TSX:TXG

Stock Analysis Report

Torex Gold Resources

Executive Summary

Torex Gold Resources Inc. engages in the exploration, development, and operation of mineral properties in Mexico.


Snowflake Analysis

Solid track record with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TXG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

15.4%

TXG

4.7%

CA Metals and Mining

0.2%

CA Market


1 Year Return

31.7%

TXG

4.8%

CA Metals and Mining

4.6%

CA Market

Return vs Industry: TXG exceeded the Canadian Metals and Mining industry which returned 4.8% over the past year.

Return vs Market: TXG exceeded the Canadian Market which returned 4.6% over the past year.


Shareholder returns

TXGIndustryMarket
7 Day15.4%4.7%0.2%
30 Day20.0%5.2%0.5%
90 Day15.1%13.4%4.0%
1 Year31.7%31.7%5.5%4.8%7.9%4.6%
3 Year-20.2%-20.2%-2.8%-4.4%17.8%7.2%
5 Year87.1%87.1%25.5%21.8%33.7%14.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

32.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TXG (CA$21.52) is trading below our estimate of fair value (CA$31.77)

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


Price To Earnings Ratio

PE vs Industry: TXG is poor value based on its PE Ratio (19.5x) compared to the Metals and Mining industry average (16.5x).

PE vs Market: TXG is poor value based on its PE Ratio (19.5x) compared to the Canadian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: TXG is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: TXG is overvalued based on its PB Ratio (1.7x) compared to the CA Metals and Mining industry average (1.6x).


Next Steps

Future Growth

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

16.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TXG's forecast earnings growth (16.2% per year) is above the savings rate (1.4%).

Earnings vs Market: TXG's earnings (16.2% per year) are forecast to grow faster than the Canadian market (10.9% per year).

High Growth Earnings: TXG's earnings are forecast to grow, but not significantly.

Revenue vs Market: TXG's revenue (1.9% per year) is forecast to grow slower than the Canadian market (4.8% per year).

High Growth Revenue: TXG's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TXG's Return on Equity is forecast to be low in 3 years time (5%).


Next Steps

Past Performance

How has Torex Gold Resources performed over the past 5 years?

53.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TXG has high quality earnings.

Growing Profit Margin: TXG's current net profit margins (11.1%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: TXG has become profitable over the past 5 years, growing earnings by 53.9% per year.

Accelerating Growth: TXG's earnings growth over the past year (206.9%) exceeds its 5-year average (53.9% per year).

Earnings vs Industry: TXG earnings growth over the past year (206.9%) exceeded the Metals and Mining industry 11.9%.


Return on Equity

High ROE: TXG's Return on Equity (8.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Torex Gold Resources's financial position?


Financial Position Analysis

Short Term Liabilities: TXG's short term assets ($339.1M) exceed its short term liabilities ($242.6M).

Long Term Liabilities: TXG's short term assets ($339.1M) exceed its long term liabilities ($152.2M).


Debt to Equity History and Analysis

Debt Level: TXG's debt to equity ratio (20.5%) is considered satisfactory.

Reducing Debt: TXG's debt to equity ratio has increased from 6.5% to 20.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: TXG's debt is covered by short term assets (assets are 2x 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: TXG is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: TXG is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if TXG'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 TXG'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?

3.7yrs

Average management tenure


CEO

Fred Stanford (60yo)

10.3yrs

Tenure

US$2,851,459

Compensation

Mr. Frederick M. Stanford, also known as Fred, P.Eng, has been Chief Executive Officer, President and Non-Independent Director of Torex Gold Resources Inc (formerly, Gleichen Resources Ltd) since November  ...


CEO Compensation Analysis

Compensation vs Market: Fred's total compensation ($USD2.16M) is about average for companies of similar size in the Canadian market ($USD2.14M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Frederick Stanford
President10.3yrsUS$2.85m0.21% $3.9m
Steven Thomas
Chief Financial Officer1.8yrsUS$1.97m0.0059% $108.8k
Jody Kuzenko
Chief Operating Officer1.3yrsUS$1.12m0.0087% $160.1k
Daniel James Rollins
Vice President of Corporate Development & Investor Relations1.1yrsno data0.0023% $43.0k
Mary Batoff
General Counsel & Corporate Secretary5.6yrsno data0.011% $204.7k
Anne Stephen
Vice President of Human Resources6.7yrsUS$501.80k0.00059% $10.8k
Eric Murphy
Vice President0yrsno datano data
Jonathan Gilligan
Vice President0yrsno datano data
Dany Vaiman
Corporate Controller0yrsno datano data
Jamila Abassi
Community Relations Consultant0yrsno datano data

3.7yrs

Average Tenure

Experienced Management: TXG's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frederick Stanford
President10.3yrsUS$2.85m0.21% $3.9m
Andrew Adams
Independent Director10.3yrsUS$274.20k0.099% $1.8m
William Shaver
Independent Director3.5yrsUS$275.88k0.015% $272.7k
A. MacGibbon
Chairman of the Board10.1yrsUS$343.20k0.12% $2.2m
James Crombie
Independent Director8.9yrsUS$253.00k0.038% $702.7k
David Fennell
Independent Director10.3yrsUS$261.75k0.0092% $170.0k
Franklin Davis
Independent Director10.3yrsUS$265.00k0.011% $204.0k
Michael Murphy
Independent Director11.8yrsUS$261.45k0.0046% $84.0k
Elizabeth Wademan
Independent Director3.5yrsUS$266.20k0.0023% $43.0k

10.3yrs

Average Tenure

62yo

Average Age

Experienced Board: TXG's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TXG 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

Torex Gold Resources Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Torex Gold Resources Inc.
  • Ticker: TXG
  • Exchange: TSX
  • Founded: 1980
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$1.838b
  • Shares outstanding: 85.39m
  • Website: https://www.torexgold.com

Number of Employees


Location

  • Torex Gold Resources Inc.
  • Exchange Tower
  • Suite 740
  • Toronto
  • Ontario
  • M5X 2A2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TXGTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 1989
73GNDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1989
TORX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 1989
0VL5LSE (London Stock Exchange)YesCommon SharesGBCADJul 1989

Biography

Torex Gold Resources Inc. engages in the exploration, development, and operation of mineral properties in Mexico. The company explores for gold, silver, copper, and carbon deposits. It holds a 100% interest in the Morelos Gold property comprising the El Limón Guajes mine and the Media Luna deposit that consists of 7 mineral concessions covering a total area of approximately 29,000 hectares located in the Guerrero Gold Belt in southern Mexico. The company was formerly known as Gleichen Resources Ltd. and changed its name to Torex Gold Resources Inc. in April 2010. Torex Gold Resources Inc. was founded in 1980 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:38
End of Day Share Price2020/02/21 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.