B2GOLD CORP (BTO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BTO - CA11777Q2099 - Common Stock
7.83 CAD
+0.3 (+3.98%)
We assign a fundamental rating of 6 out of 10 to BTO. BTO was compared to 820 industry peers in the Metals & Mining industry. BTO has an excellent profitability rating, but there are concerns on its financial health. BTO is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
- In the past year BTO was profitable.
- In the past year BTO had a positive cash flow from operations.
- Of the past 5 years BTO 4 years were profitable.
- Each year in the past 5 years BTO had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.85%, BTO belongs to the top of the industry, outperforming 88.66% of the companies in the same industry.
- BTO's Return On Equity of 6.60% is amongst the best of the industry. BTO outperforms 89.27% of its industry peers.
- BTO has a Return On Invested Capital of 15.82%. This is amongst the best in the industry. BTO outperforms 96.95% of its industry peers.
- BTO had an Average Return On Invested Capital over the past 3 years of 10.53%. This is in line with the industry average of 12.04%.
- The 3 year average ROIC (10.53%) for BTO is below the current ROIC(15.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 6.6% | ||
| ROIC | 15.82% |
ROA(3y)-2%
ROA(5y)4.89%
ROE(3y)-4.15%
ROE(5y)5.33%
ROIC(3y)10.53%
ROIC(5y)13.43%
1.3 Margins
- BTO's Profit Margin of 8.75% is amongst the best of the industry. BTO outperforms 91.71% of its industry peers.
- BTO has a Operating Margin of 40.82%. This is amongst the best in the industry. BTO outperforms 96.95% of its industry peers.
- BTO's Operating Margin has been stable in the last couple of years.
- The Gross Margin of BTO (46.01%) is better than 94.27% of its industry peers.
- BTO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.82% | ||
| PM (TTM) | 8.75% | ||
| GM | 46.01% |
OM growth 3Y-7.12%
OM growth 5Y-0.62%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.22%
GM growth 5Y-0.97%
2. Health
2.1 Basic Checks
- BTO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- BTO has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for BTO has been increased compared to 5 years ago.
- Compared to 1 year ago, BTO has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.91 indicates that BTO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.91, BTO perfoms like the industry average, outperforming 46.71% of the companies in the same industry.
- BTO has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.18, BTO is doing worse than 65.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.91 |
ROIC/WACC1.63
WACC9.72%
2.3 Liquidity
- BTO has a Current Ratio of 1.03. This is a normal value and indicates that BTO is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.03, BTO is in line with its industry, outperforming 41.46% of the companies in the same industry.
- BTO has a Quick Ratio of 1.03. This is a bad value and indicates that BTO is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.46, BTO is not doing good in the industry: 69.02% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 71.43% over the past year.
- BTO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.71% yearly.
- Looking at the last year, BTO shows a very strong growth in Revenue. The Revenue has grown by 30.97%.
- The Revenue has been growing by 10.48% on average over the past years. This is quite good.
EPS 1Y (TTM)71.43%
EPS 3Y-25.99%
EPS 5Y-9.71%
EPS Q2Q%600%
Revenue 1Y (TTM)30.97%
Revenue growth 3Y2.58%
Revenue growth 5Y10.48%
Sales Q2Q%74.68%
3.2 Future
- The Earnings Per Share is expected to grow by 47.30% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 17.03% on average over the next years. This is quite good.
EPS Next Y250.13%
EPS Next 2Y125.67%
EPS Next 3Y92.74%
EPS Next 5Y47.3%
Revenue Next Year65.82%
Revenue Next 2Y42.68%
Revenue Next 3Y33.06%
Revenue Next 5Y17.03%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 15.98, BTO is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of BTO indicates a rather cheap valuation: BTO is cheaper than 94.88% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of BTO to the average of the S&P500 Index (28.60), we can say BTO is valued slightly cheaper.
- The Price/Forward Earnings ratio is 7.56, which indicates a rather cheap valuation of BTO.
- BTO's Price/Forward Earnings ratio is rather cheap when compared to the industry. BTO is cheaper than 96.46% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, BTO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 7.56 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BTO is valued cheaply inside the industry as 98.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
- BTO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of BTO may justify a higher PE ratio.
- A more expensive valuation may be justified as BTO's earnings are expected to grow with 92.74% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y125.67%
EPS Next 3Y92.74%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.03%, BTO has a reasonable but not impressive dividend return.
- BTO's Dividend Yield is rather good when compared to the industry average which is at 0.56. BTO pays more dividend than 99.02% of the companies in the same industry.
- BTO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
- The dividend of BTO is nicely growing with an annual growth rate of 69.07%!
- BTO has been paying a dividend for over 5 years, so it has already some track record.
- As BTO did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)69.07%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
- 56.73% of the earnings are spent on dividend by BTO. This is a bit on the high side, but may be sustainable.
- The dividend of BTO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.73%
EPS Next 2Y125.67%
EPS Next 3Y92.74%
B2GOLD CORP / BTO.CA FAQ
What is the ChartMill fundamental rating of B2GOLD CORP (BTO.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to BTO.CA.
What is the valuation status of B2GOLD CORP (BTO.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to B2GOLD CORP (BTO.CA). This can be considered as Undervalued.
Can you provide the profitability details for B2GOLD CORP?
B2GOLD CORP (BTO.CA) has a profitability rating of 8 / 10.
What is the valuation of B2GOLD CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for B2GOLD CORP (BTO.CA) is 15.98 and the Price/Book (PB) ratio is 2.32.
Is the dividend of B2GOLD CORP sustainable?
The dividend rating of B2GOLD CORP (BTO.CA) is 6 / 10 and the dividend payout ratio is 56.73%.