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Wesdome Gold Mines

Market Cap

CA$1.3b

Last Updated

2021/04/11 22:52 UTC

Data Sources

Company Financials +

Executive Summary

Wesdome Gold Mines Ltd. engages in the exploration, extraction, processing, and reclamation of gold in Canada. More Details


Snowflake Analysis

Flawless balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WDO is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: WDO's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

9.9%

WDO

4.4%

CA Metals and Mining

1.0%

CA Market


1 Year Return

5.5%

WDO

39.0%

CA Metals and Mining

39.2%

CA Market

Return vs Industry: WDO underperformed the Canadian Metals and Mining industry which returned 39% over the past year.

Return vs Market: WDO underperformed the Canadian Market which returned 39.2% over the past year.


Shareholder returns

WDOIndustryMarket
7 Day9.9%4.4%1.0%
30 Day16.6%3.9%1.3%
90 Day-4.2%-1.6%8.1%
1 Year5.5%5.5%40.4%39.0%44.0%39.2%
3 Year377.5%377.5%52.4%49.0%32.2%19.6%
5 Year493.2%493.2%70.7%65.4%59.4%35.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Wesdome Gold Mines undervalued compared to its fair value and its price relative to the market?

42.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WDO (CA$9.55) is trading below our estimate of fair value (CA$16.65)

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


Price To Earnings Ratio

PE vs Industry: WDO is poor value based on its PE Ratio (26.2x) compared to the CA Metals and Mining industry average (18.4x).

PE vs Market: WDO is poor value based on its PE Ratio (26.2x) compared to the Canadian market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: WDO is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: WDO is overvalued based on its PB Ratio (5.1x) compared to the CA Metals and Mining industry average (2.9x).


Future Growth

How is Wesdome Gold Mines forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WDO's forecast earnings growth (15.8% per year) is above the savings rate (1.5%).

Earnings vs Market: WDO's earnings (15.8% per year) are forecast to grow slower than the Canadian market (21.7% per year).

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

Revenue vs Market: WDO's revenue (13.2% per year) is forecast to grow faster than the Canadian market (7.2% per year).

High Growth Revenue: WDO's revenue (13.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WDO's Return on Equity is forecast to be high in 3 years time (35%)


Past Performance

How has Wesdome Gold Mines performed over the past 5 years?

59.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WDO has high quality earnings.

Growing Profit Margin: WDO's current net profit margins (23.5%) are lower than last year (25%).


Past Earnings Growth Analysis

Earnings Trend: WDO has become profitable over the past 5 years, growing earnings by 59.3% per year.

Accelerating Growth: WDO's earnings growth over the past year (23.7%) is below its 5-year average (59.3% per year).

Earnings vs Industry: WDO earnings growth over the past year (23.7%) underperformed the Metals and Mining industry 74.3%.


Return on Equity

High ROE: WDO's Return on Equity (19.3%) is considered low.


Financial Health

How is Wesdome Gold Mines's financial position?


Financial Position Analysis

Short Term Liabilities: WDO's short term assets (CA$84.9M) exceed its short term liabilities (CA$30.5M).

Long Term Liabilities: WDO's short term assets (CA$84.9M) exceed its long term liabilities (CA$65.2M).


Debt to Equity History and Analysis

Debt Level: WDO is debt free.

Reducing Debt: WDO has no debt compared to 5 years ago when its debt to equity ratio was 6.6%.

Debt Coverage: WDO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WDO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Wesdome Gold Mines's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

4.3yrs

Average management tenure


CEO

Duncan Middlemiss (58 yo)

4.67yrs

Tenure

CA$2,142,809

Compensation

Mr. Duncan Middlemiss, P.Eng., serves as Director of Barolo Ventures Corp. since November 25, 2020. He has been the Chief Executive Officer and President of Wesdome Gold Mines Ltd. since August 15, 2016. M...


CEO Compensation Analysis

Compensation vs Market: Duncan's total compensation ($USD1.71M) is above average for companies of similar size in the Canadian market ($USD1.17M).

Compensation vs Earnings: Duncan's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: WDO's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: WDO'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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Wesdome Gold Mines Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wesdome Gold Mines Ltd.
  • Ticker: WDO
  • Exchange: TSX
  • Founded: 1976
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$1.332b
  • Shares outstanding: 139.43m
  • Website: https://www.wesdome.com

Number of Employees


Location

  • Wesdome Gold Mines Ltd.
  • 220 Bay Street
  • Suite 1200
  • Toronto
  • Ontario
  • M5J 2W4
  • Canada

Listings


Biography

Wesdome Gold Mines Ltd. engages in the exploration, extraction, processing, and reclamation of gold in Canada. It principally produces gold in the form of doré bars; and silver as a by-product. The company...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 22:52
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
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.