Turquoise Hill Resources Ltd (TRQ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRQ - CA9004352071 - Common Stock
31.41 USD
-0.29 (-0.91%)
31.48 USD
+0.07 (+0.22%)
TRQ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 156 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 shows excellent growth, but is valued quite expensive already.
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 is in line with its industry, outperforming 59.86% of the companies in the same industry.
TRQ's Return On Equity of 6.12% is fine compared to the rest of the industry. TRQ outperforms 61.22% of its industry peers.
TRQ has a Return On Invested Capital (2.66%) which is comparable to the rest of the industry.
TRQ had an Average Return On Invested Capital over the past 3 years of 2.58%. This is significantly below the industry average of 13.25%.
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
TRQ has a better Profit Margin (32.99%) than 90.48% of its industry peers.
TRQ's Profit Margin has improved in the last couple of years.
TRQ's Operating Margin of 30.81% is amongst the best of the industry. TRQ outperforms 85.71% 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 0.48, we must say that TRQ is in the distress zone and has some risk of bankruptcy.
TRQ has a worse Altman-Z score (0.48) than 79.59% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that TRQ is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.37, TRQ is doing worse than 72.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.48 |
ROIC/WACC0.27
WACC9.84%
2.3 Liquidity
A Current Ratio of 0.42 indicates that TRQ may have some problems paying its short term obligations.
TRQ has a worse Current ratio (0.42) than 95.24% 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: 95.24% 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.
The Earnings Per Share has been growing by 21.15% on average over the past years. This is a very strong growth
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
Based on estimates for the next years, TRQ will show a very strong growth in Earnings Per Share. The EPS will grow by 37.99% on average per year.
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
TRQ is valuated reasonably with a Price/Earnings ratio of 11.26.
Compared to the rest of the industry, the Price/Earnings ratio of TRQ indicates a somewhat cheap valuation: TRQ is cheaper than 71.43% of the companies listed in the same industry.
TRQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.39.
With a Price/Forward Earnings ratio of 34.17, TRQ can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as TRQ.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, TRQ is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.26 | ||
| Fwd PE | 34.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRQ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.68 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.53
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 |
31.41
-0.29 (-0.91%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.32B
Revenue(TTM)1.70B
Net Income(TTM)560.78M
Analysts75
Price Target31.86 (1.43%)
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)1.71%
PT rev (3m)N/A
EPS NQ rev (1m)-113.69%
EPS NQ rev (3m)N/A
EPS NY rev (1m)14.53%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-11.02%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)5.26%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.26 | ||
| Fwd PE | 34.17 | ||
| P/S | 3.72 | ||
| P/FCF | N/A | ||
| P/OCF | 13.53 | ||
| P/B | 0.69 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 14.68 |
EPS(TTM)2.79
EY8.88%
EPS(NY)0.92
Fwd EY2.93%
FCF(TTM)-2.94
FCFYN/A
OCF(TTM)2.32
OCFY7.39%
SpS8.45
BVpS45.51
TBVpS45.51
PEG (NY)N/A
PEG (5Y)0.53
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 | 0.48 |
F-Score3
WACC9.84%
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 FAQ
What is the fundamental rating for TRQ stock?
ChartMill assigns a fundamental rating of 3 / 10 to TRQ.
What is the valuation status for TRQ stock?
ChartMill assigns a valuation rating of 6 / 10 to Turquoise Hill Resources Ltd (TRQ). This can be considered as Fairly Valued.
Can you provide the profitability details for Turquoise Hill Resources Ltd?
Turquoise Hill Resources Ltd (TRQ) 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) is expected to decline by -22.59% in the next year.