Eldorado Gold Corporation Ordinary Shares (EGO)

FairStock Score: 79/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $65 million in annual free cash flow (0.8% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 12.8% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.30, providing financial flexibility
• Healthy net profit margin of 13.2% showing consistent profitability

AI Analysis

Eldorado Gold Corporation Ordinary Shares is a small-cap basic materials company valued at $8.3 billion. The business generates $1.8 billion in annual revenue with a 13.2% net margin and $65 million in free cash flow. From a quality standpoint, Eldorado shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 2.0 in the grey zone. On valuation, the stock is attractively valued at 12.5x earnings, with a modest 10% margin of safety vs Graham Number. Growth dynamics show revenue growing at 27.7% and profit growth of 129.2%. Our composite FairStock Score of 79/100 reflects strong fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

Eldorado's 28% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. With $65 million in annual free cash flow (0.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the basic materials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer