EQXEquinox Gold Corp.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.4×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
A balanced mix of margins, efficiency, and leverage. ROE 4% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is EQX?
Equinox Gold Corp. earns 4.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.1 points below what the capital costs: growth destroys value
- Operating margin
- 24%
Operating margin · Gold median 38% · fiscal year to FY2025
- Cash conversion
- 2.40×
Cash conversion · 3.11× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +33%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 20% |
| FY2021 | 14% |
| FY2022 | 1.1% |
| FY2023 | 4.6% |
| FY2024 | 17% |
| FY2025 | 24% |
Details›
- Gross marginfiscal year to FY2025
- 35%
- Operating marginfiscal year to FY2025
- 24%
- Net marginfiscal year to FY2025
- 12%
- Free cash flow margin
- 6.9%
- Revenue, trailing twelve months
- $1.82B
- Free cash flow, trailing twelve months
- $126M
- Net income, trailing twelve months
- $221M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.