GoldMining Return On Equity vs. Current Valuation

GOLD Stock  CAD 1.17  0.04  3.31%   
Considering the key profitability indicators obtained from GoldMining's historical financial statements, GoldMining may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess GoldMining's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
(0.20)
Current Value
(0.21)
Quarterly Volatility
0.19983052
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, GoldMining's Debt To Equity is very stable compared to the past year. As of the 5th of December 2024, Capex Per Share is likely to grow to 0.01, while Book Value Per Share is likely to drop 0.42.
For GoldMining profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GoldMining to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well GoldMining utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GoldMining's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of GoldMining over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
To learn how to invest in GoldMining Stock, please use our How to Invest in GoldMining guide.
Please note, there is a significant difference between GoldMining's value and its price as these two are different measures arrived at by different means. Investors typically determine if GoldMining is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GoldMining's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

GoldMining Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining GoldMining's current stock value. Our valuation model uses many indicators to compare GoldMining value to that of its competitors to determine the firm's financial worth.
GoldMining is rated # 5 in return on equity category among its peers. It is rated # 4 in current valuation category among its peers . At this time, GoldMining's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value GoldMining by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for GoldMining's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

GoldMining Current Valuation vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

GoldMining

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.21
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

GoldMining

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
220.35 M
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

GoldMining Current Valuation vs Competition

GoldMining is rated # 4 in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Materials industry is currently estimated at about 8.44 Billion. GoldMining holds roughly 220.35 Million in current valuation claiming about 2.61% of all equities under Materials industry.

GoldMining Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in GoldMining, profitability is also one of the essential criteria for including it into their portfolios because, without profit, GoldMining will eventually generate negative long term returns. The profitability progress is the general direction of GoldMining's change in net profit over the period of time. It can combine multiple indicators of GoldMining, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-60.8 M-57.7 M
Operating Income-29.9 M-28.4 M
Income Before Tax-29.2 M-27.7 M
Net Loss-33.1 M-31.4 M
Total Other Income Expense Net744 K781.3 K
Income Tax Expense5.6 M5.9 M
Interest Income755.5 K793.3 K
Net Loss-35 M-33.3 M
Net Loss-15.2 M-14.4 M
Net Interest Income-548.1 K-520.7 K
Change To Netincome1.1 M1.2 M
Net Loss(0.17)(0.15)
Income Quality 0.91  0.81 
Net Income Per E B T 1.02  0.79 

GoldMining Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on GoldMining. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of GoldMining position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the GoldMining's important profitability drivers and their relationship over time.

Use GoldMining in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if GoldMining position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GoldMining will appreciate offsetting losses from the drop in the long position's value.

GoldMining Pair Trading

GoldMining Pair Trading Analysis

The ability to find closely correlated positions to GoldMining could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GoldMining when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back GoldMining - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling GoldMining to buy it.
The correlation of GoldMining is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as GoldMining moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if GoldMining moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for GoldMining can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your GoldMining position

In addition to having GoldMining in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Rubber and Plastic Products Thematic Idea Now

Rubber and Plastic Products
Rubber and Plastic Products Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Rubber and Plastic Products theme has 27 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Rubber and Plastic Products Theme or any other thematic opportunities.
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When determining whether GoldMining is a strong investment it is important to analyze GoldMining's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact GoldMining's future performance. For an informed investment choice regarding GoldMining Stock, refer to the following important reports:
Check out Risk vs Return Analysis.
To learn how to invest in GoldMining Stock, please use our How to Invest in GoldMining guide.
You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project GoldMining's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of GoldMining at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include GoldMining's income statement, its balance sheet, and the statement of cash flows.
Potential GoldMining investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although GoldMining investors may work on each financial statement separately, they are all related. The changes in GoldMining's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on GoldMining's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.