Goldgroup Mining Inc. Fundamental Analysis (AMEX: GORO)
Goldgroup Mining Inc. Fundamental Analysis (AMEX: GORO)
Goldgroup Mining Inc. (AMEX: GORO) shows moderate financial fundamentals with a PE ratio of 67.13, profit margin of 5.15%, and ROE of 19.13%. The company generates $0.1B in annual revenue with strong year-over-year growth of 44.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.5/100 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 GORO's fundamental strength across five key dimensions:
Efficiency Score
WeakGORO struggles to generate sufficient returns from assets.
Valuation Score
ModerateGORO shows balanced valuation metrics.
Growth Score
ExcellentGORO delivers strong and consistent growth momentum.
Financial Health Score
ModerateGORO shows balanced financial health with some risks.
Profitability Score
ModerateGORO maintains healthy but balanced margins.
Key Financial Metrics
Is GORO Expensive or Cheap?
P/E Ratio
GORO trades at 67.13 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GORO's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Goldgroup Mining Inc. at 10.40 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.62 times EBITDA. This is generally considered low.
How Well Does GORO Make Money?
Net Profit Margin
For every $100 in sales, Goldgroup Mining Inc. keeps $5.15 as profit after all expenses.
Operating Margin
Core operations generate 26.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.13 in profit for every $100 of shareholder equity.
ROA
Goldgroup Mining Inc. generates $3.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Goldgroup Mining Inc. generates strong operating cash flow of $17.99M, reflecting robust business health.
Free Cash Flow
Goldgroup Mining Inc. produces free cash flow of $5.36M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.07 in free cash annually.
FCF Yield
GORO converts 4.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
67.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.96
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How GORO Stacks Against Its Sector Peers
| Metric | GORO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 67.13 | 27.37 | Worse (Expensive) |
| ROE | 19.13% | 1190.00% | Weak |
| Net Margin | 5.15% | 204.00% | Weak |
| Debt/Equity | 1.96 | 0.73 | Weak (High Leverage) |
| Current Ratio | 3.33 | 3.14 | Strong Liquidity |
| ROA | 3.36% | 2758.00% | Weak |
GORO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Goldgroup Mining Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-47.66%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
48.07%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-68.79%
Industry Style: Cyclical, Commodity, Value
Declining