Rating Change #2
Gold Resource Corp (GORO) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- GORO's very impressive revenue growth greatly exceeded the industry average of 10.3%. Since the same quarter one year prior, revenues leaped by 640.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- GORO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, GORO has a quick ratio of 2.34, which demonstrates the ability of the company to cover short-term liquidity needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, GOLD RESOURCE CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for GOLD RESOURCE CORP is currently very high, coming in at 85.20%. It has increased significantly from the same period last year. Along with this, the net profit margin of 107.20% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 337.98% to $18.18 million when compared to the same quarter last year. In addition, GOLD RESOURCE CORP has also vastly surpassed the industry average cash flow growth rate of -49.01%.
Gold Resource Corporation, an exploration stage company, engages in the exploration for and production of gold, silver, precious metals, and base metals, including copper, lead, and zinc primarily in Mexico. The company has a P/E ratio of 24.1, below the average metals & mining industry P/E ratio of 24.7 and above the S&P 500 P/E ratio of 17.7. Gold Resource has a market cap of $1.34 billion and is part of the basic materials sector and metals & mining industry. Shares are up 19.6% year to date as of the close of trading on Wednesday.You can view the full Gold Resource Ratings Report or get investment ideas from our investment research center.
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