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Turquoise Hill Resources Ltd (TRQ) Stock Fundamental Analysis

USA - NYSE:TRQ - CA9004352071 - Common Stock

31.41 USD
-0.29 (-0.91%)
Last: 12/15/2022, 8:04:00 PM
31.48 USD
+0.07 (+0.22%)
After Hours: 12/15/2022, 8:04:00 PM
Fundamental Rating

4

TRQ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. While TRQ is still in line with the averages on profitability rating, there are concerns on its financial health. TRQ is valued quite expensive, but it does show an excellent growth.


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

TRQ has a Return On Assets (3.80%) which is comparable to the rest of the industry.
TRQ has a better Return On Equity (6.12%) than 61.22% of its industry peers.
The Return On Invested Capital of TRQ (2.66%) 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 12.31%.
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

The Profit Margin of TRQ (32.99%) is better than 90.48% 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 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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRQ is destroying value.
The number of shares outstanding for TRQ remains at a similar level compared to 1 year ago.
The debt/assets ratio for TRQ has been reduced compared to a year ago.
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

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.
The Debt to Equity ratio of TRQ (0.37) is worse 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

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 amonst the worse of the industry: TRQ underperforms 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's Quick ratio of 0.24 is on the low side compared to the rest of the industry. TRQ is outperformed by 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

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

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.
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.
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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2

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 27.67, TRQ is valued rather cheaply.
The Price/Forward Earnings ratio is 34.17, which means the current valuation is very expensive for TRQ.
TRQ's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.33, TRQ is valued a bit more expensive.
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

The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRQ.
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

No dividends for TRQ!.
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
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 NumberN/A
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%