Centerra Gold Inc (TSE:CG) Has Attractive Fundamentals, Here’s Why
Attractive stocks have exceptional fundamentals. In the case of Centerra Gold Inc (TSE:CG), there’s is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Centerra Gold here.
Undervalued with excellent balance sheet
CG is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that CG manages its cash and cost levels well, which is a crucial insight into the health of the company. CG seems to have put its debt to good use, generating operating cash levels of 1.1x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. CG’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if CG’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the metals and mining industry, CG is also trading below its peers, relative to earnings generated. This supports the theory that CG is potentially underpriced.
Next Steps:
For Centerra Gold, I’ve put together three important aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for CG’s future growth? Take a look at our free research report of analyst consensus for CG’s outlook.
Historical Performance: What has CG’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CG? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
