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Turquoise Hill Resources Ltd (TRQ) Stock Fundamental Analysis

NYSE:TRQ - New York Stock Exchange, Inc. - CA9004352071 - Common Stock - Currency: USD

31.41  -0.29 (-0.91%)

After market: 31.48 +0.07 (+0.22%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to TRQ. TRQ was compared to 154 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 valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

TRQ had positive earnings in the past year.
In the past year TRQ had a positive cash flow from operations.
TRQ Yearly Net Income VS EBIT VS OCF VS FCFTRQ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 0 500M -500M 1B -1B

1.2 Ratios

With a Return On Assets value of 3.80%, TRQ perfoms like the industry average, outperforming 59.86% of the companies in the same industry.
TRQ has a better Return On Equity (6.12%) than 61.22% of its industry peers.
TRQ's Return On Invested Capital of 2.66% is in line compared to the rest of the industry. TRQ outperforms 50.34% of its industry peers.
TRQ had an Average Return On Invested Capital over the past 3 years of 2.58%. This is significantly below the industry average of 11.67%.
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 RankSector 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
TRQ Yearly ROA, ROE, ROICTRQ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 0 2 4 6

1.3 Margins

With an excellent Profit Margin value of 32.99%, TRQ belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
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 85.71% of its industry peers.
In the last couple of years the Operating Margin of TRQ has grown nicely.
Industry RankSector 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
TRQ Yearly Profit, Operating, Gross MarginsTRQ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 0 20 40 60

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1

2. Health

2.1 Basic Checks

TRQ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
TRQ Yearly Shares OutstandingTRQ Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 50M 100M 150M 200M
TRQ Yearly Total Debt VS Total AssetsTRQ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 5B 10B

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 Altman-Z score of 0.48. This is in the lower half of the industry: TRQ underperforms 79.59% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that TRQ is not too dependend on debt financing.
TRQ has a worse Debt to Equity ratio (0.37) than 72.79% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF N/A
Altman-Z 0.48
ROIC/WACC0.27
WACC9.84%
TRQ Yearly LT Debt VS Equity VS FCFTRQ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 0 2B 4B 6B 8B 10B

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.
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 95.24% of its industry peers.
Industry RankSector Rank
Current Ratio 0.42
Quick Ratio 0.24
TRQ Yearly Current Assets VS Current LiabilitesTRQ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 1B 2B 3B

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8

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.
The Revenue for TRQ has decreased by -11.63% in the past year. This is quite bad
The Revenue has been growing by 10.37% on average over the past years. This is quite good.
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

TRQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.99% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
TRQ Yearly Revenue VS EstimatesTRQ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B
TRQ Yearly EPS VS EstimatesTRQ Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 11.26 indicates a reasonable valuation of TRQ.
Based on the Price/Earnings ratio, TRQ is valued a bit cheaper than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.48, TRQ is valued rather cheaply.
A Price/Forward Earnings ratio of 34.17 indicates a quite expensive valuation of TRQ.
The rest of the industry has a similar Price/Forward Earnings ratio as TRQ.
TRQ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.52.
Industry RankSector Rank
PE 11.26
Fwd PE 34.17
TRQ Price Earnings VS Forward Price EarningsTRQ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

TRQ's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.68
TRQ Per share dataTRQ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y-40.66%
EPS Next 3Y7.83%

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0

5. Dividend

5.1 Amount

TRQ does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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Turquoise Hill Resources Ltd

NYSE:TRQ (12/15/2022, 8:04:00 PM)

After market: 31.48 +0.07 (+0.22%)

31.41

-0.29 (-0.91%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)11-14 2022-11-14/bmo
Earnings (Next)02-28 2023-02-28
Inst Owners0%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.32B
Analysts75
Price Target31.86 (1.43%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Profitability
Industry RankSector 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 RankSector 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%