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TOREX GOLD RESOURCES INC (TXG.CA) Stock Fundamental Analysis

TSX:TXG - Toronto Stock Exchange - CA8910546032 - Common Stock - Currency: CAD

34.35  +0.24 (+0.7%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to TXG. TXG was compared to 818 industry peers in the Metals & Mining industry. TXG scores excellent on profitability, but there are concerns on its financial health. TXG has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

In the past year TXG was profitable.
TXG had a positive operating cash flow in the past year.
TXG had positive earnings in each of the past 5 years.
TXG had a positive operating cash flow in each of the past 5 years.
TXG.CA Yearly Net Income VS EBIT VS OCF VS FCFTXG.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M

1.2 Ratios

TXG has a better Return On Assets (6.04%) than 92.12% of its industry peers.
With an excellent Return On Equity value of 7.90%, TXG belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.32%, TXG belongs to the best of the industry, outperforming 97.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TXG is above the industry average of 11.89%.
The last Return On Invested Capital (16.32%) for TXG is above the 3 year average (15.84%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.04%
ROE 7.9%
ROIC 16.32%
ROA(3y)11.35%
ROA(5y)9.71%
ROE(3y)13.99%
ROE(5y)12.4%
ROIC(3y)15.84%
ROIC(5y)15.08%
TXG.CA Yearly ROA, ROE, ROICTXG.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15

1.3 Margins

TXG's Profit Margin of 11.25% is amongst the best of the industry. TXG outperforms 93.48% of its industry peers.
TXG's Profit Margin has improved in the last couple of years.
TXG has a better Operating Margin (32.78%) than 96.60% of its industry peers.
In the last couple of years the Operating Margin of TXG has grown nicely.
TXG has a better Gross Margin (37.85%) than 93.61% of its industry peers.
TXG's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 32.78%
PM (TTM) 11.25%
GM 37.85%
OM growth 3Y-1.96%
OM growth 5Y8.67%
PM growth 3Y18.45%
PM growth 5Y34.38%
GM growth 3Y-0.6%
GM growth 5Y5.55%
TXG.CA Yearly Profit, Operating, Gross MarginsTXG.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TXG is creating some value.
The number of shares outstanding for TXG remains at a similar level compared to 1 year ago.
The number of shares outstanding for TXG has been increased compared to 5 years ago.
The debt/assets ratio for TXG is higher compared to a year ago.
TXG.CA Yearly Shares OutstandingTXG.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
TXG.CA Yearly Total Debt VS Total AssetsTXG.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.2 Solvency

TXG has an Altman-Z score of 4.00. This indicates that TXG is financially healthy and has little risk of bankruptcy at the moment.
TXG has a better Altman-Z score (4.00) than 63.86% of its industry peers.
TXG has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.06, TXG is not doing good in the industry: 65.35% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF N/A
Altman-Z 4
ROIC/WACC1.77
WACC9.24%
TXG.CA Yearly LT Debt VS Equity VS FCFTXG.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

2.3 Liquidity

TXG has a Current Ratio of 1.00. This is a normal value and indicates that TXG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TXG (1.00) is worse than 63.18% of its industry peers.
TXG has a Quick Ratio of 1.00. This is a bad value and indicates that TXG is not financially healthy enough and could expect problems in meeting its short term obligations.
TXG has a Quick ratio of 0.62. This is in the lower half of the industry: TXG underperforms 69.57% of its industry peers.
Industry RankSector Rank
Current Ratio 1
Quick Ratio 0.62
TXG.CA Yearly Current Assets VS Current LiabilitesTXG.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

8

3. Growth

3.1 Past

TXG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.17%, which is quite impressive.
Measured over the past years, TXG shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.18% on average per year.
TXG shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.04%.
The Revenue has been growing by 14.79% on average over the past years. This is quite good.
EPS 1Y (TTM)47.17%
EPS 3Y3.09%
EPS 5Y30.18%
EPS Q2Q%476.92%
Revenue 1Y (TTM)35.04%
Revenue growth 3Y3.8%
Revenue growth 5Y14.79%
Sales Q2Q%95.94%

3.2 Future

TXG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.23% yearly.
TXG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.40% yearly.
EPS Next Y38.58%
EPS Next 2Y21.7%
EPS Next 3Y24.72%
EPS Next 5Y16.23%
Revenue Next Year26.47%
Revenue Next 2Y12.36%
Revenue Next 3Y11.4%
Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
TXG.CA Yearly Revenue VS EstimatesTXG.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 200M 400M 600M 800M 1B
TXG.CA Yearly EPS VS EstimatesTXG.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 1 2 3

8

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.25, the valuation of TXG can be described as reasonable.
93.34% of the companies in the same industry are more expensive than TXG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.27, TXG is valued rather cheaply.
TXG is valuated reasonably with a Price/Forward Earnings ratio of 9.43.
TXG's Price/Forward Earnings ratio is rather cheap when compared to the industry. TXG is cheaper than 93.21% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TXG to the average of the S&P500 Index (96.48), we can say TXG is valued rather cheaply.
Industry RankSector Rank
PE 10.25
Fwd PE 9.43
TXG.CA Price Earnings VS Forward Price EarningsTXG.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TXG is valued cheaply inside the industry as 96.20% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 3.6
TXG.CA Per share dataTXG.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20 25

