TRX Gold Corp. (TNX) 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

Lion One Metals Ltd.

TRX Gold Corp.

Freegold Ventures Ltd.

Dolly Varden Silver Corp.

AbraSilver Resource Corp.

Osino Resources Corp.

Graphite One, Inc.

Atha Energy Corp.

Oroco Resource Corp.

Laurion Mineral Exploration, Inc.

Brunswick Exploration, Inc.

Why is TRX Gold Corp. ?

The company is Net-Debt Free

With a growth in Net Profit of 381.8%, the company declared Outstanding results in Feb 26

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CAD 34.24 MM
NET SALES(Q) Highest at CAD 46.85 MM
OPERATING PROFIT(Q) Highest at CAD 24.84 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 163.16%, its profits have risen by 987.2% ; the PEG ratio of the company is 0

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 1.89% over the previous quarter and collectively hold 4.78% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Market Beating Performance

The stock has generated a return of 163.16% in the last 1 year, much higher than market (S&P/TSX 60) returns of 29.60%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TRX Gold Corp. 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 TRX Gold Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

TRX Gold Corp.

163.16%

0.58

89.16%

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)

165.80%

EBIT Growth (5y)

47.15%

EBIT to Interest (avg)

1.17

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

0.85

Tax Ratio

78.99%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

4.78%

ROCE (avg)

11.13%

ROE (avg)

3.86%

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

3.68

EV to EBIT

6.79

EV to EBITDA

5.99

EV to Capital Employed

4.63

EV to Sales

3.01

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

68.13%

ROE (Latest)

27.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

36What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 34.24 MM

NET SALES(Q)

Highest at CAD 46.85 MM

OPERATING PROFIT(Q)

Highest at CAD 24.84 MM

PRE-TAX PROFIT(Q)

Highest at CAD 22.12 MM

RAW MATERIAL COST(Y)

Fallen by -175.64% (YoY

CASH AND EQV(HY)

Highest at CAD 48.27 MM

DEBT-EQUITY RATIO (HY)

Lowest at -24.51 %

NET PROFIT(Q)

Highest at CAD 4.32 MM

-5What is not working for the Company

ROCE(HY)

Lowest at -31.59%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.96 times

EPS(Q)

Lowest at CAD -0.09

Here's what is working for TRX Gold Corp.

Net Sales

At CAD 46.85 MM has Grown at 91.48%

over average net sales of the previous four periods of CAD 24.47 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CAD MM)

Pre-Tax Profit

At CAD 22.12 MM has Grown at 194.97%

over average net sales of the previous four periods of CAD 7.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 4.32 MM has Grown at 306.85%

over average net sales of the previous four periods of CAD -2.09 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Operating Cash Flow

Highest at CAD 34.24 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 46.85 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 24.84 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (CAD MM)

Pre-Tax Profit

Highest at CAD 22.12 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)

Net Profit

Highest at CAD 4.32 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Cash and Eqv

Highest at CAD 48.27 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -24.51 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -175.64% (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

Depreciation

Highest at CAD 2.82 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Depreciation

At CAD 2.82 MM has Grown at 74.81%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CAD MM)

Here's what is not working for TRX Gold Corp.

EPS

Lowest at CAD -0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Inventory Turnover Ratio

Lowest at 2.96 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio