WESTGOLD RESOURCES LTD (WGX.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:WGX • AU000000WGX6
7 CAD
-0.46 (-6.17%)
Last: Jan 29, 2026, 07:00 PM
Overall WGX gets a fundamental rating of 7 out of 10. We evaluated WGX against 820 industry peers in the Metals & Mining industry. While WGX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. WGX is evaluated to be cheap and growing strongly. This does not happen too often! These ratings could make WGX a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
- WGX had positive earnings in the past year.
- In the past year WGX had a positive cash flow from operations.
- Of the past 5 years WGX 4 years were profitable.
- 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
- Looking at the Return On Assets, with a value of 4.23%, WGX belongs to the top of the industry, outperforming 89.02% of the companies in the same industry.
- WGX's Return On Equity of 6.88% is amongst the best of the industry. WGX outperforms 89.63% of its industry peers.
- WGX has a better Return On Invested Capital (4.78%) than 90.98% of its industry peers.
- WGX had an Average Return On Invested Capital over the past 3 years of 3.82%. This is significantly below the industry average of 12.04%.
- The 3 year average ROIC (3.82%) for WGX is below the current ROIC(4.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | 6.88% | ||
| ROIC | 4.78% |
ROA(3y)3.79%
ROA(5y)1.29%
ROE(3y)5.73%
ROE(5y)2.19%
ROIC(3y)3.82%
ROIC(5y)4.15%
1.3 Margins
- WGX's Profit Margin of 6.79% is amongst the best of the industry. WGX outperforms 90.98% of its industry peers.
- In the last couple of years the Profit Margin of WGX has declined.
- Looking at the Operating Margin, with a value of 13.40%, WGX belongs to the top of the industry, outperforming 90.49% of the companies in the same industry.
- WGX's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 18.38%, WGX belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
- In the last couple of years the Gross Margin of WGX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.4% | ||
| PM (TTM) | 6.79% | ||
| GM | 18.38% |
OM growth 3Y46.33%
OM growth 5Y21.17%
PM growth 3YN/A
PM growth 5Y-18.33%
GM growth 3Y43.87%
GM growth 5Y22.72%
2. Health
2.1 Basic Checks
- WGX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, WGX has more shares outstanding
- WGX has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for WGX has been reduced compared to a year ago.
2.2 Solvency
- WGX has an Altman-Z score of 4.40. This indicates that WGX is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.40, WGX is in line with its industry, outperforming 51.10% of the companies in the same industry.
- WGX has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as WGX would need 2.32 years to pay back of all of its debts.
- The Debt to FCF ratio of WGX (2.32) is better than 92.07% of its industry peers.
- WGX has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.02, WGX perfoms like the industry average, outperforming 43.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 4.4 |
ROIC/WACC0.43
WACC11.05%
2.3 Liquidity
- WGX has a Current Ratio of 1.16. This is a normal value and indicates that WGX is financially healthy and should not expect problems in meeting its short term obligations.
- WGX has a Current ratio (1.16) which is comparable to the rest of the industry.
- A Quick Ratio of 0.74 indicates that WGX may have some problems paying its short term obligations.
- WGX's Quick ratio of 0.74 is on the low side compared to the rest of the industry. WGX is outperformed by 63.05% of its industry peers.
- WGX does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
- The earnings per share for WGX have decreased strongly by -80.75% in the last year.
- WGX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.12% yearly.
- WGX shows a strong growth in Revenue. In the last year, the Revenue has grown by 89.86%.
- The Revenue has been growing by 22.54% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-80.75%
EPS 3YN/A
EPS 5Y-15.12%
EPS Q2Q%-33.68%
Revenue 1Y (TTM)89.86%
Revenue growth 3Y28.07%
Revenue growth 5Y22.54%
Sales Q2Q%108.38%
3.2 Future
- Based on estimates for the next years, WGX will show a very strong growth in Earnings Per Share. The EPS will grow by 77.74% on average per year.
- Based on estimates for the next years, WGX will show a very strong growth in Revenue. The Revenue will grow by 25.19% on average per year.
EPS Next Y315.96%
EPS Next 2Y129.5%
EPS Next 3Y77.74%
EPS Next 5YN/A
Revenue Next Year64.21%
Revenue Next 2Y36.49%
Revenue Next 3Y25.19%
Revenue Next 5YN/A
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 46.67, WGX can be considered very expensive at the moment.
- WGX's Price/Earnings ratio is rather cheap when compared to the industry. WGX is cheaper than 88.29% of the companies in the same industry.
- WGX is valuated expensively when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- WGX is valuated reasonably with a Price/Forward Earnings ratio of 10.87.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WGX indicates a rather cheap valuation: WGX is cheaper than 93.90% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of WGX to the average of the S&P500 Index (25.57), we can say WGX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.67 | ||
| Fwd PE | 10.87 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, WGX is valued cheaply inside the industry as 91.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 109.07 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- WGX has an outstanding profitability rating, which may justify a higher PE ratio.
- WGX's earnings are expected to grow with 77.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y129.5%
EPS Next 3Y77.74%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.41%, WGX is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.56, WGX pays a better dividend. On top of this WGX pays more dividend than 95.49% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, WGX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
- WGX has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- WGX pays out 4.38% of its income as dividend. This is a sustainable payout ratio.
DP4.38%
EPS Next 2Y129.5%
EPS Next 3Y77.74%
WESTGOLD RESOURCES LTD / WGX.CA FAQ
Can you provide the ChartMill fundamental rating for WESTGOLD RESOURCES LTD?
ChartMill assigns a fundamental rating of 7 / 10 to WGX.CA.
What is the valuation status of WESTGOLD RESOURCES LTD (WGX.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to WESTGOLD RESOURCES LTD (WGX.CA). This can be considered as Undervalued.
What is the profitability of WGX stock?
WESTGOLD RESOURCES LTD (WGX.CA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of WESTGOLD RESOURCES LTD (WGX.CA) stock?
The Price/Earnings (PE) ratio for WESTGOLD RESOURCES LTD (WGX.CA) is 46.67 and the Price/Book (PB) ratio is 3.51.
Is the dividend of WESTGOLD RESOURCES LTD sustainable?
The dividend rating of WESTGOLD RESOURCES LTD (WGX.CA) is 3 / 10 and the dividend payout ratio is 4.38%.