Torex Gold Resources, Inc. (TXG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Torex Gold Resources, Inc.

Dundee Precious Metals, Inc.

OceanaGold Corp.

IAMGOLD Corp.

Orla Mining Ltd.

Equinox Gold Corp.

K92 Mining, Inc.

Centerra Gold, Inc.

Sandstorm Gold Ltd.

NovaGold Resources, Inc.

MAG Silver Corp.

Why is Torex Gold Resources, Inc. ?

Company has very low debt and has enough cash to service the debt requirements

With a growth in Net Profit of 22.38%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CAD 949.58 MM
ROCE(HY) Highest at 26.67%
NET SALES(Q) Highest at CAD 739.76 MM

With ROE of 22.12%, it has a very attractive valuation with a 1.44 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 42.13%, its profits have risen by 436.5% ; the PEG ratio of the company is 0

Majority shareholders : FIIs

Consistent Returns over the last 3 years

Along with generating 42.13% 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 Torex Gold Resources, Inc. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

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

Is Torex Gold Resources, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Torex Gold Resources, Inc.

50.55%

4.82

62.24%

S&P/TSX 60

29.63%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.74%

EBIT Growth (5y)

22.13%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.58

Tax Ratio

24.04%

Dividend Payout Ratio

2.34%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

24.95%

ROE (avg)

14.31%

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

1.44

EV to EBIT

4.61

EV to EBITDA

3.68

EV to Capital Employed

1.46

EV to Sales

2.12

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

31.60%

ROE (Latest)

22.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

27What is working for the Company

NET SALES(HY)

At CAD 1,303.07 MM has Grown at 118.82%

NET PROFIT(HY)

At CAD 431 MM has Grown at 167.87%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

OPERATING CASH FLOW(Y)

Highest at CAD 1,085.97 MM

ROCE(HY)

Highest at 27.5%

DIVIDEND PAYOUT RATIO(Y)

Highest at 9.48%

RAW MATERIAL COST(Y)

Fallen by -9.45% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -2.72 %

DEBTORS TURNOVER RATIO(HY)

Highest at 21.25 times

DIVIDEND PER SHARE(HY)

Highest at CAD 21.25

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Torex Gold Resources, Inc.

Net Sales

At CAD 1,303.07 MM has Grown at 118.82%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Net Profit

At CAD 431 MM has Grown at 167.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Operating Cash Flow

Highest at CAD 1,085.97 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Lowest at -2.72 %

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 21.25 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at CAD 21.25

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 9.48%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -9.45% (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