TSX:ELD

Stock Analysis Report

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Market Cap

CA$2.1b

Last Updated

2021/08/05 22:57 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ELD's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-7.2%

ELD

-1.8%

CA Metals and Mining

0.4%

CA Market


1 Year Return

-31.6%

ELD

-10.0%

CA Metals and Mining

26.5%

CA Market

Return vs Industry: ELD underperformed the Canadian Metals and Mining industry which returned -9.5% over the past year.

Return vs Market: ELD underperformed the Canadian Market which returned 26.4% over the past year.


Shareholder returns

ELDIndustryMarket
7 Day-7.2%-1.8%0.4%
30 Day-9.6%-0.7%0.08%
90 Day-15.8%-6.6%2.0%
1 Year-31.6%-31.6%-9.0%-10.0%30.4%26.5%
3 Year68.7%68.7%63.0%59.2%32.0%19.2%
5 Year-57.7%-57.9%18.1%14.3%50.7%28.6%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ELD (CA$11.39) is trading below our estimate of fair value (CA$71)

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


Price To Earnings Ratio

PE vs Industry: ELD is poor value based on its PE Ratio (110.5x) compared to the Canadian Metals and Mining industry average (11.9x).

PE vs Market: ELD is poor value based on its PE Ratio (110.5x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: ELD is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: ELD is good value based on its PB Ratio (0.5x) compared to the CA Metals and Mining industry average (2.6x).


Future Growth

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

41.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELD's forecast earnings growth (41.6% per year) is above the savings rate (1.5%).

Earnings vs Market: ELD's earnings (41.6% per year) are forecast to grow faster than the Canadian market (13.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ELD's revenue (6.7% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: ELD's revenue (6.7% 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 (3.3%).


Past Performance

How has Eldorado Gold performed over the past 5 years?

60.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELD has a large one-off loss of $140.0M impacting its June 30 2021 financial results.

Growing Profit Margin: ELD's current net profit margins (1.4%) are lower than last year (17.2%).


Past Earnings Growth Analysis

Earnings Trend: ELD has become profitable over the past 5 years, growing earnings by 60.9% per year.

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

Earnings vs Industry: ELD had negative earnings growth (-89.7%) over the past year, making it difficult to compare to the Metals and Mining industry average (117.2%).


Return on Equity

High ROE: ELD's Return on Equity (0.2%) is considered low.


Financial Health

How is Eldorado Gold's financial position?


Financial Position Analysis

Short Term Liabilities: ELD's short term assets ($673.6M) exceed its short term liabilities ($234.1M).

Long Term Liabilities: ELD's short term assets ($673.6M) do not cover its long term liabilities ($887.4M).


Debt to Equity History and Analysis

Debt Level: ELD's debt to equity ratio (11.5%) is considered satisfactory.

Reducing Debt: ELD's debt to equity ratio has reduced from 16.8% to 11.5% over the past 5 years.

Debt Coverage: ELD's debt is well covered by operating cash flow (94%).

Interest Coverage: ELD's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet


Dividend

What is Eldorado Gold 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?

3.0yrs

Average management tenure


CEO

George Burns (61 yo)

4.33yrs

Tenure

US$3,958,554

Compensation

Mr. George Raymond Burns has been 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 A...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD3.96M) is above average for companies of similar size in the Canadian market ($USD2.07M).

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


Leadership Team

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


Board Members

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


Ownership

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


Insider Trading Volume

Insider Buying: ELD insiders have sold more shares than they have bought 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%.


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$2.077b
  • Shares outstanding: 182.32m
  • Website: https://www.eldoradogold.com

Number of Employees


Location

  • Eldorado Gold Corporation
  • Bentall 5, 11th Floor
  • Suite 1188
  • Vancouver
  • British Columbia
  • V6C 2B5
  • Canada

Listings


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,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/05 22:57
End of Day Share Price2021/08/05 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.