Yamana Gold Inc (YRI.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:YRI • CA98462Y1007
7.89 CAD
+0.01 (+0.13%)
Last: Apr 3, 2023, 07:00 PM
Overall YRI gets a fundamental rating of 3 out of 10. We evaluated YRI against 820 industry peers in the Metals & Mining industry. There are concerns on the financial health of YRI while its profitability can be described as average. YRI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year YRI was profitable.
- In the past year YRI had a positive cash flow from operations.
1.2 Ratios
- The profitability ratios for YRI are negative, so there is not much use analyzing them.
- YRI has a Return On Invested Capital of 3.91%. This is amongst the best in the industry. YRI outperforms 91.94% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for YRI is significantly below the industry average of 12.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | 3.91% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.7%
ROIC(5y)N/A
1.3 Margins
- The Operating Margin of YRI (17.93%) is better than 94.01% of its industry peers.
- YRI's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 56.94%, YRI belongs to the best of the industry, outperforming 98.04% of the companies in the same industry.
- YRI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.93% | ||
| PM (TTM) | N/A | ||
| GM | 56.94% |
OM growth 3Y5.08%
OM growth 5Y11.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.44%
GM growth 5Y6.17%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), YRI is destroying value.
- The number of shares outstanding for YRI remains at a similar level compared to 1 year ago.
- YRI has a worse debt/assets ratio than last year.
2.2 Solvency
- YRI has an Altman-Z score of 0.61. This is a bad value and indicates that YRI is not financially healthy and even has some risk of bankruptcy.
- YRI has a Altman-Z score (0.61) which is in line with its industry peers.
- YRI has a debt to FCF ratio of 36.55. This is a negative value and a sign of low solvency as YRI would need 36.55 years to pay back of all of its debts.
- YRI has a better Debt to FCF ratio (36.55) than 90.90% of its industry peers.
- A Debt/Equity ratio of 0.25 indicates that YRI is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.25, YRI is not doing good in the industry: 75.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 36.55 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.36
WACC10.93%
2.3 Liquidity
- YRI has a Current Ratio of 1.44. This is a normal value and indicates that YRI is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of YRI (1.44) is worse than 60.25% of its industry peers.
- A Quick Ratio of 1.00 indicates that YRI should not have too much problems paying its short term obligations.
- YRI has a worse Quick ratio (1.00) than 64.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- YRI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.23%.
- The Earnings Per Share has been growing by 37.97% on average over the past years. This is a very strong growth
- Looking at the last year, YRI shows a decrease in Revenue. The Revenue has decreased by -0.45% in the last year.
- YRI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.04% yearly.
EPS 1Y (TTM)-3.23%
EPS 3Y44.23%
EPS 5Y37.97%
EPS Q2Q%-30%
Revenue 1Y (TTM)-0.45%
Revenue growth 3Y3.88%
Revenue growth 5Y0.04%
Sales Q2Q%-9.23%
3.2 Future
- The Earnings Per Share is expected to decrease by -44.78% on average over the next years. This is quite bad
- The Revenue is expected to decrease by -3.15% on average over the next years.
EPS Next Y-9.36%
EPS Next 2Y-5.84%
EPS Next 3Y-44.78%
EPS Next 5YN/A
Revenue Next Year-0.27%
Revenue Next 2Y-0.71%
Revenue Next 3Y-3.15%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- YRI is valuated rather expensively with a Price/Earnings ratio of 19.72.
- Based on the Price/Earnings ratio, YRI is valued cheaply inside the industry as 91.59% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, YRI is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 21.79, YRI is valued on the expensive side.
- YRI's Price/Forward Earnings ratio is rather cheap when compared to the industry. YRI is cheaper than 92.05% of the companies in the same industry.
- YRI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.72 | ||
| Fwd PE | 21.79 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of YRI indicates a rather cheap valuation: YRI is cheaper than 92.28% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, YRI is valued cheaper than 91.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 244.66 | ||
| EV/EBITDA | 7.78 |
4.3 Compensation for Growth
- A cheap valuation may be justified as YRI's earnings are expected to decrease with -44.78% in the coming years.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-5.84%
EPS Next 3Y-44.78%
5. Dividend
5.1 Amount
- YRI has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.56, YRI pays a better dividend. On top of this YRI pays more dividend than 94.24% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, YRI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
- YRI has been paying a dividend for over 5 years, so it has already some track record.
- YRI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
- The earnings of YRI are negative and hence is the payout ratio. YRI will probably not be able to sustain this dividend level.
DP-11.67%
EPS Next 2Y-5.84%
EPS Next 3Y-44.78%
Yamana Gold Inc / YRI.CA FAQ
What is the ChartMill fundamental rating of Yamana Gold Inc (YRI.CA) stock?
ChartMill assigns a fundamental rating of 2 / 10 to YRI.CA.
Can you provide the valuation status for Yamana Gold Inc?
ChartMill assigns a valuation rating of 3 / 10 to Yamana Gold Inc (YRI.CA). This can be considered as Overvalued.
Can you provide the profitability details for Yamana Gold Inc?
Yamana Gold Inc (YRI.CA) has a profitability rating of 1 / 10.
What are the PE and PB ratios of Yamana Gold Inc (YRI.CA) stock?
The Price/Earnings (PE) ratio for Yamana Gold Inc (YRI.CA) is 19.72 and the Price/Book (PB) ratio is 1.74.
How financially healthy is Yamana Gold Inc?
The financial health rating of Yamana Gold Inc (YRI.CA) is 1 / 10.