TRX Gold Corporation
TRX Gold Corporation Fundamental Analysis
TRX Gold Corporation (TNX.TO) shows weak financial fundamentals with a PE ratio of 41.58, profit margin of 5.87%, and ROE of 4.38%. The company generates $0.0B in annual revenue with moderate year-over-year growth of 7.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TNX.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakTNX.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateTNX.TO shows balanced valuation metrics.
Growth Score
ModerateTNX.TO shows steady but slowing expansion.
Financial Health Score
ModerateTNX.TO shows balanced financial health with some risks.
Profitability Score
WeakTNX.TO struggles to sustain strong margins.
Key Financial Metrics
Is TNX.TO Expensive or Cheap?
P/E Ratio
TNX.TO trades at 41.58 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TNX.TO's PEG of 0.58 indicates potential undervaluation.
Price to Book
The market values TRX Gold Corporation at 1.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.83 times EBITDA. This is generally considered low.
How Well Does TNX.TO Make Money?
Net Profit Margin
For every $100 in sales, TRX Gold Corporation keeps $5.87 as profit after all expenses.
Operating Margin
Core operations generate 27.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.38 in profit for every $100 of shareholder equity.
ROA
TRX Gold Corporation generates $2.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TRX Gold Corporation generates strong operating cash flow of $17.12M, reflecting robust business health.
Free Cash Flow
TRX Gold Corporation generates weak or negative free cash flow of $-454.61K, restricting financial flexibility.
FCF Per Share
Each share generates $-0.00 in free cash annually.
FCF Yield
TNX.TO converts -0.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.58
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How TNX.TO Stacks Against Its Sector Peers
| Metric | TNX.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.58 | 24.02 | Worse (Expensive) |
| ROE | 4.38% | 867.00% | Weak |
| Net Margin | 5.87% | -102872.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 0.97 | 5.08 | Weak Liquidity |
| ROA | 2.67% | -6488.00% (disorted) | Weak |
TNX.TO 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 TRX Gold Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
99.01%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
298.78%
Industry Style: Cyclical, Commodity, Value
High Growth