Steppe Gold Ltd. Fundamental Analysis (TSX: STGO.TO)
Steppe Gold Ltd. (TSX: STGO.TO) shows strong financial fundamentals with a PE ratio of 9.79, profit margin of 11.87%, and ROE of 23.94%. The company generates $0.3B in annual revenue with strong year-over-year growth of 42.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.1/100 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 STGO.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakSTGO.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSTGO.TO trades at attractive valuation levels.
Growth Score
ModerateSTGO.TO shows steady but slowing expansion.
Financial Health Score
ModerateSTGO.TO shows balanced financial health with some risks.
Profitability Score
ModerateSTGO.TO maintains healthy but balanced margins.
Key Financial Metrics
Is STGO.TO Expensive or Cheap?
P/E Ratio
STGO.TO trades at 9.79 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, STGO.TO's PEG of -0.29 indicates potential undervaluation.
Price to Book
The market values Steppe Gold Ltd. at 2.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.29 times EBITDA. This is generally considered low.
How Well Does STGO.TO Make Money?
Net Profit Margin
For every $100 in sales, Steppe Gold Ltd. keeps $11.87 as profit after all expenses.
Operating Margin
Core operations generate 53.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.94 in profit for every $100 of shareholder equity.
ROA
Steppe Gold Ltd. generates $9.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Steppe Gold Ltd. generates strong operating cash flow of $143.50M, reflecting robust business health.
Free Cash Flow
Steppe Gold Ltd. generates strong free cash flow of $91.49M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.36 in free cash annually.
FCF Yield
STGO.TO converts 26.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.63
vs 25 benchmark
How STGO.TO Stacks Against Its Sector Peers
| Metric | STGO.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.79 | 27.37 | Better (Cheaper) |
| ROE | 23.94% | 1190.00% | Weak |
| Net Margin | 11.87% | 204.00% | Weak |
| Debt/Equity | 1.08 | 0.73 | Weak (High Leverage) |
| Current Ratio | 1.69 | 3.14 | Neutral |
| ROA | 9.37% | 2758.00% | Weak |
STGO.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Steppe Gold Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
8.07%
Industry Style: Cyclical, Commodity, Value
GrowingEPS CAGR
278.97%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
121.92%
Industry Style: Cyclical, Commodity, Value
High Growth