EGOEldorado Gold Corporation
Is the business good?
The checks split: margins steady and returns not propped up by debt.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 12% = margin × turnover × leverage.
All from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is EGO?
Eldorado Gold Corporation earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 3.1 points above what the capital costs: growth creates value
- Operating margin
- 40%
Operating margin · Gold median 38% · fiscal year to FY2025
- Share count, year on year
- −0.06%
Share count, year on year · flat: no meaningful dilution
- Gross margin
- 49%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 25% |
| FY2021 | 23% |
| FY2022 | 4.8% |
| FY2023 | 18% |
| FY2024 | 32% |
| FY2025 | 40% |
Details›
- Gross marginfiscal year to FY2025
- 49%
- Operating marginfiscal year to FY2025
- 40%
- Net marginfiscal year to FY2025
- 28%
- Revenue, trailing twelve months
- $1.82B
- Net income, trailing twelve months
- $507M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.