Equinox Gold Corp.
Equinox Gold Corp. Fundamental Analysis
Equinox Gold Corp. (EQX) shows moderate financial fundamentals with a PE ratio of 41.28, profit margin of 12.19%, and ROE of 4.51%. The company generates $2.3B in annual revenue with strong year-over-year growth of 39.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.8/100 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's fundamental strength across five key dimensions:
Efficiency Score
WeakEQX struggles to generate sufficient returns from assets.
Valuation Score
ModerateEQX shows balanced valuation metrics.
Growth Score
ModerateEQX shows steady but slowing expansion.
Financial Health Score
ExcellentEQX maintains a strong and stable balance sheet.
Profitability Score
WeakEQX struggles to sustain strong margins.
Key Financial Metrics
Is EQX Expensive or Cheap?
P/E Ratio
EQX trades at 41.28 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EQX's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Equinox Gold Corp. at 1.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.45 times EBITDA. This signals the market has high growth expectations.
How Well Does EQX Make Money?
Net Profit Margin
For every $100 in sales, Equinox Gold Corp. keeps $12.19 as profit after all expenses.
Operating Margin
Core operations generate 23.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.51 in profit for every $100 of shareholder equity.
ROA
Equinox Gold Corp. generates $2.14 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 $872.65M, reflecting robust business health.
Free Cash Flow
Equinox Gold Corp. generates weak or negative free cash flow of $-8.37M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.01 in free cash annually.
FCF Yield
EQX converts -0.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How EQX Stacks Against Its Sector Peers
| Metric | EQX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.28 | 24.91 | Worse (Expensive) |
| ROE | 4.51% | 840.00% | Weak |
| Net Margin | 12.19% | -105381.00% (disorted) | Strong |
| Debt/Equity | 0.27 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 1.56 | 4.94 | Neutral |
| ROA | 2.14% | -4176.00% (disorted) | Weak |
EQX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
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
50.46%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
567.31%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
74.45%
Industry Style: Cyclical, Commodity, Value
High Growth