Orla Mining Ltd. Common Shares (ORLA)

FairStock Score: 59/100 — STEADY

Key Financials

Strengths

• Generates $667 million in annual free cash flow (13.9% 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 18.4% above cost of capital
• Revenue growth of 308.0% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($4) with negative 291% margin of safety—limited downside protection

AI Analysis

Orla Mining Ltd. Common Shares is a small-cap basic materials company valued at $4.8 billion. Revenue stands at $1.1 billion. From a quality standpoint, Orla shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 2.6 in the grey zone. On valuation, the stock is commanding a steep 47.7x multiple, with trades far above its Graham Number ($4) with no margin of safety. Growth dynamics show revenue growing at 308.0% and profit growth of 203.8%. Our composite FairStock Score of 59/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Orla's 308% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. With $667 million in annual free cash flow (13.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 48x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. 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