Wesdome Gold Mines Ltd. Fundamental Analysis (TSX: WDO.TO)
Wesdome Gold Mines Ltd. (TSX: WDO.TO) shows strong financial fundamentals with a PE ratio of 12.56, profit margin of 38.46%, and ROE of 43.77%. The company generates $1.1B in annual revenue with strong year-over-year growth of 63.80%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 88.4/100 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 WDO.TO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWDO.TO demonstrates superior asset utilization.
Valuation Score
ExcellentWDO.TO trades at attractive valuation levels.
Growth Score
ModerateWDO.TO shows steady but slowing expansion.
Financial Health Score
ExcellentWDO.TO maintains a strong and stable balance sheet.
Profitability Score
ExcellentWDO.TO achieves industry-leading margins.
Key Financial Metrics
Is WDO.TO Expensive or Cheap?
P/E Ratio
WDO.TO trades at 12.56 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WDO.TO's PEG of 0.17 indicates potential undervaluation.
Price to Book
The market values Wesdome Gold Mines Ltd. at 5.04 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.75 times EBITDA. This is generally considered low.
How Well Does WDO.TO Make Money?
Net Profit Margin
For every $100 in sales, Wesdome Gold Mines Ltd. keeps $38.46 as profit after all expenses.
Operating Margin
Core operations generate 56.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $43.77 in profit for every $100 of shareholder equity.
ROA
Wesdome Gold Mines Ltd. generates $33.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wesdome Gold Mines Ltd. generates strong operating cash flow of $525.60M, reflecting robust business health.
Free Cash Flow
Wesdome Gold Mines Ltd. generates strong free cash flow of $345.54M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.33 in free cash annually.
FCF Yield
WDO.TO converts 6.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.007
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.44
vs 25 benchmark
ROA
Return on assets percentage
0.34
vs 25 benchmark
ROCE
Return on capital employed
0.52
vs 25 benchmark
How WDO.TO Stacks Against Its Sector Peers
| Metric | WDO.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.56 | 27.37 | Better (Cheaper) |
| ROE | 43.77% | 1190.00% | Weak |
| Net Margin | 38.46% | 204.00% | Weak |
| Debt/Equity | 0.01 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 6.90 | 3.14 | Strong Liquidity |
| ROA | 33.50% | 2758.00% | Weak |
WDO.TO outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Wesdome Gold Mines Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
292.15%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
536.85%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
311.17%
Industry Style: Cyclical, Commodity, Value
High Growth