TRX Gold Corporation Fundamental Analysis
TRX Gold Corporation (TRX) shows moderate financial fundamentals with a PE ratio of -11.02, profit margin of -25.77%, and ROE of -33.04%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 4.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -18.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TRX's fundamental strength across five key dimensions:
Efficiency Score
WeakTRX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTRX trades at attractive valuation levels.
Growth Score
WeakTRX faces weak or negative growth trends.
Financial Health Score
ExcellentTRX maintains a strong and stable balance sheet.
Profitability Score
WeakTRX struggles to sustain strong margins.
Key Financial Metrics
Is TRX Expensive or Cheap?
P/E Ratio
TRX trades at -11.02 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TRX's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values TRX Gold Corporation at 3.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.57 times EBITDA. This signals the market has high growth expectations.
How Well Does TRX Make Money?
Net Profit Margin
For every $100 in sales, TRX Gold Corporation keeps $-25.77 as profit after all expenses.
Operating Margin
Core operations generate 44.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-33.04 in profit for every $100 of shareholder equity.
ROA
TRX Gold Corporation generates $-14.56 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 $44.13M, reflecting robust business health.
Free Cash Flow
TRX Gold Corporation generates weak or negative free cash flow of $2.45M, restricting financial flexibility.
FCF Per Share
Each share generates $0.01 in free cash annually.
FCF Yield
TRX converts 0.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-11.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.27
vs 25 benchmark
ROA
Return on assets percentage
-0.15
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How TRX Stacks Against Its Sector Peers
| Metric | TRX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -11.02 | 27.32 | Better (Cheaper) |
| ROE | -27.43% | 962.00% | Weak |
| Net Margin | -25.77% | -1520.00% (disorted) | Weak |
| Debt/Equity | 0.06 | 0.65 | Strong (Low Leverage) |
| Current Ratio | 2.37 | 3.17 | Strong Liquidity |
| ROA | -14.56% | 550.00% | Weak |
TRX outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
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
104.64%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
240.12%
Industry Style: Cyclical, Commodity, Value
High Growth