Turquoise Hill Resources Ltd (TRQ) Fundamental Analysis & Valuation

NYSE:TRQ • CA9004352071

Current stock price

31.41 USD
-0.29 (-0.91%)
At close:
31.48 USD
+0.07 (+0.22%)
After Hours:

This TRQ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. TRQ Profitability Analysis

1.1 Basic Checks

  • In the past year TRQ was profitable.
  • TRQ had a positive operating cash flow in the past year.
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 2016 2017 2018 2019 2020 2021 0 500M -500M 1B -1B

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.
  • Looking at the Return On Equity, with a value of 6.12%, TRQ is in the better half of the industry, outperforming 61.22% of the companies in the same industry.
  • TRQ has a Return On Invested Capital of 2.66%. This is comparable to the rest of the industry: TRQ outperforms 50.34% 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 58.77%.
  • The 3 year average ROIC (2.58%) for TRQ is below the current ROIC(2.66%), indicating increased profibility in the last year.
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 2016 2017 2018 2019 2020 2021 0 2 4 6

1.3 Margins

  • Looking at the Profit Margin, with a value of 32.99%, TRQ belongs to the top 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 better Operating Margin (30.81%) than 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 2016 2017 2018 2019 2020 2021 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. TRQ Health Analysis

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.
  • 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.
TRQ Yearly Shares OutstandingTRQ Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 5B 10B

2.2 Solvency

  • TRQ has an Altman-Z score of 0.48. This is a bad value and indicates that TRQ is not financially healthy and even 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.
  • TRQ has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
  • 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 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 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.
  • With a Current ratio value of 0.42, TRQ is not doing good in the industry: 95.24% of the companies in the same industry are doing better.
  • 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 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 2016 2017 2018 2019 2020 2021 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. TRQ Growth Analysis

3.1 Past

  • TRQ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.49%.
  • 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%.
  • 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

  • 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.
  • TRQ is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.56% yearly.
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.
  • 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 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

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Find the best growth stocksShow best growing peers

2

4. TRQ Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 11.26, the valuation of TRQ can be described as reasonable.
  • Based on the Price/Earnings ratio, TRQ is valued a bit cheaper than 71.43% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of TRQ to the average of the S&P500 Index (26.64), we can say TRQ is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 34.17, the valuation of TRQ can be described as expensive.
  • TRQ's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of TRQ to the average of the S&P500 Index (21.36), we can say TRQ is valued expensively.
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 ratio is in line with 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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. TRQ Dividend Analysis

5.1 Amount

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

More info and screens

Find the best dividend stocksShow peers with best dividend

TRQ Fundamentals: All Metrics, Ratios and Statistics

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
Industry Strength81.1
Industry Growth11.94
Earnings (Last)11-14
Earnings (Next)02-28
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 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
Graham Number0 (-100%)
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
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 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%

Turquoise Hill Resources Ltd / TRQ Fundamental Analysis FAQ

What is the fundamental rating for TRQ stock?

ChartMill assigns a fundamental rating of 3 / 10 to TRQ.


Can you provide the valuation status for Turquoise Hill Resources Ltd?

ChartMill assigns a valuation rating of 6 / 10 to Turquoise Hill Resources Ltd (TRQ). This can be considered as Fairly Valued.


What is the profitability of TRQ stock?

Turquoise Hill Resources Ltd (TRQ) has a profitability rating of 2 / 10.


What is the valuation of Turquoise Hill Resources Ltd based on its PE and PB ratios?

The Price/Earnings (PE) ratio for Turquoise Hill Resources Ltd (TRQ) is 11.26 and the Price/Book (PB) ratio is 0.69.


What is the expected EPS growth for Turquoise Hill Resources Ltd (TRQ) stock?

The Earnings per Share (EPS) of Turquoise Hill Resources Ltd (TRQ) is expected to decline by -22.59% in the next year.