Westgold Resources Ltd
ASX:WGX
Intrinsic Value
Westgold Resources Ltd. engages in the exploration of mineral properties. [ Read More ]
The intrinsic value of one
WGX
stock under the Base Case scenario is
3.87
AUD.
Compared to the current market price of 2.15 AUD,
Westgold Resources Ltd
is
Undervalued by 44%.
WGX could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
Westgold Resources Ltd's market capitalization is 1B AUD.
WGX stock price is 2.15 AUD.
WGX stock price (2.15 AUD) is 44% less than its Intrinsic Value (3.87 AUD).
WGX has upside potential of 34% compared to the average analyst price target.
Open Wall St Estimates
WGX's ROE (Return on Equity) for the past 12 months is positive and is equal to 11%.
WGX has positive Gross Profit for the last twelve months.
WGX's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 12%.
WGX's ROIC (Return on Invested Capital) has increased in the last 3 years from 10% to 12%.
WGX has positive Operating Income for the last twelve months.
WGX's Revenue has grown by 8% over the past 12 months.
WGX's ROE (Return on Equity) has decreased in the last 3 years from 14% to 11%.
WGX's Revenue has been growing by 8% per year for the last 3 years.
WGX's Revenue is forecast to grow at a rate of 12% per year over the next 3 years.
WGX has positive three-year average ROIC (Return on Invested Capital): 6%. The company is efficient at using invested capital to generate operating income.
WGX has negative Free Cash Flow for the last twelve months.
WGX has positive Net Income for the last twelve months.
WGX has a very low three-year average ROE (Return on Equity): 1%. The company is not efficient at transforming stockholders' equity into net income.
WGX's short-term assets (331m AUD) exceed its short-term liabilties (151m AUD).
WGX's Altman Z-Score is very high and is equal to 3.49.
WGX's long-term assets (930m AUD) exceed its long-term liabilties (286m AUD).
WGX's D/E (Debt to Equity) is very low and is equal to 0.03.
WGX has negative Net Debt. This means that the company has more cash and short-term investments (225m AUD) than debt (19m AUD).
WGX doesn't generate enough operating income (99m AUD) to safely cover interest payments on its debt (-2m AUD).
Valuation Backtest
Westgold Resources Ltd
Run backtest to discover the historical profit from buying and selling
WGX
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Fundamental Analysis
Westgold Resources Ltd
Balance Sheet Decomposition
Westgold Resources Ltd
| Current Assets | 331.5m |
| Cash & Short-Term Investments | 224.6m |
| Receivables | 9.4m |
| Other Current Assets | 97.5m |
| Non-Current Assets | 598.2m |
| PP&E | 598.2m |
| Current Liabilities | 150.7m |
| Accounts Payable | 117.2m |
| Other Current Liabilities | 33.5m |
| Non-Current Liabilities | 135.7m |
| Long-Term Debt | 18.7m |
| Other Non-Current Liabilities | 117m |
Earnings Waterfall
Westgold Resources Ltd
|
Revenue
|
702.5m
AUD
|
|
Cost of Revenue
|
-596.8m
AUD
|
|
Gross Profit
|
105.7m
AUD
|
|
Operating Expenses
|
-6.4m
AUD
|
|
Operating Income
|
99.3m
AUD
|
|
Other Expenses
|
-34.4m
AUD
|
|
Net Income
|
64.9m
AUD
|
Free Cash Flow Analysis
Westgold Resources Ltd
WGX Profitability Score
Profitability Due Diligence
Westgold Resources Ltd's profitability score is 47/100. The higher the profitability score, the more profitable the company is.
Score
Westgold Resources Ltd's profitability score is 47/100. The higher the profitability score, the more profitable the company is.
WGX Solvency Score
Solvency Due Diligence
Westgold Resources Ltd's solvency score is 63/100. The higher the solvency score, the more solvent the company is.
Score
Westgold Resources Ltd's solvency score is 63/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
WGX Price Targets Summary
Westgold Resources Ltd
According to Wall Street analysts, the average 1-year price target for
WGX
is 2.88 AUD
with a low forecast of 2.78 AUD and a high forecast of 3.05 AUD.
Shareholder Return
WGX Price
Westgold Resources Ltd
| Average Annual Return | -2.35% |
| Standard Deviation of Annual Returns | 47.47% |
| Max Drawdown | -75% |
| Market Capitalization | 1B AUD |
| Shares Outstanding | 473 623 000 |
| Percentage of Shares Shorted |
N/A
|
Company Profile
Westgold Resources Ltd
Country
Industry
Market Cap
Dividend Yield
Description
Westgold Resources Ltd. engages in the exploration of mineral properties. The company is headquartered in Perth, Western Australia and currently employs 1,051 full-time employees. The company went IPO on 2016-12-06. The firm operations include Fortnum Gold Operations (FGO), Meekatharra Gold Operations (MGO) and Cue Gold Operations (CGO). Its Fortnum Gold Operations (FGO) is located in the north of Westgold's tenure and is approximately 150-kilometer (km) northwest of Meekatharra, with its tenure covering the historic mining centers of Labouchere, Fortnum, Horseshoe and Peak Hill. Its Meekatharra Gold Operations is located around the regional town of Meekatharra and encompasses Westgold’s central group of assets including the historic gold mining centers of Meekatharra North, Paddy’s Flat, Yaloginda, Nannine and Reedy’s. Its Cue Gold Operations is located around the regional town of Cue and encompasses Westgold’s southern-most group of Murchison assets including the historic mining centers of Big Bell, Cuddingwarra, Day Dawn, Tuckabianna and Pinnacles.
Contact
IPO
Employees
Officers
The intrinsic value of one
WGX
stock under the Base Case scenario is
3.87
AUD.
Compared to the current market price of 2.15 AUD,
Westgold Resources Ltd
is
Undervalued by 44%.
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