Chaarat Gold Holdings (AIM:CGH) - Share price, News & Analysis

CGH fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	5/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

CGH Stock Overview

Chaarat Gold Holdings Limited operates as a gold mining company.

Rewards

Trading at 96.5% below our estimate of its fair value

Earnings are forecast to grow 64.72% per year

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been diluted in the past year

Chaarat Gold Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Chaarat Gold Holdings
Historical stock prices
Current Share Price	UK£0.14
52 Week High	UK£0.25
52 Week Low	UK£0.13
Beta	0.80
1 Month Change	-8.05%
3 Month Change	-9.97%
1 Year Change	-36.36%
3 Year Change	-52.38%
5 Year Change	-24.83%
Change since IPO	-78.30%

Shareholder Returns

	CGH	GB Metals and Mining	GB Market
7D	0%	-4.6%	2.3%
1Y	-36.4%	-10.1%	-8.6%

Return vs Industry: CGH underperformed the UK Metals and Mining industry which returned -10.1% over the past year.

Return vs Market: CGH underperformed the UK Market which returned -8.6% over the past year.

Price Volatility

Is CGH's price volatile compared to industry and market?
CGH volatility
CGH Average Weekly Movement	6.9%
Metals and Mining Industry Average Movement	7.6%
Market Average Movement	5.5%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: CGH is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CGH's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2007	1,169	Mike Fraser	https://www.chaarat.com

Chaarat Gold Holdings Limited operates as a gold mining company. It owns and operates the Tulkubash and the Kyzyltash gold projects in the Kyrgyz Republic, as well as the Kapan mine in Armenia. The company was incorporated in 2007 and is based in Bishkek, Kyrgyzstan.

Chaarat Gold Holdings Fundamentals Summary

How do Chaarat Gold Holdings's earnings and revenue compare to its market cap?
CGH fundamental statistics
Market Cap	US$117.21m
Earnings (TTM)	-US$3.59m
Revenue (TTM)	US$92.43m

1.3x

P/S Ratio

-32.7x

P/E Ratio

Is CGH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CGH income statement (TTM)
Revenue	US$92.43m
Cost of Revenue	US$69.26m
Gross Profit	US$23.18m
Other Expenses	US$26.76m
Earnings	-US$3.59m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.0053
Gross Margin	25.07%
Net Profit Margin	-3.88%
Debt/Equity Ratio	61.1%

How did CGH perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales 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 CGH?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CGH. This is calculated by dividing CGH's market cap by their current preferred multiple.
What is CGH's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$117.21m

CGH 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/Revenue	1.6x
Enterprise Value/EBITDA	11.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does CGH's PS Ratio compare to its peers?

CGH PS Ratio vs Peers

The above table shows the PS ratio for CGH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	8.2x

Forward PS

Price-To-Sales vs Peers: CGH is good value based on its Price-To-Sales Ratio (1.3x) compared to the peer average (8.2x).

Price to Earnings Ratio vs Industry

How does CGH's PE Ratio compare vs other companies in the U.K. Metals and Mining Industry?

Price-To-Sales vs Industry: CGH is good value based on its Price-To-Sales Ratio (1.3x) compared to the UK Metals and Mining industry average (1.5x)

Price to Sales Ratio vs Fair Ratio

What is CGH's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CGH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.3x
Fair PS Ratio	1.5x

Price-To-Sales vs Fair Ratio: CGH is good value based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).

Share Price vs Fair Value

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

Below Fair Value: CGH (£0.14) is trading below our estimate of fair value (£4.04)

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CGH's PEG Ratio to determine if it is good value.

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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

64.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

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

High Growth Earnings: CGH is expected to become profitable in the next 3 years.

Revenue vs Market: CGH's revenue (22.8% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: CGH's revenue (22.8% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CGH's Return on Equity is forecast to be low in 3 years time (16%).

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Past Performance

How has Chaarat Gold Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-6.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CGH is currently unprofitable.

Growing Profit Margin: CGH is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: CGH is unprofitable, and losses have increased over the past 5 years at a rate of 6.1% per year.

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

Earnings vs Industry: CGH is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (41.5%).

Return on Equity

High ROE: CGH has a negative Return on Equity (-4.67%), as it is currently unprofitable.

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Financial Health

How is Chaarat Gold Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: CGH's short term assets ($51.8M) do not cover its short term liabilities ($73.7M).

Long Term Liabilities: CGH's short term assets ($51.8M) exceed its long term liabilities ($20.9M).

Debt to Equity History and Analysis

Debt Level: CGH's net debt to equity ratio (46.6%) is considered high.

Reducing Debt: CGH's debt to equity ratio has increased from 0.4% to 61.1% over the past 5 years.

Balance Sheet

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: CGH has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: CGH has sufficient cash runway for 1.1 years if free cash flow continues to grow at historical rates of 2.8% each year.

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Dividend

What is Chaarat Gold Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CGH has not reported any payouts.

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Management

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

1.9yrs

Average management tenure

CEO

Mike Fraser (56 yo)

0.42

Tenure

Mr. Michael John Fraser, also known as Mike, BCom, MBL, serves as Chief Executive Officer of Chaarat Gold Holdings Limited since January 17, 2022 and also serves as its Director since January 2022. He serv...

Leadership Team

Experienced Management: CGH's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: CGH'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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31