WESDOME GOLD MINES LTD (WDO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WDO - CA95083R1001 - Common Stock
25.88 CAD
+0.77 (+3.07%)
Overall WDO gets a fundamental rating of 8 out of 10. We evaluated WDO against 817 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making WDO a very profitable company, without any liquidiy or solvency issues. WDO has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! This makes WDO very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year WDO was profitable.
- WDO had a positive operating cash flow in the past year.
- In multiple years WDO reported negative net income over the last 5 years.
- WDO 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 27.89%, WDO belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
- WDO has a Return On Equity of 34.77%. This is amongst the best in the industry. WDO outperforms 97.55% of its industry peers.
- WDO has a better Return On Invested Capital (29.30%) than 99.39% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WDO is below the industry average of 11.97%.
- The last Return On Invested Capital (29.30%) for WDO is above the 3 year average (7.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.89% | ||
| ROE | 34.77% | ||
| ROIC | 29.3% |
ROA(3y)4.92%
ROA(5y)10.61%
ROE(3y)6.2%
ROE(5y)14.32%
ROIC(3y)7.59%
ROIC(5y)10.66%
1.3 Margins
- The Profit Margin of WDO (35.69%) is better than 97.43% of its industry peers.
- In the last couple of years the Profit Margin of WDO has remained more or less at the same level.
- WDO has a Operating Margin of 52.76%. This is amongst the best in the industry. WDO outperforms 98.78% of its industry peers.
- In the last couple of years the Operating Margin of WDO has remained more or less at the same level.
- WDO has a Gross Margin of 59.35%. This is amongst the best in the industry. WDO outperforms 96.94% of its industry peers.
- In the last couple of years the Gross Margin of WDO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.76% | ||
| PM (TTM) | 35.69% | ||
| GM | 59.35% |
OM growth 3Y-1.55%
OM growth 5Y0.17%
PM growth 3Y-21.38%
PM growth 5Y-0.54%
GM growth 3Y-0.17%
GM growth 5Y0.53%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WDO is creating value.
- Compared to 1 year ago, WDO has more shares outstanding
- Compared to 5 years ago, WDO has more shares outstanding
- WDO has a better debt/assets ratio than last year.
2.2 Solvency
- WDO has an Altman-Z score of 14.60. This indicates that WDO is financially healthy and has little risk of bankruptcy at the moment.
- WDO has a Altman-Z score of 14.60. This is in the better half of the industry: WDO outperforms 67.07% of its industry peers.
- WDO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.6 |
ROIC/WACC3.05
WACC9.6%
2.3 Liquidity
- WDO has a Current Ratio of 4.79. This indicates that WDO is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of WDO (4.79) is better than 73.44% of its industry peers.
- WDO has a Quick Ratio of 4.16. This indicates that WDO is financially healthy and has no problem in meeting its short term obligations.
- WDO's Quick ratio of 4.16 is fine compared to the rest of the industry. WDO outperforms 70.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.79 | ||
| Quick Ratio | 4.16 |
3. Growth
3.1 Past
- WDO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 251.85%, which is quite impressive.
- WDO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.76% yearly.
- WDO shows a strong growth in Revenue. In the last year, the Revenue has grown by 69.33%.
- WDO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.76% yearly.
EPS 1Y (TTM)251.85%
EPS 3Y-1.79%
EPS 5Y23.76%
EPS Q2Q%123.08%
Revenue 1Y (TTM)69.33%
Revenue growth 3Y28.53%
Revenue growth 5Y27.76%
Sales Q2Q%56.81%
3.2 Future
- Based on estimates for the next years, WDO will show a very strong growth in Earnings Per Share. The EPS will grow by 30.25% on average per year.
- WDO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.45% yearly.
EPS Next Y156.33%
EPS Next 2Y94.82%
EPS Next 3Y54.2%
EPS Next 5Y30.25%
Revenue Next Year61.7%
Revenue Next 2Y44.56%
Revenue Next 3Y31.88%
Revenue Next 5Y17.45%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.62, the valuation of WDO can be described as correct.
- 95.35% of the companies in the same industry are more expensive than WDO, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, WDO is valued rather cheaply.
- WDO is valuated cheaply with a Price/Forward Earnings ratio of 7.58.
- 96.21% of the companies in the same industry are more expensive than WDO, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of WDO to the average of the S&P500 Index (24.32), we can say WDO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.62 | ||
| Fwd PE | 7.58 |
4.2 Price Multiples
- WDO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WDO is cheaper than 97.06% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of WDO indicates a rather cheap valuation: WDO is cheaper than 96.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.87 | ||
| EV/EBITDA | 7.01 |
4.3 Compensation for Growth
- WDO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- WDO has an outstanding profitability rating, which may justify a higher PE ratio.
- WDO's earnings are expected to grow with 54.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)0.57
EPS Next 2Y94.82%
EPS Next 3Y54.2%
5. Dividend
5.1 Amount
- WDO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
WESDOME GOLD MINES LTD / WDO.CA FAQ
What is the ChartMill fundamental rating of WESDOME GOLD MINES LTD (WDO.CA) stock?
ChartMill assigns a fundamental rating of 8 / 10 to WDO.CA.
Can you provide the valuation status for WESDOME GOLD MINES LTD?
ChartMill assigns a valuation rating of 9 / 10 to WESDOME GOLD MINES LTD (WDO.CA). This can be considered as Undervalued.
What is the profitability of WDO stock?
WESDOME GOLD MINES LTD (WDO.CA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of WESDOME GOLD MINES LTD (WDO.CA) stock?
The Price/Earnings (PE) ratio for WESDOME GOLD MINES LTD (WDO.CA) is 13.62 and the Price/Book (PB) ratio is 4.68.
Can you provide the financial health for WDO stock?
The financial health rating of WESDOME GOLD MINES LTD (WDO.CA) is 8 / 10.