TSX:CG

Stock Analysis Report

Executive Summary

Centerra Gold Inc., a gold mining and exploration company, engages in the acquisition, exploration, development, and operation of gold and copper properties in North America, Asia, and internationally.

Snowflake

Fundamentals

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.8%

CG

-5.7%

CA Metals and Mining

0.3%

CA Market


1 Year Return

133.2%

CG

9.0%

CA Metals and Mining

0.1%

CA Market

Return vs Industry: CG exceeded the Canadian Metals and Mining industry which returned 9% over the past year.

Return vs Market: CG exceeded the Canadian Market which returned 0.1% over the past year.


Shareholder returns

CGIndustryMarket
7 Day-3.8%-5.7%0.3%
30 Day15.8%-5.4%-2.5%
90 Day13.5%-5.2%-1.4%
1 Year133.2%133.2%9.8%9.0%3.6%0.1%
3 Year83.0%83.0%-11.7%-13.4%14.3%4.1%
5 Year126.2%115.7%2.5%-1.4%25.0%6.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CG (CA$12.08) is trading below our estimate of fair value (CA$15.79)

Significantly Undervalued: CG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CG is poor value based on its PE Ratio (18x) compared to the Metals and Mining industry average (13.4x).

PE vs Market: CG is poor value based on its PE Ratio (18x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: CG is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: CG is good value based on its PB Ratio (1.2x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Centerra Gold forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CG's forecast earnings growth (5.8% per year) is above the savings rate (1.9%).

Earnings vs Market: CG's earnings (5.8% per year) are forecast to grow slower than the Canadian market (13.2% per year).

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

Revenue vs Market: CG's revenue (0.7% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: CG's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CG's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has Centerra Gold performed over the past 5 years?

35.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CG's earnings have grown significantly by 35.1% per year over the past 5 years.

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

Earnings vs Industry: CG had negative earnings growth (-32.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (-13.7%).


Return on Equity

High ROE: CG's Return on Equity (6.6%) is considered low.


Return on Assets

ROA vs Industry: CG's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: CG has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Centerra Gold's financial position?


Financial Position Analysis

Short Term Liabilities: CG's short term assets ($834.5M) exceeds its short term liabilities ($300.4M)

Long Term Liabilities: CG's short term assets (834.5M) exceeds its long term liabilities (349.0M)


Debt to Equity History and Analysis

Debt Level: CG's debt to equity ratio (4.2%) is considered satisfactory

Reducing Debt: CG's debt to equity ratio has reduced from 5.3% to 4.2% over the past 5 years.

Debt Coverage: CG's debt is well covered by operating cash flow (422.4%).

Interest Coverage: CG's interest payments on its debt are well covered by EBIT (12.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: CG's debt is covered by short term assets (assets are 8.835330x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%6.0%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate CG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if CG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CG is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Centerra Gold's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Scott Perry (43yo)

3.9yrs

Tenure

US$4,522,075

Compensation

Mr. Scott Graeme Perry, B.Comm., CPA, has been Chief Executive Officer of Centerra Gold Inc. since November 01, 2015 and serves as its President since January 1, 2018. Mr. Perry served as the Chief Executi ...


CEO Compensation Analysis

Compensation vs. Market: Scott's total compensation ($USD3.43M) is about average for companies of similar size in the Canadian market ($USD2.88M).

Compensation vs Earnings: Scott's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.8yrs

Average Tenure

46yo

Average Age

Experienced Management: CG's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

61yo

Average Age

Experienced Board: CG's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$5,47622 Mar 19
John Pearson
EntityIndividual
Role
Head of Investor Relations
Vice President of Investor Relations
Shares742
Max PriceUS$7.38
BuyUS$101,19607 Mar 19
Scott Perry
EntityIndividual
Role
Chief Executive Officer
President
Shares15,400
Max PriceUS$6.60
BuyUS$46,81207 Mar 19
Darren Millman
EntityIndividual
Role
Chief Financial Officer
VP & CFO
Shares7,000
Max PriceUS$6.69

Ownership Breakdown


Management Team

  • John Pearson (60yo)

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Scott Perry (43yo)

    President

    • Tenure: 3.9yrs
    • Compensation: US$4.52m
  • Gordon Reid (61yo)

    VP & COO

    • Tenure: 6.8yrs
    • Compensation: US$1.94m
  • John Kazakoff

    President of Boroo Gold Company

    • Tenure: 12.8yrs
  • Darren Millman (41yo)

    VP & CFO

    • Tenure: 3.5yrs
    • Compensation: US$1.95m
  • Dennis Kwong (48yo)

    Vice President of Business Development & Exploration

    • Tenure: 3.8yrs
    • Compensation: US$1.55m
  • Geoff Ramey (44yo)

    Vice President of Human Resources & HR Systems

    • Tenure: 0yrs
  • Dan Desjardins

    President of Kumtor Gold Company

    • Tenure: 0yrs
  • James Des Londe

    President

    • Tenure: 0yrs
  • Yousef Rehman

    VP, General Counsel & Corporate Secretary

    • Tenure: 1.8yrs
    • Compensation: US$1.33m

Board Members

  • Mike Parrett (67yo)

    Independent Chair of the Board

    • Tenure: 0yrs
    • Compensation: US$263.67k
  • Steve Lang (63yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$367.18k
  • Bruce Walter (61yo)

    Vice Chairman of the Board

    • Tenure: 11.3yrs
    • Compensation: US$325.00k
  • Sheryl Pressler (68yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$267.68k
  • Susan Yurkovich (53yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$145.58k
  • Scott Perry (43yo)

    President

    • Tenure: 3.9yrs
    • Compensation: US$4.52m
  • Jacques Perron (58yo)

    Director

    • Tenure: 3yrs
    • Compensation: US$229.84k
  • Rick Connor (70yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$272.50k
  • Askar Oskombaev (40yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$165.08k
  • Dushen Kasenov (61yo)

    Director

    • Tenure: 0.4yrs

Company Information

Centerra Gold Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Centerra Gold Inc.
  • Ticker: CG
  • Exchange: TSX
  • Founded: 2002
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$3.539b
  • Shares outstanding: 292.95m
  • Website: https://www.centerragold.com

Number of Employees


Location

  • Centerra Gold Inc.
  • 1 University Avenue
  • Suite 1500
  • Toronto
  • Ontario
  • M5J 2P1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CGTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2004
GOUDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2004
CAGD.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2004
0UP5LSE (London Stock Exchange)YesCommon SharesGBCADJun 2004

Biography

Centerra Gold Inc., a gold mining and exploration company, engages in the acquisition, exploration, development, and operation of gold and copper properties in North America, Asia, and internationally. Its ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:50
End of Day Share Price2019/10/16 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.