Fact based stock research
Wesdome Gold Mines (TSX:WDO)
CA95083R1001
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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.
Wesdome Gold Mines stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 35 (worse than 65% compared with investment alternatives), Wesdome Gold Mines (Gold Production, Canada) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Wesdome Gold Mines are low in value (priced high) with a consolidated Value Rank of 12 (worse than 88% of alternatives), and are riskily financed (Safety Rank of 37, which means above-average debt burdens) but show above-average growth (Growth Rank of 93). ...read more
RECOMMENDATION: A Combined Rank of 35, is a hold recommendation based on Wesdome Gold Mines's financial characteristics. As the company Wesdome Gold Mines shows low value with an Obermatt Value Rank of 12 (88% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 93% of comparable companies (Obermatt Growth Rank is 93). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 37 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Wesdome Gold Mines, even a low-value company (in terms of its key financial indicators) can be a good investment. 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 | Gold, TSX Composite |
| Size class | Small |
This stock has achievements: Top 10 Stock.
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Wesdome Gold Mines
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 16 |
|
3 |
|
14 |
|
12 |
|
| GROWTH | ||||||||
| GROWTH | 22 |
|
69 |
|
51 |
|
93 |
|
| SAFETY | ||||||||
| SAFETY | 76 |
|
70 |
|
28 |
|
37 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
49 |
|
26 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
45 |
|
14 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 35 (worse than 65% compared with investment alternatives), Wesdome Gold Mines (Gold Production, Canada) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Wesdome Gold Mines are low in value (priced high) with a consolidated Value Rank of 12 (worse than 88% of alternatives), and are riskily financed (Safety Rank of 37, which means above-average debt burdens) but show above-average growth (Growth Rank of 93). ...read more
RECOMMENDATION: A Combined Rank of 35, is a hold recommendation based on Wesdome Gold Mines's financial characteristics. As the company Wesdome Gold Mines shows low value with an Obermatt Value Rank of 12 (88% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 93% of comparable companies (Obermatt Growth Rank is 93). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 37 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Wesdome Gold Mines, even a low-value company (in terms of its key financial indicators) can be a good investment. 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 | 16 |
|
3 |
|
14 |
|
12 |
|
| GROWTH | ||||||||
| GROWTH | 22 |
|
69 |
|
51 |
|
93 |
|
| SAFETY | ||||||||
| SAFETY | 76 |
|
70 |
|
28 |
|
37 |
|
| COMBINED | ||||||||
| COMBINED | 27 |
|
36 |
|
12 |
|
35 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 12 (worse than 88% compared with alternatives), Wesdome Gold Mines shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Wesdome Gold Mines. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 76, which means that the stock price compared with what market professionals expect for future profits is lower than for 76% of comparable companies, indicating a good value concerning Wesdome Gold Mines's profit levels. But Price-to-Sales is 28 which means that the stock price compared with what market professionals expect for future profits is higher than for 72% of comparable companies, indicating a low value concerning Wesdome Gold Mines's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 8 and for dividend yield, which is lower than for 99% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 12, is a sell recommendation based on Wesdome Gold Mines's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then Wesdome Gold Mines is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 14 |
|
14 |
|
25 |
|
28 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 53 |
|
57 |
|
56 |
|
76 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 20 |
|
10 |
|
19 |
|
8 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 16 |
|
3 |
|
14 |
|
12 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 93 (better than 93% compared with alternatives) for 2024, Wesdome Gold Mines 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 four indicators above average for Wesdome Gold Mines. Sales Growth has a value of 81, which means that, currently, professionals expect the company to grow more than 81% of its competitors. The same is valid for Profit Growth with a value of 98 and for Capital Growth with 57. In addition, Stock Returns had an above-average rank value of 73, which means they have been higher than 73% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 93, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Wesdome Gold Mines exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. 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 | 31 |
|
95 |
|
96 |
|
81 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | n/a |
|
65 |
|
8 |
|
98 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
4 |
|
44 |
|
57 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 38 |
|
69 |
|
49 |
|
73 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 22 |
|
69 |
|
51 |
|
93 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 37 (better than 37% compared with alternatives), the company Wesdome Gold Mines has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Wesdome Gold Mines is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Wesdome Gold Mines and the other two below average. Leverage is at a rank of 76 meaning the company has a below-average debt-to-equity ratio. It has less debt than 76% of its competitors.Refinancing is at a rank of 33, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 67% of its competitors. Liquidity is at a rank of 15, meaning that the company generates less profit to service its debt than 85% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 37 (worse than 63% compared with alternatives), Wesdome Gold Mines has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Wesdome Gold Mines are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Wesdome Gold Mines 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 | 62 |
|
81 |
|
66 |
|
76 |
|
| REFINANCING | ||||||||
| REFINANCING | 32 |
|
12 |
|
1 |
|
33 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 67 |
|
96 |
|
46 |
|
15 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 76 |
|
70 |
|
28 |
|
37 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
75 |
|
33 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
69 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
50 |
|
37 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
8 |
|
30 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
49 |
|
26 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Wesdome Gold Mines from November 14, 2024.
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