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0W2

Westgold Resources DB:0W2 Stock Report

Last Price

AU$0.82

Market Cap

AU$376.6m

7D

-2.8%

1Y

-30.8%

Updated

27 Jun, 2022

Data

Company Financials +
0W2 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends2/6

0W2 Stock Overview

Westgold Resources Limited engages in the exploration, development, mining, and treatment of gold assets primarily in Western Australia.

Westgold Resources Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Westgold Resources
Historical stock prices
Current Share PriceAU$0.82
52 Week HighAU$1.60
52 Week LowAU$0.74
Beta0.34
1 Month Change-7.53%
3 Month Change-36.15%
1 Year Change-30.75%
3 Year Change-21.67%
5 Year Change-31.59%
Change since IPO-18.46%

Recent News & Updates

Shareholder Returns

0W2DE Metals and MiningDE Market
7D-2.8%-13.8%-0.1%
1Y-30.8%-22.9%-22.0%

Return vs Industry: 0W2 underperformed the German Metals and Mining industry which returned -22.9% over the past year.

Return vs Market: 0W2 underperformed the German Market which returned -22% over the past year.

Price Volatility

Is 0W2's price volatile compared to industry and market?
0W2 volatility
0W2 Average Weekly Movement9.8%
Metals and Mining Industry Average Movement7.6%
Market Average Movement5.6%
10% most volatile stocks in DE Market10.2%
10% least volatile stocks in DE Market2.9%

Stable Share Price: 0W2 is more volatile than 75% of German stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: 0W2's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of German stocks.

About the Company

FoundedEmployeesCEOWebsite
n/a1,051Wayne Bramwellhttps://www.westgold.com.au

Westgold Resources Limited engages in the exploration, development, mining, and treatment of gold assets primarily in Western Australia. The company’s assets include the Meekatharra Gold Operations, Fortnum Gold Operations, and Cue Gold Operations that comprise approximately 350 mining titles covering an area of 1,300 square kilometers in the Central Murchison region. It also provides contract mining services.

Westgold Resources Fundamentals Summary

How do Westgold Resources's earnings and revenue compare to its market cap?
0W2 fundamental statistics
Market CapAU$575.30m
Earnings (TTM)AU$49.14m
Revenue (TTM)AU$580.38m

11.7x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
0W2 income statement (TTM)
RevenueAU$580.38m
Cost of RevenueAU$505.69m
Gross ProfitAU$74.69m
Other ExpensesAU$25.56m
EarningsAU$49.14m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.10
Gross Margin12.87%
Net Profit Margin8.47%
Debt/Equity Ratio0%

How did 0W2 perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

17%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 0W2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 0W2?

Other financial metrics that can be useful for relative valuation.

0W2 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/Revenue0.9x
Enterprise Value/EBITDA1.9x
PEG Ratio0.2x

Price to Earnings Ratio vs Peers

How does 0W2's PE Ratio compare to its peers?

0W2 PE Ratio vs Peers
The above table shows the PE ratio for 0W2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.2x
SIM0 SIMONA
13.8xn/a€510.0m
UZU Uzin Utz
8.9xn/a€287.5m
SZG Salzgitter
1.6x-45.9%€1.3b
NTG Nabaltec
12.9x14.9%€235.8m
0W2 Westgold Resources
11.7x61.1%€575.3m

Price-To-Earnings vs Peers: 0W2 is expensive based on its Price-To-Earnings Ratio (11.7x) compared to the peer average (9.2x).


Price to Earnings Ratio vs Industry

How does 0W2's PE Ratio compare vs other companies in the European Metals and Mining Industry?

Price-To-Earnings vs Industry: 0W2 is expensive based on its Price-To-Earnings Ratio (11.7x) compared to the German Metals and Mining industry average (3.7x)


Price to Earnings Ratio vs Fair Ratio

What is 0W2'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.

0W2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.7x
Fair PE Ratio45.1x

Price-To-Earnings vs Fair Ratio: 0W2 is good value based on its Price-To-Earnings Ratio (11.7x) compared to the estimated Fair Price-To-Earnings Ratio (45.1x).


Share Price vs Fair Value

What is the Fair Price of 0W2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0W2 (€0.82) is trading below our estimate of fair value (€18.14)

Significantly Below Fair Value: 0W2 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 0W2 is good value based on its PEG Ratio (0.2x)


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Future Growth

How is Westgold Resources forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


61.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0W2's forecast earnings growth (61.1% per year) is above the savings rate (-0.05%).

Earnings vs Market: 0W2's earnings (61.1% per year) are forecast to grow faster than the German market (8.3% per year).

High Growth Earnings: 0W2's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 0W2's revenue (15.5% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: 0W2's revenue (15.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0W2's Return on Equity is forecast to be low in 3 years time (11.4%).


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Past Performance

How has Westgold 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


53.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 0W2 has high quality earnings.

Growing Profit Margin: 0W2's current net profit margins (8.5%) are lower than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: 0W2 has become profitable over the past 5 years, growing earnings by 53.3% per year.

Accelerating Growth: 0W2's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0W2 had negative earnings growth (-32.1%) over the past year, making it difficult to compare to the Metals and Mining industry average (96.2%).


Return on Equity

High ROE: 0W2's Return on Equity (7.9%) is considered low.


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Financial Health

How is Westgold Resources's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 0W2's short term assets (A$192.5M) exceed its short term liabilities (A$114.8M).

Long Term Liabilities: 0W2's short term assets (A$192.5M) exceed its long term liabilities (A$182.4M).


Debt to Equity History and Analysis

Debt Level: 0W2 is debt free.

Reducing Debt: 0W2 had no debt 5 years ago.

Debt Coverage: 0W2 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 0W2 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.65%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 0W2's dividend (1.65%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: 0W2's dividend (1.65%) is low compared to the top 25% of dividend payers in the German market (4.53%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 0W2's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 0W2's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (17.3%), 0W2's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 0W2 is paying a dividend but the company has no free cash flows.


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Management

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

0.8yrs

Average management tenure


CEO

Wayne Bramwell (55 yo)

0.083

Tenure

AU$248,058

Compensation

Mr. Wayne Christopher Bramwell, B.Sc. (Mineral Science - Extractive Metallurgy), Grad Dip Bus, M.Sc. (Mineral Economics), GAICD, serves as Managing Director of Westgold Resources Limited since May 24, 2022...


Leadership Team

Experienced Management: 0W2's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: 0W2's board of directors are not considered experienced ( 1 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: 0W2 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 11.7%.


Top Shareholders

Company Information

Westgold Resources Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Westgold Resources Limited
  • Ticker: 0W2
  • Exchange: DB
  • Founded: NaN
  • Industry: Gold
  • Sector: Materials
  • Implied Market Cap: AU$575.298m
  • Listing Market Cap: AU$376.619m
  • Shares outstanding: 473.50m
  • Website: https://www.westgold.com.au

Number of Employees


Location

  • Westgold Resources Limited
  • 197 St Georges Terrace
  • Level 6
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


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.