China Gold International Resources Corp. Ltd. (CGG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lundin Mining Corp.

Ero Copper Corp.

Capstone Copper Corp.

Hudbay Minerals, Inc.

China Gold International Resources Corp. Ltd.

Cameco Corp.

Ivanhoe Mines Ltd.

Sigma Lithium Corp.

First Quantum Minerals Ltd.

NexGen Energy Ltd.

Lithium Americas (Argentina) Corp.

Why is China Gold International Resources Corp. Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 7.85

Healthy long term growth as Operating profit has grown by an annual rate 30.01%

With a growth in Net Profit of 83.35%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 7 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CAD 1,126.7 MM
INTEREST COVERAGE RATIO(Q) Highest at 8,508.75
ROCE(HY) Highest at 28.57%

With ROE of 26.98%, it has a attractive valuation with a 3.25 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 108.18%, its profits have risen by 236.1% ; the PEG ratio of the company is 0.1

Consistent Returns over the last 3 years

Along with generating 108.18% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to China Gold International Resources Corp. Ltd. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is China Gold International Resources Corp. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

China Gold International Resources Corp. Ltd.

108.18%

50.13

61.32%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.61%

EBIT Growth (5y)

30.01%

EBIT to Interest (avg)

7.85

Debt to EBITDA (avg)

9.25

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.32

Tax Ratio

17.55%

Dividend Payout Ratio

29.08%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

9.84%

ROE (avg)

9.98%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.25

EV to EBIT

9.58

EV to EBITDA

7.85

EV to Capital Employed

3.81

EV to Sales

4.87

PEG Ratio

0.05

Dividend Yield

0.07%

ROCE (Latest)

39.82%

ROE (Latest)

26.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

35What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,126.7 MM

INTEREST COVERAGE RATIO(Q)

Highest at 8,508.75

ROCE(HY)

Highest at 28.57%

DEBT-EQUITY RATIO (HY)

Lowest at -19.42 %

DEBTORS TURNOVER RATIO(HY)

Highest at 166.6 times

NET SALES(Q)

Highest at CAD 621.66 MM

PRE-TAX PROFIT(Q)

Highest at CAD 366.54 MM

RAW MATERIAL COST(Y)

Fallen by -53.59% (YoY

CASH AND EQV(HY)

Highest at CAD 2,418.32 MM

OPERATING PROFIT(Q)

Highest at CAD 425.54 MM

OPERATING PROFIT MARGIN(Q)

Highest at 68.45 %

NET PROFIT(Q)

Highest at CAD 320.92 MM

EPS(Q)

Highest at CAD 0.81

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for China Gold International Resources Corp. Ltd.

Interest Coverage Ratio

Highest at 8,508.75 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at CAD 1,126.7 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

Highest at CAD 621.66 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Pre-Tax Profit

Highest at CAD 366.54 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Debt-Equity Ratio

Lowest at -19.42 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 166.6 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

At CAD 621.66 MM has Grown at 35.96%

over average net sales of the previous four periods of CAD 457.24 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 425.54 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 68.45 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At CAD 366.54 MM has Grown at 80.78%

over average net sales of the previous four periods of CAD 202.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 320.92 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Net Profit

At CAD 320.92 MM has Grown at 89.45%

over average net sales of the previous four periods of CAD 169.4 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 0.81

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Cash and Eqv

Highest at CAD 2,418.32 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -53.59% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales