TOREX GOLD RESOURCES INC (TXG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TXG - CA8910546032 - Common Stock
75.98 CAD
-6.57 (-7.96%)
We assign a fundamental rating of 6 out of 10 to TXG. TXG was compared to 820 industry peers in the Metals & Mining industry. While TXG has a great profitability rating, there are quite some concerns on its financial health. TXG is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year TXG was profitable.
- TXG had a positive operating cash flow in the past year.
- In the past 5 years TXG has always been profitable.
- TXG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 11.97%, TXG belongs to the top of the industry, outperforming 94.27% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 15.91%, TXG belongs to the top of the industry, outperforming 94.02% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 12.87%, TXG belongs to the best of the industry, outperforming 95.37% of the companies in the same industry.
- TXG had an Average Return On Invested Capital over the past 3 years of 12.34%. This is in line with the industry average of 12.04%.
- The 3 year average ROIC (12.34%) for TXG is below the current ROIC(12.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 15.91% | ||
| ROIC | 12.87% |
ROA(3y)9.73%
ROA(5y)9.81%
ROE(3y)12.15%
ROE(5y)12.35%
ROIC(3y)12.34%
ROIC(5y)13.48%
1.3 Margins
- TXG has a Profit Margin of 26.13%. This is amongst the best in the industry. TXG outperforms 95.85% of its industry peers.
- In the last couple of years the Profit Margin of TXG has grown nicely.
- TXG has a Operating Margin of 38.49%. This is amongst the best in the industry. TXG outperforms 96.22% of its industry peers.
- TXG's Operating Margin has improved in the last couple of years.
- TXG has a better Gross Margin (46.49%) than 94.51% of its industry peers.
- TXG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.49% | ||
| PM (TTM) | 26.13% | ||
| GM | 46.49% |
OM growth 3Y1.08%
OM growth 5Y11.01%
PM growth 3Y-12.03%
PM growth 5Y1.66%
GM growth 3Y3.23%
GM growth 5Y10.82%
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.
2.2 Solvency
- TXG has an Altman-Z score of 6.84. This indicates that TXG is financially healthy and has little risk of bankruptcy at the moment.
- TXG's Altman-Z score of 6.84 is in line compared to the rest of the industry. TXG outperforms 56.59% of its industry peers.
- A Debt/Equity ratio of 0.12 indicates that TXG is not too dependend on debt financing.
- TXG's Debt to Equity ratio of 0.12 is on the low side compared to the rest of the industry. TXG is outperformed by 63.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.84 |
ROIC/WACC1.32
WACC9.72%
2.3 Liquidity
- A Current Ratio of 1.38 indicates that TXG should not have too much problems paying its short term obligations.
- The Current ratio of TXG (1.38) is comparable to the rest of the industry.
- TXG has a Quick Ratio of 1.38. This is a bad value and indicates that TXG is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.79, TXG is doing worse than 61.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- TXG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.93%, which is quite impressive.
- The Earnings Per Share has been growing by 26.71% on average over the past years. This is a very strong growth
- TXG shows a small growth in Revenue. In the last year, the Revenue has grown by 2.94%.
- Measured over the past years, TXG shows a quite strong growth in Revenue. The Revenue has been growing by 11.72% on average per year.
EPS 1Y (TTM)23.93%
EPS 3Y7.27%
EPS 5Y26.71%
EPS Q2Q%57.33%
Revenue 1Y (TTM)2.94%
Revenue growth 3Y9.24%
Revenue growth 5Y11.72%
Sales Q2Q%32.74%
3.2 Future
- Based on estimates for the next years, TXG will show a small growth in Earnings Per Share. The EPS will grow by 6.46% on average per year.
- The Revenue is expected to grow by 18.70% on average over the next years. This is quite good.
EPS Next Y43.44%
EPS Next 2Y50.16%
EPS Next 3Y33.64%
EPS Next 5Y6.46%
Revenue Next Year23.87%
Revenue Next 2Y26.48%
Revenue Next 3Y18.7%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- Based on the Price/Earnings ratio of 19.38, the valuation of TXG can be described as rather expensive.
- TXG's Price/Earnings ratio is rather cheap when compared to the industry. TXG is cheaper than 94.02% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.39. TXG is valued slightly cheaper when compared to this.
- TXG is valuated reasonably with a Price/Forward Earnings ratio of 9.66.
- TXG's Price/Forward Earnings ratio is rather cheap when compared to the industry. TXG is cheaper than 94.88% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. TXG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.38 | ||
| Fwd PE | 9.66 |
4.2 Price Multiples
- 96.34% of the companies in the same industry are more expensive than TXG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.43 |
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.
- TXG has an outstanding profitability rating, which may justify a higher PE ratio.
- TXG's earnings are expected to grow with 33.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.45
PEG (5Y)0.73
EPS Next 2Y50.16%
EPS Next 3Y33.64%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.76%, TXG is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.56, TXG pays a better dividend. On top of this TXG pays more dividend than 96.71% of the companies listed in the same industry.
- With a Dividend Yield of 0.76, TXG pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
- TXG does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y50.16%
EPS Next 3Y33.64%
TOREX GOLD RESOURCES INC / TXG.CA FAQ
Can you provide the ChartMill fundamental rating for TOREX GOLD RESOURCES INC?
ChartMill assigns a fundamental rating of 6 / 10 to TXG.CA.
What is the valuation status of TOREX GOLD RESOURCES INC (TXG.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to TOREX GOLD RESOURCES INC (TXG.CA). This can be considered as Undervalued.
Can you provide the profitability details for TOREX GOLD RESOURCES INC?
TOREX GOLD RESOURCES INC (TXG.CA) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for TXG stock?
The Price/Earnings (PE) ratio for TOREX GOLD RESOURCES INC (TXG.CA) is 19.38 and the Price/Book (PB) ratio is 2.9.
How financially healthy is TOREX GOLD RESOURCES INC?
The financial health rating of TOREX GOLD RESOURCES INC (TXG.CA) is 3 / 10.