Equinox Gold (EQX) AI Stock Analysis

• Market Cap: $15.14B
• Dividend Yield: N/A
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): 282.4
• Beta (1Y): 1.63
• Revenue Growth: 90.17%
• EPS Growth: -91.76%
• Country: CA
• Employees: 3,692
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.15
• Shares Outstanding: 784,776,370
• 10 Day Avg. Volume: 2,386,970
• 30 Day Avg. Volume: 2,406,342
• PEG Ratio: <0.01
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 1.50
• P/FCF Ratio: -57.06
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 6.26
• Enterprise Value/Gross Profit: 20.64
• Enterprise Value/Ebitda: 17.47
• 1Y Price Target: $20.18
• Price Target Upside: 4.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.72
• Revenue Forecast (FY): $3.66B

• Rating: 73 Outperform
• Price Target: C$21.50 ▲(11.46% Upside)

Equinox Gold's overall stock score is driven by strong technical indicators and positive corporate events, indicating a promising growth trajectory. However, the high P/E ratio suggests potential overvaluation, and profitability metrics need improvement. The company's robust operational performance and strategic initiatives, such as debt reduction and asset sales, contribute positively to its outlook.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates a positive trajectory and expanding market presence, which can lead to increased market share and long-term financial stability.

Debt Reduction

Substantial debt reduction improves the company's financial health and reduces interest expenses, enhancing its ability to invest in growth opportunities and withstand economic downturns.

Operational Performance

Strong operational performance with record production and mine improvements suggests efficient operations and potential for increased profitability, supporting long-term business success.

Negative Factors

High All-In Sustaining Costs

High all-in sustaining costs can pressure profit margins, limiting the company's ability to generate cash and invest in growth, potentially impacting long-term competitiveness.

Deleveraging Challenges

Significant net debt levels pose a risk to financial flexibility and may constrain the company's ability to pursue strategic initiatives or weather economic fluctuations.

Profitability Challenges

Challenges in profitability and cash flow generation can hinder the company's ability to reinvest in its operations, affecting long-term growth and shareholder value.

Equinox Gold Business Overview & Revenue Model

Company Description

Equinox Gold Corp. engages in the operation, acquisition, exploration, and development of mineral properties. The company primarily explores for gold and silver deposits. Its properties include the Aurizona gold mine located in Maranhão State; the RDM gold mine located in Minas Gerais State; and Fazenda gold mine and the Santa Luz gold mine located in Bahia State, Brazil. The company also hold interests in the Mesquite gold mine and the Castle Mountain property situated in California, the United States; and the Los Filos Gold Mine located in Guerrero State, Mexico. In addition, it holds a 60% interest in the Greenstone project located in Ontario, Canada. The company was formerly known as Trek Mining Inc. and changed its name to Equinox Gold Corp. in December 2017. Equinox Gold Corp. was incorporated in 2007 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Equinox Gold generates revenue primarily through the sale of gold produced from its mining operations. The company's revenue model is built on the extraction and processing of gold ore, which is then sold in the form of gold bullion or gold concentrate to various buyers, including refiners and trading companies. Key revenue streams include direct sales of gold, as well as potential revenue from by-products such as silver or copper, depending on the specific mines' outputs. The company benefits from strategic partnerships and joint ventures that enhance its operational capabilities and market reach. Additionally, favorable gold prices significantly impact revenue, as higher market values for gold can lead to increased earnings. Overall, Equinox Gold's financial performance is closely tied to its production efficiency, cost management, and the prevailing dynamics of the gold market.

Equinox Gold Financial Statement Overview

Summary

Equinox Gold shows strong revenue growth and a solid balance sheet with low leverage, which is positive for long-term stability. However, profitability metrics indicate room for improvement, and declining free cash flow growth poses a potential risk. The company should focus on enhancing profitability and cash flow generation to strengthen its financial position further.

Income Statement

Equinox Gold has demonstrated strong revenue growth of 20.02% in the TTM, indicating a positive trajectory. The gross profit margin of 27.83% and net profit margin of 2.45% reflect moderate profitability, with room for improvement in net profitability. The EBIT margin of 16.22% and EBITDA margin of 33.28% suggest efficient operations, although the decline from previous years indicates potential challenges in maintaining margins.

