Equinox Gold Corp. Fundamental Analysis
Equinox Gold Corp. (EQX.TO) shows moderate financial fundamentals with a PE ratio of 13.42, profit margin of 21.78%, and ROE of 10.88%. The company generates $2.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.1/100 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 EQX.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakEQX.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEQX.TO trades at attractive valuation levels.
Growth Score
ModerateEQX.TO shows steady but slowing expansion.
Financial Health Score
ExcellentEQX.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateEQX.TO maintains healthy but balanced margins.
Key Financial Metrics
Is EQX.TO Expensive or Cheap?
P/E Ratio
EQX.TO trades at 13.42 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EQX.TO's PEG of 1.42 indicates fair valuation.
Price to Book
The market values Equinox Gold Corp. at 1.36 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.84 times EBITDA. This is generally considered low.
How Well Does EQX.TO Make Money?
Net Profit Margin
For every $100 in sales, Equinox Gold Corp. keeps $21.78 as profit after all expenses.
Operating Margin
Core operations generate 34.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.88 in profit for every $100 of shareholder equity.
ROA
Equinox Gold Corp. generates $6.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Equinox Gold Corp. generates strong operating cash flow of $915.86M, reflecting robust business health.
Free Cash Flow
Equinox Gold Corp. produces free cash flow of $131.18M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.17 in free cash annually.
FCF Yield
EQX.TO converts 1.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How EQX.TO Stacks Against Its Sector Peers
| Metric | EQX.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.42 | 25.27 | Better (Cheaper) |
| ROE | 10.88% | 1030.00% | Weak |
| Net Margin | 21.78% | -16616.00% (disorted) | Strong |
| Debt/Equity | 0.10 | 0.50 | Strong (Low Leverage) |
| Current Ratio | 1.24 | 7.10 | Neutral |
| ROA | 6.41% | -5145.00% (disorted) | Weak |
EQX.TO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Equinox Gold Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value