Eldorado Gold Corporation Fundamental Analysis (NYSE: EGO)
Eldorado Gold Corporation (NYSE: EGO) shows strong financial fundamentals with a PE ratio of 13.70, profit margin of 29.89%, and ROE of 12.38%. The company generates $2.1B in annual revenue with strong year-over-year growth of 39.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze EGO's fundamental strength across five key dimensions:
Efficiency Score
WeakEGO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEGO trades at attractive valuation levels.
Growth Score
ExcellentEGO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentEGO maintains a strong and stable balance sheet.
Profitability Score
WeakEGO struggles to sustain strong margins.
Key Financial Metrics
Is EGO Expensive or Cheap?
P/E Ratio
EGO trades at 13.70 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EGO's PEG of 0.33 indicates potential undervaluation.
Price to Book
The market values Eldorado Gold Corporation at 1.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.53 times EBITDA. This is generally considered low.
How Well Does EGO Make Money?
Net Profit Margin
For every $100 in sales, Eldorado Gold Corporation keeps $29.89 as profit after all expenses.
Operating Margin
Core operations generate 44.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.38 in profit for every $100 of shareholder equity.
ROA
Eldorado Gold Corporation generates $5.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Eldorado Gold Corporation generates strong operating cash flow of $682.71M, reflecting robust business health.
Free Cash Flow
Eldorado Gold Corporation generates weak or negative free cash flow of $-647.66M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.48 in free cash annually.
FCF Yield
EGO converts -6.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How EGO Stacks Against Its Sector Peers
| Metric | EGO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.70 | 27.52 | Better (Cheaper) |
| ROE | 12.38% | 1182.00% | Weak |
| Net Margin | 29.89% | 195.00% | Weak |
| Debt/Equity | 0.26 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 1.31 | 3.28 | Neutral |
| ROA | 5.91% | 476796.00% | Weak |
EGO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Eldorado Gold Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.87%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
248.46%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
35.82%
Industry Style: Cyclical, Commodity, Value
High Growth