Balance Sheet

The company's debt-to-equity ratio of 0.34 indicates a conservative leverage position, which is favorable for stability. Return on equity (ROE) at 1.22% is relatively low, suggesting limited efficiency in generating returns from equity. The equity ratio of 54.10% reflects a strong equity base, providing a solid foundation for financial stability.

Cash Flow

The cash flow analysis reveals a decline in free cash flow growth by 26.75%, highlighting potential liquidity challenges. The operating cash flow to net income ratio of 0.53 indicates moderate cash generation relative to net income. The free cash flow to net income ratio of 0.29 suggests that a portion of earnings is being converted into free cash flow, but there is room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.29B	1.51B	1.09B	952.20M	1.08B	842.51M
Gross Profit	694.19M	523.95M	108.98M	84.97M	215.32M	223.62M
EBITDA	820.14M	948.08M	291.09M	130.78M	338.01M	232.51M
Net Income	130.96M	339.29M	28.88M	-106.03M	554.89M	22.29M
Balance Sheet
Total Assets	10.30B	6.71B	4.35B	3.86B	3.97B	2.67B
Cash, Cash Equivalents and Short-Term Investments	402.83M	245.47M	284.66M	237.64M	546.03M	344.93M
Total Debt	1.94B	1.41B	945.37M	842.10M	567.63M	555.19M
Total Liabilities	4.73B	3.32B	1.91B	1.50B	1.38B	1.22B
Stockholders Equity	5.57B	3.40B	2.44B	2.35B	2.59B	1.45B
Cash Flow
Free Cash Flow	121.63M	-39.89M	-164.84M	-500.60M	-23.45M	43.61M
Operating Cash Flow	640.77M	372.18M	358.46M	56.47M	320.78M	216.51M
Investing Cash Flow	-403.41M	-1.11B	-462.67M	-419.00M	-347.57M	-129.32M
Financing Cash Flow	-46.77M	792.48M	92.50M	254.31M	-1.59M	190.08M

Equinox Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EQX, the sentiment is Positive. The current price of 19.29 is above the 20-day moving average (MA) of 18.34, above the 50-day MA of 16.82, and above the 200-day MA of 11.57, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 63.52 is Neutral, neither overbought nor oversold. The STOCH value of 77.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EQX.

Equinox Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDO	81 Outperform	C$3.01B	12.40	42.97%	―	69.33%	253.46%
NGD	78 Outperform	C$8.43B	24.51	22.29%	―	48.70%	1718.41%
OGC	78 Outperform	$6.82B	13.24	21.15%	0.47%	51.00%	532.40%
EQX	73 Outperform	$15.14B	282.43	1.41%	―	90.17%	-91.76%
TXG	71 Outperform	C$5.82B	12.61	17.29%	―	5.33%	143.67%
CXB	69 Neutral	―	―	―	―	20.03%	-46.48%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Equinox Gold Corporate Events

Equinox Gold Achieves Commercial Production at Valentine Gold Mine

Equinox Gold has announced the achievement of commercial production at its Valentine Gold Mine in Newfoundland & Labrador, Canada, marking a significant milestone in its Canadian operations. The mine is expected to reach its full production capacity by Q2 2026, with plans to potentially double its mill throughput in the future, enhancing the company’s production capabilities and market position.

Equinox Gold Achieves Record Q3 Production and Strengthens Financial Position

Equinox Gold Corp. announced a record production of 236,470 ounces of gold in Q3 2025, marking a strong performance following a recent merger. The company is on track to meet its annual production guidance despite divesting its Nevada assets. Significant operational improvements were noted at the Greenstone Gold Mine, with increased mining rates and improved mill grades, while the Valentine Gold Mine commenced production ahead of schedule. Equinox also strengthened its financial position by reducing debt and selling non-core assets, positioning itself for continued growth and value creation into 2026.

Equinox Gold Achieves First Gold Pour at Valentine Mine, Boosting Canadian Production

Equinox Gold has announced the successful first gold pour at its Valentine Gold Mine in Newfoundland and Labrador, marking a significant milestone for the company. This achievement positions Valentine to become Equinox Gold’s second-largest mine and the largest gold mine in Atlantic Canada, with expected annual production of 175,000 to 200,000 ounces of gold for the first 12 years. The commencement of production at Valentine, alongside the ramp-up of the Greenstone project, sets Equinox Gold on a path to becoming the second-largest producer of Canadian gold, benefiting employees, communities, and shareholders.