Fact based stock research
Equinox Gold (TSX:EQX)
CA29446Y5020
How to read the ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Equinox Gold stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 76 (better than 76% compared with investment alternatives), Equinox Gold (Gold Production, Canada) shares have much better financial characteristics than comparable stocks. Shares of Equinox Gold are low in value (priced high) with a consolidated Value Rank of 42 (worse than 58% of alternatives). But they show above-average growth (Growth Rank of 75) and are safely financed (Safety Rank of 70, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 76, is a strong buy recommendation based on Equinox Gold's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Equinox Gold exhibits low value (Obermatt Value Rank of 42), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 75). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 70) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Canada |
| Industry | Gold Production |
| Index | Low Emissions, Gold, SDG 15, SDG 3, SDG 6, SDG 8, TSX Composite |
| Size class | Large |
This stock has achievements: Top 10 Stock.
18-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Equinox Gold
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 70 |
|
37 |
|
32 |
|
42 |
|
| GROWTH | ||||||||
| GROWTH | 36 |
|
73 |
|
97 |
|
75 |
|
| SAFETY | ||||||||
| SAFETY | 67 |
|
70 |
|
54 |
|
70 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
41 |
|
26 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
57 |
|
48 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 76 (better than 76% compared with investment alternatives), Equinox Gold (Gold Production, Canada) shares have much better financial characteristics than comparable stocks. Shares of Equinox Gold are low in value (priced high) with a consolidated Value Rank of 42 (worse than 58% of alternatives). But they show above-average growth (Growth Rank of 75) and are safely financed (Safety Rank of 70, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 76, is a strong buy recommendation based on Equinox Gold's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Equinox Gold exhibits low value (Obermatt Value Rank of 42), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 75). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 70) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 70 |
|
37 |
|
32 |
|
42 |
|
| GROWTH | ||||||||
| GROWTH | 36 |
|
73 |
|
97 |
|
75 |
|
| SAFETY | ||||||||
| SAFETY | 67 |
|
70 |
|
54 |
|
70 |
|
| COMBINED | ||||||||
| COMBINED | 67 |
|
70 |
|
71 |
|
76 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 42 (worse than 58% compared with alternatives), Equinox Gold shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Equinox Gold. Price-to-Sales (P/S) is 76, which means that the stock price compared with what market professionals expect for future sales is lower than for 76% of comparable companies, indicating a good value concerning Equinox Gold's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 69% of alternatives (31% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 1 are lower than average (dividends are expected to be lower than 99% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 28, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 42, is a hold recommendation based on Equinox Gold's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Equinox Gold may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 53 |
|
59 |
|
74 |
|
76 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 94 |
|
27 |
|
7 |
|
28 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 86 |
|
88 |
|
71 |
|
69 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 70 |
|
37 |
|
32 |
|
42 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 75 (better than 75% compared with alternatives) for 2024, Equinox Gold shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Equinox Gold. Sales Growth has a rank of 85 which means that currently, professionals expect the company to grow more than 85% of its competitors. Both Profit Growth, with a rank of 85, and Stock Returns, with a rank of 58, are also above average. But Capital Growth only has a rank of 24, which means that, currently, professionals expect the company to grow its invested capital less than 76% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 75, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 81 |
|
74 |
|
88 |
|
85 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | n/a |
|
96 |
|
87 |
|
85 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
52 |
|
34 |
|
24 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 6 |
|
9 |
|
87 |
|
58 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 36 |
|
73 |
|
97 |
|
75 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 70 (better than 70% compared with alternatives), the company Equinox Gold has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Equinox Gold is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Equinox Gold. Refinancing is at 71, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 71% of its competitors. Liquidity is also good at 71, meaning the company generates more profit to service its debt than 71% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 28, which means the company has an above-average debt-to-equity ratio. It has more debt than 72% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 70 (better than 70% compared with alternatives), Equinox Gold has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Equinox Gold could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Equinox Gold and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 24 |
|
31 |
|
36 |
|
28 |
|
| REFINANCING | ||||||||
| REFINANCING | 70 |
|
65 |
|
81 |
|
71 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 65 |
|
96 |
|
33 |
|
71 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 67 |
|
70 |
|
54 |
|
70 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
77 |
|
1 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
64 |
|
78 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
2 |
|
19 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
41 |
|
26 |
|
new |
|
Stock analysis by the purely fact based Obermatt Method for Equinox Gold from April 18, 2024.
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