TSX:CEE

Stock Analysis Report

Executive Summary

Centamin plc engages in the exploration, mining, and development of precious metals in Egypt, Burkina Faso, Côte d’Ivoire, Jersey, the United Kingdom, and Australia.

Rewards

Revenue is forecast to grow 5.88% per year

Risk Analysis

Earnings are forecast to decline by an average of -0.6% per year for the next 3 years

Dividend of 6.8% is not well covered by earnings or forecast to be in the next 3 years

Large one-off items impacting financial results

Profit margins (9%) are lower than last year (17.4%)



Snowflake Analysis

Flawless balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CEE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.7%

CEE

2.4%

CA Metals and Mining

0.6%

CA Market


1 Year Return

11.7%

CEE

4.4%

CA Metals and Mining

5.8%

CA Market

Return vs Industry: CEE exceeded the Canadian Metals and Mining industry which returned 4.3% over the past year.

Return vs Market: CEE exceeded the Canadian Market which returned 5.8% over the past year.


Shareholder returns

CEEIndustryMarket
7 Day2.7%2.4%0.6%
30 Day4.5%1.2%0.5%
90 Day20.4%6.6%3.6%
1 Year17.3%11.7%5.0%4.4%9.1%5.8%
3 Year-4.6%-21.2%-10.4%-11.9%15.4%5.0%
5 Year135.4%84.0%22.9%19.2%33.6%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

38.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CEE (CA$2.3) is trading above our estimate of fair value (CA$1.45)

Significantly Below Fair Value: CEE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CEE is poor value based on its PE Ratio (38.1x) compared to the Metals and Mining industry average (15.6x).

PE vs Market: CEE is poor value based on its PE Ratio (38.1x) compared to the Canadian market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: CEE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CEE is overvalued based on its PB Ratio (1.6x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Centamin forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CEE's earnings are forecast to decline over the next 3 years (-0.6% per year).

Earnings vs Market: CEE's earnings are forecast to decline over the next 3 years (-0.6% per year).

High Growth Earnings: CEE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CEE's revenue (5.9% per year) is forecast to grow faster than the Canadian market (4.9% per year).

High Growth Revenue: CEE's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CEE's Return on Equity is forecast to be low in 3 years time (4.4%).


Next Steps

Past Performance

How has Centamin performed over the past 5 years?

0.007%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CEE has a large one-off loss of $49.4M impacting its June 30 2019 financial results.

Growing Profit Margin: CEE's current net profit margins (9%) are lower than last year (17.4%).


Past Earnings Growth Analysis

Earnings Trend: CEE's earnings have grown by 0.01% per year over the past 5 years.

Accelerating Growth: CEE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CEE had negative earnings growth (-55%) over the past year, making it difficult to compare to the Metals and Mining industry average (11.9%).


Return on Equity

High ROE: CEE's Return on Equity (10.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Centamin's financial position?


Financial Position Analysis

Short Term Liabilities: CEE's short term assets ($413.7M) exceed its short term liabilities ($55.4M).

Long Term Liabilities: CEE's short term assets ($413.7M) exceed its long term liabilities ($14.0M).


Debt to Equity History and Analysis

Debt Level: CEE is debt free.

Reducing Debt: CEE has not had any debt for past 5 years.

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

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


Balance Sheet

Inventory Level: CEE has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CEE's debt is covered by short term assets.


Next Steps

Dividend

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

6.80%

Current Dividend Yield


Dividend Yield vs Market

company6.8%marketbottom25%1.9%markettop25%5.3%industryaverage1.2%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: CEE's dividend (6.8%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: CEE's dividend (6.8%) is in the top 25% of dividend payers in the Canadian market (5.32%)


Stability and Growth of Payments

Stable Dividend: CEE has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CEE's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (151.1%), CEE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CEE's dividends in 3 years are not forecast to be well covered by earnings (115.3% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Ross Ian Jerrard (44yo)

0.2yrs

Tenure

US$1,337,190

Compensation

Mr. Ross Ian Jerrard serves as Interim Chief Executive Officer of Centamin Plc since December 13, 2019. Mr. Jerrard has been the Chief Financial Officer of Centamin Plc since April 18, 2016 and its Directo ...


CEO Compensation Analysis

Compensation vs Market: Ross's total compensation ($USD1.34M) is below average for companies of similar size in the Canadian market ($USD2.15M).

Compensation vs Earnings: Ross's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ross Ian Jerrard
Interim CEO0.2yrsUS$1.34m0.030% $818.3k
Jeremy Langford
Chief Operating Officer0.8yrsno datano data
Riaan Nel
Group Accountant3yrsno data0.010% $280.7k
Alexandra Carse
Head of Investor Relations2.2yrsno data0.019% $505.7k
John Singleton
Head of Corporate Development0.6yrsno datano data
Norman Bailie
Group Exploration Manager4.1yrsno data0.027% $738.9k
Mark Smith
Group Financial Controller4.5yrsUS$889.54k0.069% $1.9m
Darren Le Masurier
Company Secretary6.6yrsno data0.050% $1.3m
Terence Smith
General Manager of Sukari Operations7.7yrsno datano data
Michael Kriewaldt
Manager of Exploration0yrsUS$69.00kno data

3.0yrs

Average Tenure

Experienced Management: CEE's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ross Ian Jerrard
Interim CEO0.2yrsUS$1.34m0.030% $818.3k
Mark Arnesen
Independent Non-Executive Director9yrsUS$122.64k0.0042% $114.5k
Gordon Haslam
Senior Independent Non-Executive Director8.9yrsUS$170.34k0.011% $297.2k
Josef El-Raghy
Non-Executive Chairman8.2yrsUS$894.53k0.093% $2.5m
Ibrahim Fawzy
Independent Non-Executive Director1.5yrsUS$31.74kno data
Sally Eyre
Independent Non-Executive Director0.8yrsno datano data
Catharine E. Farrow
Independent Non-Executive Director0.4yrsno datano data
Mark Anthony Bankes
Independent Non-Executive Director9yrsUS$122.64k0.016% $444.4k
Martie Cloete
Independent Non-Executive Director0.4yrsno data0.0013% $35.1k
James Rutherford
Deputy Independent Non-Executive Chairman0.08yrsno datano data

1.8yrs

Average Tenure

56yo

Average Age

Experienced Board: CEE'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

Centamin plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Centamin plc
  • Ticker: CEE
  • Exchange: TSX
  • Founded: 1970
  • Industry: Gold
  • Sector: Materials
  • Market Cap: UK£1.565b
  • Listing Market Cap: UK£2.702b
  • Shares outstanding: 1.16b
  • Website: https://www.centamin.com

Number of Employees


Location

  • Centamin plc
  • 2 Mulcaster Street
  • Saint Helier
  • JE2 3NJ
  • Jersey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CEYLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
CELT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
7CTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
CEETSX (The Toronto Stock Exchange)YesOrdinary SharesCACADJan 1992
CEYLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

Centamin plc engages in the exploration, mining, and development of precious metals in Egypt, Burkina Faso, Côte d’Ivoire, Jersey, the United Kingdom, and Australia. The company explores for gold ore deposits. Its principal project is the Sukari Gold Mine project, which covers an area of 160 square kilometers located in the Eastern Desert of Egypt. The company was incorporated in 1970 and is based in Saint Helier, Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:58
End of Day Share Price2020/02/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.