Gold Resource

Dividend Yield: 7.10%

Gold Resource (AMEX: GORO) shares currently have a dividend yield of 7.10%.

Gold Resource Corporation engages in the exploration for and production of gold and silver in Mexico. The company also explores for copper, lead, and zinc. The company has a P/E ratio of 16.88.

The average volume for Gold Resource has been 395,900 shares per day over the past 30 days. Gold Resource has a market cap of $533.6 million and is part of the metals & mining industry. Shares are down 34.3% year to date as of the close of trading on Friday.

TheStreet Ratings rates Gold Resource as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:
  • 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. Along with this, the company maintains a quick ratio of 3.27, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for GOLD RESOURCE CORP is rather high; currently it is at 61.60%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, GORO's net profit margin of 31.28% significantly outperformed against the industry.
  • GORO, with its decline in revenue, underperformed when compared the industry average of 4.5%. Since the same quarter one year prior, revenues fell by 21.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 62.91%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 75.00% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, GORO is still more expensive than most of the other companies in its industry.
  • GOLD RESOURCE CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, GOLD RESOURCE CORP reported lower earnings of $0.61 versus $1.08 in the prior year. For the next year, the market is expecting a contraction of 11.5% in earnings ($0.54 versus $0.61).

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Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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