Turquoise Hill Resources Ltd (TRQ.CA) Stock Fundamental Analysis
Canada - TSX:TRQ - CA9004352071 - Common Stock
42.99 CAD
-0.02 (-0.05%)
Overall TRQ gets a fundamental rating of 4 out of 10. We evaluated TRQ against 808 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 not priced too expensively while it is growing strongly. Keep and eye on this one!
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
TRQ has a better Return On Assets (3.80%) than 88.24% of its industry peers.
TRQ's Return On Equity of 6.12% is amongst the best of the industry. TRQ outperforms 89.68% of its industry peers.
TRQ's Return On Invested Capital of 2.66% is amongst the best of the industry. TRQ outperforms 90.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRQ is significantly below the industry average of 11.68%.
The last Return On Invested Capital (2.66%) for TRQ is above the 3 year average (2.58%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 32.99%, TRQ belongs to the best of the industry, outperforming 98.11% of the companies in the same industry.
TRQ's Profit Margin has improved in the last couple of years.
The Operating Margin of TRQ (30.81%) is better than 96.89% of its industry peers.
In the last couple of years the Operating Margin of TRQ has grown nicely.
| 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.
TRQ has about the same amout of shares outstanding than it did 1 year ago.
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.
A Debt/Equity ratio of 0.37 indicates that TRQ is not too dependend on debt financing.
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 Current ratio of 0.42. This is in the lower half of the industry: TRQ underperforms 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.
TRQ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.15% yearly.
TRQ shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.63%.
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
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
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
TRQ is valuated reasonably with a Price/Earnings ratio of 11.37.
Based on the Price/Earnings ratio, TRQ is valued cheaply inside the industry as 92.23% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.38. TRQ is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 34.55, which means the current valuation is very expensive for TRQ.
Based on the Price/Forward Earnings ratio, TRQ is valued 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 (22.86), we can say TRQ is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 34.55 |
4.2 Price Multiples
TRQ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TRQ is 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
No dividends for TRQ!.
| 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%