Turquoise Hill Resources Ltd (TRQ.CA) Stock Fundamental Analysis
TSX:TRQ - Toronto Stock Exchange - CA9004352071 - Common Stock - Currency: CAD
Taking everything into account, TRQ scores 4 out of 10 in our fundamental rating. TRQ was compared to 806 industry peers in the Metals & Mining industry. There are concerns on the financial health of TRQ while its profitability can be described as average. TRQ is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
TRQ had positive earnings in the past year.
TRQ had a positive operating cash flow in the past year.
1.2 Ratios
TRQ's Return On Assets of 3.80% is amongst the best of the industry. TRQ outperforms 88.24% of its industry peers.
TRQ has a better Return On Equity (6.12%) than 89.68% of its industry peers.
TRQ has a better Return On Invested Capital (2.66%) than 90.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRQ is significantly below the industry average of 11.60%.
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
The Profit Margin of TRQ (32.99%) is better than 98.11% of its industry peers.
In the last couple of years the Profit Margin of TRQ has grown nicely.
TRQ has a Operating Margin of 30.81%. This is amongst the best in the industry. TRQ outperforms 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRQ is destroying value.
Compared to 1 year ago, TRQ has about the same amount of shares outstanding.
Compared to 1 year ago, TRQ has an improved debt to assets ratio.
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.
The Altman-Z score of TRQ (0.49) is comparable to the rest of the industry.
TRQ has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TRQ (0.37) is worse than 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.
TRQ has a Quick 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.
With a Quick ratio value of 0.24, TRQ is not doing good in the industry: 82.02% of the companies in the same industry are doing better.
| 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.
TRQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.37% yearly.
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
Based on estimates for the next years, TRQ will show a very strong growth in Revenue. The Revenue will grow by 20.56% on average per year.
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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.37, the valuation of TRQ can be described as very reasonable.
Based on the Price/Earnings ratio, TRQ is valued cheaper than 92.23% of the companies in the same industry.
When comparing the Price/Earnings ratio of TRQ to the average of the S&P500 Index (26.76), we can say TRQ is valued rather cheaply.
A Price/Forward Earnings ratio of 34.55 indicates a quite expensive valuation of TRQ.
TRQ's Price/Forward Earnings ratio is rather cheap when compared to the industry. TRQ is cheaper than 87.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TRQ to the average of the S&P500 Index (34.91), we can say TRQ is valued inline with the index average.
| 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 cheaper than 89.46% of the companies in the same industry.
| 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
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
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
ROICexcg growth 3Y76.41%
ROICexcg 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%