Wesdome Gold Mines Ltd. (WDO) 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.

Wesdome Gold Mines Ltd.

Fortuna Silver Mines, Inc.

IAMGOLD Corp.

Orla Mining Ltd.

Centerra Gold, Inc.

Artemis Gold, Inc.

K92 Mining, Inc.

Seabridge Gold, Inc.

MAG Silver Corp.

Why is Wesdome Gold Mines Ltd. ?

High Management Efficiency with a high ROE of 14.35%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 54.45

Healthy long term growth as Net Sales has grown by an annual rate of 38.13%

With a growth in Net Profit of 90.29%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 10 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CAD 536.61 MM
ROCE(HY) Highest at 49.01%
DEBT-EQUITY RATIO (HY) Lowest at -41.91 %

With ROE of 39.37%, it has a fair valuation with a 3.67 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 26.06%, its profits have risen by 115.7% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Wesdome Gold Mines Ltd. 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 Wesdome Gold Mines Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wesdome Gold Mines Ltd.

26.06%

5.64

52.74%

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)

38.13%

EBIT Growth (5y)

49.74%

EBIT to Interest (avg)

54.45

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.26

Sales to Capital Employed (avg)

0.92

Tax Ratio

34.21%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.08%

ROCE (avg)

26.45%

ROE (avg)

14.35%

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

3.67

EV to EBIT

5.57

EV to EBITDA

4.83

EV to Capital Employed

5.61

EV to Sales

3.23

PEG Ratio

0.08

Dividend Yield

ROCE (Latest)

100.68%

ROE (Latest)

39.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Mildly Bullish

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 536.61 MM

ROCE(HY)

Highest at 49.01%

DEBT-EQUITY RATIO (HY)

Lowest at -41.91 %

NET SALES(Q)

Highest at CAD 299.79 MM

INTEREST COVERAGE RATIO(Q)

Highest at 32,205.82

OPERATING PROFIT(Q)

Highest at CAD 204.83 MM

PRE-TAX PROFIT(Q)

Highest at CAD 184.65 MM

NET PROFIT(Q)

Highest at CAD 119.31 MM

RAW MATERIAL COST(Y)

Fallen by -16.84% (YoY

CASH AND EQV(HY)

Highest at CAD 784.5 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 75.11 times

OPERATING PROFIT MARGIN(Q)

Highest at 68.32 %

EPS(Q)

Highest at CAD 0.78

-7What is not working for the Company

INTEREST(HY)

At CAD 1.3 MM has Grown at 71.45%

Here's what is working for Wesdome Gold Mines Ltd.

Operating Cash Flow

Highest at CAD 536.61 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 299.79 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Interest Coverage Ratio

Highest at 32,205.82

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at CAD 204.83 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 184.65 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 119.31 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Debt-Equity Ratio

Lowest at -41.91 % 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

Net Sales

At CAD 299.79 MM has Grown at 59.79%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit Margin

Highest at 68.32 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At CAD 184.65 MM has Grown at 95.95%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 119.31 MM has Grown at 92.25%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 0.78

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Cash and Eqv

Highest at CAD 784.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 75.11 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -16.84% (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 27.32 MM

in the last five periods

MOJO Watch

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

Depreciation (CAD MM)

Here's what is not working for Wesdome Gold Mines Ltd.

Interest

At CAD 1.3 MM has Grown at 71.45%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)