TSX:ELD

Stock Analysis Report

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Executive Summary

Eldorado Gold Corporation and its subsidiaries engage in the exploration, discovery, acquisition, financing, development, production, sale, and reclamation of mineral products, primarily in Turkey, Canada, Greece, Brazil, and Romania.


Snowflake Analysis

Good value with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.2%

ELD

-4.9%

CA Metals and Mining

4.1%

CA Market


1 Year Return

96.2%

ELD

26.6%

CA Metals and Mining

-8.5%

CA Market

Return vs Industry: ELD exceeded the Canadian Metals and Mining industry which returned 26.7% over the past year.

Return vs Market: ELD exceeded the Canadian Market which returned -10.1% over the past year.


Shareholder returns

ELDIndustryMarket
7 Day-3.2%-4.9%4.1%
30 Day-16.6%-6.1%7.8%
90 Day-10.9%16.3%-3.3%
1 Year96.2%96.2%27.5%26.6%-5.3%-8.5%
3 Year-42.3%-42.3%11.3%9.4%3.7%-6.0%
5 Year-56.2%-56.5%53.2%49.0%21.5%3.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

17.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ELD (CA$11.22) is trading below our estimate of fair value (CA$13.53)

Significantly Below Fair Value: ELD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ELD is good value based on its PE Ratio (13.1x) compared to the Metals and Mining industry average (17.7x).

PE vs Market: ELD is good value based on its PE Ratio (13.1x) compared to the Canadian market (13.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ELD is good value based on its PB Ratio (0.4x) compared to the CA Metals and Mining industry average (1.8x).


Next Steps

Future Growth

How is Eldorado Gold forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELD's earnings are forecast to decline over the next 3 years (-10.3% per year).

Earnings vs Market: ELD's earnings are forecast to decline over the next 3 years (-10.3% per year).

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

Revenue vs Market: ELD's revenue (10% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: ELD's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ELD's Return on Equity is forecast to be low in 3 years time (3.2%).


Next Steps

Past Performance

How has Eldorado Gold performed over the past 5 years?

37.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELD has a large one-off gain of $86.0M impacting its March 31 2020 financial results.

Growing Profit Margin: ELD became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ELD has become profitable over the past 5 years, growing earnings by 37.6% per year.

Accelerating Growth: ELD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ELD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (14.8%).


Return on Equity

High ROE: ELD's Return on Equity (2.7%) is considered low.


Next Steps

Financial Health

How is Eldorado Gold's financial position?


Financial Position Analysis

Short Term Liabilities: ELD's short term assets ($621.3M) exceed its short term liabilities ($364.2M).

Long Term Liabilities: ELD's short term assets ($621.3M) do not cover its long term liabilities ($958.3M).


Debt to Equity History and Analysis

Debt Level: ELD's debt to equity ratio (18.2%) is considered satisfactory.

Reducing Debt: ELD's debt to equity ratio has increased from 10.9% to 18.2% over the past 5 years.

Debt Coverage: ELD's debt is well covered by operating cash flow (34.6%).

Interest Coverage: ELD's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

George Burns (59yo)

3.17yrs

Tenure

US$4,539,991

Compensation

Mr. George Raymond Burns serves as an Independent Director of Turquoise Hill Resources Ltd. since January 21, 2020. He has been the Chief Executive Officer and President of Eldorado Gold Corporation since  ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD3.39M) is above average for companies of similar size in the Canadian market ($USD2.08M).

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


Leadership Team

NamePositionTenureCompensationOwnership
George Burns
President3.17yrsUS$4.54m0.15% $2.9m
Philip Yee
Executive VP & CFO1.75yrsUS$1.83m0.10% $1.9m
Timothy Garvin
Executive VP & General Counsel2.33yrsUS$1.44m0.023% $428.3k
Paul Skayman
Special Advisor to the COO0.50yrUS$1.36m0.045% $849.4k
Jason Cho
Executive VP & Chief Strategy Officer1.17yrsUS$1.84m0.021% $396.2k
Joseph Dick
Executive VP & COO0.50yrno datano data
Peter Lekich
Manager of Investor Relationsno datano datano data
Louise Burgess
Director of Communications & Government Relationsno datano datano data
Lisa Ower
Vice President of Human Resourcesno datano data0.0014% $26.4k
Peter Lewis
Vice President of Exploration11.08yrsno data0.026% $484.7k

1.8yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
George Burns
President3.17yrsUS$4.54m0.15% $2.9m
John Webster
Independent Director5.42yrsUS$235.00k0.0014% $27.0k
Michael Price
Independent Director9.08yrsUS$210.00kno data
Steven Reid
Independent Director7.08yrsUS$220.00k0.0060% $112.2k
Teresa Conway
Independent Director2yrsUS$200.00k0.0048% $89.7k
George Albino
Independent Non-Executive Chairman2.42yrsUS$285.00k0.021% $392.7k
Pamela Gibson
Independent Director5.75yrsUS$210.00kno data
Catharine E. Farrow
Independent Director0.17yrno datano data

4.3yrs

Average Tenure

62yo

Average Age

Experienced Board: ELD's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ELD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.4%.


Top Shareholders

Company Information

Eldorado Gold Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eldorado Gold Corporation
  • Ticker: ELD
  • Exchange: TSX
  • Founded: 1992
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$1.873b
  • Shares outstanding: 166.98m
  • Website: https://www.eldoradogold.com

Number of Employees


Location

  • Eldorado Gold Corporation
  • Bentall 5
  • Suite 1188
  • Vancouver
  • British Columbia
  • V6C 2B5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELDTSX (The Toronto Stock Exchange)YesVoting Common SharesCACADDec 1992
EGONYSE (New York Stock Exchange)YesVoting Common SharesUSUSDDec 1992
ELO1DB (Deutsche Boerse AG)YesVoting Common SharesDEEURDec 1992
ELDSWX (SIX Swiss Exchange)YesVoting Common SharesCHCHFDec 1992
0QZ9LSE (London Stock Exchange)YesVoting Common SharesGBCADDec 1992

Biography

Eldorado Gold Corporation and its subsidiaries engage in the exploration, discovery, acquisition, financing, development, production, sale, and reclamation of mineral products, primarily in Turkey, Canada, Greece, Brazil, and Romania. The company primarily produces gold, as well as silver, lead, zinc, and iron ore. It operates five mines: Kisladag and Efemcukuru located in western Turkey, Lamaque in Canada, and Olympias and Stratoni located in northern Greece. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was founded in 1992 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 02:21
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
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.