Centerra Gold Inc. Fundamental Analysis (NYSE: CGAU)
Centerra Gold Inc. (NYSE: CGAU) shows strong financial fundamentals with a PE ratio of 8.81, profit margin of 24.17%, and ROE of 20.41%. The company generates $1.8B in annual revenue with strong year-over-year growth of 14.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CGAU's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCGAU demonstrates superior asset utilization.
Valuation Score
ExcellentCGAU trades at attractive valuation levels.
Growth Score
ModerateCGAU shows steady but slowing expansion.
Financial Health Score
ExcellentCGAU maintains a strong and stable balance sheet.
Profitability Score
ExcellentCGAU achieves industry-leading margins.
Key Financial Metrics
Is CGAU Expensive or Cheap?
P/E Ratio
CGAU trades at 8.81 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CGAU's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values Centerra Gold Inc. at 1.70 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.33 times EBITDA. This is generally considered low.
How Well Does CGAU Make Money?
Net Profit Margin
For every $100 in sales, Centerra Gold Inc. keeps $24.17 as profit after all expenses.
Operating Margin
Core operations generate 25.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.41 in profit for every $100 of shareholder equity.
ROA
Centerra Gold Inc. generates $13.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Centerra Gold Inc. produces operating cash flow of $432.84M, showing steady but balanced cash generation.
Free Cash Flow
Centerra Gold Inc. generates weak or negative free cash flow of $10.86M, restricting financial flexibility.
FCF Per Share
Each share generates $0.06 in free cash annually.
FCF Yield
CGAU converts 0.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How CGAU Stacks Against Its Sector Peers
| Metric | CGAU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.81 | 24.89 | Better (Cheaper) |
| ROE | 20.41% | 1287.00% | Weak |
| Net Margin | 24.17% | 471.00% | Weak |
| Debt/Equity | 0.02 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 2.07 | 3.03 | Strong Liquidity |
| ROA | 13.58% | -54.00% (disorted) | Strong |
CGAU outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Centerra Gold Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.07%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
109.45%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-45.39%
Industry Style: Cyclical, Commodity, Value
Declining