Torex Gold Resources Inc.
Torex Gold Resources Inc. Fundamental Analysis
Torex Gold Resources Inc. (TORXF) shows strong financial fundamentals with a PE ratio of 11.50, profit margin of 30.94%, and ROE of 20.98%. The company generates $1.3B in annual revenue with strong year-over-year growth of 26.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze TORXF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTORXF demonstrates superior asset utilization.
Valuation Score
ExcellentTORXF trades at attractive valuation levels.
Growth Score
ModerateTORXF shows steady but slowing expansion.
Financial Health Score
ExcellentTORXF maintains a strong and stable balance sheet.
Profitability Score
ExcellentTORXF achieves industry-leading margins.
Key Financial Metrics
Is TORXF Expensive or Cheap?
P/E Ratio
TORXF trades at 11.50 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TORXF's PEG of 0.36 indicates potential undervaluation.
Price to Book
The market values Torex Gold Resources Inc. at 1.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.69 times EBITDA. This is generally considered low.
How Well Does TORXF Make Money?
Net Profit Margin
For every $100 in sales, Torex Gold Resources Inc. keeps $30.94 as profit after all expenses.
Operating Margin
Core operations generate 42.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.98 in profit for every $100 of shareholder equity.
ROA
Torex Gold Resources Inc. generates $13.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Torex Gold Resources Inc. generates strong operating cash flow of $490.33M, reflecting robust business health.
Free Cash Flow
Torex Gold Resources Inc. produces free cash flow of $127.16M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.32 in free cash annually.
FCF Yield
TORXF converts 2.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How TORXF Stacks Against Its Sector Peers
| Metric | TORXF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.50 | 27.01 | Better (Cheaper) |
| ROE | 20.98% | 949.00% | Weak |
| Net Margin | 30.94% | -16159.00% (disorted) | Strong |
| Debt/Equity | 0.08 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 1.16 | 4.42 | Neutral |
| ROA | 13.40% | -6411.00% (disorted) | Strong |
TORXF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Torex Gold Resources Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
56.23%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
69.66%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
33.89%
Industry Style: Cyclical, Commodity, Value
High Growth