Centerra Gold Inc (CGAU, Financial) has experienced a notable fluctuation in its stock price over recent periods. With a current market capitalization of $1.23 billion, the stock is trading at $5.65. Over the past week, CGAU has seen a minor loss of 1.05%, but this short-term dip contrasts with a significant 25.92% gain over the past three months. When assessing the stock's value, the GF Value stands at $11.58, up from the past GF Value of $10.86. Despite this increase, the current GF Valuation suggests that investors should think twice, labeling it as a Possible Value Trap, a sentiment that remains unchanged from the past valuation.
Centerra Gold Inc: A Snapshot
Centerra Gold Inc, operating in the Metals & Mining industry, is a gold mining and exploration company with a global presence, including significant operations in the Kyrgyz Republic, Turkey, and North America. The company's diverse portfolio includes the Kumtor Gold Project, the OksUt Project, and the Mount Milligan Mine, among others. Despite its expansive operations, Centerra Gold's recent financial performance and growth metrics have presented a mixed picture for investors.
Assessing Profitability
Centerra Gold's Profitability Rank is currently 6/10, indicating a moderate level of profitability relative to its peers. The company's Operating Margin, at -1.86%, is better than 42.42% of 851 companies in the same industry. Its Return on Equity (ROE) of -10.35% and Return on Assets (ROA) of -8.10% are better than 59.53% and 63.03% of companies, respectively. Furthermore, Centerra's Return on Invested Capital (ROIC) of -1.34% outperforms 80.69% of its industry counterparts. Over the past decade, the company has managed to be profitable for 6 years, which is better than 73.38% of 1202 companies in the sector.
Growth Prospects and Challenges
The Growth Rank for Centerra Gold is currently at a low 2/10. The company's 3-Year Revenue Growth Rate per Share has declined by 11.00%, which is still better than 12.56% of 589 companies. The 5-Year Revenue Growth Rate per Share also decreased by 6.90%, outperforming 14.51% of 517 companies. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is estimated at -6.25%, surpassing 9.62% of 156 companies. The 3-Year and 5-Year EPS without NRI Growth Rates are -32.40% and -23.80%, respectively, which, despite being negative, are better than 16.06% and 8.01% of companies in the industry. These figures suggest that while Centerra Gold has faced challenges, it still maintains a competitive edge in certain growth metrics.
Significant Investment Holders
Notable investors have maintained positions in Centerra Gold, with Donald Smith & Co holding 7,723,036 shares, representing 3.58% of the company. Azvalor Managers FI (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) hold smaller stakes, with 41,845 and 39,000 shares, respectively, each constituting 0.02% of the company. These investments by major holders underscore a level of confidence in the company's potential despite the mixed financial indicators.
Competitive Landscape
When compared to its competitors, Centerra Gold Inc holds its ground within the industry. Novagold Resources Inc (TSX:NG, Financial) has a market cap slightly below Centerra at $1.19 billion, while OceanaGold Corp (TSX:OGC, Financial) and Iamgold Corp (TSX:IMG, Financial) have market caps of $1.37 billion and $1.25 billion, respectively. This places Centerra Gold in a competitive position, with market valuation closely aligned with its peers.
Conclusion
In summary, Centerra Gold Inc's recent stock performance has been a mix of short-term losses and medium-term gains, with the stock price rallying by 26% over the past three months. The company's valuation remains a point of caution, as indicated by the GF Valuation. Centerra's profitability metrics, while mixed, show that it is competitive within its industry. However, the company's growth prospects present challenges, with negative growth rates in revenue and EPS. The continued investment by major holders suggests some confidence in the company's future. Finally, in comparison to its competitors, Centerra Gold maintains a solid market position, indicating its resilience in the face of industry headwinds.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
