Rating Change #3

Eldorado Gold Corp ( EGO) 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, expanding profit margins, growth in earnings per share and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.9%. Since the same quarter one year prior, revenues rose by 23.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • EGO's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • ELDORADO GOLD CORP has improved earnings per share by 10.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, ELDORADO GOLD CORP increased its bottom line by earning $0.59 versus $0.38 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 29.3% when compared to the same quarter one year prior, rising from $52.47 million to $67.85 million.
  • The gross profit margin for ELDORADO GOLD CORP is rather high; currently it is at 66.40%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.00% is above that of the industry average.
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Eldorado Gold Corporation, together with its subsidiaries, engages in the exploration, development, mining, and production of gold properties in Brazil, China, Greece, and Turkey. The company has a P/E ratio of 17.4, above the average metals & mining industry P/E ratio of 17.1 and below the S&P 500 P/E ratio of 17.7. Eldorado has a market cap of $7.31 billion and is part of the basic materials sector and metals & mining industry. Shares are down 25.2% year to date as of the close of trading on Thursday.

You can view the full Eldorado Ratings Report or get investment ideas from our investment research center.

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