WESTGOLD RESOURCES LTD (WGX.CA) Stock Fundamental Analysis
TSX:WGX - Toronto Stock Exchange - AU000000WGX6 - Common Stock - Currency: CAD
WGX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 797 industry peers in the Metals & Mining industry. WGX scores excellent on profitability, but there are concerns on its financial health. WGX is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year WGX was profitable.
WGX had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: WGX reported negative operating cash flow in multiple years.
1.2 Ratios
WGX has a better Return On Assets (4.09%) than 88.33% of its industry peers.
WGX has a better Return On Equity (6.25%) than 89.33% of its industry peers.
WGX has a Return On Invested Capital of 6.83%. This is amongst the best in the industry. WGX outperforms 92.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WGX is significantly below the industry average of 11.45%.
The last Return On Invested Capital (6.83%) for WGX is above the 3 year average (4.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 6.25% | ||
| ROIC | 6.83% |
ROA(3y)-1.05%
ROA(5y)1.99%
ROE(3y)-1.16%
ROE(5y)3.16%
ROIC(3y)4.76%
ROIC(5y)5.46%
1.3 Margins
WGX has a Profit Margin of 7.73%. This is amongst the best in the industry. WGX outperforms 91.72% of its industry peers.
In the last couple of years the Profit Margin of WGX has grown nicely.
With an excellent Operating Margin value of 16.13%, WGX belongs to the best of the industry, outperforming 91.34% of the companies in the same industry.
WGX's Operating Margin has improved in the last couple of years.
WGX has a Gross Margin of 21.29%. This is amongst the best in the industry. WGX outperforms 88.46% of its industry peers.
WGX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.13% | ||
| PM (TTM) | 7.73% | ||
| GM | 21.29% |
OM growth 3Y-3.01%
OM growth 5Y65.25%
PM growth 3Y-0.36%
PM growth 5Y31.52%
GM growth 3Y0.88%
GM growth 5Y55.02%
2. Health
2.1 Basic Checks
The number of shares outstanding for WGX remains at a similar level compared to 1 year ago.
Compared to 5 years ago, WGX has more shares outstanding
Compared to 1 year ago, WGX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.34 indicates that WGX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.34, WGX is in line with its industry, outperforming 56.34% of the companies in the same industry.
WGX has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
WGX has a Debt to Equity ratio (0.02) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.34 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
WGX has a Current Ratio of 1.07. This is a normal value and indicates that WGX is financially healthy and should not expect problems in meeting its short term obligations.
WGX's Current ratio of 1.07 is in line compared to the rest of the industry. WGX outperforms 43.41% of its industry peers.
A Quick Ratio of 0.71 indicates that WGX may have some problems paying its short term obligations.
WGX has a Quick ratio of 0.71. This is in the lower half of the industry: WGX underperforms 61.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
WGX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 837.91%, which is quite impressive.
Measured over the past years, WGX shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.85% on average per year.
WGX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.11%.
The Revenue has been growing by 11.36% on average over the past years. This is quite good.
EPS 1Y (TTM)837.91%
EPS 3Y2.98%
EPS 5Y40.85%
EPS Q2Q%N/A
Revenue 1Y (TTM)9.11%
Revenue growth 3Y7.85%
Revenue growth 5Y11.36%
Sales Q2Q%N/A
3.2 Future
The Earnings Per Share is expected to grow by 10.22% on average over the next years. This is quite good.
The Revenue is expected to grow by 33.32% on average over the next years. This is a very strong growth
EPS Next Y16.96%
EPS Next 2Y50.25%
EPS Next 3Y30.14%
EPS Next 5Y10.22%
Revenue Next Year92.33%
Revenue Next 2Y63.95%
Revenue Next 3Y41.07%
Revenue Next 5Y33.32%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.59 indicates a correct valuation of WGX.
WGX's Price/Earnings ratio is rather cheap when compared to the industry. WGX is cheaper than 92.72% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.82, WGX is valued a bit cheaper.
The Price/Forward Earnings ratio is 5.80, which indicates a rather cheap valuation of WGX.
Based on the Price/Forward Earnings ratio, WGX is valued cheaper than 94.98% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, WGX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 5.8 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
WGX'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 WGX may justify a higher PE ratio.
A more expensive valuation may be justified as WGX's earnings are expected to grow with 30.14% in the coming years.
PEG (NY)0.8
PEG (5Y)0.33
EPS Next 2Y50.25%
EPS Next 3Y30.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, WGX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 16.93, WGX pays a better dividend. On top of this WGX pays more dividend than 94.98% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, WGX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
WGX is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
8.56% of the earnings are spent on dividend by WGX. This is a low number and sustainable payout ratio.
DP8.56%
EPS Next 2Y50.25%
EPS Next 3Y30.14%
TSX:WGX (8/1/2025, 7:00:00 PM)
2.31
+0.04 (+1.76%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners61.72%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap2.18B
Analysts82.5
Price Target3.49 (51.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP8.56%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)-0.71%
PT rev (3m)-5.02%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.75%
Revenue NY rev (3m)-2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 5.8 | ||
| P/S | 1.52 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.23 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.17
EY7.36%
EPS(NY)0.4
Fwd EY17.24%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS1.52
BVpS1.88
TBVpS1.88
PEG (NY)0.8
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 6.25% | ||
| ROCE | 9.67% | ||
| ROIC | 6.83% | ||
| ROICexc | 7.31% | ||
| ROICexgc | 7.31% | ||
| OM | 16.13% | ||
| PM (TTM) | 7.73% | ||
| GM | 21.29% | ||
| FCFM | N/A |
ROA(3y)-1.05%
ROA(5y)1.99%
ROE(3y)-1.16%
ROE(5y)3.16%
ROIC(3y)4.76%
ROIC(5y)5.46%
ROICexc(3y)6.51%
ROICexc(5y)7.15%
ROICexgc(3y)6.51%
ROICexgc(5y)7.15%
ROCE(3y)6.74%
ROCE(5y)7.73%
ROICexcg growth 3Y4.65%
ROICexcg growth 5Y75.71%
ROICexc growth 3Y4.65%
ROICexc growth 5Y75.71%
OM growth 3Y-3.01%
OM growth 5Y65.25%
PM growth 3Y-0.36%
PM growth 5Y31.52%
GM growth 3Y0.88%
GM growth 5Y55.02%
F-ScoreN/A
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 2.34 |
F-ScoreN/A
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
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)837.91%
EPS 3Y2.98%
EPS 5Y40.85%
EPS Q2Q%N/A
EPS Next Y16.96%
EPS Next 2Y50.25%
EPS Next 3Y30.14%
EPS Next 5Y10.22%
Revenue 1Y (TTM)9.11%
Revenue growth 3Y7.85%
Revenue growth 5Y11.36%
Sales Q2Q%N/A
Revenue Next Year92.33%
Revenue Next 2Y63.95%
Revenue Next 3Y41.07%
Revenue Next 5Y33.32%
EBIT growth 1Y1400.35%
EBIT growth 3Y4.6%
EBIT growth 5Y84.03%
EBIT Next Year324.67%
EBIT Next 3Y91.39%
EBIT Next 5Y69.04%
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A