OceanaGold Corp.: Leads amongst peers with strong fundamentals

OceanaGold Corp. relative valuation is UNDERVALUED and it has a fundamental analysis score of 94.

Our analysis is based on comparing OceanaGold Corp. with the following peers – Newcrest Mining Limited, Kingsrose Mining Ltd, Red 5 Limited, Medusa Mining Limited and Kingsgate Consolidated Limited (NCM-AU, KRM-AU, RED-AU, MML-AU and KCN-AU).

OceanaGold Corp. has shown good performance overall, both over the last one year (at 15.32%) as well as over the last month (at 8.40%). Share price performance over the last month, though has been lower than that over the last year. But OceanaGold Corp.’s stock has done better than its overall peer group whose performance was -10.04% over the last month.

Company Snapshot

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • OceanaGold Corp Shs Chess Depository Interests repr 1 shs currently trades at a higher Price/Book ratio (0.96) than its peer median (0.67).
  • OGC-AU outperforms its peers with a relatively high operating performance and the market also expects faster growth relative to its peers
  • OGC-AU has a successful operating model with relatively high net profit margins and asset turns.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • OGC-AU‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • The company’s relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers.
  • Compared with the peers chosen, OGC-AU has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
  • The company’s level of capital investment suggests it might be under-investing in a business with above median returns.
  • OGC-AU has additional debt capacity.
  • Our analysis rates OceanaGold Corp. as UNDERVALUED relative to its peers.

Share Price Performance

Considering peers, relative outperformance over the last year and the last month suggest a leading position.

OGC-AU‘s share price performance of 15.32% over the last 12 months is above peer median of -6.48%. The 30-day trend in its share price performance of 8.40% is also above the peer median of -10.04% suggesting that this company is a leading performer relative to its peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

OceanaGold Corp.’s price of AUD 2.71 is lower than CapitalCube’s implied price of AUD 3.42. CapitalCube believes that at these levels, OceanaGold Corp. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between AUD 1.81 and AUD 3.62.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

OceanaGold Corp. operates as a significant multinational gold producer with a portfolio of operating, development and exploration assets. The company’s assets are located on the South Island of New Zealand and in the northern Philippines. It has built a strong business in New Zealand, operating three mines-Macraes Open Pit, Frasers Underground and the Reefton Open Pit mines. The company has commenced construction of the high grade gold copper Didipio Project located in Luzon, northern Philippines. OceanaGold was founded on December 24, 2003 and is headquartered in Melbourne, Australia.

Disclaimer

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