Eldorado Gold Corp /Fi (NYSE: EGO)

Sector: Basic Materials Industry: Gold CIK: 0000918608
Market Cap 7.81 Bn
P/B 1.91
P/E 21.03
P/S 4.66
ROIC (Qtr) 5.61
Div Yield % 0.00
Rev 1y % (Qtr) 31.04
Total Debt (Qtr) 1.27 Bn
Debt/Equity (Qtr) 0.31

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 723.70M provides robust 0.57x coverage of total debt 1.27B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 1.05B provide 181.67x coverage of short-term debt 5.76M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 723.70M provides exceptional 213.48x coverage of minority interest expenses 3.39M, showing strong core operations.
  • Operating cash flow of 723.70M provides exceptional 21.50x coverage of interest expenses 33.65M, showing strong debt service capability.
  • Operating cash flow of 723.70M provides strong 41.57x coverage of stock compensation 17.41M, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 723.70M barely covers its investment activities of (600.01M), with a coverage ratio of -1.21, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (600.01M) provide weak support for R&D spending of 32.88M, which is -18.25x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of (54.41M) provides weak coverage of capital expenditures of 778.11M, with a -0.07 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 528.53M show weak coverage of depreciation charges of 264.76M, with a 2 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (54.41M) represents just -0.15x of debt issuance 374.44M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Gold
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NEM NEWMONT Corp /DE/ 121.63 Bn 16.92 5.66 5.65 Bn
2 AEM Agnico Eagle Mines Ltd 96.06 Bn 27.86 9.09 0.34 Bn
3 B Barrick Mining Corp 82.76 Bn 23.10 5.67 4.71 Bn
4 WPM Wheaton Precious Metals Corp. 56.61 Bn 56.52 30.93 0.01 Bn
5 FNV FRANCO NEVADA Corp 44.11 Bn 47.96 28.52 0.00 Bn
6 KGC Kinross Gold Corp 38.43 Bn 21.85 5.96 1.24 Bn
7 PAAS Pan American Silver Corp 19.78 Bn 31.19 6.08 0.86 Bn
8 AGI Alamos Gold Inc 17.45 Bn 32.41 10.85 0.28 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.22 3.17
EV to Cash from Ops. EV/CFO 10.93 -11.55
EV to Debt EV to Debt 6.21 548.67
EV to EBIT EV/EBIT 14.96 12.24
EV to EBITDA EV/EBITDA 9.30 3.14
EV to Free Cash Flow [EV/FCF] EV/FCF -145.32 12.17
EV to Market Cap EV to Market Cap 1.01 1.72
EV to Revenue EV/Rev 4.71 7.50
Price to Book Value [P/B] P/B 1.91 5.26
Price to Earnings [P/E] P/E 21.03 -1.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.54
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.40
Dividend per Basic Share Div per Share (Qtr) 0.00 0.17
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.25
Interest Coverage Int. cover (Qtr) 15.70 406.21
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -39.52 -97.36
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 54.09 130.91
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -5.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 36.02 518.35
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 52.49 53.19
EBIT Growth (1y) % EBIT 1y % (Qtr) 68.98 679.30
EBT Growth (1y) % EBT 1y % (Qtr) 66.93 144.05
EPS Growth (1y) % EPS 1y % (Qtr) 31.88 224.62
FCF Growth (1y) % FCF 1y % (Qtr) -469.48 171.65
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 85.36 84.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.26 0.26
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 1.88 3.14
Current Ratio Curr Ratio (Qtr) 2.79 4.90
Debt to Equity Ratio Debt/Equity (Qtr) 0.31 0.27
Interest Cover Ratio Int Coverage (Qtr) 15.70 406.21
Times Interest Earned Times Interest Earned (Qtr) 15.70 406.21
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 47.30 -19.19
EBIT Margin % EBIT Margin % (Qtr) 31.51 -44.57
EBT Margin % EBT Margin % (Qtr) 29.50 -34.79
Gross Margin % Gross Margin % (Qtr) 45.80 30.59
Net Profit Margin % Net Margin % (Qtr) 22.10 -40.44