Goldcorp explores and operates on precious metal properties.(gold, silver, copper, lead, and zinc). Its properties include Red Lake, Porcupine, and Musselwhite gold mines in Canada; Peñasquito, Los Filos and El Sauzal in Mexico; Marlin in Guatemala; Alumbrera in Argentina; and Marigold and Wharf gold mines in the United States. Goldcorp was founded in 1954 and is headquartered in Vancouver.
.Its correlation with the gold price is really high. On the chart of the right we show the share price divided by gold price. It's based on monthly data. The movement is slightly downwards, but with very small standard deviation (because of the high correlation). In general, most of the gold stocks have underperformed gold, these last years. This might be related to the increase in cost to extract gold from the mines, but at certain point it should reverse.
From a fundamental point of view, we find a very solid company which scores 8/9 in the Piotroski index. However, for the six months ended 30 June 2012, Goldcorp revenues decreased 3% and its net income decreased 34% due to the poor performance of some of the mines.
Its ratios are again very stable, with an amazing Current ratio of more than 3 (reflecting its huge holdings of gold) and almost no debt. Its dividend yiel is 1.3%, but its P/E ratio is very high, 25. It's really tough to think of buying a company with P/E ratios > 20. Institutional holders own 67% of Goldcorp, but despite the good ratios, why is it so expensive? The bar diagram below is self-explanatory:
From a fundamental point of view, we find a very solid company which scores 8/9 in the Piotroski index. However, for the six months ended 30 June 2012, Goldcorp revenues decreased 3% and its net income decreased 34% due to the poor performance of some of the mines.
Its ratios are again very stable, with an amazing Current ratio of more than 3 (reflecting its huge holdings of gold) and almost no debt. Its dividend yiel is 1.3%, but its P/E ratio is very high, 25. It's really tough to think of buying a company with P/E ratios > 20. Institutional holders own 67% of Goldcorp, but despite the good ratios, why is it so expensive? The bar diagram below is self-explanatory:
