TSX:OGC

Stock Analysis Report

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Market Cap

CA$1.7b

Last Updated

2021/08/02 22:30 UTC

Data Sources

Company Financials +

Executive Summary

OceanaGold Corporation, a gold producer, engages in the exploration, development, and operation of mineral properties. More Details


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: OGC is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: OGC's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

7.0%

OGC

5.5%

CA Metals and Mining

1.4%

CA Market


1 Year Return

-30.8%

OGC

-5.8%

CA Metals and Mining

29.1%

CA Market

Return vs Industry: OGC underperformed the Canadian Metals and Mining industry which returned -5.8% over the past year.

Return vs Market: OGC underperformed the Canadian Market which returned 29.1% over the past year.


Shareholder returns

OGCIndustryMarket
7 Day7.0%5.5%1.4%
30 Day1.7%1.7%-0.5%
90 Day15.7%-0.7%3.0%
1 Year-30.8%-30.8%-4.7%-5.8%33.0%29.1%
3 Year-39.4%-40.0%64.2%60.2%31.5%18.7%
5 Year-43.9%-45.0%23.3%19.3%51.9%29.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is OceanaGold 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: OGC (CA$2.43) is trading below our estimate of fair value (CA$23.44)

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


Price To Earnings Ratio

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

PE vs Market: OGC 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 OGC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OGC is good value based on its PB Ratio (0.8x) compared to the CA Metals and Mining industry average (2.6x).


Future Growth

How is OceanaGold forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

35.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OGC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

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

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

Revenue vs Market: OGC's revenue (19.1% per year) is forecast to grow faster than the Canadian market (5.3% per year).

High Growth Revenue: OGC's revenue (19.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OGC's Return on Equity is forecast to be low in 3 years time (7.8%).


Past Performance

How has OceanaGold performed over the past 5 years?

-52.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OGC is currently unprofitable.

Growing Profit Margin: OGC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OGC is unprofitable, and losses have increased over the past 5 years at a rate of 52.2% per year.

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

Earnings vs Industry: OGC is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (116.7%).


Return on Equity

High ROE: OGC has a negative Return on Equity (-2.83%), as it is currently unprofitable.


Financial Health

How is OceanaGold's financial position?


Financial Position Analysis

Short Term Liabilities: OGC's short term assets ($247.4M) exceed its short term liabilities ($189.6M).

Long Term Liabilities: OGC's short term assets ($247.4M) do not cover its long term liabilities ($456.1M).


Debt to Equity History and Analysis

Debt Level: OGC's debt to equity ratio (12.9%) is considered satisfactory.

Reducing Debt: OGC's debt to equity ratio has reduced from 14.7% to 12.9% over the past 5 years.

Debt Coverage: OGC's debt is well covered by operating cash flow (69.6%).

Interest Coverage: Insufficient data to determine if OGC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is OceanaGold current dividend yield, its reliability and sustainability?

0.53%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate OGC'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 OGC's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OGC'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?

4.0yrs

Average management tenure


CEO

Michael Harvy Holmes (56 yo)

1.42yrs

Tenure

US$1,999,041

Compensation

Mr. Michael Harvy Lou Holmes is President and Chief Executive Officer of OceanaGold Corporation since April 5, 2020 and serves as Director of OceanaGold Corporation since March 18, 2020. Previously he serv...


CEO Compensation Analysis

Compensation vs Market: Michael Harvy's total compensation ($USD2.00M) is about average for companies of similar size in the Canadian market ($USD2.07M).

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


Leadership Team

Experienced Management: OGC's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: OGC's board of directors are not considered experienced ( 1.4 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: 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 been diluted in the past year, with total shares outstanding growing by 13.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: OceanaGold Corporation
  • Ticker: OGC
  • Exchange: TSX
  • Founded: 2003
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$1.711b
  • Shares outstanding: 703.99m
  • Website: https://oceanagold.com

Number of Employees


Location

  • OceanaGold Corporation
  • 99 Melbourne Street
  • Level 3
  • South Brisbane
  • Queensland
  • 4101
  • Australia

Listings


Biography

OceanaGold Corporation, a gold producer, engages in the exploration, development, and operation of mineral properties. It explores for gold, copper, silver, and other minerals. The company operates the Did...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 22:30
End of Day Share Price2021/07/30 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.