DB:WF8B

Stock Analysis Report

Executive Summary

Roxgold Inc., a gold mining company, engages in acquiring, exploring, and evaluating mineral properties.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Roxgold's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WF8B has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

WF8B

-6.8%

DE Metals and Mining

-6.8%

DE Market


1 Year Return

11.5%

WF8B

-26.5%

DE Metals and Mining

6.5%

DE Market

Return vs Industry: WF8B exceeded the German Metals and Mining industry which returned -26.5% over the past year.

Return vs Market: WF8B exceeded the German Market which returned 6.5% over the past year.


Shareholder returns

WF8BIndustryMarket
7 Day-3.6%-6.8%-6.8%
30 Day11.8%-12.9%-3.7%
90 Day19.4%-12.9%-3.6%
1 Year11.5%11.5%-25.7%-26.5%9.8%6.5%
3 Year-26.6%-26.6%-51.8%-53.2%6.8%-2.6%
5 Year49.9%49.9%-47.7%-50.4%12.5%-2.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Roxgold undervalued compared to its fair value and its price relative to the market?

34.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WF8B (€0.67) is trading below our estimate of fair value (€1.02)

Significantly Below Fair Value: WF8B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WF8B is poor value based on its PE Ratio (104.5x) compared to the Metals and Mining industry average (9.3x).

PE vs Market: WF8B is poor value based on its PE Ratio (104.5x) compared to the German market (20x).


Price to Earnings Growth Ratio

PEG Ratio: WF8B is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: WF8B is good value based on its PB Ratio (1.7x) compared to the DE Metals and Mining industry average (3.9x).


Next Steps

Future Growth

How is Roxgold forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

41.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WF8B's forecast earnings growth (41.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: WF8B's earnings (41.8% per year) are forecast to grow faster than the German market (13.1% per year).

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

Revenue vs Market: WF8B's revenue (1.2% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: WF8B's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WF8B's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has Roxgold performed over the past 5 years?

52.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WF8B has a high level of non-cash earnings.

Growing Profit Margin: WF8B's current net profit margins (1.7%) are lower than last year (18.6%).


Past Earnings Growth Analysis

Earnings Trend: WF8B has become profitable over the past 5 years, growing earnings by 52% per year.

Accelerating Growth: WF8B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WF8B had negative earnings growth (-92.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (-8.4%).


Return on Equity

High ROE: WF8B's Return on Equity (3.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Roxgold's financial position?


Financial Position Analysis

Short Term Liabilities: WF8B's short term assets ($64.7M) do not cover its short term liabilities ($67.3M).

Long Term Liabilities: WF8B's short term assets ($64.7M) exceed its long term liabilities ($39.2M).


Debt to Equity History and Analysis

Debt Level: WF8B's debt to equity ratio (15.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if WF8B's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: WF8B's debt is well covered by operating cash flow (234.5%).

Interest Coverage: WF8B's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

Inventory Level: WF8B has a high level of physical assets or inventory.

Debt Coverage by Assets: WF8B's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage6.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate WF8B's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WF8B'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 WF8B's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WF8B'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 WF8B's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

John Dorward (47yo)

7.4yrs

Tenure

US$1,679,202

Compensation

Mr. John Andrew Dorward, BComm (Hons), GradDipAppFin, ACSA, CFA, has been the President and Chief Executive Officer of Roxgold Inc. since September 25, 2012. Mr. Dorward served as an Interim Chief Executiv ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.26M) is above average for companies of similar size in the German market ($USD625.79K).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Dorward
President7.4yrsUS$1.68m0.38% $969.2k
Vince Sapuppo
CFO & Corporate Secretary1.4yrsUS$701.84kno data
Paul Criddle
Chief Operating Officer1.1yrsUS$417.98kno data
Eric Pick
Vice President of Corporate Development2.3yrsUS$627.12kno data
Graeme Jennings
Vice President of Investor Relations0.3yrsno datano data
Paul Weedon
Vice-President of Exploration1.3yrsno datano data
Craig Richards
Principal of Mining Engineer6.6yrsno datano data

1.4yrs

Average Tenure

Experienced Management: WF8B's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Dorward
President7.4yrsUS$1.68m0.38% $969.2k
Jonathan Rubenstein
Independent Director7.4yrsUS$180.00k0.027% $69.2k
Oliver Lennox-King
Independent Chairman of the Board7.4yrsUS$280.00k2.49% $6.4m
Richard Colterjohn
Independent Director7.4yrsUS$185.00k0.63% $1.6m
John Knowles
Independent Director7.4yrsUS$185.00k0.092% $235.2k
Norman Pitcher
Independent Director3.7yrsUS$180.00k0.013% $33.5k
Kate Harcourt
Independent Director3.7yrsUS$175.00kno data

7.4yrs

Average Tenure

63yo

Average Age

Experienced Board: WF8B's board of directors are considered experienced (7.4 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

Roxgold Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Roxgold Inc.
  • Ticker: WF8B
  • Exchange: DB
  • Founded: 1983
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$371.562m
  • Listing Market Cap: CA$257.023m
  • Shares outstanding: 371.56m
  • Website: https://www.roxgold.com

Number of Employees


Location

  • Roxgold Inc.
  • 360 Bay Street
  • Suite 500
  • Toronto
  • Ontario
  • M5H 2V6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ROXGTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2002
ROGF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2002
WF8BDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2002

Biography

Roxgold Inc., a gold mining company, engages in acquiring, exploring, and evaluating mineral properties. Its principal asset is the Yaramoko gold project that covers an area of approximately 230 square kilometers located in the Houndé greenstone belt of Burkina Faso, West Africa. The company was incorporated in 1983 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 Analysis2020/02/26 22:49
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.