.52%
EPS 5Y21.15%
EPS Q2Q%35.29%
EPS Next Y-22.59%
EPS Next 2Y-40.66%
EPS Next 3Y7.83%
EPS Next 5Y37.99%
Revenue 1Y (TTM)-11.63%
Revenue growth 3Y18.65%
Revenue growth 5Y10.37%
Sales Q2Q%-40.94%
Revenue Next Year-25.18%
Revenue Next 2Y-22.26%
Revenue Next 3Y3.52%
Revenue Next 5Y20.56%
EBIT growth 1Y-46.38%
EBIT growth 3Y83.49%
EBIT growth 5Y113.85%
EBIT Next Year-52.47%
EBIT Next 3Y5.72%
EBIT Next 5Y54.94%
FCF growth 1Y55.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y356.43%
OCF growth 3Y47.37%
OCF growth 5Y20.1%
Turquoise Hill Resources Ltd / TRQ.CA FAQ
What is the fundamental rating for TRQ stock?
ChartMill assigns a fundamental rating of 3 / 10 to TRQ.CA.
What is the valuation status for TRQ stock?
ChartMill assigns a valuation rating of 6 / 10 to Turquoise Hill Resources Ltd (TRQ.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for Turquoise Hill Resources Ltd?
Turquoise Hill Resources Ltd (TRQ.CA) has a profitability rating of 2 / 10.
What is the earnings growth outlook for Turquoise Hill Resources Ltd?
The Earnings per Share (EPS) of Turquoise Hill Resources Ltd (TRQ.CA) is expected to decline by -22.59% in the next year.