NEW YORK (TheStreet) -- Shares of Eldorado Gold (EGO) - Get Eldorado Gold Corporation Report are slipping, down 3% to $5.50 in midday trading Monday, as gold prices decline following the results of the elections in Greece, CNBC reports.
Equities are recovering today after an anti-austerity party won elections in Greece, resolving the uncertainty surrounding the election, CNBC noted.
Spot gold is down 1.2% to $1,278.65 as of 11:38 a.m. ET today.
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Canada-based Eldorado Gold is an exploration-stage, a discovery-stage, a development-stage, a production-stage and a reclamation-stage mining company with its primary focus on gold, iron ore and silver-lead-zinc mines.
Separately, TheStreet Ratings team rates ELDORADO GOLD CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ELDORADO GOLD CORP (EGO) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- ELDORADO GOLD CORP's earnings per share declined by 40.0% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, ELDORADO GOLD CORP swung to a loss, reporting -$0.91 versus $0.45 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 45.6% when compared to the same quarter one year ago, falling from $36.41 million to $19.79 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, ELDORADO GOLD CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- In its most recent trading session, EGO has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- Net operating cash flow has decreased to $92.19 million or 23.34% when compared to the same quarter last year. Despite a decrease in cash flow of 23.34%, ELDORADO GOLD CORP is in line with the industry average cash flow growth rate of -29.15%.
- You can view the full analysis from the report here: EGO Ratings Report