Evolution Mining (EVN.AX)

Materials · ASX · Australia

A$10.48-22.14% today

Fundamentals

Market capA$23.62B

P/E ratio17.6

Dividend yield3.44%

Revenue growth (YoY)+37.5%

Profit margin26.0%

Return on equity26.4%

52-week rangeA$6.96 to A$17.75

Valuation and ratings

DCF fair valueA$25.41

Upside to fair value+142.5%

Analyst target (mean)A$13.28

Analyst rangeA$4.50 to A$19.45

Analysts covering17

Consensus viewhold

Moat score81/100

Overall rating84/100, Strong Buy

Evolution Mining trades at A$10.48, which is 142% below the A$25.41 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.

Our moat model scores it 81 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 17.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About Evolution Mining

Evolution Mining Limited engages in the exploration, mine development and operation, and sale of gold and gold-copper concentrates in Australia and Canada. It also explores for copper and silver deposits. The company was formerly known as Catalpa Resources Limited and changed its name to Evolution Mining Limited in November 2011. Evolution Mining Limited was incorporated in 1998 and is based in Sydney, Australia.

Industry: GoldHQ: Australia

EVN.AX passes 6 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Undervalued on cash flow

Companies trading at least 25% below what our discounted cash flow model says the future cash is worth today.

Quality at a fair price

Good businesses, not cheap ones. A wide moat and a strong rating, at a multiple that has not run away.

Wide moat compounders

Businesses with a structural reason competitors cannot take their profits away. The rarest and most valuable thing in investing.

Dividend powerhouses

Yields above 3%, filtered for the one thing yield screens never check: whether the company can actually afford it.

Growing dividend payers

A modest yield attached to a growing business beats a large yield attached to a shrinking one, every time, over any horizon that matters.

High return on equity, low debt

A high ROE is easy to fake with borrowing. This screen demands the return without the leverage, which is a much shorter list.

Common questions

Is Evolution Mining (EVN.AX) undervalued?

Against our discounted cash flow estimate of A$25.41, EVN.AX at A$10.48 is 142% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

What is EVN.AX's P/E ratio?

EVN.AX trades at 17.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

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Open EVN.AX in the app Free guides and screens

Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.