Galiano Gold Inc. (NYSE: GAU)

Sector: Basic Materials Industry: Gold CIK: 0001377757
Market Cap 705.73 Mn
P/B 3.50
P/E -14.78
P/S 2.00
ROIC (Qtr) 523.72
Div Yield % 0.00
Rev 1y % (Qtr) 60.55
Total Debt (Qtr) 98.85 Mn
Debt/Equity (Qtr) 0.49

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 115.96M provides robust 1.17x coverage of total debt 98.85M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 115.96M provides exceptional 18.81x coverage of minority interest expenses 6.17M, showing strong core operations.
  • Strong tangible asset base of 585.22M provides 5.92x coverage of total debt 98.85M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 115.96M provides strong 15.59x coverage of stock compensation 7.44M, indicating sustainable incentive practices.
  • Strong operating cash flow of 115.96M provides 5.05x coverage of SG&A expenses 22.95M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 115.96M barely covers its investment activities of (106.32M), with a coverage ratio of -1.09, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (106.32M) provide weak support for R&D spending of 4.94M, which is -21.50x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of 7.94M provides weak coverage of capital expenditures of 108.02M, with a 0.07 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 89.58M show weak coverage of depreciation charges of 50.43M, with a 1.78 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 50.43M relative to operating cash flow of 115.96M, which is 0.43x suggests significant maintenance capital requirements affecting free cash flow.

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 1.09 3.17
EV to Cash from Ops. EV/CFO 5.48 -11.55
EV to Debt EV to Debt 6.43 548.67
EV to EBIT EV/EBIT 7.10 12.24
EV to EBITDA EV/EBITDA 4.82 3.14
EV to Free Cash Flow [EV/FCF] EV/FCF 80.06 12.17
EV to Market Cap EV to Market Cap 0.90 1.72
EV to Revenue EV/Rev 1.80 7.50
Price to Book Value [P/B] P/B 3.50 5.26
Price to Earnings [P/E] P/E -14.78 -1.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) 0.89 406.21
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -155.89 -97.36
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -3.70 130.91
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -5.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 962.00 518.35
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 176.76 53.19
EBIT Growth (1y) % EBIT 1y % (Qtr) 148.66 679.30
EBT Growth (1y) % EBT 1y % (Qtr) -1,808.19 144.05
EPS Growth (1y) % EPS 1y % (Qtr) -1,700.00 224.62
FCF Growth (1y) % FCF 1y % (Qtr) 529.37 171.65
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 117.86 84.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.60 0.26
Cash Payout Ratio Cash Payout Ratio 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.57 3.14
Current Ratio Curr Ratio (Qtr) 0.98 4.90
Debt to Equity Ratio Debt/Equity (Qtr) 0.49 0.27
Interest Cover Ratio Int Coverage (Qtr) 0.89 406.21
Times Interest Earned Times Interest Earned (Qtr) 0.89 406.21
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 39.70 -19.19
EBIT Margin % EBIT Margin % (Qtr) 25.40 -44.57
EBT Margin % EBT Margin % (Qtr) -3.17 -34.79
Gross Margin % Gross Margin % (Qtr) 34.70 30.59
Net Profit Margin % Net Margin % (Qtr) -13.50 -40.44