4.3 Compensation for Growth

TXG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of TXG may justify a higher PE ratio.
A more expensive valuation may be justified as TXG's earnings are expected to grow with 24.72% in the coming years.
PEG (NY)0.27
PEG (5Y)0.34
EPS Next 2Y21.7%
EPS Next 3Y24.72%

0

5. Dividend

5.1 Amount

No dividends for TXG!.
Industry RankSector Rank
Dividend Yield N/A

TOREX GOLD RESOURCES INC

TSX:TXG (2/13/2025, 7:00:00 PM)

34.35

+0.24 (+0.7%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-19 2025-02-19/amc
Inst Owners72.32%
Inst Owner ChangeN/A
Ins Owners0.32%
Ins Owner ChangeN/A
Market Cap2.95B
Analysts80
Price Target38.38 (11.73%)
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 Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.91%
Min EPS beat(2)20.42%
Max EPS beat(2)23.39%
EPS beat(4)4
Avg EPS beat(4)15.37%
Min EPS beat(4)1.23%
Max EPS beat(4)23.39%
EPS beat(8)8
Avg EPS beat(8)19.17%
EPS beat(12)12
Avg EPS beat(12)17.65%
EPS beat(16)16
Avg EPS beat(16)22.04%
Revenue beat(2)2
Avg Revenue beat(2)49694.8%
Min Revenue beat(2)1.17%
Max Revenue beat(2)99388.4%
Revenue beat(4)4
Avg Revenue beat(4)24847.6%
Min Revenue beat(4)0.07%
Max Revenue beat(4)99388.4%
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)2.35%
PT rev (3m)9.82%
EPS NQ rev (1m)-8.66%
EPS NQ rev (3m)227.43%
EPS NY rev (1m)-3.01%
EPS NY rev (3m)16.73%
Revenue NQ rev (1m)-9.6%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)12.1%
Valuation
Industry RankSector Rank
PE 10.25
Fwd PE 9.43
P/S 1.87
P/FCF N/A
P/OCF 4.62
P/B 1.32
P/tB 1.32
EV/EBITDA 3.6
EPS(TTM)3.35
EY9.75%
EPS(NY)3.64
Fwd EY10.61%
FCF(TTM)-2.11
FCFYN/A
OCF(TTM)7.43
OCFY21.63%
SpS18.34
BVpS26.12
TBVpS26.12
PEG (NY)0.27
PEG (5Y)0.34
Profitability
Industry RankSector Rank
ROA 6.04%
ROE 7.9%
ROCE 21.1%
ROIC 16.32%
ROICexc 17.48%
ROICexgc 17.48%
OM 32.78%
PM (TTM) 11.25%
GM 37.85%
FCFM N/A
ROA(3y)11.35%
ROA(5y)9.71%
ROE(3y)13.99%
ROE(5y)12.4%
ROIC(3y)15.84%
ROIC(5y)15.08%
ROICexc(3y)20.21%
ROICexc(5y)18.96%
ROICexgc(3y)20.21%
ROICexgc(5y)18.96%
ROCE(3y)20.49%
ROCE(5y)19.5%
ROICexcg growth 3Y-13.75%
ROICexcg growth 5Y15.85%
ROICexc growth 3Y-13.75%
ROICexc growth 5Y15.85%
OM growth 3Y-1.96%
OM growth 5Y8.67%
PM growth 3Y18.45%
PM growth 5Y34.38%
GM growth 3Y-0.6%
GM growth 5Y5.55%
F-Score5
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF N/A
Debt/EBITDA 0.17
Cap/Depr 271.58%
Cap/Sales 51.98%
Interest Coverage 144.6
Cash Conversion 78.01%
Profit Quality N/A
Current Ratio 1
Quick Ratio 0.62
Altman-Z 4
F-Score5
WACC9.24%
ROIC/WACC1.77
Cap/Depr(3y)163.56%
Cap/Depr(5y)121.8%
Cap/Sales(3y)37.74%
Cap/Sales(5y)29.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)47.17%
EPS 3Y3.09%
EPS 5Y30.18%
EPS Q2Q%476.92%
EPS Next Y38.58%
EPS Next 2Y21.7%
EPS Next 3Y24.72%
EPS Next 5Y16.23%
Revenue 1Y (TTM)35.04%
Revenue growth 3Y3.8%
Revenue growth 5Y14.79%
Sales Q2Q%95.94%
Revenue Next Year26.47%
Revenue Next 2Y12.36%
Revenue Next 3Y11.4%
Revenue Next 5YN/A
EBIT growth 1Y61.31%
EBIT growth 3Y1.77%
EBIT growth 5Y24.74%
EBIT Next Year119.07%
EBIT Next 3Y34.78%
EBIT Next 5Y21.97%
FCF growth 1Y-199.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.53%
OCF growth 3Y-4.2%
OCF growth 5Y5.81%