WGX

Westgold ResourcesASX:WGX Stock Report

Market Cap

AU$756.9m

7D

9.5%

1Y

-27.4%

Updated

16 Sep, 2021

Data

Company Financials +
WGX fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends0/6

WGX Overview

Westgold Resources Limited engages in the exploration, development, mining, and treatment of gold assets primarily in Western Australia.

Share Price & News

How has Westgold Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WGX is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WGX's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

9.5%

WGX

1.8%

AU Metals and Mining

0.9%

AU Market


1 Year Return

-27.4%

WGX

16.1%

AU Metals and Mining

27.3%

AU Market

Return vs Industry: WGX underperformed the Australian Metals and Mining industry which returned 16.1% over the past year.

Return vs Market: WGX underperformed the Australian Market which returned 27.3% over the past year.


Shareholder returns

WGXIndustryMarket
7 Day9.5%1.8%0.9%
30 Day3.8%-11.0%-1.1%
90 Day-12.9%-4.8%1.0%
1 Year-27.4%-27.4%25.3%16.1%32.7%27.3%
3 Year52.5%47.5%69.9%42.9%37.0%20.2%
5 Yearn/a124.8%78.8%66.9%34.1%

Long-Term Price Volatility Vs. Market

How volatile is Westgold Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Westgold Resources Fundamentals Summary

How do Westgold Resources's earnings and revenue compare to its market cap?
WGX fundamental statistics
Market CapAU$756.95m
Earnings (TTM)AU$76.75m
Revenue (TTM)AU$571.17m

9.9x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WGX income statement (TTM)
RevenueAU$571.17m
Cost of RevenueAU$455.46m
Gross ProfitAU$115.71m
ExpensesAU$38.96m
EarningsAU$76.75m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.18
Gross Margin20.26%
Net Profit Margin13.44%
Debt/Equity Ratio0%

How did WGX perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

11%

Payout Ratio

Valuation

Is Westgold Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WGX (A$1.79) is trading below our estimate of fair value (A$17.59)

Significantly Below Fair Value: WGX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WGX is good value based on its PE Ratio (9.9x) compared to the Australian Metals and Mining industry average (12.1x).

PE vs Market: WGX is good value based on its PE Ratio (9.9x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: WGX is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: WGX is good value based on its PB Ratio (1.2x) compared to the AU Metals and Mining industry average (2.8x).


Future Growth

How is Westgold Resources forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WGX's forecast earnings growth (14% per year) is above the savings rate (1.9%).

Earnings vs Market: WGX's earnings (14% per year) are forecast to grow faster than the Australian market (11.2% per year).

High Growth Earnings: WGX's earnings are forecast to grow, but not significantly.

Revenue vs Market: WGX's revenue (3.9% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: WGX's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WGX's Return on Equity is forecast to be low in 3 years time (12.3%).


Past Performance

How has Westgold Resources performed over the past 5 years?

59.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WGX has high quality earnings.

Growing Profit Margin: WGX's current net profit margins (13.4%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: WGX has become profitable over the past 5 years, growing earnings by 59.2% per year.

Accelerating Growth: WGX's earnings growth over the past year (121.8%) exceeds its 5-year average (59.2% per year).

Earnings vs Industry: WGX earnings growth over the past year (121.8%) exceeded the Metals and Mining industry 43.2%.


Return on Equity

High ROE: WGX's Return on Equity (12.6%) is considered low.


Financial Health

How is Westgold Resources's financial position?


Financial Position Analysis

Short Term Liabilities: WGX's short term assets (A$222.5M) exceed its short term liabilities (A$118.2M).

Long Term Liabilities: WGX's short term assets (A$222.5M) exceed its long term liabilities (A$174.5M).


Debt to Equity History and Analysis

Debt Level: WGX is debt free.

Reducing Debt: WGX has no debt compared to 5 years ago when its debt to equity ratio was 62.2%.

Debt Coverage: WGX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WGX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Westgold Resources's current dividend yield, its reliability and sustainability?

1.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WGX's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.33%).

High Dividend: WGX's dividend (1.12%) is low compared to the top 25% of dividend payers in the Australian market (5.26%).


Stability and Growth of Payments

Stable Dividend: WGX is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: WGX is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WGX is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WGX's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Debbie Fullarton

1.17yrs

Tenure

AU$684,186

Compensation

Ms. Debra A. Fullarton, also Debbie, has been Group Chief Executive Officer at Westgold Resources Limited since July 1, 2020. Ms. Fullarton served as Chief Financial Officer at Westgold Resources Ltd. sinc...


CEO Compensation Analysis

Compensation vs Market: Debbie's total compensation ($USD501.27K) is about average for companies of similar size in the Australian market ($USD714.50K).

Compensation vs Earnings: Debbie's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: WGX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: WGX's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Westgold Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Westgold Resources Limited
  • Ticker: WGX
  • Exchange: ASX
  • Founded: NaN
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$756.949m
  • Shares outstanding: 424.06m
  • Website: https://www.westgold.com.au

Number of Employees


Location

  • Westgold Resources Limited
  • 197 St Georges Terrace
  • Level 6
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings


Biography

Westgold Resources Limited engages in the exploration, development, mining, and treatment of gold assets primarily in Western Australia. The company’s assets include the Meekatharra Gold Operations, Fortnu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 15:27
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.