TSX:CG

Stock Analysis Report

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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. More Details


Snowflake Analysis

Flawless balance sheet with high growth potential.


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

Stable Share Price: CG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.9%

CG

-2.4%

CA Metals and Mining

-8.4%

CA Market


1 Year Return

3.3%

CG

44.1%

CA Metals and Mining

-60.8%

CA Market

Return vs Industry: CG underperformed the Canadian Metals and Mining industry which returned 41.3% over the past year.

Return vs Market: CG exceeded the Canadian Market which returned -60.7% over the past year.


Shareholder returns

CGIndustryMarket
7 Day-7.9%-2.4%-8.4%
30 Day-26.6%-3.8%-3.0%
90 Day-30.7%-8.4%-26.8%
1 Year4.4%3.3%45.3%44.1%-59.2%-60.8%
3 Year49.1%47.5%49.6%46.5%-60.5%-64.6%
5 Year70.2%64.9%150.2%142.7%-51.9%-59.6%

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?

1.2x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CG (CA$11.64) is trading above our estimate of fair value (CA$9.43)

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


Price To Earnings Ratio

PE vs Industry: CG is unprofitable, so we can't compare its PE Ratio to the CA Metals and Mining industry average.

PE vs Market: CG is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CG's PEG Ratio to determine if it is good value.


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 (2.7x).


Next Steps

Future Growth

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

65.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CG's is expected to become profitable in the next 3 years.

Revenue vs Market: CG's revenue (16.3% per year) is forecast to grow faster than the Canadian market (7.3% per year).

High Growth Revenue: CG's revenue (16.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CG's Return on Equity is forecast to be high in 3 years time (28.7%)


Next Steps

Past Performance

How has Centerra Gold performed over the past 5 years?

-12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CG is currently unprofitable.

Growing Profit Margin: CG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CG is unprofitable, and losses have increased over the past 5 years at a rate of 12.5% per year.

Accelerating Growth: Unable to compare CG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CG is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (70.5%).


Return on Equity

High ROE: CG has a negative Return on Equity (-3.56%), as it is currently unprofitable.


Next Steps

Financial Health

How is Centerra Gold's financial position?


Financial Position Analysis

Short Term Liabilities: CG's short term assets ($992.6M) exceed its short term liabilities ($252.7M).

Long Term Liabilities: CG's short term assets ($992.6M) exceed its long term liabilities ($364.9M).


Debt to Equity History and Analysis

Debt Level: CG is debt free.

Reducing Debt: CG has no debt compared to 5 years ago when its debt to equity ratio was 5.3%.

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

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


Balance Sheet


Next Steps

Dividend

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

1.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CG's dividend (1.7%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.75%).

High Dividend: CG's dividend (1.7%) is low compared to the top 25% of dividend payers in the Canadian market (6.04%).


Stability and Growth of Payments

Stable Dividend: CG's dividend payments have been volatile in the past 10 years.

Growing Dividend: CG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: CG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CG's dividends in 3 years are forecast to be thoroughly covered by earnings (7.6% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Scott Perry (44 yo)

4.83yrs

Tenure

US$4,613,235

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 ($USD2.67M) is about average for companies of similar size in the Canadian market ($USD3.01M).

Compensation vs Earnings: Scott's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Perry
President4.83yrsUS$4.61m0.039%
$ 1.3m
Darren Millman
VP & CFO4.42yrsUS$2.03m0.0053%
$ 177.9k
Yousef Rehman
VP, General Counsel & Corporate Secretary2.75yrsUS$1.52m0.0062%
$ 210.0k
Dennis Kwong
Vice President of Business Development & Exploration4.75yrsUS$1.63m0.015%
$ 497.2k
Daniel Desjardins
VP & COO0.75yrno data0.039%
$ 1.3m
John Pearson
Vice President of Investor Relationsno datano data0.0058%
$ 197.2k
Claudia D'Orazio
VP & Chief Human Resources Officer0.58yrno data0.00022%
$ 7.4k
Mark Wilson
President of Base Metals Divisionno datano datano data
John Kazakoff
President of Boroo Gold Company13.75yrsno datano data
Claude Plourde
VP & Controllerno datano datano data
Deon Badenhorst
President of Kumtor Gold Companyno datano datano data
Wendy Yu
Assistant General Counsel & Assistant Corporate Secretaryno datano datano data

4.4yrs

Average Tenure

51yo

Average Age

Experienced Management: CG's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Perry
President4.83yrsUS$4.61m0.039%
$ 1.3m
Michael Parrett
Independent Chair of the Board1yrUS$317.50k0.0026%
$ 87.9k
Bruce Walter
Vice Chairman of the Board12.25yrsUS$234.50kno data
Sheryl Pressler
Independent Director12.42yrsUS$269.00k0.016%
$ 535.8k
Paul Wright
Independent Director0.42yrno data0.0026%
$ 86.6k
Susan Yurkovich
Independent Director2.42yrsUS$320.50kno data
Jacques Perron
Director4yrsUS$224.00k0.032%
$ 1.1m
Richard Connor
Independent Director8.25yrsUS$262.00k0.0051%
$ 173.5k
Askar Oskombaev
Director2.42yrsUS$234.00kno data
Dushenaly Kasenov
Director1.42yrsUS$154.75kno data
Maksat Kobonbaev
Independent Director1.42yrsUS$154.75kno data

2.4yrs

Average Tenure

62yo

Average Age

Experienced Board: CG's board of directors are not considered experienced ( 2.4 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: CG insiders have only sold shares 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

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$3.382b
  • Shares outstanding: 292.60m
  • 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 Analysis2020/10/31 00:45
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.