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TRQ

Turquoise Hill Resources TSX:TRQ Stock Report

Last Price

CA$34.48

Market Cap

CA$6.9b

7D

1.3%

1Y

64.9%

Updated

30 Jun, 2022

Data

Company Financials +
TRQ fundamental analysis
Snowflake Score
Valuation6/6
Future Growth5/6
Past Performance2/6
Financial Health4/6
Dividends0/6

TRQ Stock Overview

Turquoise Hill Resources Ltd., together with its subsidiaries, operates as a mining company.

Rewards

Trading at 92.2% below our estimate of its fair value

Earnings are forecast to grow 35.72% per year

Risk Analysis

No risks detected for TRQ from our risk checks.

Turquoise Hill Resources Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Turquoise Hill Resources
Historical stock prices
Current Share PriceCA$34.48
52 Week HighCA$38.92
52 Week LowCA$12.15
Beta1.84
1 Month Change-2.93%
3 Month Change-10.09%
1 Year Change64.90%
3 Year Change115.50%
5 Year Change-0.058%
Change since IPO-71.62%

Recent News & Updates

Shareholder Returns

TRQCA Metals and MiningCA Market
7D1.3%-3.6%1.0%
1Y64.9%-17.8%-4.7%

Return vs Industry: TRQ exceeded the Canadian Metals and Mining industry which returned -14.8% over the past year.

Return vs Market: TRQ exceeded the Canadian Market which returned -3.7% over the past year.

Price Volatility

Is TRQ's price volatile compared to industry and market?
TRQ volatility
TRQ Average Weekly Movement4.7%
Metals and Mining Industry Average Movement11.0%
Market Average Movement10.1%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market4.4%

Stable Share Price: TRQ is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TRQ's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19943,478Steve Thibeaulthttps://turquoisehill.com

Turquoise Hill Resources Ltd., together with its subsidiaries, operates as a mining company. The company primarily explores for copper, gold, and silver deposits. It engages in the operation and development of the Oyu Tolgoi copper-gold mine located in Southern Mongolia.

Turquoise Hill Resources Fundamentals Summary

How do Turquoise Hill Resources's earnings and revenue compare to its market cap?
TRQ fundamental statistics
Market CapUS$5.39b
Earnings (TTM)US$563.39m
Revenue (TTM)US$1.85b

9.6x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRQ income statement (TTM)
RevenueUS$1.85b
Cost of RevenueUS$641.70m
Gross ProfitUS$1.21b
Other ExpensesUS$642.06m
EarningsUS$563.39m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.80
Gross Margin65.26%
Net Profit Margin30.50%
Debt/Equity Ratio43.4%

How did TRQ perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is TRQ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TRQ?

Other financial metrics that can be useful for relative valuation.

TRQ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.1x
Enterprise Value/EBITDA9.1x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does TRQ's PE Ratio compare to its peers?

TRQ PE Ratio vs Peers
The above table shows the PE ratio for TRQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average46.6x
IVN Ivanhoe Mines
121x33.6%CA$9.0b
TFPM Triple Flag Precious Metals
38.6x3.5%CA$2.6b
TECK.B Teck Resources
5.1x-21.9%CA$21.2b
ALS Altius Minerals
21.5x-8.5%CA$868.1m
TRQ Turquoise Hill Resources
9.6x35.7%CA$6.9b

Price-To-Earnings vs Peers: TRQ is good value based on its Price-To-Earnings Ratio (9.6x) compared to the peer average (46.6x).


Price to Earnings Ratio vs Industry

How does TRQ's PE Ratio compare vs other companies in the CA Metals and Mining Industry?

Price-To-Earnings vs Industry: TRQ is good value based on its Price-To-Earnings Ratio (9.6x) compared to the Canadian Metals and Mining industry average (10.9x)


Price to Earnings Ratio vs Fair Ratio

What is TRQ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TRQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.6x
Fair PE Ratio25.9x

Price-To-Earnings vs Fair Ratio: TRQ is good value based on its Price-To-Earnings Ratio (9.6x) compared to the estimated Fair Price-To-Earnings Ratio (25.9x).


Share Price vs Fair Value

What is the Fair Price of TRQ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TRQ (CA$34.48) is trading below our estimate of fair value (CA$442.66)

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


Price to Earnings Growth Ratio

PEG Ratio: TRQ is good value based on its PEG Ratio (0.3x)


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Future Growth

How is Turquoise Hill Resources forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


35.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRQ's forecast earnings growth (35.7% per year) is above the savings rate (1.6%).

Earnings vs Market: TRQ's earnings (35.7% per year) are forecast to grow faster than the Canadian market (7.1% per year).

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

Revenue vs Market: TRQ's revenue (27.8% per year) is forecast to grow faster than the Canadian market (6.4% per year).

High Growth Revenue: TRQ's revenue (27.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRQ's Return on Equity is forecast to be low in 3 years time (5.5%).


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Past Performance

How has Turquoise Hill Resources performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


21.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TRQ has high quality earnings.

Growing Profit Margin: TRQ's current net profit margins (30.5%) are lower than last year (40.6%).


Past Earnings Growth Analysis

Earnings Trend: TRQ's earnings have grown significantly by 21.9% per year over the past 5 years.

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

Earnings vs Industry: TRQ had negative earnings growth (-5.8%) over the past year, making it difficult to compare to the Metals and Mining industry average (-6%).


Return on Equity

High ROE: TRQ's Return on Equity (7.8%) is considered low.


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Financial Health

How is Turquoise Hill Resources's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TRQ's short term assets ($1.0B) exceed its short term liabilities ($955.7M).

Long Term Liabilities: TRQ's short term assets ($1.0B) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: TRQ's net debt to equity ratio (37.3%) is considered satisfactory.

Reducing Debt: TRQ's debt to equity ratio has reduced from 52% to 43.4% over the past 5 years.

Debt Coverage: TRQ's debt is not well covered by operating cash flow (20%).

Interest Coverage: TRQ earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Turquoise Hill Resources's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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

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


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TRQ has not reported any payouts.


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Management

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

3.8yrs

Average management tenure


CEO

Steve Thibeault (62 yo)

1.25yrs

Tenure

US$1,103,756

Compensation

Mr. Steve Thibeault, BA (Acc), CMA, serves as Interim Chief Executive Officer at Turquoise Hill Resources Limited since March 3, 2021 and has been its Non-Independent Director since March 3, 2021. Mr. Thib...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD1.10M) is below average for companies of similar size in the Canadian market ($USD4.69M).

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


Leadership Team

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


Board Members

Experienced Board: TRQ's board of directors are considered experienced (4.5 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Turquoise Hill Resources Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Turquoise Hill Resources Ltd.
  • Ticker: TRQ
  • Exchange: TSX
  • Founded: 1994
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Implied Market Cap: CA$6.938b
  • Shares outstanding: 201.23m
  • Website: https://turquoisehill.com

Number of Employees


Location

  • Turquoise Hill Resources Ltd.
  • 1 Place Ville-Marie
  • Suite 3680
  • Montreal
  • Quebec
  • H3B 3P2
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.