TRX GOLD Corp (NYSE: TRX)

Sector: Basic Materials Industry: Gold CIK: 0001173643
Market Cap 174.69 Mn
P/B 3.05
P/E 26.61
P/S 3.03
ROIC (Qtr) 13.64
Div Yield % 0.00
Rev 1y % (Qtr) 72.54
Total Debt (Qtr) 2.81 Mn
Debt/Equity (Qtr) 0.05

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 16.28M provides robust 5.80x coverage of total debt 2.81M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 7.77M provide 6.47x coverage of short-term debt 1.20M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 117.25M provides 41.77x coverage of total debt 2.81M, indicating robust asset backing and low credit risk.
  • Tangible assets of 117.25M provide exceptional 34.40x coverage of deferred revenue 3.41M, showing strong service capability backing.
  • Strong operating cash flow of 16.28M provides 2.05x coverage of SG&A expenses 7.95M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 16.28M barely covers its investment activities of (14.36M), with a coverage ratio of -1.13, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of 2.58M provides weak coverage of capital expenditures of 13.70M, with a 0.19 ratio suggesting additional external financing needs for growth initiatives.
  • Free cash flow of 2.58M represents just -2.10x of debt issuance (1.23M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 16.28M shows concerning coverage of minority interest expenses of 5.88M, which is 2.77x, suggesting complex corporate structure risks.
  • Tax assets of 0 provide limited offset against tax liabilities of 16.42M, which is 0x, indicating potential future cash flow pressure from tax obligations.

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 1.46 3.17
EV to Cash from Ops. EV/CFO 10.49 -11.55
EV to Debt EV to Debt 60.83 548.67
EV to EBIT EV/EBIT 10.15 12.24
EV to EBITDA EV/EBITDA 10.68 3.14
EV to Free Cash Flow [EV/FCF] EV/FCF 66.24 12.17
EV to Market Cap EV to Market Cap 0.98 1.72
EV to Revenue EV/Rev 2.96 7.50
Price to Book Value [P/B] P/B 3.05 5.26
Price to Earnings [P/E] P/E 26.61 -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) 7.13 406.21
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -0.18 -97.36
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -6.73 130.91
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -5.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 82.16 518.35
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 44.80 53.19
EBIT Growth (1y) % EBIT 1y % (Qtr) 36.20 679.30
EBT Growth (1y) % EBT 1y % (Qtr) 39.87 144.05
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 224.62
FCF Growth (1y) % FCF 1y % (Qtr) 57.39 171.65
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 33.52 84.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.49 0.26
Cash Payout Ratio Cash Payout Ratio 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.32 3.14
Current Ratio Curr Ratio (Qtr) 1.05 4.90
Debt to Equity Ratio Debt/Equity (Qtr) 0.05 0.27
Interest Cover Ratio Int Coverage (Qtr) 7.13 406.21
Times Interest Earned Times Interest Earned (Qtr) 7.13 406.21
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 29.20 -19.19
EBIT Margin % EBIT Margin % (Qtr) 29.19 -44.57
EBT Margin % EBT Margin % (Qtr) 25.09 -34.79
Gross Margin % Gross Margin % (Qtr) 41.50 30.59
Net Profit Margin % Net Margin % (Qtr) 11.40 -40.44