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

IAMGOLD Corp.

Dundee Precious Metals, Inc.

Torex Gold Resources, Inc.

Orla Mining Ltd.

Fortuna Silver Mines, Inc.

K92 Mining, Inc.

Wesdome Gold Mines Ltd.

Artemis Gold, Inc.

Centerra Gold, 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 Very Positive 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 3.43 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 87.48%, 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.

81.97%

7.86

56.89%

S&P/TSX 60

20.36%

2.51

12.02%

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)

94.46

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

33.28%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.07%

ROCE (avg)

39.18%

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

3.43

EV to EBIT

5.17

EV to EBITDA

4.48

EV to Capital Employed

5.21

EV to Sales

2.99

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 523.09 MM

NET SALES(HY)

At CAD 566.56 MM has Grown at 43.01%

NET PROFIT(HY)

At CAD 213.32 MM has Grown at 51.76%

ROCE(HY)

Highest at 47.39%

DIVIDEND PAYOUT RATIO(Y)

Highest at 4.81%

CASH AND EQV(HY)

Highest at CAD 821.56 MM

DIVIDEND PER SHARE(HY)

Highest at CAD 40.31

-11What is not working for the Company

INTEREST(HY)

At CAD 1.29 MM has Grown at 50.06%

INTEREST COVERAGE RATIO(Q)

Lowest at 24,952.53

RAW MATERIAL COST(Y)

Grown by 7.9% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 61.08 %

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

Operating Cash Flow

Highest at CAD 523.09 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

At CAD 566.56 MM has Grown at 43.01%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Net Profit

At CAD 213.32 MM has Grown at 51.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Cash and Eqv

Highest at CAD 821.56 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at CAD 40.31

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 4.81%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Interest

At CAD 1.29 MM has Grown at 50.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 24,952.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 61.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 7.9% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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