BARRICK GOLD CORP (NYSE:B) – An Undervalued Stock with Strong Fundamentals

BARRICK GOLD CORP (NYSE:B) was identified as a decent value stock by our stock screener. The company shows solid profitability and financial health while trading at a reasonable valuation, making it a potential candidate for value investors. Below, we examine the key factors that make this stock stand out.

Valuation

Barrick Gold’s valuation metrics suggest the stock is attractively priced:

• P/E Ratio: At 14.21, it trades below both the industry average (28.44) and the S&P 500 (26.29).
• Forward P/E: 10.86, indicating expectations of earnings growth.
• Enterprise Value/EBITDA: The ratio is lower than 87.66% of industry peers, reinforcing its undervaluation.

Profitability

The company maintains strong profitability metrics:

• Operating Margin: 36.66%, outperforming 91.56% of competitors.
• Return on Equity (ROE): 9.50%, better than 75.32% of peers.
• Profit Margin: 17.46%, ranking higher than 86.36% of the sector.

Financial Health

Barrick Gold demonstrates a stable financial position:

• Debt/Equity Ratio: A healthy 0.19, indicating balanced leverage.
• Current Ratio: 2.87, showing strong liquidity to cover short-term obligations.
• Debt/FCF Ratio: 2.85, suggesting manageable debt levels relative to cash flow.

Growth

While growth is moderate, recent performance is encouraging:

• EPS Growth (Past Year): Up 60.67%.
• Revenue Growth (Past Year): Increased by 15.69%.
• Future EPS Growth: Expected to rise by 8.03% annually.

Our Decent Value Stocks screener lists more stocks with similar characteristics and is updated daily.
For a deeper analysis, review the full fundamental report on Barrick Gold.

Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.