Amidst the fast-paced and highly competitive business environment of today, conducting comprehensive company analysis is essential for investors and industry enthusiasts. In this article, we will delve into an extensive industry comparison, evaluating Coeur Mining (NYSE:CDE) in comparison to its major competitors within the Metals & Mining industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.
Coeur Mining Background
Coeur Mining Inc is a metals producer focused on mining precious minerals in the Americas. It is involved in the discovery and mining of gold and silver and generates the vast majority of revenue from the sale of these precious metals. The operating mines of the company are palmarejo, Rochester, Wharf, and Kensington. Its projects are located in the United States, Canada, and Mexico generating maximum revenue from United States.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Coeur Mining Inc | 12.92 | 1.59 | 4.11 | 3.6% | $0.45 | $0.43 | 137.79% |
| Newmont Corp | 12.47 | 2.94 | 4.23 | 9.48% | $5.25 | $4.74 | 45.85% |
| Agnico Eagle Mines Ltd | 14.81 | 2.99 | 5.84 | 6.65% | $3.0 | $2.72 | 66.09% |
| Wheaton Precious Metals Corp | 28.64 | 5.57 | 18.77 | 6.49% | $0.77 | $0.7 | 91.63% |
| Anglogold Ashanti PLC | 11.99 | 4.84 | 3.73 | 15.41% | $2.04 | $1.94 | 64.85% |
| Kinross Gold Corp | 10.32 | 3.18 | 3.71 | 9.54% | $1.6 | $1.44 | 60.78% |
| Pan American Silver Corp | 14.34 | 2.60 | 4.50 | 6.37% | $0.78 | $0.61 | 49.29% |
| Royal Gold Inc | 25.15 | 2.38 | 11.84 | 3.86% | $0.41 | $0.31 | 142.52% |
| Alamos Gold Inc | 12.48 | 2.85 | 6.41 | 4.23% | $0.39 | $0.39 | 79.19% |
| Iamgold Corp | 9.28 | 2.12 | 2.73 | 8.91% | $0.65 | $0.57 | 115.91% |
| Eldorado Gold Corp | 10.97 | 1.89 | 3.23 | 3.17% | $0.32 | $0.29 | 49.88% |
| Equinox Gold Corp | 26.24 | 1.25 | 2.91 | 5.2% | $0.46 | $0.44 | 224.27% |
| Triple Flag Precious Metals Corp | 19.80 | 2.87 | 13.55 | 5.58% | $0.15 | $0.11 | 78.73% |
| SSR Mining Inc | 11.26 | 1.68 | 3.37 | -2.98% | $0.34 | $0.36 | 83.75% |
| OR Royalties Inc | 24.07 | 4.10 | 18.76 | 5.07% | $0.1 | $0.09 | 87.25% |
| OceanaGold Corp | 7.58 | 2.33 | 2.55 | 9.81% | $0.42 | $0.4 | 98.53% |
| Aura Minerals Inc | 57.21 | 17.73 | 4.55 | 33.53% | $0.18 | $0.23 | 136.46% |
| B2Gold Corp | 10.37 | 1.46 | 1.59 | 5.5% | $0.52 | $0.61 | 117.75% |
| Orla Mining Ltd | 13.39 | 4.78 | 2.76 | 10.68% | $0.2 | $0.22 | 169.34% |
| Centerra Gold Inc | 5.22 | 1.53 | 2.09 | 3.82% | $0.17 | $0.2 | 61.83% |
| Aris Mining Corp | 17.44 | 1.99 | 2.66 | 6.47% | $0.19 | $0.22 | 136.45% |
| Average | 17.15 | 3.55 | 5.99 | 7.84% | $0.9 | $0.83 | 98.02% |
When conducting a detailed analysis of Coeur Mining, the following trends become clear:
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The stock's Price to Earnings ratio of 12.92 is lower than the industry average by 0.75x, suggesting potential value in the eyes of market participants.
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Considering a Price to Book ratio of 1.59, which is well below the industry average by 0.45x, the stock may be undervalued based on its book value compared to its peers.
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Based on its sales performance, the stock could be deemed undervalued with a Price to Sales ratio of 4.11, which is 0.69x the industry average.
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The company has a lower Return on Equity (ROE) of 3.6%, which is 4.24% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.
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The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $450 Million is 0.5x below the industry average, suggesting potential lower profitability or financial challenges.
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With lower gross profit of $430 Million, which indicates 0.52x below the industry average, the company may experience lower revenue after accounting for production costs.
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The company is experiencing remarkable revenue growth, with a rate of 137.79%, outperforming the industry average of 98.02%.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio provides insights into the proportion of debt a company has in relation to its equity and asset value.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
By considering the Debt-to-Equity ratio, Coeur Mining can be compared to its top 4 peers, leading to the following observations:
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Coeur Mining demonstrates a stronger financial position compared to its top 4 peers in the sector.
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With a lower debt-to-equity ratio of 0.07, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.
Key Takeaways
For Coeur Mining in the Metals & Mining industry, the PE, PB, and PS ratios are all low compared to peers, indicating potential undervaluation. However, the low ROE, EBITDA, and gross profit suggest lower profitability levels. On the positive side, the high revenue growth rate stands out, showing strong potential for future performance compared to industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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