Gold Fields Ltd. (NYSE:GFI) Presents a Compelling Value Investment Case

Gold mining companies often present interesting opportunities for value investors looking for companies trading below their actual worth. The "Decent Value" screening method finds securities with good fundamental valuations while keeping acceptable profitability, financial condition, and growth traits. This system matches core value investing ideas by concentrating on companies that seem priced low compared to their basic business health and future outlook.

Gold Fields Ltd. (NYSE:GFI) comes forward as a significant candidate from this screening, getting a total fundamental rating of 8 out of 10 when measured against 156 industry competitors in the Metals & Mining sector. The company's profile shows a globally spread gold producer with activities in South Africa, Australia, Ghana, and Peru, having attributable yearly gold-equivalent production of more than 2.30 million ounces.

Valuation Metrics

The valuation review shows why GFI gets high marks on value factors, with several measures pointing to possible low pricing:

• Price/Forward Earnings ratio of 11.10 looks good compared to industry averages
• Enterprise Value to EBITDA ratio places GFI as less expensive than 80% of industry competitors
• Price/Free Cash Flow ratio indicates better pricing than 77% of mining companies
• PEG ratio, which includes growth outlooks, implies fair valuation

For value investors, these valuation measures are important as they signal the market might be valuing GFI below its real worth. The company trades at a notable lower price than both industry averages and wider market multiples, especially significant considering its good operational features.

Financial Health Assessment

GFI shows good financial health with a rating of 7, backed by several important solvency signs:

• Altman-Z score of 7.09 points to very low bankruptcy risk
• Debt to Free Cash Flow ratio of 2.08 implies strong ability to repay debt
• Careful Debt/Equity ratio of 0.41 shows a balanced method to financing

Financial health is a key part for value investors, as it lowers the danger of permanent loss of capital. GFI's capacity to handle its debts and keep operational flexibility across different gold price situations gives assurance about the company's long-term nature.

Profitability Strength

The company does very well in profitability with a rating of 9, standing with the industry's best:

• Return on Invested Capital of 22.56% is better than 98% of industry competitors
• Operating Margin of 53.08% puts GFI in the top group of mining companies
• Profit Margin of 28.72% shows effective operations
• All margin groups display betterment patterns in recent years

Good profitability supports the value investment case by verifying the company has lasting competitive benefits and effective operations. High returns on capital suggest GFI is not just low-priced but fundamentally sound, decreasing the chance of value trap situations.

Growth Path

GFI's growth rating of 8 shows both past performance and future predictions:

• Earnings Per Share increased 196.68% over the last year
• Five-year average EPS growth of 48.07% shows steady increase
• Revenue rose 50.41% year-over-year
• Forward estimates indicate 35.90% EPS growth and 18.65% revenue growth

Growth features add to the value case by supplying reasons for price gains. The mix of current low valuation with good growth outlooks creates the possibility for multiple improvement as the market acknowledges GFI's getting better fundamentals.

The full fundamental analysis report gives more detail on these measures and what they mean for investment review. The meeting of fair valuation, financial steadiness, very good profitability, and solid growth makes GFI an interesting candidate for more study by value-focused investors.

For investors looking for similar chances, more screening results can be viewed using the Decent Value Stocks screening tool, which methodically finds companies fitting these balanced fundamental requirements.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any security. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance does not guarantee future results, and all investments carry risk including potential loss of principal.