TSX:TRQ

Stock Analysis Report

Turquoise Hill Resources

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Turquoise Hill Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

TRQ

3.7%

CA Metals and Mining

3.0%

CA Market


1 Year Return

-75.7%

TRQ

-8.2%

CA Metals and Mining

-24.5%

CA Market

Return vs Industry: TRQ underperformed the Canadian Metals and Mining industry which returned -8.2% over the past year.

Return vs Market: TRQ underperformed the Canadian Market which returned -24.5% over the past year.


Shareholder returns

TRQIndustryMarket
7 Day0%3.7%3.0%
30 Day-22.5%-12.5%-21.2%
90 Day-42.7%-13.1%-24.4%
1 Year-75.7%-75.7%-7.6%-8.2%-22.0%-24.5%
3 Year-86.5%-86.5%-17.2%-18.7%-13.9%-21.9%
5 Year-88.4%-88.4%9.0%5.9%-2.0%-16.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Turquoise Hill Resources 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: TRQ (CA$0.55) is trading below our estimate of fair value (CA$7.77)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TRQ is good value based on its PB Ratio (0.1x) compared to the CA Metals and Mining industry average (1.2x).


Next Steps

Future Growth

How is Turquoise Hill Resources forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

53.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRQ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

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

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

Revenue vs Market: TRQ's revenue (15.9% per year) is forecast to grow faster than the Canadian market (3.4% per year).

High Growth Revenue: TRQ's revenue (15.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRQ is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

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

-23.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRQ is currently unprofitable.

Growing Profit Margin: TRQ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TRQ is unprofitable, and losses have increased over the past 5 years at a rate of -23.2% per year.

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

Earnings vs Industry: TRQ is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (16.5%).


Return on Equity

High ROE: TRQ has a negative Return on Equity (-6.01%), as it is currently unprofitable.


Next Steps

Financial Health

How is Turquoise Hill Resources's financial position?


Financial Position Analysis

Short Term Liabilities: TRQ's short term assets ($2.5B) exceed its short term liabilities ($520.6M).

Long Term Liabilities: TRQ's short term assets ($2.5B) do not cover its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: TRQ's debt to equity ratio (52.9%) is considered high.

Reducing Debt: TRQ had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: TRQ has a high level of physical assets or inventory.

Debt Coverage by Assets: TRQ's debt is not covered by short term assets (assets are 0.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TRQ has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: TRQ has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


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 payouts.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.1yrs

Average management tenure


CEO

Ulf Quellmann (53yo)

1.67s

Tenure

US$2,207,617

Compensation

Mr. Ulf Quellmann has been the Chief Executive Officer at Turquoise Hill Resources Ltd. since August 1, 2018. Mr. Quellmann has been a Non-Executive Director of Turquoise Hill Resources Ltd. since May 12,  ...


CEO Compensation Analysis

Compensation vs Market: Ulf's total compensation ($USD1.56M) is about average for companies of similar size in the Canadian market ($USD1.70M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ulf Quellmann
CEO & Non-Independent Director1.67yrsUS$2.21m0.0095% $105.7k
Luke Colton
Chief Financial Officer2.5yrsUS$1.80mno data
Jo-Anne Dudley
Chief Operating Officer0.83yrUS$233.65kno data
Roy McDowall
Head of Investor Relations & Corporate Communicationsno datano datano data
Dustin Isaacs
VP, General Counsel & Corporate Secretary7.25yrsno datano data

2.1yrs

Average Tenure

Experienced Management: TRQ's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ulf Quellmann
CEO & Non-Independent Director1.67yrsUS$2.21m0.0095% $105.7k
R. Gillin
Independent Chairman of the Board3.25yrsUS$582.00k0.0015% $16.5k
Ian Plimer
Director of Ivanhoe Australia8yrsno datano data
George Burns
Independent Director0.25yrno datano data
Russel Robertson
Independent Director7.83yrsUS$326.00kno data
Maryse Saint-Laurent
Independent Director3.25yrsUS$340.00k0.0010% $11.4k
Stephen Jones
Non-Independent Director2.33yrsUS$168.00kno data
Alan Chirgwin
Non-Independent Director1.58yrsUS$170.00kno data

3.1yrs

Average Tenure

59yo

Average Age

Experienced Board: TRQ's board of directors are considered experienced (3.1 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 company bio, 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
  • Market Cap: CA$1.107b
  • Shares outstanding: 2.01b
  • Website: https://www.turquoisehill.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRQTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 1996
IHMDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1996
TRQNYSE (New York Stock Exchange)YesCommon SharesUSUSDJun 1996
0VM4LSE (London Stock Exchange)YesCommon SharesGBCADJun 1996

Biography

Turquoise Hill Resources Ltd., together with its subsidiaries, operates as a mining company. The company explores for copper, gold, and silver deposits. It primarily develops and operates the Oyu Tolgoi mine located in the southern Mongolia. The company was formerly known as Ivanhoe Mines Ltd. and changed its name to Turquoise Hill Resources Ltd. in August 2012. Turquoise Hill Resources Ltd. was founded in 1994 and is based in Montreal, Canada. Turquoise Hill Resources Ltd. operates as a subsidiary of Rio Tinto Group 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 03:40
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.