TSX-Endeavour Mining plc(EDV:TSX) Scotiabank and Berenberg rate with a Buy

STA Research
by: STA Research

Scotiabank Capital maintained the Outperform rating on Endeavour Mining plc with a $41 target on the miner’s stock price. Berenberg Capital Markets also maintained their Buy rating on the company.

Based on the Endeavour Mining plc stock forecasts from 8 analysts, the average analyst target price for Endeavour Mining plc is CAD 34.78 over the next 12 months. Endeavour Mining plc’s average analyst rating is . Stock Target Advisor’s own stock analysis of Endeavour Mining plc is Slightly Bullish , which is based on 6 positive signals and 5 negative signals. At the last closing, Endeavour Mining plc’s stock price was CAD 31.40. Endeavour Mining plc’s stock price has changed by -2.80% over the past week, +0.61% over the past month and +27.59% over the last year.

Endeavour Mining plc, together with its subsidiaries, operates as a gold mining company in West Africa. Its assets include Houndé, Mana, Boungou, Wahgnion, and Karma mines in Burkina Faso; the Ity mine in Côte d’Ivoire; the Sabodala-Massawa mine in Senegal; Fetekro, Kalana, Bantou, Nabanga, Golden Hill, and Afema development projects; and a portfolio of exploration assets on the Birimian Greenstone Belt across Burkina Faso, Côte d’Ivoire, Mali, Senegal, and Guinea. The company was incorporated in 2021 and is based in London, the United Kingdom

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

 

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